NGV-2000-9106

This report presents the results of our financial statement audit of the Davidson County SmartStart, Inc. (Davidson Partnership) as of and for the year ended June 30, 2000. Our audit was made by authority of Article 5A of G.S. Sec. 147. The accounts and operations of the Davidson Partnership were subject to audit procedures as we considered necessary for us to report on the accompanying financial statement. The audit procedures were conducted in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. The audit of the Davidson Partnership was made in conjunction with the Early Childhood Initiatives (Smart Start) program authorized by G.S. 143B-168.10-.16. This statute created the North Carolina Partnership for Children, Inc. and required the implementation of local demonstration projects (local partnerships). The Davidson Partnership is one of these local partnerships. As such, the Davidson Partnership is a private nonprofit 501(c)(3) organization and is required by G.S. 143B-168.14(b) to have an annual financial and compliance audit conducted by the State Auditor. Some of the results are: The accompanying financial statement presents fairly, in all material respects, the amounts and disclosures made in accordance with the regulatory basis of accounting established by the North Carolina Partnership for Children, Inc. These matters are described in the Independent Auditor's Report. Our tests disclosed no instances of noncompliance which require disclosure herein under Government Auditing Standards. The following significant deficiency (finding) was detected in internal control over financial reporting: - Control Environment - This matter is described in the Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting and the Audit Findings and Recommendations section of this report.