Dodge County Board of Education, Eastman, Georgia, annual financial report for the fiscal year ended 2021 June 30 (including independent auditor's reports).

DODGE COUNTY BOARD OF EDUCATION
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
NO ASSURANCE IS PROVIDED ON THESE FINANCIAL STATEMENTS

Dodge County Board of Education Table of Contents

Section I

Financial Independent Auditor's Report

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G Notes to the Basic Financial Statements

8

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

41

2 Schedule of Contributions Teachers Retirement System of Georgia

43

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

45

4 Schedule of Contributions Employees' Retirement System of Georgia

47

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

49

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

51

Dodge County Board of Education Table of Contents Section I Schedules Required Supplementary Information

7 Schedule of Contributions School OPEB Fund

52

8 Notes to the Required Supplementary Information

53

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

55

Supplementary Information

10 Schedule of Expenditures of Federal Awards

56

11 Schedule of State Revenue

58

12 Schedule of Approved Local Option Sales Tax Projects

59

Section II

Compliance and Internal Control Reports
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance

Section III

Auditee's Response to Prior Year Findings and Questioned Costs Summary Schedule of Prior Year Findings Section IV

Findings and Questioned Costs Schedule of Findings and Questioned Costs

Dodge County Board of Education Table of Contents Section V Management's Corrective Action For Current Year Findings Schedule of Management's Corrective Action

Section I Financial

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. Susan Long, Superintendent and Members of the Dodge County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Dodge County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 11 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards

is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 20, 2023 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
April 20, 2023

(This page left intentionally blank)

Dodge County Board of Education

DODGE COUNTY BOARD OF EDUCATION
STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS
Cash and cash equivalents Investments Receivables, net of allowances:
Taxes Intergovernmental:
Local State Federal Other Inventory Capital assets (non-depreciable) Capital assets (net of accumulated depreciation) Total assets
DEFERRED OUTFLOWS OF RESOURCES
Related to pension plans Related to OPEB plan
Total deferred outflows of resources
LIABILITIES
Accounts payable Salaries and benefits payable Unearned revenue Net pension liability, due in more than one year Net OPEB liability, due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pension plans Related to OPEB plan
Total deferred inflows of resources
NET POSITION
Investment in capital assets Restricted for:
Continuation of federal programs Capital projects Unrestricted (deficit)
Total net position

EXHIBIT "A"

Governmental Activities

$

19,192,318

442,917

1,150,559

11,990 2,741,598 1,539,744
22,260 56,345 1,010,742 37,176,834 63,345,307

9,083,053 5,288,868 14,371,921

1,284,015 2,202,415
7,816 32,076,414 27,478,870 63,049,530

1,766,072 6,067,057 7,833,129

38,187,576

2,194,716 6,231,411

(39,779,134)

$

6,834,569

The accompanying notes are an integral part of these financial statements.

- 1 -

DODGE COUNTY BOARD OF EDUCATION
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2021

EXHIBIT "B"

Functions/Programs Governmental activities: Instruction Support services:
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Other support services Food services operations Total governmental activities

Expenses
$ 26,022,062
2,264,118
1,374,837 575,290 891,070
1,564,986 8,513
1,714,082 1,890,657
16,566 2,682,460 $ 39,004,641

Charges for Services

Program Revenues Operating Grants and
Contributions

Capital Grants and Contributions

Net (Expense) Revenue and
Changes in Net Position
Governmental Activities

$ 319,421 $ 18,780,263 $ 156,657 $

(6,765,721)

-

722,586

-

(1,541,532)

-

516,798

-

-

415,941

-

-

663,591

-

-

1,009,886

-

-

8,513

-

-

930,229

-

-

816,068

231,660

-

15,500

-

28,511

3,484,939

-

$ 347,932 $ 27,364,314 $ 388,317

(858,039) (159,349) (227,479) (555,100)
(783,853) (842,929)
(1,066) 830,990 (10,904,078)

General revenues: Taxes: Property taxes, levied for maintenance and operations Sales taxes, for capital projects Intangible and transfer taxes Railroad equipment tax Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous Total general revenues Change in net position
Net position, beginning of year, as restated Net position, end of year

6,515,724

2,354,210

92,205

37,968

4,939,355

5,332

410,649

14,355,443

3,451,365

3,383,204

$

6,834,569

The accompanying notes are an integral part of these financial statements.

- 2 -

DODGE COUNTY BOARD OF EDUCATION
BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2021

EXHIBIT "D"

ASSETS
Cash and cash equivalents Investments Receivables net of allowances:
Taxes Intergovernmental:
Local State Federal Other Due from other funds Inventory
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
LIABILITIES Accounts payable Salaries and benefits payable Due to other funds Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes
FUND BALANCES Nonspendable:
Inventory Restricted:
Federal programs Capital projects Assigned: Student activities Unassigned
Total fund balances
Total liabilities, deferred inflows of resources and fund balances

General

Capital Projects

Total Governmental
Funds

$

12,525,847 $

6,666,471 $ 19,192,318

442,917

-

442,917

950,178

200,381

1,150,559

11,990 2,741,598 1,539,744
22,260 77,220 56,345

-

11,990

-

2,741,598

-

1,539,744

-

22,260

-

77,220

-

56,345

$

18,368,099 $

6,866,852 $ 25,234,951

$

725,794 $

558,221 $

1,284,015

2,202,415

-

2,202,415

-

77,220

77,220

7,816

-

7,816

2,936,025

635,441

3,571,466

522,667 522,667

-

522,667

-

522,667

56,345
2,138,371 -
367,690 12,347,001 14,909,407

-
6,231,411
6,231,411

56,345
2,138,371 6,231,411
367,690 12,347,001 21,140,818

$

18,368,099 $

6,866,852 $ 25,234,951

The accompanying notes are an integral part of these financial statements.

- 3 -

DODGE COUNTY BOARD OF EDUCATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2021

EXHIBIT "D"

Total fund balances - governmental funds

$ 21,140,818

Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
Cost Less accumulated depreciation
Other long-term assets are not available to pay for current period expenditures and are deferred in the funds.
Property taxes
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Net pension liability Net OPEB liability Deferred outflows - pensions Deferred inflows - pensions Deferred outflows - OPEB Deferred inflows - OPEB
Net position of governmental activities

$ 62,122,480 (23,934,904)

38,187,576

522,667

$ (32,076,414) (27,478,870) 9,083,053 (1,766,072) 5,288,868 (6,067,057)

(53,016,492)

$

6,834,569

The accompanying notes are an integral part of these financial statements.

- 4 -

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "E"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

REVENUES Property taxes Sales taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous Total revenues
EXPENDITURES Current: Instruction Support services: Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Other support services Food services operations Capital outlay Total expenditures
Net change in fund balances
FUND BALANCES, beginning of year, as restated
FUND BALANCES, end of year

General

Capital Projects

Total Governmental
Funds

$ 6,742,894 $ 92,205 37,968
24,861,548 7,679,529 347,932 708 410,649
40,173,433

- $ 2,621,273
156,657
4,624 2,782,554

6,742,894 2,713,478
37,968 25,018,205
7,679,529 347,932 5,332 410,649
42,955,987

22,731,024
2,132,767 1,299,480
541,894 844,290 1,450,200
8,513 1,685,858 1,704,492
36,553 2,625,530
35,060,601
5,112,832
9,796,575
$ 14,909,407 $

670,929
5,290 5,981 9,350 249,576 724,495 1,665,621
1,116,933
5,114,478
6,231,411 $

23,401,953
2,132,767 1,299,480
541,894 849,580 1,456,181
8,513 1,695,208 1,954,068
36,553 2,625,530
724,495 36,726,222
6,229,765
14,911,053
21,140,818

The accompanying notes are an integral part of these financial statements.

- 5 -

DODGE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The net effect of the amount by which depreciation expense exceeded captial outlay is to decrease net position.
Capital outlay Depreciation expense
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
Property taxes Sales taxes
Issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.
Adjustments related to pensions Adjustments related to OPEB

$ 6,229,765

$ 1,068,067 (1,509,717)

(441,650)

$ (227,170) (267,063)

(494,233)

$ (1,626,681) (215,836)

(1,842,517)

$ 3,451,365

The accompanying notes are an integral part of these financial statements.

- 6 -

(This page left intentionally blank)

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Dodge County Board of Education (the "School District") was established under the laws of the State of Georgia and operates under the guidance of a School Board (the "Board") elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles ("GAAP") as prescribed by the Governmental Accounting Standards Board ("GASB"). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions.
The Statement of Net Position presents the School District's assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.

- 8 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government-Wide Statements (Continued)
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include: (a) charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax ("ESPLOST"), and grants from the Georgia State Financing and Investing Commission that are restricted, committed, or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.

- 9 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting
The basis of accounting determines when transactions are reported in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net position available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.

- 10 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting (Continued)
The State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education ("QBE") Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally, teachers are contracted for the school year (July 1 June 30) and paid over a 12-month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School District over the same 12-month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in GASB Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
New Accounting Pronouncements
In fiscal year 2021, the School District adopted GASB Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on: 1) whether a government is controlling the assets of the fiduciary activity, and 2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and post-employment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note.
In fiscal year 2021, the School District adopted GASB Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements.
Cash and Cash Equivalents
Composition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool ("Georgia Fund 1") and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated ("O.C.G.A.") 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured chartered building and loan associations.
- 11 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investments
Composition of Investments The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.
Investments made by the School District in non-participating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on federal, state or other grants for expenditures made, but not reimbursed, and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met.
Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Inventories
Food Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their federally assigned value and purchased foods inventories are reported at cost (first-in/first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

- 12 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Capital Assets

On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.

Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements.

Depreciation is computed using the straight-line method for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.

Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows:

Land Construction in Progress Land Improvements Buildings and Improvements Equipment Intangible Assets

Capitalization Policy
All All $ 5,000 5,000 5,000 200,000

Estimated Useful Life
N/A N/A 15 to 80 Years Up to 80 Years 5 to 50 Years 5 to 10 Years

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and, therefore, will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

- 13 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions ("OPEB")
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-employment Benefit Fund (the "School OPEB Fund") and additions to/deductions from the School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by the School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Non-spendable Amounts that are not in spendable form (e.g., inventory and prepaid items) or are legally or contractually required to be maintained intact (e.g., permanent fund principal).
Restricted Amounts that can be spent only on specific purposes stipulated by law through constitutional provisions or enabling legislation or by the external providers of those resources (e.g., grants or donations).
Committed Amounts that can only be used for the specific purposes determined by a formal action of the Board. Commitments may be changed or lifted only by referring to the formal action of the Board that imposed the constraint originally (e.g., the Board's commitment in connection with future construction projects).

- 14 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balances (Continued)
Assigned Amounts intended to be used by the government for specific purposes. Intent can be expressed by the Board of Education or by a designee to whom the Board of Education delegates authority. In governmental funds other than the General Fund, assigned fund balance represents the amount that is not restricted or committed. This indicates the resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund.
Unassigned Amounts within the General Fund not meeting the definition of any aforementioned category. The General Fund is the only fund that reports positive unassigned fund balance. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
The responsibility for designating funds to specific classification is as follows:
Committed Fund Balance The Board of Education is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Funds should be committed prior to the end of the fiscal year, although the exact amount may be determined in the subsequent fiscal year.
Assigned Fund Balance The Board of Education has authorized the Superintendent and the Director of Finance as the officials authorized to assign fund balances to a specific purpose in accordance with the School District's policy.
When restricted and unrestricted fund balances are both available for expenditure, when the expenditure is incurred, the restricted fund balance is considered to be expended first.
When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications (committed, assigned or unassigned) could be used, the School District considers that committed amounts are to be reduced first, followed by assigned amounts, and then by unassigned amounts.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

- 15 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property Taxes
The Dodge County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on October 20, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Dodge County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $5,749,933.
The tax millage rate levied for the 2020 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.000 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations, amounted to $992,961.
Sales Taxes
ESPLOST at the fund reporting level, during the year amounted to $2,621,273 and is to be used for capital outlay for educational purposes. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the General Fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America.

- 16 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 3: BUDGETARY DATA (CONTINUED)
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS, CASH EQUIVALENTS, AND INVESTMENTS
Collateralization of Deposits O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than 10 days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1), the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of
the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities
of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute
that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of
Georgia, and

- 17 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 4: DEPOSITS, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)
Collateralization of Deposits (Continued)
(7) Bonds, bills, notes, certificates of indebtedness or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
Categorization of Deposits Custodial credit risk is the risk that in the event of bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, the School District had deposits with a carrying value of $12,968,764 (excluding cash equivalents) and bank balances of $13,687,235 including $442,917 classified as certificates of deposit. The bank balances insured by Federal depository insurance were $3,750,000 and the bank balances collateralized with securities held by the pledging institution or by the pledging institution's trust department or agent in the School District's name were $7,897,325.
At June 30, 2021, $2,039,910 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program ("SDP").
The School District participates in the SDP, a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer ("OST") sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75% and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrant. The program lists the types of eligible collateral. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payments under any letters of credit or assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

- 18 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 4: DEPOSITS, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)

Categorization of Deposits (Continued)

Reconciliation of cash and cash equivalents to carrying value of deposits:

Statement of Net Position Cash and cash equivalents

$

19,192,318

Add: Deposits with an original maturity of three months or more reported as an investment.
Less: Investment pool reported as cash and cash equivalents: Georgia Fund 1
Total carrying value of deposits - June 30, 2021

442,917

(6,666,471)

$

12,968,764

Categorization of Cash Equivalents The School District reported cash equivalents of $6,666,471 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021, was 36 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer ("OST"), is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, OST for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Consolidated Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

- 19 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 4: DEPOSITS, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)

Categorization of Investments At June 30, 2021, the School District had the following investments:

Investment Certificate of deposit Certificate of deposit

Maturities

Rating*

Cost-Based

November 30, 2021 N/A $

220,320

November 30, 2021 N/A

222,597

$

442,917

Percentage of Investments
49.79% 50.30%

Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk.

Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk.

Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed by O.C.G.A. 36-83-4. The School District does not have a formal policy that would further limit its investment choices or one that addresses credit risk.

Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. Each of the School District's certificates of deposit represents approximately 50% of the School District's total investments.

NOTE 5: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture ("USDA") for school breakfast and lunch programs. These commodities are recorded at their federally assigned value. See Note 2 Inventories.

- 20 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 6: CAPITAL ASSETS

The following is a summary of changes in the capital assets of governmental activities during the fiscal year:

Governmental activities:
Capital assets, not being depreciated: Land Construction in progress Total
Capital assets, being depreciated: Buildings and improvements Equipment Land improvements
Total Less accumulated depreciation for:
Buildings and improvements Equipment Land improvements
Total
Total capital assets, being depreciated, net
Governmental activities capital assets, net

Beginning Balance

Increas es

Decreas es

Ending Balance

$

986,639 $

24,103

1,010,742

- $

- $

986,639

-

-

24,103

-

-

1,010,742

51,028,213 6,370,309 2,822,578
60,221,100

1,068,067
-
1,068,067

(177,429)
-
(177,429)

51,028,213 7,260,947 2,822,578
61,111,738

(16,056,834) (4,693,319) (1,852,463) (22,602,616)

(982,766) (445,303) (81,648) (1,509,717)

177,429
177,429

(17,039,600) (4,961,193) (1,934,111) (23,934,904)

37,618,484

(441,650)

-

37,176,834

$ 38,629,226 $ (441,650) $

- $ 38,187,576

Current year depreciation expense by function is as follows:

Instruction Support services:
Pupil services General administration School administration Maintenance and operations Student transportation
Central Support Services Food services

$ 24,228 6,961 1,768 23,038
242,971
2,221

$ 1,162,891
301,187 45,639

Total depreciation expense

$ 1,509,717

- 21 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 7: RISK MANAGEMENT

Commercial Insurance

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District has obtained commercial insurance for risk of loss associated with these risks. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three fiscal years.

Georgia School Board Association Risk Management Fund

The School District participates in the Georgia School Board Association of Risk and Insurance Management System (the "System") , a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce the risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer the System, including the processing and defense of claims brought against members of the System. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime, cyber risk, and automobile risks. Payment of excess insurance for the System varies by the line of coverage.

Unemployment Compensation

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District had no unemployment compensation liability, claims or paid claims during the last two fiscal years.

Surety Bond

The School District purchased a surety bond to provide additional insurance coverage as follows:

Position Covered Superintendent

Amount $ 50,000

- 22 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 8: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description. Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the O.C.G.A. are provided OPEB through the School OPEB Fund a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (the "Board"). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided. The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System ("ERS"), Georgia Judicial Retirement System ("JRS"), Legislative Retirement System ("LRS"), Teachers' Retirement System ("TRS") or Public School Employees' Retirement System ("PSERS"). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement ("HRA"), Health Maintenance Organization ("HMO") and a High Deductible Health Plan ("HDHP"). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions. As established by the Board, the School OPEB Fund is substantially funded on a pay-asyou-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $672,602 for the year ended June 30, 2021. Active employees are not required to contribute to the School OPEB Fund.
- 23 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2021, the School District reported a liability of $27,478,870 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.187088%, which was an increase of 0.000002% from its proportion measured as of June 30, 2019.
For the year ended June 30, 2021, the School District recognized OPEB expense of $888,438. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

De fe rre d Outflow of Re s ource s

De fe rre d Inflow of Re s ource s

Differences between expected and actual experience

$

-

Changes in assumptions

4,544,395

Net difference between projected and actual earnings

on OPEB plan investments

71,620

Changes in proportion and differences between School District

contributions and proportionate share of contributions

251

School District contributions subsequent to the

measurement date

672,602

$ 2,999,839 2,445,028 622,190 -

Total

$ 5,288,868 $ 6,067,057

- 24 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)

School District contributions subsequent to the measurement date of $672,602 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Ending June 30,
2022 2023 2024 2025 2026 2027

OPEB $ (749,242)
(751,164) (541,362)
(1,767) 427,577 165,167

Actuarial assumptions. The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020:

OPEB:

Inflation Salary increases
Long-term expected rate of return
Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible
Ultimate trend rate Pre-Medicare Eligible Medicare Eligible
Year of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible

2.50% 3.00% 8.75%, including inflation 7.30%, compounded annually, net of investment expense, and including inflation
7.00% 5.25%
4.50% 4.50%
2029 2023

- 25 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Actuarial assumptions (Continued). Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:
For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with the MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with the MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirement. For both, rates of improvement were reduced 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) was used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward five years for both males and females) was used for the period after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future mortality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ended June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

- 26 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)

Actuarial assumptions (Continued). The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

Fixed Income Equities
*Net of inflation

Total

OPEB Long-Term Expected

Target

Real Rate

Allocation

of Return*

30.00% 70.00% 100.00%

0.50% 9.20%

Discount rate. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 2.22% was used as the discount rate as compared with last year's rate of 3.58%. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal Bond Buyers Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118.

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate. The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 2.22%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1 percentage-point higher (3.22%) than the current discount rate:

School OPEB Fund- Discount Rate
School District's proportionate share of the OPEB liablity

1% Decrease (1.22% )

Current Discount Rate
(2.22% )

1% Increase (3.22% )

$

32,283,139 $

27,478,870 $ 23,636,797

- 27 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

School OPEB Fund - Healthcare Cost Trend Rate
School District's proportionate share of the OPEB liablity

1% Decrease

Current Healthcare Cost
Trend Rate

1% Increase

$

22,878,922 $

27,478,870 $ 33,434,467

OPEB plan fiduciary net position. Detailed information about the OPEB plan's fiduciary net position is available in the Annual Consolidated Financial Report which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.
NOTE 10: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia as further explained below:
Teachers' Retirement System of Georgia ("TRS")
Plan Description. All teachers of the School District as defined in 47-3-60 of the O.C.G.A. and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers' Retirement System of Georgia ("TRS"). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees ("TRS Board"). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The TRS issues a publicly available separate financial audit report that can be obtained at https://www.trsga.com/publications/.

- 28 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)
Teachers' Retirement System of Georgia ("TRS") (Continued)
Benefits Provided. TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after ten years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions. Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.98% of payroll was required by the School District and 0.08% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,229,485 and $13,232 from the School District and the State, respectively.
Employees' Retirement System ("ERS")
Plan Description. The Employees' Retirement System of Georgia ("ERS") is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at https://www.ers.ga.gov/financials.
Benefits Provided. The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan ("GSEPS"). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.

- 29 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)
Employees' Retirement System ("ERS") (Continued)
Benefits Provided (Continued). Under the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, post-retirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions. Member contributions under the Old Plan are 4.00% of annual compensation, up to $4,200, plus 6.00% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits.
Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate, actuarially determined annually, for the year ended June 30, 2021 was 24.66% of annual covered payroll for Old and New Plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $39,381 for the current fiscal year.
Public School Employees' Retirement System ("PSERS")
Plan Description. PSERS is a cost sharing multiple employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers' Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at https://www.ers.ga.gov/financials.

- 30 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)
Public School Employees' Retirement System ("PSERS") (Continued)
Benefits Provided. A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates or withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions. The General Assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current year fiscal year contribution was $75,655.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $32,076,414 for its proportionate share of the net pension liability for TRS ($31,776,688) and for ERS ($299,726).

- 31 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the Net Pension Liability
State of Georgia's proportionate share of the Net Pension Liability associated with the School District

$ 31,776,688
235,456 $ 32,012,144

The net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 0.131179%, which was a decrease of 0.003096% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.007111%, which was an increase of 0.000714% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $375,956.
The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.
For the year ended June 30, 2021, the School District recognized pension expense of $4,833,552 for TRS, $61,618 for ERS, and $75,655 for PSERS and revenue of $1,075 for TRS and $75,655 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 32 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on
pension plan investments Changes in proportion and differences between School District
contributions and proportionate share of contributions School District contributions subsequent to the
measurement date
Total

TRS

De fe rre d Outflows of Re s ource s

De fe rre d Inflows of Re s ource s

$ 1,383,885 $

-

3,273,035

-

765,347

-

363,650

1,766,072

3,229,485

-

$ 9,015,402 $ 1,766,072

Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on
pension plan investments Changes in proportion and differences between School District
contributions and proportionate share of contributions School District contributions subsequent to the
measurement date
Total

ERS

De fe rre d

Outflows of

Re s ource s

$

3,651

-

4,234

20,385

39,381

$

67,651

- 33 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

School District contributions subsequent to the measurement date of $3,229,485 for TRS and $39,381 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Fiscal Year Ending June 30,
2022 2023 2024 2025

TRS $ 697,172
1,398,125 1,280,517
644,031

Fiscal Year Ending June 30,
2022 2023 2024 2025

ERS

$

11,607

8,046

4,913

3,704

Actuarial Assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers' Retirement System

Inflation Salary increases Investment rate of return
Post-retirement benefit increases

2.50% 3.00% 8.75%, average, including inflation 7.25%, net of pension plan investment expense, including inflation
1.50% semi-annually

- 34 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

Actuarial Assumptions (Continued): Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table (ages set forward one year and adjusted 106%) was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

Employees' Retirement System

Inflation Salary increases Investment rate of return

2.75% 3.25% 7.00%, average, including inflation 7.30%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward two years for both males and females) for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set back seven years for males and set forward three years for females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return and the assumed rate of return.

- 35 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

Public School Employees' Retirement System

Actuarial Assumptions (Continued):

Inflation

2.75%

Salary increases Investment rate of return
Post-retirement benefit increases

N/A 7.30%, net of pension plan investment expense, including inflation 1.50% semi-annually

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward five years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.
The long-term expected rate of return on TRS, ERS, and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

- 36 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

Actuarial Assumptions (Continued): The target asset allocation and best estimates of arithmetic real rates of return for each major asset class for the TRS plan are summarized in the following table:

Asset class
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks
Total
* Rates shown are net of the 2.50% assumed rate of inflation

Targe t allocation
30.00% 51.00
1.50 12.40
5.10
100.00%

Long-te rm expected real rate of return*
(0.10)% 8.90 13.20 8.90 10.90

The target asset allocation and best estimates of arithmetic real rates of return for each major asset class for the ERS and PSERS plans are summarized in the following table:

Asset class
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternatives
Total
* Rates shown are net of the 2.75% assumed rate of inflation

Targe t allocation
30.00% 46.20
1.30 12.40
5.10 5.00
100.00%

Long-te rm expected real rate of return*
(0.10)% 8.90 13.20 8.90 10.90 12.00

Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and non-employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS, and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
- 37 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 10: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

Sensitivity of the School District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentagepoint lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

TRS School District's proportionate share
of the net pension liablity

1% De cre as e (6.25%)

Curre nt Discount Rate
(7.25%)

1% Incre as e (8.25%)

$ 50,390,242 $ 31,776,688 $ 16,518,911

ERS
School District's proportionate share of the net pension liablity

1% De cre as e (6.30%)
$ 421,661

Curre nt Discount Rate
(7.30%)
$ 299,726

1% Incre as e (8.30%)
$ 195,668

Pension Plan Fiduciary Net Position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS, and PSERS financial report which is publicly available at www.trsga.com/publications and https://www.ers.ga.gov/financials.

- 38 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021

EXHIBIT "G"

NOTE 11: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE
In fiscal year 2021, the School District adopted GASB Statement of No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on: 1) whether a government is controlling the assets of the fiduciary activity, and 2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and post-employment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The School District restated beginning net position and beginning fund balance for the General Fund for the cumulative effect of this accounting change. These changes are in accordance with generally accepted accounting principles.

Fund balance, General Fund, as previously reported Prior Period Adjustment - Implementation of GASB No. 84 Fund Balance, General Fund, as restated

$ 9,670,701 125,874
$ 9,796,575

Net Position, July 1, 2020 as previously reported Prior Period Adjustment - Implementation of GASB No. 84 Net Position, July 1, 2020 as restated

$ 3,257,330 125,874
$ 3,383,204

- 39 -

(This page left intentionally blank)

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
TEACHERS' RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "1"

School District's proportion of the net pension liability School District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability
associated with the School District
School District's covered payroll School District's proportionate share of the net pension liability
as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability

2021

2020

2019

0.131179%

0.134275%

0.145986%

$ 31,776,688 $ 28,872,756 $ 27,098,129

235,456

215,457

192,489

$ 32,012,144 $ 29,088,213 $ 27,290,618

$ 17,045,864 $ 16,509,278 $ 17,516,902

186.42% 77.01%

174.89% 78.56%

154.70% 80.27%

Note: The measurement period for the year ended June 30, 2021 is June 30, 2020. The schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. The Schedule includes all significant plans and funds administered by the Dodge County Board of Education.
- 41 -

2018

2017

2016

2015

0.140991%

0.142365%

0.145703%

0.144585%

$ 26,203,612 $ 29,371,487 $ 22,181,835 $ 18,266,408

336,952

451,202

330,665

215,910

$ 26,540,564 $ 29,822,689 $ 22,512,500 $ 18,482,318

$ 16,029,993 $ 15,862,976 $ 15,379,842 $ 14,709,192

163.47% 79.33%

185.16% 76.06%

144.23% 81.44%

124.18% 84.03%

SCHEDULE "1"

- 42 -

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
TEACHERS' RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "2"

Contractually required contributions Contributions in relation to the contractually required contributions Contribution deficiency (excess) School District's covered payroll Contributions as a percentage of covered payroll

2021

2020

2019

$ 3,229,485 $ 3,577,002 $ 3,424,871

3,229,485

3,577,002

3,424,871

$

- $

- $

-

$ 17,013,204 $ 17,045,864 $ 16,509,278

18.98%

20.98%

20.75%

- 43 -

SCHEDULE "2"

2018

2017

2016

2015

2014

2013

2012

$ 2,923,823 $ 2,259,946 $ 2,229,200 $ 2,022,449 $ 1,806,289 $ 1,708,366 $ 1,565,035

2,923,823

2,259,946

2,229,200

2,022,449

1,806,289

1,708,366

1,565,035

$

- $

- $

- $

- $

- $

- $

-

$ 17,516,902 $ 16,029,993 $ 15,862,976 $ 15,379,842 $ 14,709,192 $ 14,972,531 $ 15,224,098

16.69%

14.10%

14.05%

13.15%

12.28%

11.41%

10.28%

- 44 -

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "3"

School District's proportion of the net pension liability School District's proportionate share of the net pension liability School District's covered payroll School District's proportionate share of the net pension liability
as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability

2021

2020

2019

0.007111%

0.006397%

0.006056%

$

299,726 $

263,974 $

248,964

$

185,180 $

161,238 $

167,387

161.86% 76.21%

163.72% 76.74%

148.74% 76.68%

Note: The measurement period for the year ended June 30, 2021 is June 30, 2020. The schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. The Schedule includes all significant plans and funds administered by the Dodge County Board of Education.
- 45 -

2018

2017

2016

2015

0.006428%

0.006364%

0.006360%

0.005242%

$

261,063 $

301,044 $

257,669 $

196,607

$

157,686 $

149,003 $

145,421 $

118,042

165.56% 76.33%

202.04% 72.34%

177.19% 76.20%

166.56% 77.99%

SCHEDULE "3"

- 46 -

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "4"

Contractually required contributions Contributions in relation to the contractually required contributions Contribution deficiency (excess) School District's covered payroll Contributions as a percentage of covered payroll

2021

2020

2019

$

39,381 $

45,666 $

39,955

39,381

45,666

39,955

$

- $

- $

-

$

159,696 $

185,180 $

161,238

24.66%

24.66%

24.78%

- 47 -

SCHEDULE "4"

2018

2017

2016

2015

2014

2013

2012

$

41,529 $

39,122 $

36,834 $

31,935 $

21,791 $

17,590 $

18,978

41,529

39,122

36,834

31,935

21,791

17,590

18,978

$

- $

- $

- $

- $

- $

- $

-

$

167,387 $

157,686 $

149,003 $

145,421 $

118,042 $ 118,054 $

163,186

24.81%

24.81%

24.72%

21.96%

18.46%

14.90%

11.63%

- 48 -

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "5"

School District's proportion of the net pension liability School District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability
associated with the School District
School District's covered payroll School District's proportionate share of the net pension liability
as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability

2021

2020

2019

0.000000%

0.000000%

0.000000%

$

- $

- $

-

375,956

353,129

352,648

$

375,956 $

353,129 $

352,648

$

645,244 $

733,704 $

779,300

N/A 84.45%

N/A 85.02%

N/A 85.26%

Note: The measurement period for the year ended June 30, 2021 is June 30, 2020. The schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.
- 49 -

2018

2017

0.000000%

0.000000%

$

- $

-

2016

0.000000%

$

-

2015

0.000000%

$

-

330,827

$

330,827 $

$

823,086 $

410,924

410,924

$

834,012

$

291,284

291,284

$

866,939

$

269,580 269,580
865,233

N/A 85.69%

N/A 81.00%

N/A 87.00%

N/A 88.29%

SCHEDULE "5"

- 50 -

DODGE COUNTY BOARD OF EDUCATION

SCHEDULE "6"

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OTHER POST-EMPLOYMENT BENEFIT LIABILITY
SCHOOL OPEB FUND FOR THE FISCAL YEAR ENDED JUNE 30,

School District's proportion of the net OPEB liability
School District's proportionate share of the net OPEB liability
School District's covered-employee payroll
School District's proportionate share of the net pension liability as a percentage of its covered-employee payroll
Plan fiduciary net position as a percentage of the total pension

2021 0.187088%

2020 0.187086%

2019 0.188232%

2018 0.190249%

$ 27,478,870 $ 22,959,466 $ 23,923,709 $ 26,729,907 $ 18,000,024 $ 17,653,277 $ 18,838,736 $ 17,765,292

152.66%

130.06%

126.99%

150.46%

3.99%

4.63%

2.93%

1.61%

Note: The measurement period for the year ended June 30, 2021 is June 30, 2020. The schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.
- 51 -

DODGE COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND
FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "7"

Contractually required contributions
Contributions in relation to the contractually required contributions
Contribution deficiency (excess)
School District's covered-employee payroll
Contributions as a percentage of covered-employee payroll

2021 $ 672,602

2020 $ 632,688

2019 $ 1,007,590

2018 $ 975,585

2017 $ 991,973

672,602

632,688

1,007,590

975,585

991,973

$

-$

-$

-$

-$

-

$ 18,808,886 $ 18,000,024 $ 17,653,277 $ 18,838,736 $ 17,765,292

3.58%

3.51%

5.71%

5.18%

5.58%

Note: The schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.
- 52 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Teachers' Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Public School Employees' Retirement System Changes of benefit terms:
The member contribution rate was increased from $4 to $10 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of creditable service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of creditable service effective July 1, 2018. The monthly accrual benefit was increased from $15.25 to $15.50 per year of creditable service effective July 1, 2019. A 2% cost of living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to the rates of mortality, retirement, and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table with future mortality improvement projected to 2025 with the projection scale BB (set forward three years for males and two years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10%, from 7.40% to 7.30% as of the June 30, 2018 Measurement Date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.

- 53 -

DODGE COUNTY BOARD OF EDUCATION
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Employees' Retirement System Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one time 3% payment was granted to certain retirees and beneficiaries effective July 2016. A one time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and benefiticaries effective July 2018 and January 2019. Two one-time 3% payments were granted to certain retirees and benefiticaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the School System. Primary among the changes were the updates to the rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10%, from 7.40% to 7.30% as of the June 30, 2018 Measurement Date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.
School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location, irrespective of retirement affiliation.
For the June 30, 2019 actuarial valuation, the decremental assumptions were changed to reflect the Teachers' Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.

- 54 -

DODGE COUNTY BOARD OF EDUCATION
GENERAL FUND - SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "9"

REVENUES Property taxes Sales taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous
Total revenues

Budget Original (1)

Final (1)

$

5,714,396 $

5,714,396 $

-

-

-

-

22,769,871

22,769,871

2,102,000

2,102,000

89,450

89,450

3,700

3,700

155,550

155,550

30,834,967

30,834,967

Actual
6,742,894 92,205 37,968
24,861,548 7,679,529 347,932 708 410,649
40,173,433

Variance With Final Budget

$

1,028,498

92,205

37,968

2,091,677

5,577,529

258,482

(2,992)

255,099

9,338,466

EXPENDITURES Current: Instruction Support services:
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Other support services Food services operations
Total expenditures

19,285,121
1,347,116 892,016 531,673 939,049
1,579,341 -
2,117,550 1,958,517
28,500 2,787,696 31,466,579

21,859,735
1,750,228 1,415,895
531,673 956,798 1,579,341
9,334 2,356,610 2,362,530
44,000 2,787,696 35,653,840

22,731,024
2,132,767 1,299,480
541,894 844,290 1,450,200
8,513 1,685,858 1,704,492
36,553 2,625,530 35,060,601

(871,289)
(382,539) 116,415 (10,221) 112,508 129,141
821 670,752 658,038
7,447 162,166 593,239

Net change in fund balances
FUND BALANCE, beginning of year, as restated

(631,612) 9,479,765

(4,818,873) 9,670,701

5,112,832 9,796,575

9,931,705 125,874

FUND BALANCE, end of year

$

8,848,153 $

4,851,828 $ 14,909,407 $ 10,057,579

Note to the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

(1) Original and Final Budget amounts do not include budgeted revenues ($477,319) or expenditures ($507,768) of the various school activity accounts.
The accompanying schedule of revenues, expenditures and changes in fund balances, budget and actual, is presented on the modified accrual basis of accounting, which is the basis of accounting used in the presentation of the fund financial statements.

See Notes to the Basic Financial Statements.

- 55 -

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

Funding Agency Program/Grant
Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services: School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Total U.S. Department of Agriculture
Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education: Grants to States Grants to States COVID-19 Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Special Education: State Program Improvement Grants for Children with Disabilities Student Support and Academic Enrichment Student Support and Academic Enrichment Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund Total Other Programs
Total U.S. Department of Education

Assistance Listing Number

PassThrough
Entity ID
Number

Expenditures In Period

10.553 10.555

205GA324N1099

$

205GA324N1099

1,122,226 1,341,279 2,463,505 2,463,505

84.027A 84.027A 84.027A 84.173A

H027A190073 H027A200073 H027A200073 H173A200081

84.367A 84.367A 84.011A 84.011A 84.358B 84.358B
84.323A 84.424A 84.424A 84.287C 84.287C 84.010A 84.010A 84.048A 84.048A
84.425D
84.425D

S367A190001 S367A200001 S011A190011 S011A200011 S358B190010 S358B200010
H323A170010 S424A190011 S424A200011 S287C190010 S287C200010 S010A190010 S010A200010 V048A190010 V048A200010
S425D200012
S425D210012

110,968 557,038
1,824 19,815 689,645
85,287 93,519
4,314 13,123 11,498 37,537
7,000 58,443 34,309 222,562 395,997 64,692 1,254,568
3,851 33,855
792,389
444,151 3,557,095 4,246,740

(Continued) See Notes to the Basic Financial Statements.

- 56 -

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

Funding Agency Program/Grant Health and Human Services, U.S. Department of Direct Pass-Through From Bleckley County Board of Education Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Program Pass-Through From Department of Early Care and Learning COVID-19 Child Care and Development Block Grant Cluster

Assistance Listing Number

PassThrough
Entity ID
Number

93.912 93.575

D06RH27765 N/A

Total U. S. Department of Health and Human Services

Defense, U.S. Department of Direct Department of the Army R.O.T.C. Program

N/A

N/A

Total U.S. Department of Defense

Total Expenditures of Federal Awards N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

Expenditures In Period

26,130 10,145 36,275

32,166

32,166

$

6,778,686

The School District did not provide federal assistance to any subrecipient.
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Dodge County Board of Education (the "School District") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The School District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
In response to the COVID-19 pandemic, the federal government donated personal protective equipment ("PPE") to the Georgia Emergency Management Agency, who then donated PPE with an estimate fair market value of $97,516 to the Dodge County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

See Notes to the Basic Financial Statements.

- 57 -

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

Agency/Funding
Grants Bright from the Start: Georgia Department of Early Care and Learning
Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost: Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Program for Intellectually Gifted Students - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages ("ESOL") Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal, Staff and Professional Development Indirect Cost: Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation: Regular Buses Nursing Services Mid-term Adjustment Hold-Harmless Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment
Other State Programs:
Family Connection Georgia Communities in Schools Dropout Prevention GEMA Donations to LEAs Preschool Handicapped Hygiene Products in Georgia Schools Math and Science Supplements Pupil Transportantion - State bonds School Safety Grant Teachers' Retirement
Total Grants from Georgia Department of Education
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of the State Treasurer: Public School Employees' Retirement

Governmental

Fund Types

General

Capital Projects

Fund

Fund

Total

$

439,757 $

- $

439,757

736,906 460,552 1,620,029 1,439,123 815,654 871,315 2,343,343 1,872,033 772,988 3,627,670 517,096 158,979 171,041
92,267 378,280 116,346
69,633 1,538
586,316 858,933 786,807

526,945 154,440
61,903 542,156
13,649 4,939,355
60,412 45,045 (611,396)
48,000 28,500 97,516 28,559
1,792 14,491 77,220 13,877 14,942 24,354,255

-

67,536

$

24,861,548 $

-

736,906

-

460,552

-

1,620,029

-

1,439,123

-

815,654

-

871,315

-

2,343,343

-

1,872,033

-

772,988

-

3,627,670

-

517,096

-

158,979

-

171,041

-

92,267

-

378,280

-

116,346

-

69,633

-

1,538

-

586,316

-

858,933

-

786,807

-

526,945

-

154,440

-

61,903

-

542,156

-

13,649

-

4,939,355

-

60,412

-

45,045

-

(611,396)

-

48,000

-

28,500

-

97,516

-

28,559

-

1,792

-

14,491

-

77,220

-

13,877

-

14,942

-

24,354,255

156,657
156,657 $

156,657
67,536 25,018,205

See Notes to the Basic Financial Statements.

- 58 -

DODGE COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

Project

Original
Estimated Cost (1)

(1) Adding to, remodeling, renovating, modifying, furnishing, and equipping school buildings, classroooms, instructional and support space and other facilities (including physical education/athletic facilities) at existing School District facilities;

$ (2) Acquiring furnishings, equipment and fixtues for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings;
(3) Acquiring, constructing, and equipping new school facilities and other building and facilities useful and desirable thereto including, but not limited to, a new auditorium;
(4) Acquiring and/or improving land for School District facilities;
(5) Acquiring books, digital resources, and other media for the School District;
(6) Purchasing school buses or other vehicles; and

5,000,000
4,350,000
2,000,000 200,000
1,525,000 875,000

(7) Payment of expenses incident to accomplishing the foregoing.

50,000 $ 14,000,000

Current Estimated Costs (2)
$ 5,000,000
4,350,000
2,000,000 200,000
1,525,000 875,000 50,000
$ 14,000,000

Expended
In Current Year (3)

Expended
In Prior Years (3)

$ 247,505 $ 1,701,150

678,494

522,999

-

3,482

-

-

490,046

515,826

249,576

284,809

-

-

$ 1,665,621 $ 3,028,266

Total Completion
Cost

$

-

-

-

-

-

-

$

-

Estimated Completion
Date
June 30, 2022
June 30, 2022
June 30, 2022 June 30, 2022 June 30, 2022 June 30, 2022 June 30, 2022

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the project(s). Includes all cost from project inception to completion.
(3) The voters of Dodge County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the basic financial statements.

- 59 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. Susan Long, Superintendent and Members of the Dodge County Board of Education
We have audited the financial statements of the governmental activities and each major fund of the Dodge County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated April 20, 2023. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs in finding FS 2021-001 that we consider to be a material weakness.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
School District's Response to Findings
The School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
April 20, 2023

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. Susan Long, Superintendent and Members of the Dodge County Board of Education
Report on Compliance for Each Major Federal Program
We have audited the Dodge County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
April 20, 2023

Section III Auditee's Response to Prior Year Findings and Questioned Costs

DODGE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities and Each Major Fund

Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified?

Noncompliance material to financial statements noted:

Federal Awards

Internal Control over major programs: Material weakness(es) identified?
Significant deficiency(ies) identified?

Type of auditor's report issued on compliance for major programs: All major programs

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?
Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

10.553, 10.556 84.425

Child Nutrition Cluster Education Stabilization Fund

Dollar threshold used to distinguish between Type A and Type B programs:

Auditee qualified as low-risk auditee?

Unmodified Yes No No
No None Reported
Unmodified No
$750,000 No

DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

II FINANCIAL STATEMENT FINDINGS

FS 2021-001 Internal Controls at the Central Office

Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding:

Material Weakness None No

Description: The accounting procedures of the School District were insufficient to provide adequate internal controls
at the Central Office.

Criteria:
The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures.

Condition: The auditor noted the following inadequate controls at the central office:
General Ledger The School District was unable to provide adequate supporting documentation for adjusting journal entries made to revenue and accounts receivable accounts on the fund level financial statements. Our review of 34 journal entries revealed one journal entry did not have evidence of the preparer. The School District reopened their books and failed to resubmit their updated general ledger to the Georgia Department of Education or the Georgia Department of Audits and Accounts. The School District could not document its consideration of school activity accounts for Governmental Accounting Standards Board (GASB) Statement No. 84 restatement purposes.
Cash and Cash Equivalents One bank reconciliation was performed and reviewed 154 days after fiscal year end.
Capital Assets The School District did not capitalize $446,897 of eligible building improvements and $13,820 of eligible equipment. The School District did not remove four vehicles from the capital asset listing that were sold during the fiscal year. The School District did not follow their half-year convention depreciation policy for the fiscal year 2021 capital asset additions and overstated current year depreciation expense by $52,263. The School District misclassified one item as equipment when it should have been classified as a land improvement. In addition, two additional items were misclassified as equipment instead of building improvements. The capital asset listing did not contain a class or year for all of the current year additions. The capital asset listing did not document "Category" for two assets, "Class" for 97 assets and "Year" for 25 assets. The capital asset listing contained incorrect serial numbers for two vehicles.

DODGE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
II FINANCIAL STATEMENT FINDINGS
Expenditures/Liabilities/Disbursements Our review of fifty-five expenditures revealed accounts payable and expenditures were overstated $150,751 due to the School District recording activity in the incorrect year.
Cause: In discussing this deficiency with the School District, they stated that these issues were a result of a lack of internal control procedures within the finance department due to lack of experience and training.
Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of financial position and results of operations.
Recommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions.
Views of Responsible Officials: We concur with this finding.
Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

Section V Management's Corrective Action