Annual financial report, fiscal year 2023, Greene County Board of Education, Greensboro, Georgia, including independent auditor's report.

ANNUAL FINANCIAL REPORT FISCAL YEAR 2023
Greene County Board of Education
Greensboro, Georgia
Including Independent Auditor's Report
Greg S. Griffin | State Auditor

Greene County Board of Education
Table of Contents

Section I Financial
Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

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

7

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

49

2 Schedule of Contributions Teachers Retirement System of Georgia

50

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

51

4 Schedule of Contributions Employees' Retirement System of Georgia

52

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

53

Required Supplementary Information (Continued)

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

54

7 Schedule of Contributions School OPEB Fund

55

8 Notes to the Required Supplementary Information

56

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

58

Supplementary Information

10 Schedule of Expenditures of Federal Awards

59

11 Schedule of State Revenue

61

12 Schedule of Approved Local Option Sales Tax Projects

62

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 Audit Findings

Section IV Findings and Questioned Costs
Schedule of Findings and Questioned Costs

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. Chris Houston, Superintendent and Members of the Greene County Board of Education
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, discretely presented component units, and each major fund of the Greene County Board of Education (School District) as of and for the year ended June 30, 2023, 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.
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, discretely presented component units, and each major fund of the School District as of June 30, 2023, 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.
The financial statements of the discretely presented component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component units, is based solely on the reports of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. The other auditors audited the financial statements of the discretely presented component units in accordance with GAAS but not in accordance with Government Auditing Standards, except for the Lake Oconee Academy Inc.
We are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Emphasis of Matter
As described in Note 2 to the financial statements, in 2023, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. The School District restated beginning balances for the effect of GASB Statement No. 96. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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 appropriate evidence to express an opinion or provide any assurance.
Supplementary 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 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 GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 22, 2024 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
March 22, 2024

GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
INTRODUCTION
The discussion and analysis of the Greene County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2023 and June 30, 2022. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
Only the primary government will be considered for purposes of this discussion. Lake Oconee Academy, Inc., and Lake Oconee Academy Foundation are discretely presented component units, and are displayed in separately prepared financial statement that are independently audited.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal years 2023 and 2022 are as follows:
On the government-wide financial statements, the assets and deferred outflow of resources of the School District exceeded liabilities and deferred inflow of resources by $21,392,788 and $16,688,682 respectively, for the fiscal years ended June 30, 2023 and 2022.
The School District had $56,559,264 and $46,246,630 million in expenses relating to governmental activities for the fiscal years ended June 30, 2023 and June 30, 2022, respectively. Only $20,008,857 and $22,979,553 of the above-mentioned expenses for 2023 and 2022 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) and special item of $41,207,794 and $35,369,070, respectively, for 2023 and 2022, along with fund balance were adequate to provide for these programs.
General revenues and special item accounts for $41,207,794 in revenue or 67.3% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $20,008,857 or 32.7% of total revenues of $61,216,651.
For the general fund, the current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 6.83 and 6.77 for the fiscal years ended June 30, 2023 and June 30, 2022, respectively. Generally, a ratio greater than 2.0 is considered very financially stable.
The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $21,707,254, an increase of $2,729,228 from the June 30, 2022 fund balance of $18,978,026.
Among major funds, the general fund had $52,410,456 in revenues and $49,681,228 in expenditures. The fund balance for the general fund increased by $2,729,228. The increase is mainly due to strong collections for ad valorem, real estate taxes, interest income and motor vehicles taxes. Also we had budgeted for over $4.0 million in expenditures for new primary school; however, construction did not begin until the end of the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts; management's discussion and analysis, the basic financial statements, required supplementary information and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements.
i

GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
The government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status.
The fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending.
The fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2023 and 2022, the general fund, the capital projects fund, and the debt service fund represent the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
Government-Wide Statements
The government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid.
The two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity:
Governmental Activities All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others.
Fund Financial Statements
The School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund.
Governmental Funds - The School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed shortterm view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can
ii

GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements.

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2023 and 2022.

Table 1 Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2023

2022 (1)

Assets Current and Other Assets Capital Assets, Net

$ 41,723,037 $ 34,119,494

45,561,615

44,324,704

Total Assets

87,284,652

78,444,198

Deferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan

26,495,530 5,786,106

11,198,921 5,421,715

Total Deferred Outflows of Resources

32,281,636

16,620,636

Liabilities Current and Other Liabilities Long-Term Liabilities

5,353,166 80,395,785

3,618,255 42,945,882

Total Liabilities

85,748,951

46,564,137

Deferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan

317,655 12,106,894

19,991,348 11,820,667

Total Deferred Inflows of Resources

12,424,549

31,812,015

Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit)

37,335,262 16,321,422 (32,263,896)

35,761,666 12,190,033 (31,263,017)

Total Net Position

$ 21,392,788 $ 16,688,682

(1) Fiscal year 2022 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information.

iii

GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 Total assets and deferred outflows of resources increased by $24,501,454. Deferred outflows of resources related to the defined pension plans made up $15,296,609 of the increase. Those amounts related to the defined pension plan and OPEB are based on actuary determinations. Current and other assets increased by $7,603,543.00 which was primarily due to revenue collections in excess of expenditures for both the general fund and capital projects fund activity of $5,733,716. ESPLOST collections as well as our tax collections remained strong throughout the year. Capital assets increased as a result of construction of the new elementary school. Total liabilities and deferred inflows of resources increased overall by $19,797,348. The increase was the net effect of an increase in defined benefit pension plan of $19,089,379 and OPEB plan decrease of $1,053,241 based on actuary determinations, and an increase in current liabilities of $1,734,911 for construction payables on new school, higher salaries causing salaries and benefits payable to go up and significant payables on contract agreement to the City of Greensboro for security resource officers and their vehicles. Overall effect of the items mentioned above is an increase in net position for the year of $4,657,387.
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GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Table 2 shows the changes in net position for fiscal years ending June 30, 2023 and June 30, 2022.

Table 2 Change in Net Position

Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions

Governmental Activities

Fiscal Year

Fiscal Year

2023

2022 (1)

$

370,254 $

200,669

19,109,943

22,778,884

528,660

-

Total Program Revenues

20,008,857

22,979,553

General Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Investment Earnings Miscellaneous
Special Item Sale of Land Disposal of Capital Assets

29,766,553 21,571
7,887,200 1,063,286 1,219,627 1,049,557
200,000 -

27,254,535 26,750
7,551,967 1,338,042
47,761 796,582
(1,646,568)

Total General Revenues and Special Item

41,207,794

35,369,069

Total Revenues and Special Item

61,216,651

58,348,622

Program Expenses: 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 Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt

38,904,093
2,361,645 2,588,214
582,744 1,120,417 2,104,224
909,810 2,688,173 1,827,233
66,856 766,331
450,025 1,857,477
332,022

31,190,737
2,005,336 2,428,819
417,186 815,978 1,211,786 760,186 2,554,660 1,752,422
36,403 532,070
305,080 1,864,424
371,543

Total Expenses Increase in Net Position

56,559,264

46,246,630

$ 4,657,387 $ 12,101,992

(1) Fiscal year 2022 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information.
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GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Program revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions decreased $2,970,696 for governmental activities. The decrease is largely due to federal funds related to ESSER (Elementary and Secondary School Emergency Relief Fund) grants. The ESSER-ARRPII Grant was mainly completed in fiscal year 2022. Only a small portion was carried over to fiscal year 2023.

General revenues and special item increased by $5,838,725 during fiscal year 2023. The increase was largely due to increase in the County's property tax digest and the loss reported in prior year from the demolition of Greensboro Elementary School. Also, we earned a significant amount of interest income because of higher interest rates on larger account balances for our general operating account and LGIP account. The construction of our new elementary school began toward the end of the current year so no significant constructions expenses for the current year. In addition, our ESPLOST collections were slightly higher than the previous year.

Expenses increased from the prior year by $10,312,634. The largest difference is the net effect of OPEB and Pension expense of $6.0 million, recognition of the lawsuit settlement with the charter school of $1,093,284, expenses related to the construction of the new elementary school not capitalized of $800 thousand, noncapital equipment purchases, and increase in salaries, benefits, food service costs and technology costs.

Governmental Activities

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity.

Table 3 Governmental Activities

Total Cost of Services

Fiscal Year

Fiscal Year

2023

2022 (1)

Net Cost of Services

Fiscal Year

Fiscal Year

2023

2022 (1)

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 Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Long-Term Debt

$ 38,904,093 $ 31,190,737 $ 27,473,800 $ 17,840,959

2,361,645 2,588,214
582,744 1,120,417 2,104,224
909,810 2,688,173 1,827,233
66,856 766,331

2,005,336 2,428,819
417,186 815,978 1,211,786 760,186 2,554,660 1,752,422
36,403 532,070

1,857,531 1,041,060
161,304 470,787 1,037,135 908,210 1,414,150 929,812
66,350 749,439

1,380,819 726,373 (4,203) 182,044 119,157 739,030 509,932
1,156,880 32,746
508,745

450,025 1,857,477
332,022

305,080 1,864,424
371,543

347,616 (238,809) 332,022

237,963 (534,911) 371,543

Total Expenses

$ 56,559,264 $ 46,246,630 $ 36,550,407 $ 23,267,077

(1) Fiscal year 2022 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information.
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GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Although general revenues make up a majority of the funding, the School District is still dependent upon program revenues for governmental activities. For 2023, 66.97% of instruction and support activities were supplemented by taxes and other general revenues compared to 53.07% in 2022.
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
The School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $62,335,011 and expenditures and other financing uses of $56,601,295. The capital projects fund had an overall increase of $3,004,488 due to strong sales tax collections and investment earnings for the year. The new elementary school construction began late in the year; however, payments for the architect began in the prior year which makes up most of the current expenditures along with startup costs for the new school. Only minor renovations occurred during the year for our existing facilities.
The general fund had an overall increase of $2,729,228. Revenues slightly decreased in total from the previous year mainly because we were receiving reimbursement for both ESSER II (CRRSA-Act) and ESSER III (ARP American Rescue Plan) expenses and various other ESSER grants in fiscal year 2022. There was only an immaterial amount of the ESSER II grant that was carried over for fiscal year 2023 which completed toward the beginning of the year. We did have an increase in property taxes due to the increase in our tax digest even though we rolled back our millage rate from 12.454 to 11.648 mills. State revenue increased from the prior year mainly because of the $639,360 for health insurance to cover cost in health insurance premiums.
Our expenditures were up from the prior due to increases in salaries and benefits from mandatory raises by the governor, step increases and health insurance costs for certified employee went from $1,580 to $945 per month for a significant portion of the year. We also purchased $980,392 in buses, of which $683,100 was reported within the general fund. Grant funds from previous period that were restricted for bus replacements totaling $154,440 and 2022 school bus regular funding grant of $528,660 were used to purchase the buses.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of the fiscal year, the School District amended its general fund budget as needed.
For the general fund, the final budgeted revenues and other financing sources of $49,491,928 increased from the original budgeted amount of $48,561,942 by $929,986. This difference was mainly related to state revenues received for the increase in employer's rate for state health insurance for certified employees; however, the budget was only amended for one month. We received the allotment for state health insurance increase over three months. In addition, the budget was amended for bus purchases from a state grant. Miscellaneous revenues were amended for other local grants received from private sources.
The final budgeted expenditures and other uses of $53,150,936 was more than the original budgeted amount of $52,333,268 by $817,668. This difference was mainly because of buses not budgeted for a state grant in the current year of $528,660. We included them in our 2022 budget as the state grant was from fiscal year 2022. Instruction, Pupil Services, and Improvement of Instructional Services differences are due to adjustments needed for all our federal grants. We either received more or less than our original budgeted amount and in our original budget we use only one expense account. Once a grant has been approved, we will go in and amend the amount and allocate the expense based on the approved budget. This keeps us from having to go back and amend numerous expense accounts.
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GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

The actual expenditures of $49,681,228 was $10,765,100 more than the final budget. The majority of the variances between the final budgeted expenditures and actual are due to the per pupil allotment payments to Lake Oconee Academy, Inc., that were recorded in the instruction function but budgeted in "Other Uses". For capital outlay, we had budgeted $4.9 million for expenditures for the construction of the new elementary school; however, the construction of the elementary school did not start until February 2023. Land, architect fees, and other start-up costs are being paid with ESPLOST funds. Remaining variances were due to expenses budgeted in one function but paid out of another function, new hires not budgeted, and budget amounts were entered into the system to a different function in error.

CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS

At the fiscal years ended June 30, 2023 and June 30, 2022, the School District had $45,418,346 and $44,159,697, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation.

Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2023

2022

Land

$

1,896,271 $

Construction In Progress

1,934,748

Building and Improvements

33,630,634

Equipment

3,325,602

Land Improvements

4,631,091

1,846,934 1,080,339 33,738,409 2,507,834 4,986,181

Total

$ 45,418,346 $

44,159,697

Capital assets increased overall in fiscal year 2023 by $1,258,649. The increase is mainly related to architect fees on the new elementary school and bus purchases.
In addition, at fiscal year end June 30, 2023, the School District had $71,955 invested in intangible right-touse assets, net of accumulated amortization. This is the lease on the mobile modular unit at Anita Carson Middle School. Also, a subscription asset for a web-based document management system that has a net value of $71,314.

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GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

DEBT ADMINISTRATION

At June 30, 2023, the School District had $8,176,306 in total debt outstanding with $1,330,236 due within one year. Table 5 summarizes bond debt outstanding at June 30, 2023 and 2022.

Table 5 Debt at June 30

Governmental Activities

Fiscal Year

Fiscal Year

2023

2022 (1)

Intergovernmental Agreement Leases Lawsuit Settlement Agreement Subscription-Asset
Total

$

6,980,000 $

71,955

1,093,284

31,067

$

8,176,306 $

7,985,000 165,007 -
8,150,007

(1) Fiscal year 2022 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information.

CURRENT ISSUES

For fiscal year 2024, we were able to roll back the millage rate from 11.468 to 10.311, due to the increase in the County's tax digest. The property tax digest increased significantly due to the revaluation of properties and significant construction of new homes. Even with the rollback of the millage rate, our tax collections are estimated to be more than the previous year. Because of the increase in our property tax digest, our local 5 mills share will lower our state funding. Our program revenues which include state funding will not even cover 50% of our expenses. The local 5 mills calculation in our QBE (Quality Basic Education) funding is based on the property tax digest from two years ago meaning that our local 5 mills share will continue to increase and our state funding will decrease over the next several years unless property values decrease significantly.

We expect our collections from our Education Special Purpose Local Option Sales Tax (ESPLOST) to remain strong based on collections in fiscal year 2023 and the current economic conditions. There is no indication currently that we would see a reduction in those revenues. We had a reduction in our real estate transfer and intangible taxes in fiscal year 2023 which we anticipate a continued reduction due to the decline of the housing market because of higher interest rates.

Our ESSER II (Elementary and Secondary School Emergency Relief) grant was completed in fiscal year 2023. The ESSER III grant is expected to be completed by the end of fiscal year 2024. ESSER III grant funds were mainly used to address learning loss as required by the grant. With the decrease in Covid-19 cases, we are receiving less federal grants that we had previously received so we will see lower federal collections, but our expenses should also be decreasing at the same rate since these grants are on a reimbursement basis.

For expenditures in 2024, we will see increase in costs for salaries due to $2,000 salary increases for certified staff included in the state's budget and increase of 0.0051% for classified as approved by the Board, The 0.0051% was state mandated for pupil transportation employees; however, the school district approved the increase across all non-certified employees. Increases in salaries have a direct effect on the expenses for FICA and TRS benefits. Although this comes as a welcome cost of living adjustment for our employees, the SHBP requires $635 more per member per month from the employer portion--equaling $7,620 annually.
ix

GREENE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
School Districts saw this increase on certified employees (e.g., teachers) begin the first of this year. The health plan increase for classified employees (e.g., bus drivers/monitors, custodians) will take effect on January 1, 2024. The state does not pay the employer portion for SHBP, leaving School Districts to find this additional money in local tax dollars for non-certified employees and those certified employees not funded by the state. The $635 increase for non-certified employees will be implemented over a 3 year-period so that school districts are able to plan how to fund this significant increase.
Our school nutrition program continues to see increases in cost of foods, constant advancements in technology, fuel costs, and security costs to ensure the safety of all our students, insurance policies, and fuel and energy. Also, due to increases in the number of students and the per pupil rate, the amount we pay to our charter school will increase by more than $908,000. We are also paying the charter school $182,000 a year on the settlement agreement through August 2028.
Construction of the new elementary school began in the spring of 2023; therefore, capital outlay costs will significantly increase in fiscal year 2024. On November 8, 2022, the voters authorized the School District to continue collection of a 1.0% local option sales tax, which included the issuance of bonds up to $29,500,000. The entire amount of bonds was sold on July 20, 2023. Bonds, ESPLOST, and local fund reserves and future revenue collections, and state funds from GSFIC (Georgia State Financing and Investment Commission) will be used to pay for the new school. The estimated cost of the new school is between $35.0 and $40.0 million. The need for the new school is based on anticipated growth in our County. The architect was contracted in the current fiscal year and the plans are in the final stages. Construction of the new school is expected to be completed by the 2024-2025 school year depending on the availability of construction materials.
Other construction projects are scheduled to begin in the current year for roof replacements, bus turnaround, baseball/soccer complex, tennis courts, agriculture pasture, added space for Athens Technology College, high school theater renovations and other various projects.
Our new 2023 ESPLOST (Education Special Purpose Local Option Sales Taxes) collections will begin with our October 2023 collections. In September 2023, we reached the maximum amount on collections to be earned from our 2019 ESPLOST project. The remaining funds on hand from the 2019 ESPLOST project will used to pay for the construction projects noted above.
CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Dean Ware, Chief Financial Officer at the Greene County Board of Education, 101 East Third Street, Greensboro, Georgia 30642.
x

Greene County Board of Education

GREENE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Taxes State Government Federal Government Local Other Inventories Prepaid Items Restricted Cash Intergovernmental Receivable, Non-Current Intangible Right-to-Use Assets (Net of Accumulated Amortization) Subscription Right-to-Use Assets (Net of Accumulated Amortization) Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan(s) Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Donor Restrictions Unrestricted (Deficit)
Total Net Position

GOVERNMENTAL ACTIVITIES

$

36,308,514.45 $

1,654,534.12 1,409,147.63 1,111,673.40 1,119,304.30
22,300.80 33,734.43 63,827.42
71,954.59 71,314.23 3,831,018.71 41,587,327.48 87,284,651.56

COMPONENT UNIT
CHARTER SCHOOL
5,860,497.00 $
182,214.00 7,562.00 99,263.00 911,070.00 21,419,163.00 5,329,247.00 33,809,016.00

COMPONENT UNIT
FOUNDATION
554,656.00
239,168.00 431,156.00 365,508.00 21,718,092.00 23,308,580.00

26,495,530.35

-

-

5,786,106.00

-

-

32,281,636.35

-

-

676,517.85 3,154,995.64
126,025.00 1,283,452.73
112,174.38 52,493,529.00 19,725,950.00
1,330,235.90 6,846,070.00 85,748,950.50

139,801.00 2,492,126.00
-
428,064.00 21,744,404.00 24,804,395.00

3,168.00 -
44,802.00 -
336,790.00 21,131,083.00 21,515,843.00

317,655.00

-

-

12,106,894.00

-

-

12,424,549.00

-

-

37,335,261.75

922,406.20 25,205.00
15,373,811.55 -
(32,263,896.09)

$

21,392,788.41 $

4,575,942.00
4,428,679.00
9,004,621.00 $

1,046,883.00
239,168.00 506,686.00
1,792,737.00

The notes to the basic financial statements are an integral part of this statement.

- 1 -

GREENE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT "B"

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES

OPERATING

CAPITAL

GRANTS AND

GRANTS AND

CONTRIBUTIONS CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

COMPONENT UNIT
CHARTER SCHOOL

COMPONENT UNIT
FOUNDATION

GOVERNMENTAL ACTIVITIES

Instruction

$ 38,904,092.54 $

Support Services

Pupil Services

2,361,645.23

Improvement of Instructional Services

2,588,213.74

Educational Media Services

582,744.14

General Administration

1,120,416.51

School Administration

2,104,224.33

Business Administration

909,809.95

Maintenance and Operation of Plant

2,688,173.35

Student Transportation Services

1,827,233.24

Central Support Services

66,856.20

Other Support Services

766,330.68

Operations of Non-Instructional Services

Enterprise Operations

450,025.41

Food Services

1,857,476.47

Interest on Long-Term Debt

332,021.85

6,012.67 $
75,860.00 15,241.98 -
102,409.27 170,729.90
-

11,424,279.46 $
504,114.46 1,547,154.18
421,440.51 649,629.97 1,067,089.51
1,600.33 1,198,163.65
353,518.93 505.80
16,891.14
1,925,555.20
-

- $
528,660.00 -
-

(27,473,800.41) $
(1,857,530.77) (1,041,059.56)
(161,303.63) (470,786.54) (1,037,134.82) (908,209.62) (1,414,149.70) (929,812.33)
(66,350.40) (749,439.54)
(347,616.14) 238,808.63 (332,021.85)

- $

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Total Governmental Activities

$ 56,559,263.64 $ 370,253.82 $ 19,109,943.14 $

528,660.00

(36,550,406.68)

-

-

COMPONENT UNIT

Charter School Foundation

$ 14,935,212.00 $

87,123.00 $

407,465.00 $

-

1,742,413.00

-

-

-

-

(14,440,624.00)

-

-

-

(1,742,413.00)

General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Greene County Board of Education Investment Earnings Rental Income Miscellaneous
Special Item Sale of Land Total General Revenues and Special Item
Change in Net Position
Net Position - Beginning of Year (Restated)
Net Position - End of Year

29,766,552.51

-

-

21,571.43

-

-

7,887,200.42 1,063,285.54
1,219,627.22
1,049,556.81

15,180,504.00 5,128.00 785,697.00

5,410.00 937,530.00 552,233.00

200,000.00 41,207,793.93

15,971,329.00

1,495,173.00

4,657,387.25

1,530,705.00

(247,240.00)

16,735,401.16

7,473,916.00

2,039,977.00

$

21,392,788.41 $

9,004,621.00 $ 1,792,737.00

The notes to the basic financial statements are an integral part of this statement.

- 2 -

ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Taxes State Government Federal Government Local Other Due from Other Funds Inventories Prepaid Items
Total Assets
LIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - E-Rate
FUND BALANCES Nonspendable Restricted Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources, and Fund Balances

GREENE COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2023

EXHIBIT "C"

GENERAL FUND

CAPITAL PROJECTS
FUND

$

21,194,539.19 $

15,113,975.26 $

883,177.69 1,409,147.63 1,111,673.40 1,119,304.30
22,300.80 16,236.30 33,734.43 58,827.42

771,356.43 -
12,286.17 -
5,000.00

$

25,848,941.16 $

15,902,617.86 $

$

572,129.23 $

104,388.62 $

3,154,995.64

-

12,286.17

16,236.30

-

1,283,452.73

-

112,174.38

3,739,411.04

1,516,252.03

DEBT SERVICE FUND
- $
-
- $
- $ -

TOTAL
36,308,514.45
1,654,534.12 1,409,147.63 1,111,673.40 1,119,304.30
22,300.80 28,522.47 33,734.43 63,827.42
41,751,559.02
676,517.85 3,154,995.64
28,522.47 1,283,452.73
112,174.38 5,255,663.07

364,850.81

-

37,425.00

-

402,275.81

-

92,561.85 888,671.77 254,374.18 20,471,646.51 21,707,254.31

5,000.00 14,381,365.83
14,386,365.83

$

25,848,941.16 $

15,902,617.86 $

-

364,850.81

-

37,425.00

-

402,275.81

-

97,561.85

-

15,270,037.60

-

254,374.18

-

20,471,646.51

-

36,093,620.14

- $

41,751,559.02

The notes to the basic financial statements are an integral part of this statement.

- 3 -

GREENE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2023

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
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 therefore are not reported in the funds. Land Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation
Right-to use assets used in governmental activities are not financial resources and therefore are not reported in the funds. Buildings and improvements Subscription assets Accumulated amortization - Right-to-use assets
Some 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 and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Taxes and E-Rate that are not available to pay for current period expenditures are deferred in the funds.
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Accrued interest payable Intergovernmental agreement payable Lease liability payable Settlement agreement - Lake Oconee Academy Subscription liability payable
Net position of governmental activities (Exhibit "A")

$

36,093,620.14

$

1,896,271.21

1,934,747.50

54,355,149.29

9,516,188.35

10,541,251.73

(32,825,261.89)

45,418,346.19

$

188,313.60

157,485.58

(202,530.36)

143,268.82

$

(52,493,529.00)

(19,725,950.00)

(72,219,479.00)

$

26,177,875.35

(6,320,788.00)

19,857,087.35 402,275.81

$

(126,025.00)

(6,980,000.00)

(71,954.59)

(1,093,284.00)

(31,067.31)

(8,302,330.90)

$

21,392,788.41

The notes to the basic financial statements are an integral part of this statement.

- 4 -

GREENE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023

EXHIBIT "E"

REVENUES Property Taxes Sales 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 Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES) Sale of Capital Assets Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

29,707,382.43 $

1,063,285.54

12,454,090.37

7,221,345.25

370,253.82

729,844.97

864,253.52

52,410,455.90

- $ 7,887,200.42
489,782.25 8,376,982.67

- $ -

29,707,382.43 8,950,485.96
12,454,090.37 7,221,345.25 370,253.82 1,219,627.22 864,253.52
60,787,438.57

32,977,144.38
1,957,123.92 2,270,219.90
550,371.15 1,040,175.60 1,895,022.63
784,997.68 2,689,273.26 2,291,369.26
23,088.90 766,330.68 450,025.41 1,857,598.13
-
122,236.87 6,250.13
49,681,227.90 2,729,228.00

481,439.56
6,082.00 184,515.14
1,189.00 3,733.97 1,932.00 392,388.42 297,292.00
32,058.00 2,824,293.26
4,224,923.35 4,152,059.32

-
50.00 -
1,005,000.00 342,521.72
1,347,571.72 (1,347,571.72)

33,458,583.94
1,963,205.92 2,454,735.04
550,371.15 1,041,364.60 1,898,756.60
786,979.68 3,081,661.68 2,588,661.26
23,088.90 766,330.68 450,025.41 1,889,656.13 2,824,293.26
1,127,236.87 348,771.85
55,253,722.97 5,533,715.60

2,729,228.00

200,000.00 -
(1,347,571.72) (1,147,571.72) 3,004,487.60

1,347,571.72
1,347,571.72
-

200,000.00 1,347,571.72 (1,347,571.72)
200,000.00 5,733,715.60

18,978,026.31

11,381,878.23

-

30,359,904.54

$

21,707,254.31 $

14,386,365.83 $

- $

36,093,620.14

The notes to the basic financial statements are an integral part of this statement.

- 5 -

GREENE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2023

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense Amortization expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Capital assets purchased with Universal Service Fund (e-rate) proceeds are not reported in governmental funds. However, in the Statement of Activities, the e-rate proceeds are shown as capital grants and contributions.
Taxes and E-Rate reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
The issuance of long-term debt provides current financial resources to governmental funds, while the 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. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. Intergovernmental agreement payments Lease liability payments Subscription liability payments
District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Settlement agreement with Lake Oconee Academy Net decrease in accrued interest
Change in net position of governmental activities (Exhibit "B")

$

5,733,715.60

$

3,472,486.02

(2,141,980.06)

(128,709.17)

1,201,796.79 (219,735.44)

147,878.29 118,166.51

$

1,005,000.00

93,052.06

29,184.81

1,127,236.87

$

(3,792,769.37)

1,417,632.00

(2,375,137.37)

$

(1,093,284.00)

16,750.00

(1,076,534.00)

$

4,657,387.25

The notes to the basic financial statements are an integral part of this statement.

- 6 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Greene County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a 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.
Blended Component Unit
The Greene County College and Career Academy is responsible for the public education of all students attending its school. The College and Career Academy was created through a contract between the School District and the College and Career Academy whereby certain State funding associated with the students attending the College and Career Academy and specified local funds are used specifically to cover the cost of operations. The College and Career Academy is a component unit of the School District and as such the College and Career Academy's financial activity has been blended with the School District's basic financial statements.
Discretely Presented Component Units
The Lake Oconee Academy, Inc. (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby certain State funding associated with the students attending the Charter School and specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been included as a discretely presented component unit.
Lake Oconee Academy was formed as a Georgia non-profit corporation in April 2007 for the purpose of operating a public charter school in Greensboro, Georgia. Operations commenced in the 2007/2008 academic school year. The Charter School's mission is to increase student achievement by building a culture of high expectations for all students.
The Lake Oconee Academy Foundation, Inc. (Foundation) was organized on September 5, 2012 as a Georgia non-profit corporation. The Foundation is dedicated to raising and stewarding funds to provide education resources, improve the educational and extracurricular programs for the enrichment, betterment and education excellence of the children of Lake Oconee Academy. The financial statements of the Foundation have been included as a discretely presented component unit.
See Note 17 and Note 18 for additional information related to the component units.
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.

- 7 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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 and its component units. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital
assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
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.
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. 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.

- 8 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general longterm principal and interest.
Basis of Accounting
The basis of accounting determines when transactions are reported on 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. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. 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 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 certain 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, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under leases are reported as other financing sources.
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 resources 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.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

New Accounting Pronouncements
In fiscal year 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The cumulative effect of GASB Statement No. 96 is described in the restatement note.
Cash and Cash Equivalents
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.
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.
Due to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year.
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 (calculated on the first-in, first-out basis). 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.
Prepaid Items
Payments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements.
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 the
- 10 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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 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:

Capitalization Policy

Estimated Useful Life

Land

Any

Land Improvements

$

5,000.00

Buildings and Improvements

$

5,000.00

Equipment

$

5,000.00

Intangible Assets

$

350,000.00

N/A 20 to 80 Years Up to 80 Years
5 to 25 Years 5 to 80 Years

Intangible Right-To-Use Assets
Leases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. Subscription-based information technology arrangements (SBITAs) result in an intangible right-to use subscription asset and a subscription liability on the Statement of Net Position.
An intangible right-to-use asset represents the School District's right to use an underlying asset for the lease or subscription term. Lease and subscription obligations represent the School District's liability to make lease and subscription payments arising from the lease or subscription agreement. Intangible right-to-use assets, and lease obligations and subscription liabilities are recognized based on the present value of lease or subscription payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease or subscription are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease or subscription liability. Intangible right-to-use assets are amortized using a straight-line basis over the shorter of the lease or subscription term or useful life of the underlying asset.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Capitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows:
Capitalization Policy

Land

Land Improvements

$

Buildings and Improvements $

Equipment

$

Subscription Assets

$

Any 75,000.00 75,000.00 75,000.00 75,000.00

During the fiscal year, management changed the capitalization threshold for intangible right-to-use assets to $75,000.00 from $5,000.00. The change in the capitalization threshold does not have a material or significant impact on the financial statements.

Leases as Lessee
The School District is a lessee for noncancellable leases of a modular building owned by a 3rd party.
At the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the lease term.
Key estimates and judgments related to leases include how the School District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The lease agreement entered into by the School District as lessee does not contain a stated interest rate. Therefore, the School District has used its estimated incremental borrowing rate as the discount rate for the lease. The School District has estimated this incremental borrowing rate to be 3.50% for the lease in which the School District is currently involved as the lessee.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments the School District will make over the lease term.
The School District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the statement of net position.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will 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 will 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 therefore will not be recognized as an inflow of resources (revenue) until that time.
Long-Term Liabilities
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
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 (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by 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:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board 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. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.

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.

Property Taxes

The Greene County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on August 19, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on December 1, 2022 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Greene 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, 2023, for maintenance and operations amounted to $27,754,947.58.

The tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

11.648 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,952,434.85 during fiscal year ended June 30, 2023.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $7,887,200.42 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
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.
The Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
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 AND CASH EQUIVALENTS
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 ten 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.

- 15 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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
(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 or securities guaranteed 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 a 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, 2023, School District had deposits with a carrying amount of $22,262,309.61, and a bank balance of $23,216,841.34. The bank balances insured by Federal depository insurance were $609,005.33 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $22,547,454.44.
At June 30, 2023, $60,381.57 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 State's Secure Deposit Program (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 warrants. The program lists the types of eligible criteria. 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 payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

- 16 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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

Cash and cash equivalents

Statement of Net Position

$

36,308,514.45

Less: Investment pools reported as cash and cash equivalents
Georgia Fund 1

14,046,204.84

Total carrying value of deposits - June 30, 2023

$ 22,262,309.61

Categorization of Cash Equivalents
The School District reported cash equivalents of $14,046,204.84 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 Fitch. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2023 was 28 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, 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, Office of the State Treasurer 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 Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

NOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS

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

Balances July 1, 2022

Increases

Decreases

Transfers

Balances June 30, 2023

Governmental Activities Capital Assets,
Not Being Depreciated: Land Construction in Progress
Total Capital Assets Not Being Depreciated
Capital Assets, Being Depreciated
Buildings and Improvements Equipment Land Improvements
Less Accumulated Depreciation:
Buildings and Improvements Equipment Land Improvements
Total Capital Assets, Being Depreciated, Net
Governmental Activities Capital Assets - Net

$ 1,846,933.62 $ 269,073.03 $ 219,735.44 $

- $ 1,896,271.21

1,080,339.59 1,935,651.52

-

(1,081,243.61) 1,934,747.50

2,927,273.21 2,204,724.55

219,735.44 (1,081,243.61) 3,831,018.71

53,234,305.62 8,160,148.65
10,521,251.73

39,600.06 1,356,039.70
20,000.00

-

1,081,243.61 54,355,149.29

-

-

9,516,188.35

-

-

10,541,251.73

19,495,895.86 1,228,618.96

-

5,652,314.89

538,271.19

-

5,535,071.08

375,089.91

-

-

20,724,514.82

-

6,190,586.08

-

5,910,160.99

41,232,424.17

(726,340.30)

-

1,081,243.61 41,587,327.48

$ 44,159,697.38 $ 1,478,384.25 $ 219,735.44 $

- $ 45,418,346.19

Current year depreciation expense by function is as follows:

Instruction

Support Services

Pupil Services

$

Improvements of Instructional Services

General Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Food Services

$
242,376.74 43,521.21 24,451.89 1,672.10 67,987.96
279,514.71 41,183.79

1,385,185.19
700,708.40 56,086.47

$

2,141,980.06

- 18 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The following is a summary of changes in the intangible right-to-use assets for governmental activities during the fiscal year:

Balances July 1, 2022 (Restated)

Increases

Decreases

Balance June 30, 2023

Governmental Activities

Intangible Right-to-Use Assets

Buildings and Improvements

$ 188,313.60

-

Subscription Assets

157,485.58

-

- $ -

188,313.60 157,485.58

Less Accumulated Amortization: Buildings and Improvements Subscription Assets

23,306.95 50,514.24

93,052.06 35,657.11

-

116,359.01

-

86,171.35

Governmental Activities Intangible Right-to-Use Assets - Net

$ 271,977.99 $ (128,709.17) $

Current year amortization expense by function is as follows:

Instruction

$

Support Services

Business Administration

- $ 143,268.82
93,052.06 35,657.11

$

128,709.17

NOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS

Interfund Assets and Liabilities

Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2023, consisted of the following:

Due From Other Funds

Due to Other Funds

General Fund Capital Projects

$

16,236.30 $

12,286.17

12,286.17

16,236.30

$

28,522.47 $

28,522.47

General fund expenses were paid out of the ESPLOST account and general fund expenses were reclassified out of general fund to be covered with ESPLOST funds.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Interfund Transfers

Interfund transfers for the year ended June 30, 2023, consisted of the following:

Transfers to

Transfers From Capital Projects
Fund

Debt Service Fund $

1,347,571.72

Transfers are used to move Special Purpose Local Option Sales Tax revenues (SPLOST) collected by the capital projects to the debt service fund as needed for repayment of bond principal and interest.

NOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows:

Balance July 1, 2022 (Restated)

Governmental Activities

Additions

Deductions

Balance June 30, 2023

Due Within One Year

Intergovernmental Agreements

$

Lease - Buildings and Improvements

Settlement Agreement with Charter School

Subscription Liabilities

7,985,000.00 $ 165,006.65 60,252.12

- $ 1,005,000.00 $

-

93,052.06

1,093,284.00

-

-

29,184.81

6,980,000.00 $ 1,045,000.00

71,954.59

71,954.59

1,093,284.00

182,214.00

31,067.31

31,067.31

$ 8,210,258.77 $ 1,093,284.00 $ 1,127,236.87 $ 8,176,305.90 $ 1,330,235.90

General Obligation Debt
At June 30, 2023, the School District had $29,500,000.00 of bonds authorized but unissued.
Intergovernmental Agreement
The Greene County Board of Education entered into a contract with the Greene County Development Authority dated December 16, 2009 for the issuance of bonds to provide funds to Lake Oconee Academy, Inc. for the purpose of constructing Greene County School District educational facilities for use by Lake Oconee Academy, Inc. Under the terms of the contract, the Greene County Development Authority issued $17,205,000.00 in bonds on behalf of the School District. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract.
The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2023. In the event the entity is unable to make the principal and interest payments using proceeds from the Educational Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Debt currently outstanding under intergovernmental agreement is as follows:

Purpose

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2009 2.0 - 2.5% 12/16/2009 2/1/2029 $ 17,205,000.00 $ 6,980,000.00

The following is a schedule of total intergovernmental agreement payments:

Fiscal Year Ended June 30:

Principal

Interest

2024 2025 2026 2027 2028 - 2029

$ 1,045,000.00 $ 1,090,000.00 1,135,000.00 1,185,000.00 2,525,000.00

302,460.00 259,092.50 212,767.50 164,530.00 170,440.00

Total Principal and Interest $ 6,980,000.00 $ 1,109,290.00

The following assets were acquired through the intergovernmental agreement and are reflected in the capital asset note at fiscal year end.
Governmental Activities

Land

$ 1,174,999.65

Buildings and Improvements

12,226,220.14

Land Improvement

3,333,589.96

Equipment

11,843.70

Less: Accumulated Amortization

5,151,892.45

$ 11,594,761.00

- 21 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Lease
The School District has acquired a modular building for classrooms under the provisions of a contract that conveys control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. This contract is classified as lease for accounting purposes.
The following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2023:
Governmental Activities

Buildings and Improvements Less: Accumulated Amortization

$ 188,313.60 116,359.01

$

71,954.59

The lease currently outstanding is as follows:

Purpose

Interest Rate

Issue Date

Mobile Modular Building

3.50%

4/8/2022

Maturity Date

Amount Issued

Amount Outstanding

3/8/2024 $ 188,313.60 $

71,954.59

The following is a schedule of total lease payments:

Fiscal Year Ended June 30:

Principal

Interest

2024

$

71,954.59 $

1,053.41

Settlement Agreement with Charter School

On January 2, 2023, the School District Board signed an agreement with Lake Oconee Academy, Inc. for the settlement of Civil Action File No. 2020CV340594 filed by the charter school. The School District will pay the charter school $1,093,284.00. The total is to be paid in six equal installments of $182,214.00 starting on August 1, 2023 and continuing each August 1 through August 1, 2028. If the Charter Agreement is terminated or not renewed for any reason, including but not limited to the reasons identified in Section 24 of the Charter Agreement, the remaining balance of the total identified in this Paragraph will be due to LOA within ten (10) days of the expiration or termination of the Charter Agreement, whichever occurs earlier.

Settlement agreements currently outstanding are as follows:

Purpose

Agreement Date

Maturity Date

Amount Issued

Amount Outstanding

Settlement Agreement with Charter School

1/23/2023

8/1/2028 $ 1,093,284.00 $ 1,093,284.00

- 22 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The following is a schedule of total intergovernmental agreement payments:

Fiscal Year Ended June 30:

Payment

2024 2025 2026 2027 2028 2029

$

182,214.00

182,214.00

182,214.00

182,214.00

182,214.00

182,214.00

Total Principal and Interest $ 1,093,284.00

Subscription Liabilities
The School District has entered into certain subscription-based contracts to use vendor-provided information technology (IT) under the provisions of various contracts that convey control of the rightto-use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as subscription liabilities for accounting purposes. The subscription asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the subscription based information technology arrangement term.
There were no variable payments based on performance, nor termination penalties expensed for fiscal year ended June 30, 2023.
The following is a summary of the carrying values of subscription right-to use assets intangible right-touse assets at June 30, 2023:
Governmental Activities

Subscription Assets

$

Less: Accumulated Amortization

157,485.53 86,171.35

$

71,314.18

Subscription liabilities currently outstanding are as follows:

Purpose

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Etrieve Cloud

3.225%

1/27/2021

6/29/2025 $

141,812.18 $

31,067.31

- 23 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The following is a schedule of total subscription liability payments:

For the year Ended June 30:

Principal

Interest

2024

$

31,067.31 $

1,009.69

NOTE 8: RISK MANAGEMENT

Insurance

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 carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

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 has not incurred any liabilities for unemployment compensation during the past two years.

Surety Bond

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

Position Covered

Amount

Superintendent

$

50,000.00

- 24 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS

The School District's financial statements include the following amounts presented in the aggregate at June 30, 2023:

Nonspendable

Inventories

$

Prepaid Assets

Restricted

Continuation of Federal Programs $

Capital Projects

Debt Service

Assigned

School Activity Account

Unassigned

33,734.43 63,827.42 $
888,671.77 14,230,135.83
151,230.00

97,561.85
15,270,037.60 254,374.18
20,471,646.51

Fund Balance, June 30, 2023

$ 36,093,620.14

When multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.

NOTE 10: SIGNIFICANT COMMITMENTS

Commitments under Construction Contracts

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2023:

Project

Unearned Executed Contracts (1)

Payments through June 30, 2023 (2)

New Primary School-Architect

$

New Primary School-Contractor

Union Point Elementary-New Roof

1,007,045.45 $ 38,505,130.00
8,050.00

964,067.55 917,139.00
14,950.00

$ 39,520,225.45 $

1,896,156.55

(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end.
NOTE 11: 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.
- 25 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
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 Official Code of Georgia Annotated (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 (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 payas-you-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 $809,119.00 for the year ended June 30, 2023. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2023, the School District reported a liability of $19,725,950.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 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, 2022. At June 30, 2022, the School District's proportion was 0.199188%, which was an increase of 0.004693% from its proportion measured as of June 30, 2021.

- 26 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

For the year ended June 30, 2023, the School District recognized OPEB expense of ($608,513.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual

experience

$

787,373.00 $ 7,752,896.00

Changes of assumptions

3,004,303.00

3,989,601.00

Net difference between projected and actual

earnings on OPEB plan investments

120,323.00

-

Changes in proportion and differences between School District contributions and proportionate share of contributions

1,064,988.00

364,397.00

School District contributions subsequent to

the measurement date

809,119.00

-

Total

$ 5,786,106.00 $ 12,106,894.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2024 2025 2026 2027 2028 Thereafter

$ (1,907,246.00)

$ (1,579,812.00)

$ (1,278,670.00)

$ (1,587,021.00)

$ (711,532.00)

$

(65,626.00)

- 27 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Actuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 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, 2022:
OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return
Healthcare cost trend rate

7.00%, compounded annually, net of investment expense, and including inflation

Pre-Medicare Eligible Medicare Eligible

6.50% 5.00%

Ultimate trend rate

Pre-Medicare Eligible

4.50%

Medicare Eligible Year of Ultimate trend rate

4.50%

Pre-Medicare Eligible

2029

Medicare Eligible

2023

The Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows:
For TRS members: 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 by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with 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.
For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General
Employee Mortality Table, with no adjustment, with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General

- 28 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 104% for males and 99% for females) with the MP-2019 Projection scale applied generationally.

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending 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, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 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.

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

Target Allocation

Long-Term Expected Real Rate of Return*

Fixed income Equities

30.00% 70.00%

2.00% 9.40%

Total

100.00%

* Net of inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. 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 (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at

- 29 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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 2128.
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 3.57%, 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 (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate:

1% Decrease (2.57%)

Current Discount Rate (3.57%)

School District's proportionate share

of the Net OPEB liability

$

22,312,418.00 $

19,725,950.00 $

1% Increase (4.57%)
17,533,805.00

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 1percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

School District's proportionate share

of the Net OPEB liability

$

16,996,264.00 $

19,725,950.00 $

23,080,723.00

OPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

NOTE 13: 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 O.C.G.A. 47-3-60 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 Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
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 10 years of service and attainment of age 60. Ten years of service is required for disability and
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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. 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 6.00% of their annual pay during fiscal year 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll, of which 19.95% of payroll was required from the School District and 0.03% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,648,119.67 and $7,618.48 from the School District and the State, respectively.
Employees' Retirement System
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 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.
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, postretirement 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.

- 31 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. 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 for the year ended June 30, 2023 was 31.01% of annual covered payroll for old and new plan members and 27.47% for GSEPS members. The rates include the annual actuarially determined employer contribution rate of 24.67% of annual covered payroll for old and new plan members and 21.59% for GSEPS members, plus 6.34% adjustment to the old and new plan and a 5.88% adjustment to the GSEPS plan for the commencement of cost-of-living adjustments (COLA) prefunding for certain retired ERS 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 $30,799.68 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 www.ers.ga.gov/financials.
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 $15.75, 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 and 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 fiscal year contribution was $50,935.00.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2023, the School District reported a liability of $52,493,529.00 for its proportionate share of the net pension liability for TRS ($52,138,235.00) and ERS ($355,294.00).

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

$ 52,138,235.00

State of Georgia's proportionate share of the net pension liability associated with the School District

88,973.00

Total

$ 52,227,208.00

The net pension liability for TRS and ERS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022.
At June 30, 2022, the School District's TRS proportion was 0.160564%, which was an increase of 0.007259% from its proportion measured as of June 30, 2021. At June 30, 2022, the School District's ERS proportion was 0.005320%, which was a decrease of (0.002019)% from its proportion measured as of June 30, 2021.
At June 30, 2023, 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 $365,440.00.
The PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022.
For the year ended June 30, 2023, the School District recognized pension expense of $8,297,123.52 for TRS, $104,451.00 for ERS and $91,835.00 for PSERS and revenue of ($70,114.00) for TRS and $91,835.00 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.

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$ 2,164,271.00 $ 271,392.00 $

763.00 $

3,222.00

Changes of assumptions

7,848,468.00

-

63,157.00

-

Net difference between projected and

actual earnings on pension plan

investments

10,243,680.00

-

41,282.00

-

Changes in proportion and differences between School District contributions and proportionate share of contributions

1,441,357.00

-

13,633.00

43,041.00

School District contributions subsequent to

the measurement date

4,648,119.67

-

30,799.68

-

Total

$ 26,345,895.67 $ 271,392.00 $ 149,634.68 $ 46,263.00

The School District contributions subsequent to the measurement date for TRS and 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, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2024 2025 2026 2027

$ 6,023,882.00 $ $ 4,464,670.00 $ $ 3,307,320.00 $ $ 7,630,512.00 $

34,458.00 5,336.00 1,029.00
31,749.00

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GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Actuarial Assumptions: The total pension liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System:

Inflation

2.50%

Salary increases Investment rate of return

3.00% 8.75%, average, including inflation
6.90%, net of pension plan investment expense, including inflation

Post-retirement benefit increases

1.50% semi-annually

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 by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as 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, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018, with the exception of the investment rate of return and payroll growth assumption.

Employees' Retirement System:

Inflation

2.50%

Salary increases

3.00% 6.75%, including inflation

Investment rate of return

7.00%, net of pension plan investment expense, including inflation

Mortality rates are as follows:

The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service.
The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows:

Participant Type Membership Table

Set Forward (+)/ Setback (-) Adjustment to Rates

Service Retirees General Healthy Annuitant

Male: +1; Female: +1

Male: 105%; Female: 108%

Disability Retirees General Disabled

Beneficiaries

General Contingent Survivors

Male: -3; Female: 0 Male: +2; Female: +2

Male: 103%; Female: 106% Male: 106%; Female: 105%

- 35 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.

Public School Employees Retirement System:

Inflation

2.50%

Salary increases Investment rate of return
Post-retirement benefit increases

N/A 7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually

Mortality rates are as follows:

The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service.
The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows:

Participant Type

Membership Table

Set Forward (+)/ Setback (-) Adjustment to Rates

Service Retirees

General Healthy Below- Male: +2; Female: +2 Median Annuitant

Male: 101%; Female: 103%

Disability Retirees

General Disabled

Male: -3; Female: 0

Male: 103%; Female: 106%

Beneficiaries

General Below-Median Contingent Survivors

Male: +2; Female: +2

Male: 104%; Female: 99%

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.

- 36 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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

Asset Class

TRS/ERS/PSERS Target
Allocation

Long-Term Expected Real Rate of Return*

Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative

30.00% 46.30%
1.20% 12.30%
5.20% 5.00%

0.20% 9.40% 13.40% 9.40% 11.40% 10.50%

Total

100.00%

* Rates shown are net of inflation
Discount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total ERS and PSERS pension liability was 7.00%. 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 nonemployer 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 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

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 6.90% and 7.00%, 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-percentage-point lower (5.90% and 6.00%) or 1-percentage-point higher (7.90% and 8.00%) than the current rate:

Teachers Retirement System:

1% Decrease (5.90%)

Current Discount Rate (6.90%)

1% Increase (7.90%)

School District's proportionate share of

the net pension liability

$

78,659,329.00 $

52,138,235.00 $ 30,480,253.00

Employees' Retirement System:

1% Decrease (6.00%)

Current Discount Rate (7.00%)

1% Increase (8.00%)

School District's proportionate share of

the net pension liability

$

472,963.00 $

355,294.00 $

256,344.00

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 www.ers.ga.gov/financials.

Defined Contribution Plan
On November 1, 2001, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group.
The School District selected VALIC as the provider of this plan. For each employee covered under PSERS, the Board began contributing to the plan an amount equal to $25.00 per month in matching contributions.
The employee becomes vested in the plan with 10 years of experience. Employees who had already achieved 10 years of experience at the time the plan was implemented were vested upon enrollment.
Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 10 years of service. If an employee terminates employment prior to achieving 10 years of service, funds paid on behalf of the non-vested employee are credited back to the School District.
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2023 2022 2021

100%

$

100%

$

100%

$

2,989.44 3,150.00 3,558.16

- 38 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION
Net position as of July 1, 2022, has been restated for the adoption of GASB No. 96, as described in "New Accounting Pronouncements." Net Position was previously reported at $16,688,681.94. The prior period adjustment amount was $46,719.22. The restated net position amount for July 1, 2022 is $16,735,401.16. This change is in accordance with generally accepted accounting principles.
NOTE 15: TAX ABATEMENTS
Greene County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Greene County.
For the fiscal year ended June 30, 2023, Greene County abated property taxes due to the School District that were levied on August 19, 2022 and due on December 1, 2022 totaling $18,134.07. The amount abated is due to a single tax abatement agreement with a lodging hospitality organization that increases employment, sales taxes and economic development in the County.
NOTE 16: SPECIAL ITEMS
In fiscal year 2023, the School District sold land for $200,000.00 that was purchased in fiscal year 2022 for $219,735.44. The loss on the sale of the land totaling $19,735.44 is included within expenses on the face of the financial statements.
NOTE 17: COMPONENT UNIT
The Lake Oconee Academy, Inc. (Charter School) "the Organization" was formed in April 2007 as a Georgia non-profit corporation. The Charter School is responsible for the public education of all students attending its schools.
The Organization has elected to include a discretely presented component unit, the financial information for Lake Oconee Academy Foundation, Inc., "the Foundation", due to the nature and significance of its relationship with the Foundation. See Note 18 for additional information related to the component unit. A complete set of financial statements for the Foundation can be obtained upon request from Mr. Tommy Jeffords, Chairman, by email at tjeffords@bbbga.com.
New Accounting Pronouncements
In fiscal year 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have an impact on the School District's financial statements.
Deposits for Component Unit
Custodial credit risk is the risk that in the event of bank failure, the Organization's deposits may not be returned to it. The Organization's policy is that all deposits are secured by FDIC insurance and/or acceptable collateral. At June 30, 2023, the Organization had deposits with a carrying amount of $5,860,497.00 and a bank balance of $5,890,631.00.

- 39 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

At June 30, 2023, $5,640,631.00 of the Charter's School bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).
The Charter School participates in the State's Secure Deposit Program (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) set 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 warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, loses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining loses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to fully collateralized.
Long-Term Lease for Component Unit
The Charter School has acquired buildings and equipment under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of inception.
The Charter School leases copier equipment under the terms of a long-term agreement executed on April 20, 2020 for a term of 60 months in the amount of $1,199.00 per month.
On August 1, 2019, the Charter School entered into a thirty-eight (38) year lease agreement to lease a 25,000 square foot high school and a 31,000 square foot student life center on approximately 22.42 acres of land located adjacent to the organization's present location from Lake Oconee Academy Foundation, Inc. Monthly lease payments, which commenced on November 1, 2019, were $66,566.00 which is sufficient to pay the costs of ownership including debt service for the project.
Starting in October 2021, the amount increased to $68,159.00 plus an additional $6,816.00 to be deposited into a separate bank account until the amount in the account is equivalent to one year of required principal and interest payments. Though the Foundation received a deferment of its debt service obligations to USDA, the charter school continued to pay the lease payments.
The reserve account is expected to be funded at the end of January 1, 2031. Monthly payment of $6,656.00 began on November 2019 to fund the reserve.
In the current year, the Charter School entered into a lease for an 16,725 square foot fine arts educational facility located on the same property as the high school and student life center and adjacent to the Charter School's present location from Lake Oconee Academy Foundation, Inc. Monthly lease payments, which commenced on April 22, 2023, are calculated as the rate that is sufficient to pay the costs of ownership including debt service for the project. The lease terminates on July 31, 2057, except that if the debt used to finance the project is not fully repaid, monthly lease payments continue until it is paid in full, which management has estimated to be on March 22, 2061. The lessor's monthly debt service is $12,610.00 until April 22, 2033, when it is reduced to $11,464.00 through the term of the
- 40 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

lease. The $12,610.00 includes the 10% of its monthly required loan payment into a separate bank account until the amount in the account is equivalent to one year of required principal and interest payments.
The facilities leased from the Lake Oconee Academy Foundation are financed with the United States Department of Agriculture, the terms of which are further described in Note 18. The Charter School is a guarantor of the debt.
Total lease expense under these agreements for the year ended June 20, 2023 was $961,513.00.
The following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2023.
Governmental Activities

Buildings and Improvements

$

Equipment

Less: Accumulated Amortization

23,221,139.00 66,702.00
1,868,678.00

Leases currently outstanding are as follows:

$ 21,419,163.00

Purpose
Fine Arts Educational Facility Copiers High School/Student Life Center

Interest Rates
2.38% 3.00% 3.00%

Issue Date
3/22/2023 4/20/2020 11/1/2019

Maturity Date Amount Issued

Amount Outstanding

3/22/2061 3/20/2025
9/1/2058

$ 3,564,375.00 $ 66,702.00
19,656,764.00

3,547,675.00 24,490.00
18,600,303.00

$ 23,287,841.00 $ 22,172,468.00

- 41 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The following schedule details debt service requirements to maturity for the School District's total lease payable:

Fiscal Year Ended June 30:

Principal

Interest

2024

$

428,064.00 $

637,338.00

2025

437,043.00

624,764.00

2026

438,915.00

612,105.00

2027

451,810.00

599,210.00

2028

465,086.00

585,934.00

2029 - 2033

2,325,646.00

2,723,880.00

2034 - 2038

2,386,822.00

2,390,558.00

2039 - 2043

2,759,105.00

2,018,275.00

2044 - 2048

3,189,858.00

1,587,522.00

2049 - 2053

3,688,317.00

1,089,063.00

2054 - 2058

4,265,186.00

512,194.00

2059 - 2061

1,336,616.00

31,400.00

Total

$

22,172,468.00

13,412,243.00

Capital Assets for Component Unit:

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

Balances July 1, 2022

Increases

Decreases

Balances June 30, 2023

Governmental Activities Capital Assets, Not Being Depreciated:
Construction in Progress

$

87,096.00 $

- $

87,096.00 $

-

Capital Assets Being Depreciated/Amortized Buildings and Improvements Equipment Intangible Assets

6,414,322.00 1,446,927.00
67,632.00

87,096.00 15,152.00
-

75,410.00 -

6,426,008.00 1,462,079.00
67,632.00

Less Accumulated Depreciation/Amortization for: Buildings and Improvements Equipment Intangible Assets

959,041.00 1,357,136.00
67,632.00

223,917.00 18,746.00 -

-

1,182,958.00

-

1,375,882.00

-

67,632.00

Total Capital Assets, Being Depreciated/Amortized, Net

5,545,072.00

(140,415.00)

75,410.00

5,329,247.00

Governmental Activities Capital Assets - Net

$ 5,632,168.00 $ (140,415.00) $ 162,506.00 $ 5,329,247.00

- 42 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Current year depreciation/amortization expense by function is as follows:

Instruction Support Services
Maintenance and Operation of Plant

$

1,411.00

241,252.00

$

242,663.00

The following is a summary of changes in the intangible right-to-use assets for governmental activities during the fiscal year:

Governmental Activities Intangible Right-to-Use Assets
Buildings and Improvements Equipment

Balances July 1, 2022

Increases

Decreases

Balances June 30, 2023

$

19,692,907.00 $ 3,564,375.00 $ 36,143.00 $

23,221,139.00

66,702.00

-

-

66,702.00

Less Accumulated Amortization Buildings and Improvements Equipment

1,742,399.00 21,123.00

119,065.00 22,234.00

36,143.00 -

1,825,321.00 43,357.00

Governmental Activities Intangible Right-to-Use Assets - Net $

17,996,087.00 $ 3,423,076.00 $

- $

21,419,163.00

Current year amortization expense by function is as follows:
Support Services School Administration Maintenance and Operation of Plant

$

22,234.00

119,065.00

$ 141,299.00
Litigation for Component Unit
On September 17, 2020, Lake Oconee Academy, Inc., filed a lawsuit in Fulton County Superior Court in connection with funding from its charter contract with the Greene County Board of Education. On January 2, 2023, the litigation was settled with the Charter School scheduled to receive an additional $1,093,284.00 in funding payable over six annual installments of $182,214.00 beginning August 1, 2023. In the government wide financial statements, the settlement has been reported in the receivable balances; however, it will be reported in the fund level statements when received.
NOTE 18: CHARTER SCHOOL'S COMPONENT UNIT
Lake Oconee Academy Foundation, Inc., "the Foundation", was organized on September 5, 2012, as a Georgia Corporation pursuant to the provisions of the Georgia Non-Profit Corporation Code. The Foundation is dedicated to raising and stewarding funds to provide educational resources, improve the educational environment, and support the educational and extracurricular programs for the enrichment, betterment and educational excellence of the children of Lake Oconee Academy, a charter school located in Greensboro, Georgia.
- 43 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

Deposits for Foundation
The Foundation maintains depository accounts at one local bank and one account with PayPal. Deposit accounts at each bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.00 per account. The balances occasionally exceed those limits. As of June 30, 2023, cash held at one depository bank of $811,962.00 exceeded insurance provided by the FDIC by $561,962.00 and was at risk of loss.
Foundation's Lease Revenue
The Foundation leases an educational facility to the Lake Oconee Academy charter school under the terms of an agreement which commenced on August 1, 2019 and which ends on October 1, 2059. The facility was constructed using proceeds from a promissory note with the USDA (see note below). During the term of the agreement, the charter school will pay to the Foundation the same amount required to service the USDA loan. The lease may be terminated by the charter school after the USDA loan is repaid or it can continue to lease the facility for a reasonable market rate of rental. Monthly lease revenue received to offset required payments of principal and interest were $66,566.00 beginning on November 1, 2019. Prior to that date lease revenue received was $1,500.00 per month. An additional amount of $6,656.00 was paid monthly; however, in fiscal year 2021 only one payment was made in July 2020 to fund the reserve account. The reserve payment started back in October 2021 in the amount of $6,816.00 which is 10% of the required debt payment which increased to $68,159.00.
In addition, the foundation financed the construction of a 16,725 square foot fine-arts which is leased to the Lake Oconee charter school. The loan is due in monthly payments of $11,464.00 including interest at 2.375% beginning on April 22, 2023 and continuing until loan maturity on March 22, 2061. The foundation is required to deposit an amount equal to 10% of its monthly loan payments into a separate bank account until the amount in the account is equivalent to one year of required principal and interest payments.

- 44 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

$937,530.00 was received by the Foundation as rental revenue from the charter school under this agreement. Future minimum lease revenues for the next five years and thereafter are as follows:

Year Ending

Principal

Interest

2024

$

2025

2026

2027

2028

2029 - 2033

2034 - 2038

2039 - 2043

2044 - 2048

2049 - 2053

2054 - 2058

2059 - 2063

336,790.00 $ 347,114.00 357,298.00 367,782.00 378,166.00 2,065,863.00 2,387,783.00 2,760,225.00 3,190,963.00 3,689,894.00 4,267,008.00 1,318,988.00

618,686.00 608,363.00 598,178.00 587,694.00 577,310.00 2,711,517.00 2,389,597.00 2,017,155.00 1,586,417.00 1,087,486.00 510,372.00
30,344.00

Total

$ 21,467,874.00 $ 13,323,119.00

Foundations Intangible Assets
The Foundation incurred $466,307.00 in intangible costs during the construction phase of buildings which are leased to the Lake Oconee Academy charter school and an additional $11,469.00 in costs in connection with re-amortization of the USDA loan described in USDA Direct Loan note below. These fees are being amortized over a period of thirty-eight years using the straight-line method. Accumulated amortization at June 30 was $46,621.00. Amortization expense in the current period was $12,573.00.
Foundations' Long-Term Debt
Public Finance Authority
The Foundation executed a construction promissory note on December 20, 2017 with the Public Finance Authority, a public entity organized in the State of Wisconsin, the proceeds which were used to construct a 55,000 square-foot facility consisting of classrooms, offices, a gym, a caf, and a school store which is leased to the Lake Oconee Academy charter school. The loan bears interest at 2.3% per annum and is secured by the land and buildings attached. Interest only payments are due in semi-annual installments on April 1 and October 1 until October 1, 2019 at which time all principal and interest were paid in full.
USDA Direct Loan
The Foundation executed a promissory note in the amount of $18,088,544.00 with the USDA through the USDA Community Facilities Direct Loan Fund. The proceeds of the loan were used to repay the Public Finance Authority note described above. Principal and interest payments in the amount of $66,566.00 were due beginning November 1, 2019 with interest at 3.0% per annum and continuing for a period of thirty-eight (38) years with all principal and accrued but unpaid interest being due on October 1, 2059. The loan is secured by land comprising approximately 22.92 acres and
- 45 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

the attached buildings constructed for the high school and student life center and also by all personal property, equipment, fixtures, revenues, fees, charges, assessments, income, and accounts receivable of the Foundation.

On July 20, 2020, the foundation was notified that the USDA had granted its request for deferral of loan payments; however, the Organization continued to pay lease payments under the leave for the use of the facility. Subsequently, on August 27, 2021, the foundation was notified that the USDA would begin requiring loan payments of $68,159.00 plus the additional $6,816.00 to fund the required reserve resulting in a total payment of $74,975.00 starting in October 2021.

On September 1, 2021, the Foundation executed an agreement to re-amortize the loan. During the period of deferment, interest accrued in the amount of $627,276.00 which was added to the loan balance. The outstanding principal balance on the loan at June 30, 2023 is $18,049,647.00.

The charter school's lease payment to the component unit will be sufficient to meet this debt service requirement per the lease. The loan will mature on October 1, 2059. Future requirements to reduce long-term debt are as follows:

Year

Amount

2024

$

280,232.00

2025

288,755.00

2026

297,538.00

2027

306,588.00

2028

315,913.00

2029 - 2033

1,729,678.00

2034 - 2038

2,009,222.00

2039 - 2043

2,333,946.00

2044 - 2048

2,711,151.00

2049 - 2053

3,149,318.00

2054 - 2058

3,658,283.00

2059 - 2060

969,023.00

Total

$ 18,049,647.00

- 46 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "G"

The Foundation executed a promissory note in the amount of $3,432,100.00 with the USDA through the USDA Community Facilities Direct Loan Fund on March 22, 2023. The proceeds of the loan were used to repay a construction loan from Bank South dated January 19, 2022 which had financed the construction of a 16,725 square foot fine-arts facility which is leased to the Lake Oconee Academy charter school. The loan is due in monthly payments of $11,464.00 including interest at 2.375% beginning on April 22, 2023 and continuing until loan maturity on March 22, 2061. As of June 30, 2023, $3,418,226.00 was outstanding on this loan.

Year

Amount

2024

$

2025

2026

2027

2028

2029 - 2033

2034 - 2038

2039 - 2043

2044 - 2048

2049 - 2053

2054 - 2058

2059 - 2061

56,558.00 58,358.00 59,760.00 61,194.00 62,253.00 336,185.00 378,560.00 426,278.00 479,813.00 540,576.00 608,726.00 349,965.00

Total

$ 3,418,226.00

The two loan agreements contain a due on default clause by which the USDA may declare the entire debt immediately due and payable if the Foundation fails to remit the required payments or fails to comply with any of the conditions and agreements contained in the promissory note or instruments securing them. A default on one loan is considered a default on both loans. The loans are secured by land comprising of approximately 22.92 acres and the attached buildings constructed for the high school, student life center, and fine arts facilities and by all personal property, equipment, fixtures, revenues, fees, charges, assessments, income, and accounts receivable of the Foundation. The loans are guaranteed by Lake Oconee Academy, Inc.
The Foundation is required to establish a debt service reserve fund in which it will deposit an amount equal to 10% of its monthly loan payments on the two loan agreements until the amount in the reserve is equivalent to one year of required principal and interest payments totaling $955,476.00. At June 30, 2023, the balance of this reserve fund was $209,168.00. This balance is considered to be restricted cash.
NOTE 19: SUBSEQUENT EVENTS
On June 22, 2023, voters authorized the School District to issue general obligation bonds in the amount of $29,500,000.00. The proceeds from these bonds will be used for paying all or a portion of certain capital outlay projects, capitalized interest, and the costing of issuing bonds. The School District issued $29,500,000.00 of these bonds July 20, 2023.

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GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "1"

For the Year Ended
June 30

School District's proportion
of the Net Pension Liability (NPL)

School District's proportionate share
of the NPL

State of Georgia's proportionate share
of the NPL associated with the
School District

Total

School District's covered payroll

School District's proportionate share of the NPL as a percentage of its covered payroll

Plan fiduciary net position as a percentage
of the total pension liability

2023 2022 2021 2020 2019 2018 2017 2016 2015

0.160564% $ 52,138,235.00 $ 0.153305% $ 13,558,805.00 $ 0.152864% $ 37,029,644.00 $ 0.150737% $ 32,412,531.00 $ 0.144669% $ 26,853,665.00 $ 0.141084% $ 26,220,896.00 $ 0.136025% $ 28,063,474.00 $ 0.132034% $ 20,100,865.00 $ 0.131414% $ 16,602,426.00 $

88,973.00 19,634.00 10,659.00 67,303.00 165,760.00 478,200.00 735,706.00 600,283.00 509,137.00

$ 52,227,208.00 $ 13,578,439.00 $ 37,040,303.00 $ 32,479,834.00 $ 27,019,425.00 $ 26,699,096.00 $ 28,799,180.00 $ 20,701,148.00 $ 17,111,563.00

$ 21,779,829.73 $ 19,988,566.71 $ 19,714,115.24 $ 18,472,560.24 $ 17,431,278.52 $ 16,485,900.49 $ 15,311,822.79 $ 14,357,962.71 $ 13,816,894.27

239.39% 67.83%
187.83% 175.46% 154.05% 159.05% 183.28% 140.00% 120.16%

72.85% 92.03% 77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 49 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "2"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered
payroll

2023

$

2022

$

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

4,648,119.67 $ 4,307,246.52 $ 3,804,315.79 $ 4,166,366.88 $ 3,850,981.49 $ 2,911,460.22 $ 2,311,700.42 $ 2,129,171.85 $ 1,835,628.79 $

4,648,119.67 $ 4,307,246.52 $ 3,804,315.79 $ 4,166,366.88 $ 3,850,981.49 $ 2,911,460.22 $ 2,311,700.42 $ 2,129,171.85 $ 1,835,628.79 $

-

$

23,302,212.68

-

$

21,779,829.73

-

$

19,988,566.71

-

$

19,714,115.24

-

$

18,472,560.24

-

$

17,431,278.52

-

$

16,485,900.49

-

$

15,311,822.79

-

$

14,357,962.71

19.95% 19.78% 19.03% 21.13% 20.85% 16.70% 14.02% 13.91% 12.78%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 50 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "3"

For the Year Ended June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015

School District's proportion of the Net Pension Liability (NPL)

School District's proportionate share of
the NPL

School District's covered payroll

School District's proportionate share of the NPL as a percentage
of covered payroll

0.005320% $ 0.007339% $ 0.005346% $ 0.003029% $ 0.001871% $ 0.002316% $ 0.002463% $ 0.004508% $ 0.005517% $

355,294.00 $ 171,652.00 $ 225,332.00 $ 124,993.00 $
76,917.00 $ 94,061.00 $ 116,510.00 $ 182,637.00 $ 206,992.00 $

130,236.72 175,926.60 134,797.64
76,350.83 47,718.60 56,808.87 57,272.78 97,835.48 125,181.67

272.81% 97.57%
167.16% 163.71% 161.19% 165.57% 203.43% 186.68% 165.35%

Plan fiduciary net position as a
percentage of total pension liability
67.44% 87.62% 76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 51 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "4"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered
payroll

2023

$

2022

$

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

30,799.68 $ 32,077.20 $ 43,383.48 $ 33,241.15 $ 18,919.73 $ 11,838.96 $ 14,094.28 $ 14,157.84 $ 21,484.66 $

30,799.68 $ 32,077.20 $ 43,383.48 $ 33,241.15 $ 18,919.73 $ 11,838.96 $ 14,094.28 $ 14,157.84 $ 21,484.66 $

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

99,321.96 130,236.72 175,926.60 134,797.64
76,350.83 47,718.60 56,808.87 57,272.78 97,835.48

31.01% 24.63% 24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 52 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "5"

For the Year Ended
June 30

School District's proportion of the Net Pension Liability (NPL)

School District's proportionate share
of the NPL

State of Georgia's proportionate share
of the NPL associated with the
School District

Total

School District's covered payroll

School District's proportionate share of the NPL as a percentage of its covered payroll

Plan fiduciary net position as a
percentage of the total pension
liability

2023 2022 2021 2020 2019 2018 2017 2016 2015

0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

365,440.00 $ 365,440.00 $

36,490.00 $

36,490.00 $

279,427.00 $ 279,427.00 $

281,548.00 $ 281,548.00 $

289,352.00 $ 289,352.00 $

261,394.00 $ 261,394.00 $

346,042.00 $ 346,042.00 $

235,801.00 $ 235,801.00 $

200,687.00 $ 200,687.00 $

806,701.00 776,062.57 861,138.02 921,592.40 961,501.92 951,641.31 956,860.21 998,454.91 980,963.47

N/A

81.21%

N/A

98.00%

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 53 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL OPEB FUND

SCHEDULE "6"

For the Year Ended June
30

School District's proportion of the Net OPEB Liability (NOL)

School District's proportionate share of the NOL

State of Georgia's proportionate
share of the NOL associated with the School District

Total

School District's covered-employee
payroll

School District's proportionate share of the NOL as a percentage of its coveredemployee payroll

Plan fiduciary net position as a percentage
of the total OPEB liability

2023 2022 2021 2020 2019 2018

0.199188% $ 19,725,950.00 $ 0.194495% $ 21,065,418.00 $ 0.198034% $ 29,086,583.00 $ 0.197947% $ 24,292,344.00 $ 0.194821% $ 24,761,151.00 $ 0.188558% $ 26,492,323.00 $

-

$ 19,725,950.00 $ 21,133,616.27

-

$ 21,065,418.00 $ 19,131,188.65

-

$ 29,086,583.00 $ 18,463,265.80

-

$ 24,292,344.00 $ 17,365,462.11

-

$ 24,761,151.00 $ 16,631,062.70

-

$ 26,492,323.00 $ 15,778,694.87

93.34% 110.11% 157.54% 139.89% 148.88% 167.90%

6.17% 6.14% 3.99% 4.63% 2.93% 1.61%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 54 -

GREENE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

SCHEDULE "7"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2023

$

2022

$

2021

$

2020

$

2019

$

2018

$

2017

$

809,119.00 $ 720,214.00 $ 723,488.00 $ 669,703.00 $ 1,066,082.00 $ 1,009,734.00 $ 983,157.00 $

809,119.00 $ 720,214.00 $ 723,488.00 $ 669,703.00 $ 1,066,082.00 $ 1,009,734.00 $ 983,157.00 $

-

$

21,991,319.67

-

$

21,133,616.27

-

$

19,131,188.65

-

$

18,463,265.80

-

$

17,365,462.11

-

$

16,631,062.70

-

$

15,778,694.87

3.68% 3.41% 3.78% 3.63% 6.14% 6.07% 6.23%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 55 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2023

SCHEDULE "8"

Teachers Retirement System Change of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: 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 Teacher 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.
On May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%.
Employees' Retirement System Changes of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: 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 rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forwarded 2 years for both males and females).
A new funding policy was initially adopted the Board on March 15, 2018, and most recently amended on June 18, 2020. 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 and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation.
On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rate of mortality, retirement, withdrawal, and salary increases. This also included a change to the long-term assumed investment rate of return of 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability.
On April 21, 2022, the Board adopted a new funding policy which, in part, provides that the Actuarial Accrued Liability and Normal Cost of the System will include a prefunded variable Cost-of-Living Adjustment (COLA) for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided through a profit-sharing mechanism using the System's asset performance. After studying the parameters of this new policy, the assumption for future COLAs was set at 1.05%. Previously, no future COLAs were assumed. In addition, the funding policy set the assumed rate of return at 7.20% for the June 30, 2021 valuation and established a new Transitional Unfunded Actuarial Accrued Liability as of June 30, 2021 which will be amortized over a closed 20-year period.
Public School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: 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 rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
A new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. 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 and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation.
On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability.

- 56 -

GREENE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2023

SCHEDULE "8"

School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. Changes in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. June 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. June 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. June 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. June 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. June 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. 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.

- 57 -

GREENE COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2023

SCHEDULE "9"

REVENUES Property Taxes Sales 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 Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning (Restated)
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

28,830,552.46 $

28,830,552.46 $

29,707,382.43 $

1,250,000.00

1,250,000.00

1,063,285.54

10,669,937.55

11,505,003.55

12,454,090.37

7,019,040.67

7,051,460.62

7,221,345.25

45,000.00

45,000.00

370,253.82

25,200.00

25,200.00

729,844.97

254,000.00

316,500.00

864,253.52

48,093,730.68

49,023,716.63

52,410,455.90

876,829.97 (186,714.46) 949,086.82 169,884.63 325,253.82 704,644.97 547,753.52 3,386,739.27

18,453,332.44
2,051,752.92 1,899,125.34
483,313.62 955,519.56 1,605,207.50 829,255.58 2,989,525.91 1,851,680.56
16,208.58 472,014.20
1,559,100.49 4,932,423.66
38,098,460.36 9,995,270.32

19,447,456.79
1,519,758.92 1,615,779.34
483,313.62 976,460.56 1,605,207.50 829,255.58 3,036,825.91 2,422,322.56
16,208.58 472,014.20
1,559,100.49 4,932,423.66
38,916,127.71 10,107,588.92

468,211.36 (14,234,808.00) (13,766,596.64)

468,211.36 (14,234,808.00) (13,766,596.64)

(3,771,326.32)

(3,659,007.72)

18,834,500.19

18,834,500.19

-

11,163.14

$

15,063,173.87 $

15,186,655.61 $

32,977,144.38
1,957,123.92 2,270,219.90
550,371.15 1,040,175.60 1,895,022.63
784,997.68 2,689,273.26 2,291,369.26
23,088.90 766,330.68 450,025.41 1,857,598.13
-
122,236.87 6,250.13
49,681,227.90 2,729,228.00

(13,529,687.59)
(437,365.00) (654,440.56)
(67,057.53) (63,715.04) (289,815.13) 44,257.90 347,552.65 130,953.30
(6,880.32) (294,316.48) (450,025.41) (298,497.64) 4,932,423.66
(122,236.87) (6,250.13)
(10,765,100.19) (7,378,360.92)

-
2,729,228.00
18,978,026.31
-
21,707,254.31 $

(468,211.36) 14,234,808.00 13,766,596.64
6,388,235.72
143,526.12
(11,163.14)
6,520,598.70

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $693,373.82 and $738,221.62, respectively.
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.

- 58 -

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023

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 COVID-19 - National School Lunch Program Fresh Fruit and Vegetable Program Total Child Nutrition Cluster
Forest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States
Other Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture
Education, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants Preschool Grants COVID-19 - American Rescue Plan - Preschool Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition State Grants English Language Acquisition State Grants Rural and Low-Income School Program Rural and Low-Income School Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.555 10.582
10.665

235GA324N1199 $ 235GA324N1199 225GA324N1099 235GA324L1603
486Forest

480,693.00 1,132,195.62
73,118.63 26,973.40 1,712,980.65
15,504.55

10.560

225GA904N2533

2,241.19 1,730,726.39

84.425D 84.425U 84.425W

S425D210012 S425U210012 S425W210011

295,472.26
2,873,697.14
30,173.84 3,199,343.24

84.027A 84.027A 84.027X 84.173A 84.173A 84.173X

H027A210073 H027A220073 H027X210073 H173A210081 H173A220081 H173X210081

84.048A 84.365A 84.365A 84.358B 84.358B 84.367A 84.367A 84.010A 84.010A

V048A220010 S365A210010 S365A220010 S358B210010 S358B220010 S367A210001 S367A220001 S010A210010-21A S010A200010

35,466.94 614,373.84
65,851.73 2,401.00
36,253.14 803.25
755,149.90
33,595.00 14,453.00
4,198.89 24,171.00 59,007.66 35,473.00 162,222.26 59,664.77 918,961.12 1,311,746.70 5,266,239.84

93.575

2210GACCC5

20,000.00

- 59 -

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

12. UNKNOWN

56,965.88

$

7,073,932.11

Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Greene County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

See notes to the basic financial statements.

- 60 -

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023
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 Gifted Student - 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 One Time QBE Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Sparsity Other State Programs Charter Schools - Facilities Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teachers Retirement Vocational Education Vocational Supervisors Office of the State Treasurer Public School Employees Retirement
See notes to the basic financial statements.

SCHEDULE "11"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

472,879.17

667,298.00 36,795.00
1,583,789.00 168,137.00 817,337.00 46,206.00
1,401,005.00 1,220,451.00
278,353.00 1,571,094.00
163,931.00 41,895.00 94,902.00
231,821.00 223,998.00
71,600.00 33,733.00
944.00
340,061.00 531,291.00 399,835.00 639,360.00

315,095.00 55,860.00
143,369.00

80,429.00 56,576.00
2,093.00 18,368.72 80,910.00 528,660.00
7,618.48 70,294.00
7,167.00
50,935.00

$

12,454,090.37

- 61 -

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2023

SCHEDULE "12"

PROJECT
2019 ESPLOST 1. Acquiring land and performing site preparation related to the construction of new school facilities, and the expansion of existing school system facilities, 2. Adding to, renovating, repairing, improving, and equipping existing school system buildings and instructional facilities system-wide, 3. Expanding, replacing, renovating, repairing, improving, and equipping existing school buildings, parking lots, restrooms, theatres, science labs, outdoor spaces and other school system facilities, 4. Acquiring miscellaneous new equipment, fixtures and furnishings for the school system, including heating and air conditioning equipment, plumbing, LED lighting, flooring, roofing and similar infrastructure improvements, 5. Acquiring technology equipment and software and safety and security equipment, 6. Acquiring school buses and transportation and maintenance equipment, 7. Acquiring textbooks, e-books and e-book readers for the school system, 8. Paying a portion of the purchase payments due under the Intergovernmental Agreement securing the Greene County Development Authority Revenue Bonds (Lake Oconee Academy Project), Series 2009, from January, 2020 through February, 2025 (the maximum amount of such payments not to exceed $10,000,000.00), 9. Paying any general obligation debt of the School District issued in conjunction with the imposition of said sales and use tax, and 10. Paying any expenses incident to accomplishing the foregoing.
Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

4,875,500.00 $

4,875,000.00

1,325,000.00

1,325,000.00

June 30, 2024 June 30, 2024

1,630,000.00

1,630,000.00

June 30, 2024

4,023,000.00 2,641,500.00 1,500,000.00 1,000,000.00

4,023,000.00 2,641,500.00 1,500,000.00 1,000,000.00

June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024

10,000,000.00

10,000,000.00

-

-

5,000.00

9,545.12

$

27,000,000.00 $

27,004,045.12

June 30, 2024
June 30, 2024 June 30, 2024

- 62 -

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2023

SCHEDULE "12"

PROJECT
2019 ESPLOST 1. Acquiring land and performing site preparation related to the construction of new school facilities, and the expansion of existing school system facilities, 2. Adding to, renovating, repairing, improving, and equipping existing school system buildings and instructional facilities system-wide, 3. Expanding, replacing, renovating, repairing, improving, and equipping existing school buildings, parking lots, restrooms, theatres, science labs, outdoor spaces and other school system facilities, 4. Acquiring miscellaneous new equipment, fixtures and furnishings for the school system, including heating and air conditioning equipment, plumbing, LED lighting, flooring, roofing and similar infrastructure improvements, 5. Acquiring technology equipment and software and safety and security equipment, 6. Acquiring school buses and transportation and maintenance equipment, 7. Acquiring textbooks, e-books and e-book readers for the school system, 8. Paying a portion of the purchase payments due under the Intergovernmental Agreement securing the Greene County Development Authority Revenue Bonds (Lake Oconee Academy Project), Series 2009, from January, 2020 through February, 2025 (the maximum amount of such payments not to exceed $10,000,000.00), 9. Paying any general obligation debt of the School District issued in conjunction with the imposition of said sales and use tax, and 10. Paying any expenses incident to accomplishing the foregoing.
Total

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3) (4)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$

2,809,768.20 $

617,584.19 $

- $

-

-

133,538.76

-

-

147,561.04

162,892.51

-

-

326,511.29

125,583.62

-

-

632,903.81

845,951.49

-

-

305,507.06

369,617.56

-

-

2,641.95

32,372.53

-

-

1,347,521.72

3,800,381.07

-

-

-

-

-

-

80.00

9,465.12

-

-

$

5,572,495.07 $

6,097,386.85 $

- $

-

(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 projects. Includes all cost from project inception to completion. (3) The voters of Greene County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt.
Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) Project 7/SPLOST 2014 was completed in June 2020 with total actual expenditures of $6,659,974.11. The previous estimated cost was $6,660,213.00. The surplus of SPLOST proceeds will be used for Project 8 for SPLOST 2019.

See notes to the basic financial statements.

- 63 -

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. Chris Houston, Superintendent and Members of the Greene County Board of Education
We have audited the financial statements of the governmental activities, discretely presented component units, and each major fund of the Greene County Board of Education (School District) as of and for the year ended June 30, 2023, 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 March 22, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Our report includes a reference to other auditors who audited the financial statements of the discretely presented component units, as described in our report on the School District's basic financial statements. Those financial statements were audited in accordance with GAAS but not in accordance with Government Auditing Standards, except for the Lake Oconee Academy Inc. Accordingly, this report does not include reporting on internal control over financial reporting or compliance and other matters associated with those component units nor does it include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors for the component units specified above.
Report on 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
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on 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.
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
March 22, 2024

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. Chris Houston, Superintendent and Members of the Greene County Board of Education
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Greene County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. 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.
In our opinion, the School District complied, in all material respects, with the 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, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the School District's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on 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 Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
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
March 22, 2024

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

GREENE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023
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

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued:
Governmental Activities, Discretely Presented Component Units, 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

84.027, 84.173 84.425

Special Education Cluster Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

II FINANCIAL STATEMENT FINDINGS No matters were reported. lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Unmodified No
None Reported No
No None Reported
Unmodified No
$750,000.00 Yes