Paulding County Board of Education, Dallas, Georgia, annual financial report for the fiscal year ended 2022 June 30, (including independent auditor's reports).

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Annual Financial Report
For The Fiscal Year Ended JUNE 30, 2022
(Including Independent Auditor's Report)

BOARD OF EDUCATION:
Dan Nolan, Chair, District 6 Debbie Collett, Vice-Chair, District 4 Theresa Lyons, District 1 Nick Chester, District 2 Adam Clayton, District 3 John Dean, District 5 Jeff Fuller, At-Large Steve Barnette, Superintendent

The amazing artwork of Paulding County students. For more, visit: https://www.paulding.k12.ga.us/finearts

Paulding 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

8

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

39

2 Schedule of Contributions Teachers Retirement System of Georgia

40

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

41

4 Schedule of Contributions Employees' Retirement System of Georgia

42

5 Schedule of Proportionate Share of the Net Pension Liability

Public School Employees Retirement System of Georgia

43

Required Supplementary Information (Continued)

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

44

7 Schedule of Contributions School OPEB Fund

45

8 Schedule of Proportionate Share of the Net OPEB Asset

SEADOPEB

46

9 Schedule of Contributions SEAD-OPEB

47

10 Notes to the Required Supplementary Information

48

11 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

50

Supplementary Information

12 Schedule of Expenditures of Federal Awards

51

13 Schedule of State Revenue

53

14 Schedule of Approved Local Option Sales Tax Projects

54

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 Mr. Steve Barnette, Superintendent and Members of the Paulding County Board of Education
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Paulding County Board of Education (School District) as of and for the year ended June 30, 2022, 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, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2022, 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.
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.
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.
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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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 31, 2023 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.

A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. Respectfully submitted,
Greg S. Griffin State Auditor
March 31, 2023

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
INTRODUCTION
The discussion and analysis of the Paulding County Board of Education's (School District) financial performance provides an overall review of the School District's financial activities for the fiscal year ended 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.
The Paulding County Board of Education has prepared the annual financial report to comply with the reporting model for financial statements (GASB Statement No. 34).
Financial Highlights
Key financial highlights for fiscal year 2022 are as follows:
The School District's financial status remained stable during fiscal year 2022. The general fund's net change in fund balance was an increase of $0.4 million, which represents a 0.5 percent increase from the fiscal year 2021 balance.
General revenues accounted for $181.6 million in revenue or 42.5 percent of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $245.7 million or 57.5 percent of total revenues. Total revenues were $427.3 million.
The School District had $342.9 million in expenses related to governmental activities; only $245.7 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues, primarily taxes, of $181.6 million were adequate to provide for these programs.
Among major funds, the general fund had $391.5 million in revenues, ($28.4) million in net other financing uses and $362.8 million in expenditures. The general fund's balance increased from $69.8 million to $70.2 million.
Using the Basic Financial Statements
This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the Paulding County Board of Education as a financial whole, or as an entire operating entity.
The Statement of Net Position and Statement of Activities provide information about the activities of the School District as a whole, presenting both an aggregate view of the School District's finances and a longerterm view of those finances. The fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the School District's most significant funds. In the case of the Paulding County Board of Education, the general fund, capital projects fund and debt service fund are the significant funds.
Reporting the School District as a Whole
Statement of Net Position and Statement of Activities
While these documents contain the large number of funds used by the School District to provide programs and activities, the view of the School District as a whole looks at all financial transactions and asks the question, "How did we do financially during fiscal year 2022?" The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and all liabilities using the
i

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 accrual basis of accounting similar to the accounting used by most private-sector companies. The accrual basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. These two statements report the School District's net position and changes in net position. This change in net position is important because it tells the reader whether, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Nonfinancial factors include the School District's 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, after school program, food service, school activity accounts and various others. Reporting the School District's Most Significant Funds Fund Financial Statements Fund financial reports provide detailed information about the School District's major funds. The School District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the School District's most significant funds. 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 how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can 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 is reconciled in the financial statements.
ii

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The School District as a Whole
The perspective of the Statement of Net Position is of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2022.

Table 1 Net Position (In Thousands)
Assets Current and Other Assets Capital Assets, Net
Total Assets
Deferred Outflows of Resources Deferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
Liabilities Current and Other Liabilities Long-Term Liabilities
Total Liabilities
Deferred Inflows of Resources Related to Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources
Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit)
Total Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2022

2021

$

234,095 $

183,411

409,118

408,557

643,213

591,968

844 99,559 43,937
144,340
787,553

3,375 97,556 51,097
152,028
743,996

61,791 394,390
456,181

55,419 663,882
719,301

526 176,859
89,579
266,964
723,145

1
44,661
44,662
763,963

309,878 63,495
(308,965)

317,531 29,903
(367,401)

$

64,408 $

(19,967)

Total net position increased $84.4 million primarily due to changes in the actuarial calculation of the Pension (GASB No. 68) and OPEB (GASB No. 75) liabilities resulting in a net decrease in total liabilities and deferred inflows of $40.8 million.

iii

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

Table 2 Change in Net Position
(In Thousands)

Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions
Total Program Revenues
General Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Total Revenues
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 Community Services Food Services Interest on Long-Term Debt
Total Expenses
Increase (Decrease) in Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2022

2021

$

2,667 $

2,684

238,542

201,269

4,506

4,559

245,715

208,512

110,164 (170) 34

99,328 (32) 33

27,891 6,008
31,191 219
6,225 181,562 427,277

24,317 5,026
28,926 91
3,799 161,488 370,000

221,500

249,286

13,587 16,503
5,115 1,217 18,736 2,540 19,961 18,814 4,056
233

14,698 16,694
6,051 1,590 22,383 2,497 19,742 16,760 3,871
235

1,279 1
16,894 2,467
342,903

241 1
14,764 3,229
372,042

$

84,374 $

(2,042)

iv

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Governmental Activities
Instruction comprises 64.6 percent of governmental program expenses. Interest expense comprises 0.7 percent of governmental program expenses. Interest expense was attributable to the outstanding bonds for capital projects.
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted State entitlements.
Table 3 Governmental Activities
(In Thousands)

Total Cost of Services

Fiscal Year

Fiscal Year

2022

2021

Net Cost of Services

Fiscal Year

Fiscal Year

2022

2021

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

Community Services

Food Services

Interest on Long-Term Debt

221,500 $
13,587 16,503
5,115 1,217 18,736 2,540 19,961 18,814 4,056
233
1,279 1
16,894 2,467

249,286 $
14,698 16,694
6,051 1,590 22,383 2,497 19,742 16,760 3,872
235
241 1
14,764 3,229

43,520 $
9,764 9,503 1,057 (4,335) 10,515 2,507 11,114 14,812 3,919
185
12 1
(7,853) 2,467

91,363
12,154 11,983
2,276 (2,210) 14,983 2,473 11,600 13,014 3,757
187
(683) 1
(596) 3,229

Total Expenses

$

342,903 $

372,043 $

97,188 $

163,531

Although program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. There are 19.6 percent of instruction activities that are supported through taxes and other general revenues; for all governmental activities, general revenue support is over 28.3 percent.

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 $522.4 million and expenditures and other financing uses of $483.0 million. There was a net increase of $39.0 million in the capital projects fund. The general fund had an increase of $0.4 million and the debt service fund had a decrease of $3 thousand.
v

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

General Fund Budgeting Highlights

The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the general fund.

During the course of fiscal year 2022, the School District amended its general fund budget as needed. The School District uses zero-based budgeting to propose its annual budget. Any adjustments to the original budget, as governed by Board policy, are reflected in the working budget and presented to the Board with explanations for any significant variances.

For the general fund, the final budgeted revenues of $385.4 million reflect an increase to the original budgeted amount of $357.8 million by $27.6 million. This difference was primarily due to an increase in budgeted state revenues of $14.3 million and increase in budgeted federal revenue of $11.4 million. Actual revenues of $391.5 million were more than the final budgeted amount by $6.1 million.

The final budgeted expenditures of $370.6 million reflect an increase to the original budgeted amount of $359.2 million by $11.4 million. This difference was primarily due to an increase in instruction of $2.7 million, an increase in improvement of instructional services of $2.6 million and an increase in pupil services of $1.7 million. The final budgeted amount of $370.6 million exceeded the actual expenditures by $7.8 million.

The School District has made a concerted effort to maintain an appropriate fund balance for current and future operations.

Capital Assets and Debt Administration Capital Assets

At the end of fiscal year 2022, the School District had $409.1 million invested in capital assets (net of depreciation), all in governmental activities. Table 4 shows fiscal year 2022 balances compared with fiscal year 2021 balances.

Table 4 Capital Assets (Net of Depreciation, in Thousands)

Land Construction In Progress Building and Improvements Equipment Land Improvements
Total

Governmental Activities

Fiscal Year

Fiscal Year

2022

2021

$

13,222 $

13,222

15,979

15,469

356,718

355,842

16,417

16,847

6,782

7,177

$

409,118 $

408,557

The construction in progress balance includes renovations to one high school, one middle school and one elementary school.

vi

Long-Term Liabilities

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

At June 30, 2022, the School District had $103.1 million in bonds outstanding with $10.7 million due within one year. The School District's legal debt limit is 10 percent of the assessed valuation of $5.4 billion, or a maximum debt of $542.0 million. The total current bonded restricted debt of $103.1 million is $438.9 million below the legal limit. Other long-term liabilities amounted to $5.1 million, which consists of unamortized bond premiums and compensated absences.

Factors Bearing on the School District's Future

COVID-19 Pandemic Due to the ongoing COVID-19 pandemic, the School District opened the school year with a hybrid instructional model. Parents had the choice of virtual or face-to-face instruction. The School District is projected to instruct 798 students in a virtual environment and 30,978 face-to-face in fiscal year 2023. This has resulted in adding an additional 280 to personnel for increased growth and a budget of $9.3 million in technology expenses.

The ARP Act (ESSER III) will provide the School District $15.2 million in funding, which will primarily be used for additional teachers for the Paulding Virtual Academy, instructional and educational materials for Learning Loss programs, PPE, and other measures to keep schools sanitized.

The impact of the ongoing COVID-19 pandemic is reflected throughout the fiscal year 2023 Proposed Budget, including the economic, funding, enrollment, and operational ramifications.

Enrollment Growth The School District is projected to educate 31,776 students during the proposed budget (fiscal year 2023, school year 2022-2023), an increase of 863 students or 2.8%. For the 10 years ending fiscal year 2022, the School District had an annual growth rate of 1.0%. In the prior decade, from fiscal year 2012 to fiscal year 2022, enrollment increased 2,803 or 10.0%. Fiscal year 2022 enrollment increased 1,178 or 4.0% to 30,913. This increase in fiscal year 2022 enrollment was greater than projections during the fiscal year 2022 budget process. Therefore, the fiscal year 2023 budget will include a projection variance of 778 students from fiscal year 2022 to give a total increase of 1,641 students or 5.4%, which will impact all areas of the budget. The School District anticipates educating approximately 2.5% or 798 students virtually. Approximately 97.5% or 30,978 students are expected to attend face-to-face instruction.

Low Wealth

Despite favorable employment, income and free-and-reduced lunch statistics, the School District continues

to be a low wealth school district due to a limited commercial and industrial tax base and the large number

of school-aged children per household. Below are fiscal year 2021 rankings against the 35 large districts in

Georgia (school districts over 10,000). Rankings against all 180 school districts in Georgia are in

parentheses.



11th Largest School District by Enrollment Count



28th in Local Revenue per Student (105th out of 180)



Collect $1,522 less than Average per Student or $43.0 million



9th in State Revenue per Student (101st out of 180)



4th Largest Recipient of Equalization ($27.3 million, fiscal year 23)



29th in Total Revenue, including Federal sources, per Student (157th out of 180)



Collect $1,332 less than Average per Student or $34.0 million

vii

PAULDING COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 School-Age Children per Household. With limited commercial and industrial activity, the School District is primarily dependent on residential ad valorem property taxes for local revenue. This funding issue is exacerbated by the high number of school-age children per household in Paulding County, as there is not a correlating increase in funding because local funding is based primarily on property tax values not the number of school-age children living in the home. According to the Georgia Department of Education, based on the most current data available, the School District ranks 105th (out of 180) in local revenue per full-time equivalent student. Rising Cost of Human Capital. With almost 88% of the School District's general fund budget focused on salaries and benefits, the cost of human capital is a major factor bearing on the School District's future. These costs include, but are not limited to, the Teachers Retirement System (TRS) and State Health Benefit Plan. As the demand for highly-qualified teachers increases, the School District must remain competitive in compensation and benefits. In spite of these challenges, Paulding County Board of Education will continue to efficiently and effectively manage our resources, while remaining committed to passionately pursuing our mission to engage, inspire and prepare ALL students for success today and tomorrow. 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 information, contact Miriam Hall, Chief Financial Officer at the Paulding County Board of Education, 3236 Atlanta Highway, Dallas, Georgia 30132.
viii

Paulding County Board of Education

PAULDING COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2022
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Prepaid Items Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plans
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings 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 Deferred Credit on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plans
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Net OPEB Asset Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

177,691,236.87

5,590.95 5,978,669.01 33,404,851.02 15,206,305.82
122,410.58 393,661.36 1,277,342.33 15,389.00 29,200,787.89 379,916,987.81 643,213,232.64

843,914.64 99,558,718.84 43,936,920.00 144,339,553.48

12,779,281.87 40,536,054.54
2,491.21 1,228,095.83 6,294,909.89
950,312.35 120,920,856.00 165,262,720.00
12,933,134.90 95,272,744.18 456,180,600.77

526,404.45 176,858,824.00 89,579,155.00 266,964,383.45

309,878,030.45

12,373,589.87 5,116,127.31
45,989,722.72 15,389.00
(308,965,057.45)

$

64,407,801.90

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

- 1 -

PAULDING COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022

EXHIBIT "B"

GOVERNMENTAL ACTIVITIES Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt
Total Governmental Activities

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES
OPERATING GRANTS AND CONTRIBUTIONS

CAPITAL
GRANTS AND CONTRIBUTIONS

NET (EXPENSES)
REVENUES AND CHANGES IN
NET POSITION

$ 221,500,030.44 $

- $ 174,518,607.46 $

13,586,625.49 16,502,714.87 5,114,474.72 1,217,357.29 18,735,875.99 2,540,328.02 19,961,251.76 18,814,486.45 4,055,523.63
233,274.01

-

3,821,468.29

-

6,998,592.53

-

3,930,189.41

-

5,551,430.61

-

8,094,942.15

-

32,955.04

-

8,729,056.30

-

3,810,771.13

-

67,762.52

-

48,000.00

1,279,484.69 1,031.23
16,893,908.13 2,466,534.53

1,240,010.23 -
1,426,598.63 -

22,938,776.29 -

$ 342,902,901.25 $

2,666,608.86 $ 238,542,551.73 $

General Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues

Change in Net Position

Net Position - Beginning of Year

Net Position - End of Year

3,461,240.99 $
1,064.74 810.16
127,703.07 490.87
126,355.46 -
117,834.89 192,000.00
68,928.89 246.39
27,067.11 193.06
381,936.27 -
4,505,871.90

(43,520,181.99)
(9,764,092.46) (9,503,312.18) (1,056,582.24) 4,334,564.19 (10,514,578.38) (2,507,372.98) (11,114,360.57) (14,811,715.32) (3,918,832.22)
(185,027.62)
(12,407.35) (838.17)
7,853,403.06 (2,466,534.53)
(97,187,868.76)

110,164,104.51 (169,720.14) 33,740.16

27,890,878.97 6,008,306.43 31,190,943.00
218,744.50 6,225,427.85 181,562,425.28

84,374,556.52

(19,966,754.62)

$

64,407,801.90

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

- 2 -

PAULDING COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2022

EXHIBIT "C"

ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Prepaid Items
Total Assets
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - Federal Revenues Unavailable Revenue -
Georgia State Financing and Investment Commission Total Deferred Inflows of Resources
FUND BALANCES Nonspendable Restricted Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources, and Fund Balances

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

81,930,193.50 $

92,435,239.24 $

5,330.46 3,461,935.19 26,865,642.99 15,206,305.82
97,099.49 393,661.36 1,042,674.33

260.49 2,511,225.68 6,539,208.03
25,311.09
234,668.00

$

129,002,843.14 $

101,745,912.53 $

3,325,804.13 $
5,508.14
-
3,331,312.27 $

177,691,236.87
5,590.95 5,978,669.01 33,404,851.02 15,206,305.82
122,410.58 393,661.36 1,277,342.33
234,080,067.94

$

12,709,494.67 $

40,536,054.54

2,491.21

-

-

53,248,040.42

66,287.20 $ -
6,294,909.89 950,312.35
7,311,509.44

3,500.00 $ -
3,500.00

12,779,281.87 40,536,054.54
2,491.21 6,294,909.89
950,312.35 60,563,049.86

1,155,665.43 4,398,307.40
5,553,972.83

-
3,096,253.04 3,096,253.04

5,508.14 -
5,508.14

1,161,173.57 4,398,307.40
3,096,253.04 8,655,734.01

1,436,335.69 11,979,928.51 2,893,344.45 53,891,221.24 70,200,829.89

234,668.00 56,328,567.32 34,774,914.73
91,338,150.05

3,322,304.13
3,322,304.13

1,671,003.69 71,630,799.96 37,668,259.18 53,891,221.24 164,861,284.07

$

129,002,843.14 $

101,745,912.53 $

3,331,312.27 $

234,080,067.94

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

- 3 -

PAULDING COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2022

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
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB asset Net OPEB liability
Deferred charges or credits on debt refundings are applicable to future periods and are therefore not reported in the funds and are amortized over the life of the new debt.
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 that are not available to pay for current period expenditures are deferred in the funds.
Georgia State Financing and Investment Commission grants that are not available to pay current period expenditures are deferred in the funds.
Federal funds 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. Bonds payable Accrued interest payable Compensated absences payable Unamortized bond premiums
Net position of governmental activities (Exhibit "A")

$

164,861,284.07

$

13,221,884.59

15,978,903.30

514,699,516.60

50,820,781.60

12,613,966.95

(198,217,277.34)

409,117,775.70

$

(120,920,856.00)

15,389.00

(165,262,720.00)

(286,168,187.00) 317,510.19

$

(77,300,105.16)

(45,642,235.00)

(122,942,340.16) 1,161,173.57 3,096,253.04 4,398,307.40

$

(103,065,000.00)

(1,228,095.83)

(650,647.93)

(4,490,231.15)

(109,433,974.91)

$

64,407,801.90

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

- 4 -

PAULDING COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022

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 Community Services Food Services Operation Capital Outlay Debt Services Principal Bond Issuance Costs Dues and Fees Interest Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES) Proceeds of Refunding Bonds Payment to Bond Refunding Escrow Agent 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

$

110,303,589.40 $

6,008,306.43

215,923,737.79

50,369,052.46

2,666,608.86

79,229.08

6,161,927.85

391,512,451.87

- $ 27,890,878.97 4,234,525.96
139,501.89 63,500.00 32,328,406.82

191.13 $ -
13.53 -
204.66

110,303,780.53 33,899,185.40
220,158,263.75 50,369,052.46 2,666,608.86 218,744.50 6,225,427.85
423,841,063.35

237,316,004.37
14,956,021.16 18,104,901.84
5,355,147.93 1,353,439.75 20,873,907.14 2,154,112.60 20,171,277.22 20,077,378.52 4,288,999.06
232,561.46 1,201,202.09
472.87 16,691,346.99
-
362,776,773.00 28,735,678.87

-
12,209,512.22
12,209,512.22 20,118,894.60

-
-
4,885,000.00 575,086.67 7,306.25
4,633,347.07 10,100,739.99 (10,100,535.33)

237,316,004.37
14,956,021.16 18,104,901.84 5,355,147.93 1,353,439.75 20,873,907.14 2,154,112.60 20,171,277.22 20,077,378.52 4,288,999.06
232,561.46 1,201,202.09
472.87 16,691,346.99 12,209,512.22
4,885,000.00 575,086.67 7,306.25
4,633,347.07 385,087,025.21
38,754,038.14

(28,384,598.17) (28,384,598.17)

351,080.70

69,849,749.19

$

70,200,829.89 $

28,380,791.92 (9,518,347.07) 18,862,444.85
38,981,339.45
52,356,810.60
91,338,150.05 $

60,625,000.00 (60,049,913.33)
9,522,153.32 -
10,097,239.99
(3,295.34)
3,325,599.47
3,322,304.13 $

60,625,000.00 (60,049,913.33) 37,902,945.24 (37,902,945.24)
575,086.67
39,329,124.81
125,532,159.26
164,861,284.07

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

- 5 -

PAULDING 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, 2022

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
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Georgia State Financing and Investment Commission grants reported in the funds are not reported as revenue in the Statement of Activities during the current period.
Federal funds 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. Refunding bonds issued Amortization of deferred charge on refunding of bonds Bond principal retirements Payments to bond refunding agent Amortization of bond premium
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. Compensated absences Net decrease in accrued interest
Change in net position of governmental activities (Exhibit "B")

$

39,329,124.81

$

15,729,027.44

(14,223,628.96)

1,505,398.48 (944,372.03) (275,656.00)
79,345.94 4,398,307.40

$

(60,625,000.00)

(281,304.96)

4,885,000.00

60,049,913.33

1,676,799.10

5,705,407.47

$

28,859,444.40

5,016,152.00

33,875,596.40

$

(69,914.35)

771,318.40

701,404.05

$

84,374,556.52

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

- 6 -

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Paulding 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.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other 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.
- 8 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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.
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), bond proceeds and grants from Georgia State Financing and Investment Commission 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 (property) legally restricted for the payment of general long-term 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, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be
- 9 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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 and compensated absences, 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 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.
New Accounting Pronouncements
In fiscal year 2022, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. The primary objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of government's financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The adoption of this statement did not have an impact on the School District's financial statements.
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.
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
- 10 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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 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:

Ca pi ta l i za ti on Pol i cy

Es ti ma ted Useful Life

Land

Land Improvements

$

Buildings and Improvements $

Equi pment

$

Intangible Assets

$

Al l 10,000.00 10,000.00 10,000.00 100,000.00

N/A 20 years 50 years
5 to 25 years 20 years

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.

- 11 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on services already rendered.
Vacation leave of 12 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis with less than 5 years of experience and 15 days per fiscal year to all full-time personnel employed on a twelve-month basis with 5 or more years of experience. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 20 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements.
Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the effective interest and prorated method. Using the prorated method is a departure from GAAP. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. 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 and premiums 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.

- 12 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

Post-Employment Benefits Other than Pensions (SEAD - OPEB)
For purposes of measuring the net OPEB asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEAD-OPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have been determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits 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.
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 Paulding County Board of Commissioners adopted the property tax levy for the 2021 tax digest year (calendar year) on August 10, 2021 (levy date) based on property values as of January 1, 2021. Taxes were due on November 15, 2021 (lien date). Taxes collected within the current fiscal year or within 60
- 13 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

days after year-end on the 2021 tax digest are reported as revenue in the governmental funds for fiscal year 2022. The Paulding 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, 2022, for maintenance and operations amounted to $98,415,616.88 and for school bonds amounted to $191.13.

The tax millage rate levied for the 2021 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18.750 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $11,887,972.52 during fiscal year ended June 30, 2022.

Sales Taxes

Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $27,890,878.97 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.

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. The Board prepares and presents the annual budget by fund type, fund, function, and object for management control; however, the level of control will be set at the aggregate level. There is no statutory prohibition regarding over expenditure of the budget at any 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 a budget primer (including draft enrollment projections, position allotments, and budget initiatives) and 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. These public meetings also provide opportunities for public input on the budget. 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. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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.
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, 2022, School District had deposits with a carrying amount of $102,018,092.90, and a bank balance of $109,090,341.66. The bank balances insured by Federal depository insurance were $1,218,596.12 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $934,430.95.
At June 30, 2022, $106,937,314.59 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).
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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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.

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

Cash and cash equivalents Statement of Net Position

$ 177,691,236.87

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

75,673,143.97

Total carrying value of deposits - June 30, 2022

$ 102,018,092.90

Categorization of Cash Equivalents
The School District reported cash equivalents of $75,673,143.97 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2022 was 43 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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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

NOTE 5: CAPITAL ASSETS
The following is a summary of changes in the capital assets for governmental activities during the fiscal year:

Ba l a nces July 1, 2021

Increases

Decreases

Ba l a nces June 30, 2022

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

$ 13,221,884.59 $

- $

- $ 13,221,884.59

15,469,337.40

11,712,081.75

11,202,515.85

15,978,903.30

Total Capital Assets Not Being Depreciated

28,691,221.99

11,712,081.75

11,202,515.85

29,200,787.89

Capital Assets, Being Depreciated Buildings and Improvements Equi pment Land Improvements
Less Accumulated Depreci a ti on: Buildings and Improvements Equi pment Land Improvements

503,618,971.15 48,010,846.09 12,450,752.88

11,080,545.45 3,975,702.02 163,214.07

1,165,766.51
-

514,699,516.60 50,820,781.60 12,613,966.95

147,777,067.50 31,164,371.12 5,273,604.24

10,204,581.65 3,460,592.98 558,454.33

221,394.48
-

157,981,649.15 34,403,569.62 5,832,058.57

Total Capital Assets, Being Depreciated, Net

379,865,527.26

995,832.58

944,372.03

379,916,987.81

Governmental Activities Capital Assets - Net

$ 408,556,749.25 $ 12,707,914.33 $ 12,146,887.88 $ 409,117,775.70

Current year depreciation expense by function is as follows:

I ns tructi on Support Services
Pupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Athletic Programs Community Services Food Services

$

2,895.40

2,203.13

347,269.44

1,334.85

343,604.86

320,434.42

2,603,654.89

187,441.83

670.00

73,604.97

525.00

$ 9,301,371.39
3,883,638.79 1,038,618.78 $ 14,223,628.96

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

NOTE 6: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2022, consisted of the following:

Transfers to

General Fund

Transfers From Capital Projects
Fund

Total

Capital Projects Fund Debt Service Fund

$ 28,380,791.92 $

- $ 28,380,791.92

3,806.25

9,518,347.07

9,522,153.32

Total

$ 28,384,598.17 $ 9,518,347.07 $ 37,902,945.24

Transfers are used to (1) move property tax revenue collected by the general fund to the capital projects fund as supplemental funding source for capital construction projects, to (2) move property tax revenue collected by the general fund to the debt service fund to pay bond agent fees, and to (3) move ESPLOST proceeds collected by the capital projects fund to the debt service fund to pay principal and interest on bonds.

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

Balance July 1, 2021

Additions

Governmental Activities

Deductions

Balance June 30, 2022

Due Within One Year

General Obligation (G.O.) Bonds Unamortized Bond Premiums Compensated Absences

$ 103,310,000.00 $ 60,625,000.00 $ 60,870,000.00 $ 103,065,000.00 $ 10,745,000.00

13,008,787.71

-

8,518,556.56

4,490,231.15

1,567,663.92

580,733.58

1,031,543.48

961,629.13

650,647.93

620,470.98

$ 116,899,521.29 $ 61,656,543.48 $ 70,350,185.69 $ 108,205,879.08 $ 12,933,134.90

General Obligation Bonds
The School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. Bonds have also been issued to advance-refund previously issued bonds. The School District repays general obligation bonds from voter-approved property taxes and/or ESPLOST tax collections. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
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, 2022. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax, 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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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

During fiscal year 2022, the School District issued $60,625,000.00 in general obligation refunding bonds to advance refund $55,985,000.00 of outstanding bonds. The bond issue of $60,625,000.00 less underwriters and bond issue cost of $575,086.67 provided net proceeds of $60,049,913.33. The total net proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 2014 bond issues. As a result, portions of the 2014 Series Bonds are considered defeased, and the liability for these portions has been removed from the Government-wide Statement of Net Position. The School District refunded the aforementioned bonds to reduce its total debt service payments over 11 years beginning subsequent to fiscal year 2022 by $2,183,418.92 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of $1,951,817.01.

On March 24, 2022, the School District approved the issuance of the Paulding County School District General Obligation Refunding Bond, Series 2025, in the original principal amount of $58,720,000.00, for the purpose of refunding the Series 2022 Bonds.

Of the total amount originally authorized for the Series 2020 bond, $3,725,000.00 remains unissued.

General obligation bonds currently outstanding are as follows:

Des cri pti on

Interes t Ra tes

Is s ue Da te

Ma turi ty Da te

Amount Is s ued

Amount Outs ta ndi ng

Genera l Government - Refundi ng - Seri es 2014 Genera l Government - Seri es 2020 Genera l Government - Refundi ng - Seri es 2022

2.00% - 5.00% 3.00% - 5.00%
2.28%

10/23/2014 12/10/2020
3/24/2022

2/1/2025 $ 8/1/2026 2/1/2033

90,640,000.00 $ 26,275,000.00 60,625,000.00

16,165,000.00 26,275,000.00 60,625,000.00

$ 177,540,000.00 $ 103,065,000.00

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

Fi s ca l Yea r Ended June 30:

Genera l Obl i ga ti on Debt

Pri nci pa l

Interes t

Una morti zed Bond Premi um

2023 2024 2025 2026 2027 2028 - 2032 2033

$

10,745,000.00 $ 3,077,953.00

$

1,567,663.92

10,940,000.00

2,835,012.00

1,424,853.56

11,450,000.00

2,326,040.00

1,229,316.43

12,340,000.00

1,762,566.00

252,366.49

12,740,000.00

1,325,680.00

16,030.75

37,045,000.00

3,454,428.00

-

7,805,000.00

177,954.00

-

Tota l Pri nci pa l a nd Interes t $ 103,065,000.00 $ 14,959,633.00

$

4,490,231.15

Compensated Absences
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

NOTE 8: RISK MANAGEMENT

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.

Georgia School Boards Association Risk Management Fund

The School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage.

Workers' Compensation

Georgia School Boards Association Workers' Compensation Fund

The School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses.

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.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2021

$

- $

83,546.50 $

83,546.50 $

-

2022

$

- $

5,694.53 $

5,694.53 $

-

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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

Position Covered

Amount

Superintendent

$

250,000.00

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS

The School District's financial statements include the following amounts presented in the aggregate at June 30, 2022:

Nons pe nda bl e Inventori es Prepa i d As s ets
Res tri cted Conti nua ti on of Federa l Progra ms Ca pi ta l Projects Debt Servi ce
As s i gned Loca l Ca pi ta l Outl a y Projects School Acti vi ty Accounts
Una s s i gne d

$

393,661.36

1,277,342.33 $

1,671,003.69

$ 11,979,928.51 53,312,156.45 6,338,715.00

71,630,799.96

$ 34,774,914.73 2,893,344.45

37,668,259.18 53,891,221.24

Fund Ba l a nce, June 30, 2022

$ 164,861,284.07

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, 2022, together with funding available:

Project

Unearned Executed Contracts (1)

Payments through June 30, 2022 (2)

Funding Available From State (1)

Hiram High School

$

Dobbins Middle School

Allgood Elementary School

McClure Middle School Mobiles

$

898,085.81 $ 2,043,767.89
896,009.40

7,411,030.43 $ 4,530,731.59
2,851,159.05 22,795.60

3,352,119.00 2,077,088.03
1,498,484.11 -

3,837,863.10 $ 14,815,716.67 $ 6,927,691.14

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

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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.
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 $5,695,704.00 for the year ended June 30, 2022. Active employees are not required to contribute to the School OPEB Fund.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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

At June 30, 2022, the School District reported a liability of $165,262,720.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 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, 2021. At June 30, 2021, the School District's proportion was 1.525855%, which was an increase of 0.012023% from its proportion measured as of June 30, 2020.

For the year ended June 30, 2022, the School District recognized OPEB expense of $681,089.00. At June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Res our c es

OPEB

Deferred Inflows of Res our c es

Differences between expected and actual

experi ence

$

- $ 75,458,433.00

Changes of assumptions

30,262,154.00

13,485,333.00

Net difference between projected and actual earnings on OPEB plan investments

-

262,054.00

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

7,979,062.00

366,178.00

School District contributions subsequent to

the measurement date

5,695,704.00

-

Total

$ 43,936,920.00 $ 89,571,998.00

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, 2023. 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

2023 2024 2025 2026 2027 Thereafter

$ (13,580,460.00) $ (12,239,140.00) $ (8,534,806.00) $ (5,614,484.00) $ (8,670,750.00) $ (2,691,142.00)

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

Actuarial Assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 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, 2021:

OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return Healthcare cost trend rate
Pre-Medicare Eligible Medicare Eligible

7.00%, compounded annually, net of investment expense, and including inflation
6.75% 5.13%

Ultimate trend rate

Pre-Medicare Eligible

4.50%

Medicare Eligible

4.50%

Year of Ultimate trend rate

Pre-Medicare Eligible

2029

Medicare Eligible

2023

Mortality rates were based on the Pub-2010 Mortality Tables for Males or Females, as appropriate, 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 Projections 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 105% for males and 108% for females) with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

generationally. Post-retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjust 106% for males and 158% for females) with the MP-2019 Project scale applied generationally.

The actuarial assumptions used in the June 30, 2020 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, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 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 Equi ti es

30.00% 70.00%

0.14% 9.20%

Total

100.00%

*Net of Inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 2.20% was used as the discount rate, as compared with last year's rate of 2.22%. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (2.16% 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 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 2145.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

Sensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 2.20%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.20%) or 1-percentage-point higher (3.20%) than the current discount rate:

1% Decrease (1.20%)

Current Discount Rate (2.20%)

1% Increase (3.20%)

School District's proportionate share of the Net OPEB liability

$ 188,932,352.00 $

165,262,720.00 $ 145,448,998.00

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

$ 140,231,825.00 $

165,262,720.00 $ 196,553,307.00

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.

Post-Employment Benefits Other Than Pensions (SEAD OPEB)

Plan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.

Benefits Provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964, is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.

Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2022.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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

At June 30, 2022, the School District reported an asset of $15,389.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB asset was based on actual member salaries reported to the SEADOPEB plan during the fiscal year ended June 30, 2021. At June 30, 2021, the School District's proportion was 0.002499%, which was an increase of 0.000550% from its proportion measured as of June 30, 2020.

For the year ended June 30, 2022, the School District recognized OPEB expense of ($5,443.00). At June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

SEAD-OPEB

Deferred Outflows of Res ourc es

Deferred Inflows of Res our c es

Differences between expected and actual experi ence

$

- $

46.00

Changes of assumptions

-

480.00

Net difference between projected and actual earnings on OPEB plan investments

-

5,135.00

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

-

1,496.00

Total

$

-

$ 7,157.00

There were no employer contributions subsequent to the measurement date. 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:

SEAD-OPEB

2023 2024 2025 2026

$

(3,209.00)

$

(1,337.00)

$

(1,247.00)

$

(1,364.00)

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

Actuarial Assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 using the following actuarial assumptions, applied to all periods included in the measurement:

SEAD OPEB:

Inflation

2.50%

Salary increases:

ERS

3.00% 6.75%

GJRS

3.75%

LRS

N/A

Investment rate of return

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

Healthcare cost trend rate

N/A

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 Disability Retirees Benefi ci a ri es

General Healthy Annuitant General Disabled General Contingent Survivors

Male: +1; Male: -3; Male: +2;

Female: +1 Female: 0 Female: +2

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

Female: 108% Female: 106% Female: 105%

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.

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 returns, net of 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.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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

Asset class
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative
Total
* Rates shown are net of inflation

SEAD - OPEB Target
allocation
30.00% 46.40% 1.10% 11.70% 5.80% 5.00%
100.00%

Long-term expected real rate of return*
(1.50)% 9.20% 13.40% 9.20% 10.40% 10.60%

Discount Rate: The discount rate used to measure the total OPEB 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 State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the longterm expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Sensitivity of the School District's Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB asset calculated using the discount rate of 7.00%, as well as what the School District's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1percentage-point lower (6.00%) or 1- percentage-point higher (8.00%) than the current rate:

1% Decrease (6.00%)

Current Discount Rate (7.00%)

1% Increase (8.00%)

School District's proportionate share of the

net OPEB asset

$ 12,104.00 $

15,389.00 $ 18,072.00

OPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net

position is available in the separately issued ERS annual comprehensive financial report which is

publicly available at www.ers.ga.gov/financials.

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

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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 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 2022. The School District's contractually required contribution rate for the year ended June 30, 2022 was 19.81% of annual School District payroll, of which 19.77% of payroll was required from the School District and 0.04% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $37,540,224.60 and $83,096.92 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
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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, 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, 2022 was 24.63% of annual covered payroll for old and new plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $6,900.24 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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates 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 $429,153.00.

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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

At June 30, 2022, the School District reported a liability of $120,920,856.00 for its proportionate share of the net pension liability for TRS ($120,894,426.00) and ERS ($26,430.00).

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

$ 120,894,426.00

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

280,365.00

Total

$ 121,174,791.00

The net pension liability for TRS and ERS was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 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, 2021.
At June 30, 2021, the School District's TRS proportion was 1.366914%, which was an increase of 0.026930% from its proportion measured as of June 30, 2020. At June 30, 2021, the School District's ERS proportion was 0.001130%, which was an increase of 0.000209% from its proportion measured as of June 30, 2020.
At June 30, 2022, 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 $396,068.00.
The PSERS net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 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, 2021.
For the year ended June 30, 2022, the School District recognized pension expense of $8,409,901.10 for TRS, $20,262.34 for ERS and $4,164.00 for PSERS and revenue of ($257,517.00) for TRS and $4,164.00 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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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

At June 30, 2022, 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 Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experi ence

$ 28,849,253.00 $

-

$

625.00 $

-

Changes of assumptions

23,398,724.00

-

7,611.00

-

Net difference between projected and actual earnings on pension plan investments

-

176,834,397.00

-

24,427.00

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

9,742,927.00

-

12,454.00

-

School District contributions subsequent to the measurement date

37,540,224.60

-

6,900.24

-

Total

$ 99,531,128.60 $ 176,834,397.00 $ 27,590.24 $ 24,427.00

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, 2023. 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

2023 2024 2025 2026

$ (20,096,557.00) $ $ (19,854,438.00) $ $ (32,098,316.00) $ $ (42,794,182.00) $

10,703.00 (1,978.00) (5,936.00) (6,526.00)

Actuarial Assumptions: The total pension liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System:

Inflation Salary increases Investment rate of return

2.50%
3.00% 8.75%, average, including inflation
7.25%, net of pension plan investment expense, including inflation

Post-retirement benefit increases

1.50% semi-annually

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

Employees' Retirement System:

Inflation Salary increases Investment rate of return

2.50%
3.00% 6.75%, including inflation 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 Disability Retirees Benefi ci a ri es

General Healthy Annuitant General Disabled General Contingent Survivors

Male: +1; Male: -3; Male: +2;

Female: +1 Female: 0 Female: +2

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

Female: 108% Female: 106% Female: 105%

The actuarial assumptions used in the June 30, 2020 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 Salary increases Investment rate of return
Post-retirement benefit increases

2.50%
N/A 7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually

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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

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
Disability Retirees Benefi ci a ri es

General Healthy Below Median Annuitant General Disabled General Below - Median Contingent Survivors

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

Male: 101%; Female: 103% Male: 103%; Female: 106%
Male: 104%; Female: 99%

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.

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
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Al terna ti ve
Total

TRS Target allocation
30.00% 46.30%
1.20% 11.50%
6.00% 5.00%
100.00%

Long-term expected real rate of return*
(0.80)% 9.30% 13.30% 9.30% 11.30% 10.60%

ERS/PSERS Target
allocation
30.00% 46.40%
1.10% 11.70%
5.80% 5.00%
100.00%

Long-term expected real rate of return*
(1.50)% 9.20% 13.40% 9.20% 10.40% 10.60%

* Rates shown are net of inlation
Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.00%. 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.
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PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

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 7.25% 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 (6.25% and 6.00%) or 1-percentage-point higher (8.25% and 8.00%) than the current rate:

Teachers Retirement System:
School District's proportionate share of the net pension liability

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

$ 325,657,555.00 $

120,894,426.00 $ (46,894,828.00)

Employees' Retirement System:
School District's proportionate share of the net pension liability

1% Decrease (6.00%)

Current Discount Rate (7.00%)

1% Increase (8.00%)

$

48,432.00 $

26,430.00 $

7,822.00

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
In September 2017, 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 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 100% match up to 3% of the employee's base pay.
The employee becomes vested in the plan with 3 years of experience. Employees who had already achieved 3 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 3 years of service to Paulding County School District. If an employee terminates employment prior to achieving 3 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 Contri buted

Requi red Contri buti on

2022 2021 2020

100% 100% 100%

$

240,297.80

$

235,943.55

$

218,676.86

- 36 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022

EXHIBIT "G"

NOTE 14: TAX ABATEMENTS
Paulding 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 Paulding County.
For the fiscal year ended June 30, 2022, Paulding County abated property taxes due to the School District that were levied on August 10, 2021 and due on November 15, 2021 totaling $235,978.51. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10 percent of the total amount abated:
A 10 percent property tax abatement to a logistics manufacturer for the purpose of increasing employment in Paulding County. The abatement amounted to $226,670.87.
A 60 percent property tax abatement to an envelope manufacturer for the purpose of increasing employment in Paulding County. The abatement amounted to $9,307.64.

- 37 -

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PAULDING 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

2022 2021 2020 2019 2018 2017 2016 2015

1.366914% $ 120,894,426.00 $ 1.339984% $ 324,596,572.00 $ 1.302323% $ 280,034,660.00 $ 1.283820% $ 238,304,491.00 $ 1.281270% $ 238,127,976.00 $ 1.272917% $ 262,616,970.00 $ 1.233333% $ 187,762,702.00 $ 1.211199% $ 153,019,018.00 $

280,365.00 721,630.00 641,856.00 509,902.00 1,241,499.00 2,287,784.00 1,666,877.00 1,415,351.00

$ 121,174,791.00 $ 325,318,202.00 $ 280,676,516.00 $ 238,814,393.00 $ 239,369,475.00 $ 264,904,754.00 $ 189,429,579.00 $ 154,434,369.00

$ 178,146,565.02 $ 173,044,279.61 $ 159,085,936.28 $ 153,123,650.63 $ 147,679,049.00 $ 140,692,477.88 $ 131,294,575.52 $ 123,475,844.00

67.86% 187.58% 176.03% 155.63% 161.25% 186.66% 143.01% 123.93%

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.

- 39 -

PAULDING 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)

2022

$

37,540,224.60 $

37,540,224.60 $

-

2021

$

33,876,131.10 $

33,876,131.10 $

-

2020

$

36,500,377.83 $

36,500,377.83 $

-

2019

$

33,179,223.00 $

33,179,223.00 $

-

2018

$

25,685,081.88 $

25,685,081.88 $

-

2017

$

20,964,343.05 $

20,964,343.05 $

-

2016

$

19,903,701.40 $

19,903,701.40 $

-

2015

$

17,111,863.27 $

17,111,863.27 $

-

2014 (1)

$

15,162,833.64 $

15,162,833.64 $

-

2013 (1)

$

13,852,585.04 $

13,852,585.04 $

-

(1) These amounts include contributions paid on the School District's behalf by the Georgia Department of Education

School District's covered payroll

Contribution as a percentage of covered
payroll

$

189,926,428.13

$

178,146,565.02

$

173,044,279.61

$

159,085,936.28

$

153,123,650.63

$

147,679,049.00

$

140,692,477.88

$

131,294,575.52

$

123,475,843.97

$

121,407,406.13

19.77% 19.02% 21.09% 20.86% 16.77% 14.20% 14.15% 13.03% 12.28% 11.41%

- 40 -

PAULDING 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
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

Plan fiduciary net position as a percentage of total pension liability

0.001130% $ 0.000921% $ 0.000000% $ 0.000127% $ 0.003152% $ 0.003543% $ 0.004398% $ 0.005877% $

26,430.00 $

38,820.00 $

-

$

5,221.00 $

128,013.00 $

167,599.00 $

178,180.00 $

220,424.00 $

27,093.68 23,223.09
3,237.76 77,310.20 82,381.24 100,545.67 125,534.00

97.55% 167.16%
0.00% 161.25% 165.58% 203.44% 177.21% 175.59%

87.62% 76.21%
0.00% 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.

- 41 -

PAULDING 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)

2022

$

6,900.24 $

6,900.24 $

-

2021

$

6,681.34 $

6,681.34 $

-

2020

$

5,726.82 $

5,726.82 $

-

2019

$

-

$

-

$

-

2018

$

803.29 $

803.29 $

-

2017

$

19,180.65 $

19,180.65 $

-

2016

$

20,364.63 $

20,364.63 $

-

2015

$

22,079.83 $

22,079.83 $

-

2014

$

23,173.66 $

23,173.66 $

-

2013

$

11,038.10 $

11,038.10 $

-

School District's covered payroll

$

28,015.56

$

27,093.68

$

23,223.09

$

-

$

3,237.76

$

77,310.20

$

82,381.24

$

100,545.67

$

125,534.45

$

74,081.21

Contribution as a percentage of covered
payroll
24.63% 24.66% 24.66%
0.00% 24.81% 24.81% 24.72% 21.96% 18.46% 14.90%

- 42 -

PAULDING 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

2022 2021 2020 2019 2018 2017 2016 2015

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

-

$

396,068.00 $ 396,068.00 $ 9,484,114.12

-

$

2,850,156.00 $ 2,850,156.00 $ 9,314,135.03

-

$

2,304,874.00 $ 2,304,874.00 $ 7,613,581.25

-

$

2,251,521.00 $ 2,251,521.00 $ 7,339,257.42

-

$

1,984,964.00 $ 1,984,964.00 $ 6,969,358.26

-

$

2,579,092.00 $ 2,579,092.00 $ 6,573,133.30

-

$

2,149,951.00 $ 2,149,951.00 $ 9,817,620.76

-

$

2,066,777.00 $ 2,066,777.00 $ 9,475,042.07

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.

- 43 -

PAULDING 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 covered-employee
payroll

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

2022 2021 2020 2019 2018

1.525855% $ 165,262,720.00 $ 1.513832% $ 222,346,665.00 $ 1.466873% $ 180,016,788.00 $ 1.449304% $ 184,202,091.00 $ 1.445003% $ 203,022,340.00 $

-

$ 165,262,720.00 $ 158,597,569.02

-

$ 222,346,665.00 $ 148,140,613.89

-

$ 180,016,788.00 $ 135,247,065.00

-

$ 184,202,091.00 $ 132,022,605.66

-

$ 203,022,340.00 $ 126,248,777.38

104.20% 150.09% 133.10% 139.52% 160.81%

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.

- 44 -

PAULDING 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)

2022

$

5,695,704.00 $

5,695,704.00 $

-

2021

$

5,675,923.00 $

5,675,923.00 $

-

2020

$

5,119,426.00 $

5,119,426.00 $

-

2019

$

7,900,126.00 $

7,900,126.00 $

-

2018

$

7,511,604.00 $

7,511,604.00 $

-

2017

$

7,534,357.00 $

7,534,357.00 $

-

School District's covered-employee
payroll

Contribution as a percentage of covered-
employee payroll

$ 174,047,979.81 $ 158,597,569.02 $ 148,140,613.89 $ 135,247,065.00 $ 132,022,605.66 $ 126,248,777.38

3.27% 3.58% 3.46% 5.84% 5.69% 5.97%

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

- 45 -

PAULDING COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB ASSET
SEAD - OPEB

SCHEDULE "8"

For the Year Ended June 30
2022 2021 2020 2019 2018

School District's proportion of the Net OPEB Asset

School District's proportionate share
of the Net OPEB Asset

0.002499% $ 0.001949% $ 0.000000% $ 0.000234% $ 0.005309% $

15,389.00 5,536.00
633.00 13,798.00

State of Georgia's proportionate share
of the Net OPEB Asset associated with the School
District

$

-

$

$

-

$

$

-

$

$

-

$

$

-

$

Total
15,389.00 5,536.00
633.00 13,798.00

School District's covered-employee
payroll

$

27,093.68

$

23,223.09

$

-

$

3,237.76

$

77,310.20

School District's proportionate share of the Net OPEB Asset as a percentage of its covered-employee
payroll

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

56.80% 23.84% 0.00% 19.55% 17.85%

164.76% 129.20%
0.00% 129.46% 130.17%

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

- 46 -

PAULDING COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SEAD - OPEB

SCHEDULE "9"

For the Year Ended June 30

Contractually required contribution

2022

$

-

2021

$

-

2020

$

-

2019

$

-

2018

$

-

2017

$

-

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

$

28,015.56

$

27,093.68

$

23,223.09

$

-

$

3,237.76

$

77,310.20

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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

- 47 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022

SCHEDULE "10"

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.
Employees' Retirement System Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two one-time 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, 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 forward 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.
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 assumption 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.
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 Systems 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 Systems 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 to 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.
- 48 -

PAULDING COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2022

SCHEDULE "10"

SEAD-OPEB Employer Changes of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized by the Plan. 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 forward 2 years for both males and females).
A new funding policy was initially adopted by the Board on March 15, 2018. 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 Systems based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates of mortality, retirement, withdrawal, and salary increases. 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 OPEB Liability.

- 49 -

PAULDING COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2022

SCHEDULE "11"

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 Community Services Food Services Operation 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
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

108,982,000.00 $

110,982,000.00 $

110,303,589.40 $

5,326,000.00

5,326,000.00

6,008,306.43

199,582,078.14

213,855,267.92

215,923,737.79

33,763,327.83

45,141,355.66

50,369,052.46

6,529,535.44

6,529,535.44

2,666,608.86

100,000.00

100,000.00

79,229.08

3,482,773.84

3,487,761.84

6,161,927.85

357,765,715.25

385,421,920.86

391,512,451.87

(678,410.60) 682,306.43 2,068,469.87 5,227,696.80 (3,862,926.58) (20,770.92) 2,674,166.01 6,090,531.01

235,988,611.26
14,218,093.98 17,834,347.15 5,334,959.25 1,744,658.54 20,799,392.88 2,336,505.07 20,098,078.53 19,316,665.28 3,715,140.62
234,765.00 873,498.73
16,707,560.00 359,202,276.29 (1,436,561.04)

238,651,329.82
15,928,970.30 20,405,323.10
5,412,157.21 3,397,078.59 21,355,762.89 2,410,020.18 20,698,343.98 20,392,825.45 3,816,366.10
235,315.00 873,498.73
16,976,160.45 370,553,151.80 14,868,769.06

237,316,004.37
14,956,021.16 18,104,901.84 5,355,147.93 1,353,439.75 20,873,907.14 2,154,112.60 20,171,277.22 20,077,378.52 4,288,999.06
232,561.46 1,201,202.09
472.87 16,691,346.99 362,776,773.00 28,735,678.87

743,043.00 (743,043.00)
-

1,102,228.00 (29,462,561.55) (28,360,333.55)

(28,384,598.17) (28,384,598.17)

(1,436,561.04)

(13,491,564.49)

351,080.70

72,677,003.49

72,677,003.49

69,849,749.19

-

(86,301.47)

-

$

71,240,442.45 $

59,099,137.53 $

70,200,829.89 $

1,335,325.45
972,949.14 2,300,421.26
57,009.28 2,043,638.84
481,855.75 255,907.58 527,066.76 315,446.93 (472,632.96)
2,753.54 (327,703.36)
(472.87) 284,813.46 7,776,378.80 13,866,909.81
(1,102,228.00) 1,077,963.38
(24,264.62)
13,842,645.19
(2,827,254.30)
86,301.47
11,101,692.36

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
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.

- 50 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022

SCHEDULE "12"

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 Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability 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 - 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 Comprehensive Literacy Development Education for Homeless Children English Language Acquisition State Grants Student Support and Academic Enrichment 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
Federal Communications Commission, U.S. Direct

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.555

225GA324N1199 $ 225GA324N1199 225GA324N1099

4,915,619.99 10,455,442.67 1,067,701.12 16,438,763.78

10.579

215GA350N8103

14,873.32 16,453,637.10

84.425D 84.425D
84.425U
84.425W

S425D200012 S425D210012
S425U210012
S425W210011

86,320.79 12,626,316.00
3,619,736.52
37,666.39 16,370,039.70

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

H027A200073 H027A210073 H027X210073 H173A200081 H173A210081 H173X210081

84.048A 84.371C 84.196A 84.365A 84.424A 84.367A 84.367A 84.010A 84.010A

V048A210010 S371C190016-19A
S196A210011 S365A200010 S424A210011 S367A200001 S367A210001 S010A200010 S010A210010-21A

1,409,507.00 4,717,424.77
202,487.24 40,443.00 67,975.60 33,887.68
6,471,725.29
238,999.45 3,281,321.33
49,360.00 105,297.95 290,818.29 245,361.17 536,656.59 232,127.85 3,573,773.77 8,553,716.40 31,395,481.39

- 51 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022

SCHEDULE "12"

FUNDING AGENCY PROGRAM/GRANT
COVID-19 - Emergency Connectivity Fund Program
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Total U. S. Department of Defense
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER
32.009

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD
807,628.62

12. UNKNOWN 12. UNKNOWN

60,778.49

335,502.17 396,280.66

$

49,053,027.77

Note 1. Basis of Presentation

Notes to the Schedule of Expenditures of Federal Awards

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Paulding County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2022. 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.
Note 4: Elementary and Secondary School Emergency Relief Fund Activity
For the year ended June 30, 2022, the amount reflected on the Schedule for the Elementary and Secondary School Emergency Relief Fund (ALN 84.425D) includes $2,368,364.35 of approved eligible expenditures that were incurred in a prior fiscal year.

See notes to the basic financial statements.

- 52 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2022

SCHEDULE "13"

AGENCY/FUNDING GRANTS 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 Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant One-time Supplement Other State Programs Computer Science Capacity Grant (CS4GA) Grant Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teachers Retirement Vocational Education Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of the State Treasurer Public School Employees Retirement CONTRACTS Human Resources, Georgia Department of Family Connections Behavioral Health and Developmental Disabilities, Georgia Department of Sources of Strength
See notes to the basic financial statements.

GOVERNMENTAL FUND TYPES

GENERAL

CAPITAL PROJECTS

FUND

FUND

TOTAL

$

11,015,193.00 $

350,312.00

22,431,954.00

3,578,926.00

10,627,435.00

3,132,398.00

20,711,058.00

20,165,739.00

7,259,021.00

31,835,992.00

11,082,274.00

3,331,415.00

1,607,049.00

1,431,950.00

3,788,778.00

1,148,509.00

688,221.00

9,626.00

3,674,074.00 6,974,295.00 8,136,677.00 1,088,002.00

1,990,252.25 615,158.00
31,190,943.00 5,386,995.00
4,050.00 766,667.93
20,969.69 138,997.00 747,246.00 192,000.00
83,096.92 209,311.00
-
429,153.00

48,000.00

32,000.00

$

215,923,737.79 $

- $ -
-

11,015,193.00 350,312.00
22,431,954.00 3,578,926.00 10,627,435.00 3,132,398.00 20,711,058.00 20,165,739.00 7,259,021.00 31,835,992.00 11,082,274.00 3,331,415.00 1,607,049.00 1,431,950.00 3,788,778.00 1,148,509.00
688,221.00 9,626.00
3,674,074.00 6,974,295.00 8,136,677.00 1,088,002.00

-
-
4,234,525.96
-

1,990,252.25 615,158.00
31,190,943.00 5,386,995.00
4,050.00 766,667.93
20,969.69 138,997.00 747,246.00 192,000.00
83,096.92 209,311.00
4,234,525.96
429,153.00

4,234,525.96 $

48,000.00 32,000.00 220,158,263.75
- 53 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2022

SCHEDULE "14"

PROJECT
As approved by the voters on May 20, 2015
A one percent sales and use tax for educational purposes shall be imposed in the Paulding County School District for a period of time not to exceed twenty consecutive calendar quarters (beginning April 2016) and for raising of not more than $100,000,000.00 for the purpose of:
(a) Paying the principal and interest (during the period the one percent sales and use tax is to be imposed) on Paulding County School District's outstanding General Obligation Bonds, Series 2007 and 2008 in a maximum amount of $43,396,575.00 and;
(b) Funding the following capital outlay projects in the maximum amount of $56,603,425.00: acquisition, construction and equipping of facilities and equipment throughout the School District, including renovations, additions and improvements to Shelton Elementary School and North Paulding High School, track and field improvements, HVAC upgrades, roof and gutter replacement, flooring improvements, safety and security upgrades, public address and intercom replacement, plumbing improvements, new technology and band equipment.
Mainenance, renovation, addition and improvement projects: East Paulding Middle Renovation Herschel Jones Middle Renovation East Paulding High Renovation Shelton Elementary Addition and Renovation North Paulding High Addition Track and Field Improvements Band Equipment Technology Improvements Allgood Elementary Carpet Panter Elementary Renovation Nebo Elementary Renovation Burnt Hickory Elementary Carpet New Georgia Elementary Carpet Hiram High Renovations Roberts Elementary Renovation Moses Middle Renovation Maintenance Projects Miscellaneous Projects Russom Elementary Renovation Moses Middle Addition Russom Elementary Addition Poole Elementary Renovation Austin Middle Renovation Baggett Elementary Renovation Dugan Elementary Renovation Seven Hills Middle School Project
Audit Fees Subtotal SPLOST V Projects

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE (6)

$

43,396,575.00 $

43,063,524.85

Completed

26,982,476.00
4,025,994.00 4,167,490.00 5,716,826.00 4,447,639.00 3,331,000.00 5,982,000.00 1,450,000.00
500,000.00 -
100,000,000.00

-
4,363,415.81 4,037,761.79 5,643,819.43 4,437,550.13 3,447,287.14 5,747,101.35 1,438,599.82 2,640,729.46
175,928.71 3,848,350.19 3,145,518.64
184,802.42 102,083.76 406,891.82 5,472,000.00 8,778,000.00 481,901.36 448,935.10
4,114,022.77 3,212,166.39
4,358,848.29 25,500.00 109,574,739.23

6/30/2023
Completed Completed Completed Completed Completed Completed Completed 6/30/2023 Completed Completed Completed Completed Completed Completed 6/30/2025 6/30/2025 Completed 6/30/2023
On Hold Completed Completed
On Hold On Hold On Hold On Hold 6/30/2025 Completed

- 54 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2022

SCHEDULE "14"

PROJECT
As approved by the voters on May 20, 2015
A one percent sales and use tax for educational purposes shall be imposed in the Paulding County School District for a period of time not to exceed twenty consecutive calendar quarters (beginning April 2016) and for raising of not more than $100,000,000.00 for the purpose of:
(a) Paying the principal and interest (during the period the one percent sales and use tax is to be imposed) on Paulding County School District's outstanding General Obligation Bonds, Series 2007 and 2008 in a maximum amount of $43,396,575.00 and;
(b) Funding the following capital outlay projects in the maximum amount of $56,603,425.00: acquisition, construction and equipping of facilities and equipment throughout the School District, including renovations, additions and improvements to Shelton Elementary School and North Paulding High School, track and field improvements, HVAC upgrades, roof and gutter replacement, flooring improvements, safety and security upgrades, public address and intercom replacement, plumbing improvements, new technology and band equipment.
Mainenance, renovation, addition and improvement projects: East Paulding Middle Renovation Herschel Jones Middle Renovation East Paulding High Renovation Shelton Elementary Addition and Renovation North Paulding High Addition Track and Field Improvements Band Equipment Technology Improvements Allgood Elementary Carpet Panter Elementary Renovation Nebo Elementary Renovation Burnt Hickory Elementary Carpet New Georgia Elementary Carpet Hiram High Renovations Roberts Elementary Renovation Moses Middle Renovation Maintenance Projects Miscellaneous Projects Russom Elementary Renovation Moses Middle Addition Russom Elementary Addition Poole Elementary Renovation Austin Middle Renovation Baggett Elementary Renovation Dugan Elementary Renovation Seven Hills Middle School Project
Audit Fees Subtotal SPLOST V Projects

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3) (4)(5)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$

4,150,825.00 $

38,912,699.85 $

43,063,524.85 $

-

-

-

-

-

-

4,363,415.81

4,363,415.81

-

-

4,037,761.79

4,037,761.79

-

-

5,643,819.43

5,643,819.43

-

-

4,437,550.13

4,437,550.13

-

-

3,447,287.14

3,447,287.14

-

-

5,747,101.35

5,747,101.35

-

-

1,438,599.82

1,438,599.82

-

-

1,137,955.88

-

-

-

175,928.71

175,928.71

-

-

3,848,350.19

3,848,350.19

-

-

3,145,518.64

3,145,518.64

-

-

184,802.42

184,802.42

-

-

102,083.76

102,083.76

-

-

406,891.82

406,891.82

-

-

-

-

-

-

-

-

-

-

481,901.36

481,901.36

-

82,121.40

365,813.70

-

-

-

-

-

-

-

4,114,022.77

4,114,022.77

-

-

3,212,166.39

3,212,166.39

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,000.00

20,500.00

25,500.00

-

4,237,946.40

85,224,170.96

87,876,226.38

-

- 55 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2022

SCHEDULE "14"

PROJECT
As approved by the voters on November 5, 2019
A one percent sales and use tax for educational purposes shall be imposed in the Paulding County School District for a period of time not exceed twenty consecutive calendar quarters (beginning April 2021) and for raising of not more than $120,000,000.00 for the purpose of:
(a) Paying the principal and interest on the Series 2014 Bonds (during the period the Educational Sales Tax is to be imposed) in the maximum amount of $40,982,000.00 and;
(b) Funding the following capital outlay projects in the maximum amount of $79,018,000.00: acquisition, construction and equipping of facilities and equipping of facilities and equipment throughout the School District, including new school facility construction, strategic additions and/or improvements to existing schools, technology enhancements, fine art initiatives, safety and security upgrades, track, tennis, gym an other athletic facility improvements.
Mainenance, renovation, addition and improvement projects: Athletic Facility Improvements Moses Middle Addition Russom Elementary Addition Hiram High Renovations Dobbins Middle Renovations/Modifications Allgood Elementary Renovations/Modifications Technology Capital Expenditures Miscellaneous New School Construction Dugan Elementary Addition Fire Alarm and Intercom Improvements Connecting Corridors South Paulding High Engineering Academy Roberts Elementary Sewer North Paulding High Addition Middle School Fam and Cons Sci to Engineering Conv McClure Middle Portable Classrooms Fine Arts Baggett Elementary Renovations/Modifications Poole Elementary Renovations/Modifications Track/Tennis Court Resurfacing/Gym Floor Burnt Hickory Elementary Addition Russom Elementary Renovations/Modifications
Audit Fees Subtotal SPLOST VI Projects
Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE (6)

$

40,982,000.00 $

40,982,000.00

8/1/2026

13,186,757.35

-

992,162.70 2,845,774.00 1,791,215.00 10,598,807.00 7,434,182.00 5,150,316.00 1,000,000.00
450,000.00 27,000,000.00
2,388,000.00 4,214,999.95 1,935,286.00
30,500.00 120,000,000.00
$ 220,000,000.00 $

1,900,241.21 1,771,585.29 1,415,650.50 9,016,316.60 7,070,688.12 6,879,105.42 4,000,000.00
1,241.21 25,434,825.83
1,824,571.00 3,520,000.00
342,000.00 5,850.00 4,160.00
238,428.47 574,033.18 1,560,000.00 6,042,000.00 6,156,000.00 650,000.00 8,522,299.84 6,954,000.00
25,000.00 134,889,996.67
244,464,735.90

6/30/2028
6/30/2023 Completed 11/30/2022 6/30/2023 6/30/2023 6/30/2023 6/30/2026 6/30/2026 6/30/2026
On Hold 6/30/2027 6/30/2028 6/30/2023 Completed Completed 6/30/2023 6/30/2023 6/30/2024 6/30/2026 6/30/2026 6/30/2026 6/30/2027 6/30/2027 6/30/2028

- 56 -

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2022

SCHEDULE "14"

PROJECT
As approved by the voters on November 5, 2019
A one percent sales and use tax for educational purposes shall be imposed in the Paulding County School District for a period of time not exceed twenty consecutive calendar quarters (beginning April 2021) and for raising of not more than $120,000,000.00 for the purpose of:
(a) Paying the principal and interest on the Series 2014 Bonds (during the period the Educational Sales Tax is to be imposed) in the maximum amount of $40,982,000.00 and;
(b) Funding the following capital outlay projects in the maximum amount of $79,018,000.00: acquisition, construction and equipping of facilities and equipping of facilities and equipment throughout the School District, including new school facility construction, strategic additions and/or improvements to existing schools, technology enhancements, fine art initiatives, safety and security upgrades, track, tennis, gym an other athletic facility improvements.
Mainenance, renovation, addition and improvement projects: Athletic Facility Improvements Moses Middle Addition Russom Elementary Addition Hiram High Renovations Dobbins Middle Renovations/Modifications Allgood Elementary Renovations/Modifications Technology Capital Expenditures Miscellaneous New School Construction Dugan Elementary Addition Fire Alarm and Intercom Improvements Connecting Corridors South Paulding High Engineering Academy Roberts Elementary Sewer North Paulding High Addition Middle School Fam and Cons Sci to Engineering Conv McClure Middle Portable Classrooms Fine Arts Baggett Elementary Renovations/Modifications Poole Elementary Renovations/Modifications Track/Tennis Court Resurfacing/Gym Floor Burnt Hickory Elementary Addition Russom Elementary Renovations/Modifications
Audit Fees Subtotal SPLOST VI Projects
Total

EXPENDED IN CURRENT YEAR (3) (4)

EXPENDED IN PRIOR YEARS (3) (4) (5)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$

5,367,522.07 $

- $

- $

-

-

-

-

-

211,174.21

898,768.68

-

-

80,586.44

1,690,998.85

1,771,585.29

-

13,295.88

1,402,354.62

-

-

3,668,878.84

4,061,332.38

-

-

4,531,817.16

39,845.17

-

-

3,041,184.89

26,295.95

-

-

-

-

-

-

-

241.21

-

-

302,597.09

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,884.05

2,468.95

-

-

5,850.00

-

5,850.00

-

4,160.00

-

4,160.00

-

36,222.00

-

-

-

22,795.60

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

77,953.75

-

-

-

-

-

-

-

-

-

-

-

17,369,921.98

8,122,305.81

1,781,595.29

-

$ 21,607,868.38 $ 93,346,476.77 $ 89,657,821.67 $

-

(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 Paulding 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) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows:

Prior Years Current Year

$

506,381.54

-

Total

$

(5) Some prior year project costs were reallocated from Miscellaneous to the specific projects.

(6) Projects "On Hold" have been postponed and/or reassigned to other funding sources.

506,381.54

See notes to the basic financial statements.

- 57 -

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 Mr. Steve Barnette, Superintendent and Members of the Paulding County Board of Education
We have audited the financial statements of the governmental activities and each major fund of the Paulding County Board of Education (School District) as of and for the year ended June 30, 2022, 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 31, 2023. 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.
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 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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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 31, 2023

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mr. Steve Barnette, Superintendent and Members of the Paulding County Board of Education
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Paulding 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, 2022. 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, 2022.
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 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 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 31, 2023

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

PAULDING COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2022
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

PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities and Each Major Fund
Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified?
Noncompliance material to financial statements noted:

Unmodified
No None Reported
No

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

84.010 84.371 84.425

Title I Grants to Local Educational Agencies Comprehensive Literacy Development Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

No None Reported
Unmodified No
$1,471,590.83 Yes

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