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

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

Talbot County Board of Education

Table of Contents

Section I Financial
Independent Auditor's Report

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G

Statement of Fiduciary Net Position

Fiduciary Funds

7

H

Statement of Changes in Fiduciary Net Position

Fiduciary Funds

8

I Notes to the Basic Financial Statements

9

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

35

2 Schedule of Contributions Teachers Retirement System of Georgia

36

3 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

37

4 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

38

5 Schedule of Contributions School OPEB Fund

39

6 Notes to the Required Supplementary Information

40

7 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

41

Supplementary Information

8 Schedule of Expenditures of Federal Awards

42

9 Schedule of State Revenue

44

10 Schedule of Approved Local Option Sales Tax Projects

46

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 V Management's Corrective Action for Current Year Findings
Schedule of Management's Corrective Action

Section I Financial

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. James Catrett, Superintendent and Members of the Talbot County Board of Education
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the Talbot County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
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
Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of

financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information 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 December 30, 2024 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.

A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. Respectfully submitted,
Greg S. Griffin State Auditor
December 30, 2024

Talbot County Board of Education

TALBOT COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023
ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

4,197,906.39

65,000.00

440,081.59 282,871.47 826,186.83
19,238.90 12,297.56 379,857.93 16,622,309.18 22,845,749.85

3,866,546.00 1,291,601.00 5,158,147.00

57,797.47 633,713.14
22,166.67 8,205,333.00 3,740,432.00
442,158.26 1,937,697.94 15,039,298.48

500,185.00 3,312,630.00 3,812,815.00

15,040,734.57

88,257.61 11,083.33 1,485,455.29 (7,473,747.43)

$

9,151,783.37

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

- 1 -

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

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 Other Support Services Operations of Non-Instructional Services Food Services Interest on Long-Term Debt
Total Governmental Activities

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$

4,701,873.05 $

- $

544,525.45 421,268.07 163,007.08 667,063.78 591,670.59
52,707.00 1,070,804.47
497,824.75 235,489.60

45,639.45

582,900.98 53,395.42

38,378.54 -

$

9,582,530.24 $

84,017.99 $

General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Investment Earnings Miscellaneous Total General Revenues

Change in Net Position

Net Position - Beginning of Year

Net Position - End of Year

3,421,223.97 $
241,326.61 170,562.13
62,200.34 406,803.00 179,369.03
1,172.46 426,183.64 301,594.88
12,384.57
510,738.26 -
5,733,558.89 $

(1,280,649.08)
(303,198.84) (250,705.94) (100,806.74) (260,260.78) (412,301.56)
(51,534.54) (644,620.83) (196,229.87) (177,465.58)
(33,784.18) (53,395.42)
(3,764,953.36)

4,054,463.32

421,850.00 707,342.10
33,088.16 44,898.62 63,819.10 5,325,461.30

1,560,507.94

7,591,275.43

$

9,151,783.37

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

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

EXHIBIT "C"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Inventories
Total Assets
LIABILITIES Accounts Payable Salaries and Benefits Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - Federal Funds
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

$

2,775,623.41 $

1,422,282.98 $

65,000.00

-

343,659.28 282,871.47 826,186.83
19,238.90 12,297.56

96,422.31 -

$

4,324,877.45 $

1,518,705.29 $

- $ -
-
- $

4,197,906.39 65,000.00
440,081.59 282,871.47 826,186.83
19,238.90 12,297.56
5,843,582.74

$

57,797.47 $

633,713.14

691,510.61

- $ -

- $ -

57,797.47 633,713.14 691,510.61

276,921.23

-

254,566.54

-

531,487.77

-

-

276,921.23

-

254,566.54

-

531,487.77

12,297.56 75,960.05 27,748.05 2,985,873.41 3,101,879.07

1,518,705.29
1,518,705.29

-

12,297.56

-

1,594,665.34

-

27,748.05

-

2,985,873.41

-

4,620,584.36

$

4,324,877.45 $

1,518,705.29 $

- $

5,843,582.74

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

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

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 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 liability
Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Taxes that are not available to pay for current period expenditures are deferred in the funds.
Grants 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 Financed purchase arrangement payable Unamortized bond premiums
Net position of governmental activities (Exhibit "A")

$

$

379,857.93

19,094,837.38

1,877,939.72

1,411,233.02

(5,761,700.94)

$

(8,205,333.00)

(3,740,432.00)

$

3,366,361.00

(2,021,029.00)

$

(1,840,000.00)

(22,166.67)

(417,267.20)

(122,589.00)

$

EXHIBIT "D"
4,620,584.36
17,002,167.11 (11,945,765.00)
1,345,332.00 276,921.23 254,566.54
(2,402,022.87) 9,151,783.37

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

- 4 -

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

EXHIBIT "E"

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues
EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures
Fund Balances - Beginning
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

4,002,395.93 $

33,088.16

3,007,318.21

2,456,461.14

84,017.99

1,511.99

63,819.10

9,648,612.52

- $ 707,342.10
43,386.63 750,728.73

- $ 421,850.00
421,850.00

4,002,395.93 1,162,280.26 3,007,318.21 2,456,461.14
84,017.99 44,898.62 63,819.10 10,821,191.25

4,428,493.75

-

543,197.95 415,380.47 162,642.03 649,069.98 579,057.24
51,552.65 1,037,198.10
464,011.00 107,703.77 592,432.08

5,005.65 35.00 18,168.11 -

57,864.18 12,685.82 9,101,289.02 547,323.50

23,208.76 727,519.97

2,554,555.57

791,185.32

$

3,101,879.07 $

1,518,705.29 $

-
-
345,000.00 76,850.00
421,850.00 -
-
- $

4,428,493.75
543,197.95 415,380.47 162,642.03 654,075.63 579,057.24
51,587.65 1,037,198.10
464,011.00 125,871.88 592,432.08
402,864.18 89,535.82
9,546,347.78 1,274,843.47
3,345,740.89
4,620,584.36

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

- 5 -

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

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Grant 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. Bond principal retirements Financed purchase arrangement payments 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. Accrued interest on issuance of bonds
Change in net position of governmental activities (Exhibit "B")

$

1,274,843.47

$

37,800.00

(431,262.64)

(393,462.64) 52,067.39
254,566.54

$

345,000.00

57,864.18

32,690.00

435,554.18

$

(371,711.00)

305,200.00

(66,511.00)

3,450.00

$

1,560,507.94

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

- 6 -

TALBOT COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2023

ASSETS Cash and Cash Equivalents
LIABILITIES Accounts Payable
NET POSITION Restricted
Held in Trust for Private Purposes Individuals, Organizations, and Other Governments

PRIVATE PURPOSE TRUSTS

$

2,816.02 $

$

$

2,816.02

$

EXHIBIT "G"
CUSTODIAL FUNDS 467.58 467.58 -

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

- 7 -

ADDITIONS Miscellaneous
DEDUCTIONS Other Deductions
Change in Net Position
Net Position - Beginning Net Position - Ending

TALBOT COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2023

EXHIBIT "H"

PRIVATE PURPOSE TRUSTS

CUSTODIAL FUNDS

$

- $

37,218.24

-

37,218.24

-

-

2,816.02

-

$

2,816.02 $

-

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

- 8 -

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

EXHIBIT "I"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Talbot 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, except for fiduciary activities. 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 non-fiduciary 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.
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TALBOT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "I"

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. 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) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general longterm principal and interest.
The School District reports the following fiduciary fund types:
Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments.
Custodial funds are used to report resources held by the School District in a purely custodial capacity.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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TALBOT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "I"

The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds.
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 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have a material 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.
Investments
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.

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

EXHIBIT "I"

Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Inventories
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.
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.

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

EXHIBIT "I"

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

Capitalization Policy

Estimated Useful Life

Land

Land Improvements

$

Buildings and Improvements $

Equipment

$

Intangible Assets

$

All 10,000.00 10,000.00 10,000.00 100,000.00

N/A 20 to 70 years Up to 70 years
5 to 25 years 15 to 50 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.
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 straightline method. 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.

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

EXHIBIT "I"

Post-Employment Benefits Other than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
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 Talbot County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on August 22, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on December 20, 2022 (lien date). Taxes collected within the current fiscal year or within 60
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TALBOT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "I"

days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Talbot County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2023, for maintenance and operations amounted to $3,665,605.47.
The tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13.356 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $336,790.46 during fiscal year ended June 30, 2023.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,129,192.10 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 fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Superintendent is authorized by the Board to approve adjustments of no more than 5% 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 5% 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.
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.
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TALBOT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "I"

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, 2023, the School District had deposits with a carrying amount of $2,778,669.56, and a bank balance of $3,339,103.72. The bank balances insured by Federal depository insurance were $514,366.15 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 $2,824,737.57.

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

EXHIBIT "I"

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

Cash and cash equivalents

Statement of Net Position

$

Statement of Fiduciary Net Position

4,197,906.39 3,283.60

Total cash and cash equivalents

4,201,189.99

Add: Deposits with original maturity of three months or more reported as investments

65,000.00

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

1,487,520.43

Total carrying value of deposits - June 30, 2023

$ 2,778,669.56

Categorization of Cash Equivalents
The School District reported cash equivalents of $1,487,520.43 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Fitch. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2023 was 28 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

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

EXHIBIT "I"

NOTE 5: CAPITAL ASSETS

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

Balances July 1, 2022

Increases

Decreases

Balances June 30, 2023

Governmental Activities Capital Assets,
Not Being Depreciated: Land

$

379,857.93 $

- $

Capital Assets, Being Depreciated Buildings and Improvements Equipment Land Improvements
Less Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements

19,094,837.38 1,840,139.72 1,411,233.02

37,800.00
-

3,328,690.79 1,311,219.51
690,528.00

294,185.38 74,332.94 62,744.32

Total Capital Assets, Being Depreciated, Net

17,015,771.82

(393,462.64)

Governmental Activities Capital Assets - Net

$ 17,395,629.75 $ (393,462.64) $

Current year depreciation expense by function is as follows:

Instruction

$

Support Services

General Administration

$

347.79

Maintenance and Operation of Plant

2,761.09

Student Transportation Services

58,579.32

Other Support Services

132,462.98

Food Services

- $

379,857.93

-

19,094,837.38

-

1,877,939.72

-

1,411,233.02

-

3,622,876.17

-

1,385,552.45

-

753,272.32

-

16,622,309.18

- $ 17,002,167.11

227,696.72

194,151.18 9,414.74

$

431,262.64

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

EXHIBIT "I"

NOTE 6: LONG-TERM LIABILITIES

The changes in long-term liabilities during the fiscal year for governmental activities were as follows:

Governmental Activities

Balance July 1, 2022

Additions

Balance

Due Within

Deductions June 30, 2023 One Year

General Obligation (G.O.) Bonds $ 2,185,000.00 $

Unamortized Bond Premiums

155,279.00

Financed Purchases

475,131.38

- $ 345,000.00 $ 1,840,000.00 $ 350,000.00

-

32,690.00

122,589.00 32,690.00

-

57,864.18

417,267.20 59,468.26

$ 2,815,410.38 $

- $ 435,554.18 $ 2,379,856.20 $ 442,158.26

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. The School District repays general obligation bonds from voter-approved sales taxes. 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, 2023. 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 (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.
General obligation bonds currently outstanding are as follows:

Description

Interest Rates Issue Date Maturity Date Amount Issued

Amount Outstanding

General Government - Series 2017

2.00% - 4.00%

6/13/2017

3/1/2028 $ 3,500,000.00 $ 1,840,000.00

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

EXHIBIT "I"

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

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2024 2025 2026 2027 2028

$

350,000.00 $ 66,500.00 $

360,000.00

56,000.00

370,000.00

45,200.00

375,000.00

30,400.00

385,000.00

15,400.00

32,690.00 32,690.00 32,690.00 24,519.00
-

Total Principal and Interest $ 1,840,000.00 $ 213,500.00 $

122,589.00

Obligations Under Financed Purchases
An energy efficiency agreement dated October 15, 2019 was executed by and between the School District and BciCapital, Inc. The agreement authorized the borrowing of $728,465.00 for the purchase of energy efficient stadium lighting. Payments shall be made from the School District's general fund.
The School District's outstanding obligations from the agreement related to governmental activities of $417,267.20 contain a provision that in an event of default, BciCapital, Inc. has the option of declaring outstanding amounts immediately due and payable or they may take possession of the equipment.
Governmental Activities

Land Improvements

$

Less: Accumulated Depreciation

728,465.00 151,763.55

Debt currently outstanding is as follows:

Purpose

Interest Rate

Issue Date

$

576,701.45

Maturity Date

Amount Issued

Amount Outstanding

Stadium Lighting

2.75%

10/15/2019 10/15/2029 $

728,465.00 $ 417,267.20

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

EXHIBIT "I"

The following is a schedule of total finance purchase payments:

Fiscal Year Ended June 30:

Principal

Interest

2024 2025 2026 2027 2028 2029 - 2030

$

59,468.26 $

61,116.83

62,811.08

64,552.31

66,341.81

102,976.91

11,081.74 9,433.17 7,738.92 5,997.69 4,208.19 2,848.09

Total Principal and Interest $

417,267.20 $

41,307.80

NOTE 7: RISK MANAGEMENT

Insurance

Commercial Insurance

The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as describe below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years.
The School District has elected to self-insure for losses related to natural disasters. The School District has not experienced any losses related to these risks in the past three years.

Unemployment Compensation

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years.

Surety Bond

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

Position Covered

Amount

Superintendent Finance Director Payroll Clerk

$

30,000.00

$

10,000.00

$

10,000.00

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

EXHIBIT "I"

NOTE 8: FUND BALANCE CLASSIFICATION DETAILS

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

Nonspendable Inventories
Restricted Continuation of Federal Programs $ Capital Projects Debt Service
Assigned School Activity Accounts
Unassigned

$
75,960.05 1,485,455.29
33,250.00

12,297.56
1,594,665.34 27,748.05
2,985,873.41

Fund Balance, June 30, 2023

$

4,620,584.36

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 9: 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 10: 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.

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

EXHIBIT "I"

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 $134,117.00 for the year ended June 30, 2023. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2023, the School District reported a liability of $3,740,432.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2021. At June 30, 2022, the School District's proportion was 0.037770%, which was a decrease of 0.008108% from its proportion measured as of June 30, 2021.

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

EXHIBIT "I"

For the year ended June 30, 2023, the School District recognized OPEB expense of ($171,083.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual experience

$ 149,302.00 $ 1,470,103.00

Changes of assumptions

569,675.00

756,508.00

Net difference between projected and

actual earnings on OPEB plan investments

22,816.00

-

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

415,691.00 1,086,019.00

School District contributions subsequent to

the measurement date

134,117.00

-

Total

$ 1,291,601.00 $ 3,312,630.00

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

Year Ended June 30:

OPEB

2024 2025 2026 2027 2028 Thereafter

$ (423,566.00) $ (405,881.00) $ (411,537.00) $ (509,816.00) $ (349,251.00) $ (55,095.00)

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

EXHIBIT "I"

Actuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2022:
OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

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

7.00%, compounded annually, net of investment expense, and including inflation
6.50% 5.00%

Ultimate trend rate

Pre-Medicare Eligible

4.50%

Medicare Eligible

4.50%

Year of Ultimate trend rate

Pre-Medicare Eligible

2029

Medicare Eligible

2023

The Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows:
For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP- 2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 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 101% for males and 103% 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
- 25 -

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

EXHIBIT "I"

adjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied 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 104% for males and 99% for females) with the MP-2019 Project scale applied generationally.

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.

The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 valuation.

Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

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

Asset class

Target allocation

Long-Term Expected Real Rate of Return*

Fixed income Equities

30.00% 70.00%

2.00% 9.40%

Total

100.00%

*Net of Inflation

Discount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2128.
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TALBOT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2023

EXHIBIT "I"

Sensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.57%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate:

1% Decrease (2.57%)

Current Discount Rate (3.57%)

1% Increase (4.57%)

School District's proportionate share of the Net OPEB liability

$ 4,230,877.00 $

3,740,432.00 $ 3,324,758.00

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

$ 3,222,829.00 $

3,740,432.00 $ 4,376,563.00

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

NOTE 11: RETIREMENT PLANS

The School District participates in various retirement plans administered by the State of Georgia, as further explained below.

Teachers Retirement System of Georgia (TRS)

Plan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and

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

EXHIBIT "I"

compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $673,990.00 from the School District.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $ 18,522.00.

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

EXHIBIT "I"

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2023, the School District reported a liability of $8,205,333.00 for its proportionate share of the net pension liability for TRS.
The net pension liability for TRS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2022.
At June 30, 2022, the School District's TRS proportion was 0.025269%, which was a decrease of 0.001843% from its proportion measured as of June 30, 2021.
At June 30, 2023, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $134,244.00.
The PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2022.
For the year ended June 30, 2023, the School District recognized pension expense of $1,044,168.00 for TRS and $33,735.00 for PSERS and revenue of $33,735.00 for PSERS. The revenue is support provided by the State of Georgia.

- 29 -

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

EXHIBIT "I"

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

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience

$ 340,605.00 $ 42,711.00

Changes of assumptions

1,235,164.00

-

Net difference between projected and actual earnings on pension plan investments

1,612,114.00

-

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

4,673.00

457,474.00

School District contributions subsequent to the measurement date

673,990.00

-

Total

$ 3,866,546.00 $ 500,185.00

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

Year Ended June 30:

TRS

2024 2025 2026 2027

$ 692,614.00 $ 496,825.00 $ 372,004.00 $ 1,130,928.00

- 30 -

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

EXHIBIT "I"

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

Teachers Retirement System:

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

6.90%, net of pension plan investment expense, including inflation

Post-retirement benefit increases

1.50% semi-annually

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

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018, with the exception of the investment rate of return and payroll growth assumption.

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

EXHIBIT "I"

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 Service Retirees
Disability Retirees Beneficiaries

Membership Table

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

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

Male: 101%; Female: 103%

General Disabled

Male: -3; Female: 0

Male: 103%; Female: 106%

General Below-Median Male: +2; Female: +2 Contingent Survivors

Male: 104%; Female: 99%

The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019.
The long-term expected rate of return on TRS 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 Alternative
Total

TRS/PSERS Target
allocation
30.00% 46.30%
1.20% 12.30%
5.20% 5.00%
100.00%

Long-term expected real rate of return*
0.20% 9.40% 13.40% 9.40% 11.40% 10.50%

* Rates shown are net of inflation
Discount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total 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 and PSERS pension plans' fiduciary net position were projected to be

- 32 -

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

EXHIBIT "I"

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.
Sensitivity of the School District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 6.90% as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate:

Teachers Retirement System:

1% Decrease (5.90%)

Current Discount Rate (6.90%)

1% Increase (7.90%)

School District's proportionate share of the net pension liability

$ 12,379,130.00 $

8,205,333.00 $ 4,796,875.00

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

- 33 -

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TALBOT 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
2023 2022 2021 2020 2019 2018 2017 2016 2015

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

School District's proportionate share
of the NPL

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

0.025269% $ 8,205,333.00 $ 0.027112% $ 2,397,876.00 $ 0.028110% $ 6,809,342.00 $ 0.029338% $ 6,308,463.00 $ 0.029212% $ 5,422,373.00 $ 0.029144% $ 5,416,502.00 $ 0.028494% $ 5,878,630.00 $ 0.029732% $ 4,526,402.00 $ 0.030388% $ 3,839,123.00 $

-

$ 8,205,333.00 $ 3,423,201.71

-

$ 2,397,876.00 $ 3,533,113.55

-

$ 6,809,342.00 $ 3,653,843.74

-

$ 6,308,463.00 $ 3,580,476.69

-

$ 5,422,373.00 $ 3,484,577.21

-

$ 5,416,502.00 $ 3,346,411.50

-

$ 5,878,630.00 $ 3,125,519.13

-

$ 4,526,402.00 $ 3,138,384.64

-

$ 3,839,123.00 $ 3,100,171.01

239.70% 67.87%
186.36% 176.19% 155.61% 161.86% 188.08% 144.23% 123.84%

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

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

- 35 -

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

SCHEDULE "2"

For the Year Ended June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Contractually required contribution

$

673,990.00

$

678,136.00

$

673,411.43

$

772,422.55

$

748,320.00

$

585,757.42

$

477,541.23

$

446,011.58

$

412,697.58

$

380,692.79

Contributions in relation to the contractually required
contribution

$

673,990.00

$

678,136.00

$

673,411.43

$

772,422.55

$

748,320.00

$

585,757.42

$

477,541.23

$

446,011.58

$

412,697.58

$

380,692.79

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

School District's covered payroll

Contribution as a percentage of covered
payroll

$

3,373,323.62

$

3,423,201.71

$

3,533,113.55

$

3,653,843.74

$

3,580,476.69

$

3,484,577.21

$

3,346,411.50

$

3,125,519.13

$

3,138,384.64

$

3,100,171.01

19.98% 19.81% 19.06% 21.14% 20.90% 16.81% 14.27% 14.27% 13.15% 12.28%

- 36 -

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

SCHEDULE "3"

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

2023 2022 2021 2020 2019 2018

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

-

$

-

$

-

$

-

$

-

$

-

$

134,244.00 $ 13,684.00 $
101,610.00 $ 90,669.00 $ 85,902.00 $ 77,602.00 $

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

134,244.00 $ 13,684.00 $
101,610.00 $ 90,669.00 $ 85,902.00 $ 77,602.00 $

265,014.18 262,209.19 270,543.06 248,819.98 214,025.43 227,137.34

N/A

81.21%

N/A

98.00%

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

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

- 37 -

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

SCHEDULE "4"

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

2023 2022 2021 2020 2019 2018

0.037770% $ 3,740,432.00 $ 0.045878% $ 4,968,967.00 $ 0.046721% $ 6,862,227.00 $ 0.045502% $ 5,584,072.00 $ 0.043131% $ 5,481,818.00 $ 0.038590% $ 5,421,880.00 $

-

$ 3,740,432.00

-

$ 4,968,967.00

-

$ 6,862,227.00

-

$ 5,584,072.00

-

$ 5,481,818.00

-

$ 5,421,880.00

School District's covered-employee
payroll
$ 3,577,172.45 $ 3,185,925.52 $ 3,484,362.83 $ 3,402,237.58 $ 3,374,356.11 $ 3,174,208.92

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

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

104.56% 155.97% 196.94% 164.13% 162.46% 170.81%

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

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

- 38 -

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

SCHEDULE "5"

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

Contractually required contribution

$

134,117.00

$

136,566.00

$

170,660.00

$

158,001.00

$

245,062.00

$

223,544.00

Contributions in relation to the contractually required
contribution

$

134,117.00

$

136,566.00

$

170,660.00

$

158,001.00

$

245,062.00

$

223,544.00

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

$

-

$

-

School District's covered-employee
payroll

$

3,580,455.25

$

3,577,172.45

$

3,185,925.52

$

3,484,362.83

$

3,402,237.58

$

3,374,356.11

Contribution as a percentage of
covered-employee payroll
3.75% 3.82% 5.36% 4.53% 7.20% 6.62%

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

- 39 -

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

SCHEDULE "6"

Teachers Retirement System Change of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%.
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 recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability.
School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System.
June 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study.
June 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%.
June 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised.
June 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect two 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.

- 40 -

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

SCHEDULE "7"

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 Food Services Operation Debt Services Principal Interest Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

4,156,700.34 $

3,395,265.00 $

4,002,395.93 $

607,130.93

4,535.78

85,000.00

33,088.16

(51,911.84)

2,888,939.90

2,929,059.90

3,007,318.21

78,258.31

-

4,338,695.03

2,456,461.14

(1,882,233.89)

-

52,000.00

84,017.99

32,017.99

596.00

1,596.00

1,511.99

(84.01)

75,344.00

75,344.00

63,819.10

(11,524.90)

7,126,116.02

10,876,959.93

9,648,612.52

(1,228,347.41)

4,080,326.54
597,659.77 362,634.21 153,005.52 523,540.00 571,031.30
56,140.00 1,328,835.03
463,539.08 -
16,289.88 681,031.27
8,834,032.60 (1,707,916.58)

6,882,550.13
778,410.64 795,717.18 164,345.52 687,463.00 594,681.13
56,140.00 1,765,971.90 1,054,995.08
29,315.88 717,898.38
13,527,488.84 (2,650,528.91)

-

52,819.00

-

(52,819.00)

-

-

(1,707,916.58)

(2,650,528.91)

2,132,173.65

2,132,173.65

12,516.87

(157,179.74)

$

436,773.94 $

(675,535.00) $

4,428,493.75
543,197.95 415,380.47 162,642.03 649,069.98 579,057.24
51,552.65 1,037,198.10
464,011.00 -
107,703.77 592,432.08
57,864.18 12,685.82 9,101,289.02 547,323.50
-
547,323.50
2,554,555.57
-
3,101,879.07 $

2,454,056.38
235,212.69 380,336.71
1,703.49 38,393.02 15,623.89
4,587.35 728,773.80 590,984.08
(78,387.89) 125,466.30
(57,864.18) (12,685.82) 4,426,199.82 3,197,852.41
(52,819.00) 52,819.00
-
3,197,852.41
422,381.92
157,179.74
3,777,414.07

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $78,589.86 and $88,894.02, respectively.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 41 -

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

SCHEDULE "8"

FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of
Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Fresh Fruit and Vegetable Program Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture
Education, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States 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 Rural and Low-Income School Program Rural and Low-Income School Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.555 10.582

235GA324N1199 $ 235GA324N1199 235GA324N1099 235GA324L1603

117,902.16 388,952.12
21,533.95 29,769.61 558,157.84

10.560

235GA904N2533

1,972.85 560,130.69

84.425D 84.425U 84.425W

S425D210012 S425U210012 S425W210011

467,988.82
720,898.01
12,210.44 1,201,097.27

84.027A 84.027A 84.173A 84.173X

H027A210073 H027A220073 H173A220081 H173X210081

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

V048A220010 S358B210010 S358B220010 S367A210001 S367A220001 S010A210010-21A S010A220010

93,532.16 87,987.69 14,256.74
454.09 196,230.68
15,237.05 5,225.90
12,849.41 39,747.00 36,755.89 165,228.49 358,591.41 633,635.15 2,030,963.10

93.575

2210GACCC5

5,000.00

12. UNKNOWN

73,232.93

$

2,669,326.72

- 42 -

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

SCHEDULE "8"

Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Talbot County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

See notes to the basic financial statements.

- 43 -

TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023
AGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Sparsity One Time QBE Adjustment Other State Programs Food Services Hygiene Products School Safety Grant Vocational Education Office of the State Treasurer Public School Employees Retirement

SCHEDULE "9"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

74,014.21

140,206.00 13,995.00
250,975.00 44,652.00
156,229.00 28,062.00
234,914.00 224,243.00
54,691.00 435,152.00
39,583.00 15,583.00 42,326.00 13,298.00
7,020.00 239.00
270,146.00 115,345.00
80,169.00

177,530.00 45,866.00
366,203.00 101,010.00

14,734.00 380.00
28,120.00 14,111.00

18,522.00

$

3,007,318.21

See notes to the basic financial statements.

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

SCHEDULE "10"

PROJECT
2016 Projects (1) Adding to, constructing, renovating, furnishing, and/or equipping an athletic complex and related facilities, including a stadium, a track, softball field and any related lighting; (2) acquiring equipment for physical education and the athletic departments; (3) acquiring safety, security and/or fire protection equipment; (4) acquiring buses, vehicles, and/or transportation equipment, and/or; (5) acquiring property.
Subtotal 2016 Projects
2022 Projects a) Paying a portion of the principal of and interest on the General Obligations Bonds, Series 2017;
b) Repairing, improving, renovating, extending, upgrading, furnishing and equipping school buildings and support facilities useful or desirable in connection, therewith including acquiring any necessary property, therefore, both real and personal, specifically including the following: (1) acquiring maintenance and security vehicles, maintenance equipment, and new buses; (2) acquiring administrative and instructional technology/communications equipment, textbooks, grounds maintenance and kitchen equipment, and safety and security equipment; (3) acquiring equipment and furnishings, including student furniture and band and athletic uniforms and equipment; (4) renovations, extensions, additions, repairs, upgrades and improvements to existing school facilities, including fine arts, exercise/training rooms, physical education and athletic facilities, new construction of an athletic complex and improvements to existing stadium, playground updates, parking lot improvements, paving, painting and flooring updates, construction of road and sidewalk between school campuses, schoolwide HVAC updates; and enclosing open-air walkways for safety and security purposes; and (5) paying expenses incident to accomplishing the foregoing.
Subtotal 2022 Projects Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

2,800,000.00 $

5,444,587.49

2,800,000.00

5,444,587.49

Completed

2,053,000.00

2,053,000.00

12/31/2027

2,247,000.00

2,247,000.00

4,300,000.00

4,300,000.00

$

7,100,000.00 $

9,744,587.49

12/31/2027

- 46 -

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

SCHEDULE "10"

PROJECT

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

2016 Projects

(1) Adding to, constructing, renovating, furnishing, and/or

equipping an athletic complex and related facilities, including a

stadium, a track, softball field and any related lighting; (2) acquiring

equipment for physical education and the athletic departments; (3)

acquiring safety, security and/or fire protection equipment; (4)

acquiring buses, vehicles, and/or transportation equipment,

and/or; (5) acquiring property.

$

38,425.00 $ 5,406,162.49 $ 5,444,587.49 $

-

Subtotal 2016 Projects

38,425.00

5,406,162.49

5,444,587.49

-

2022 Projects

a) Paying a portion of the principal of and interest on the General

Obligations Bonds, Series 2017;

383,425.00

-

-

-

b) Repairing, improving, renovating, extending, upgrading,

furnishing and equipping school buildings and support facilities

useful or desirable in connection, therewith including acquiring

any necessary property, therefore, both real and personal,

specifically including the following: (1) acquiring maintenance

and security vehicles, maintenance equipment, and new buses; (2)

acquiring administrative and instructional technology/communications

equipment, textbooks, grounds maintenance and kitchen

equipment, and safety and security equipment; (3) acquiring

equipment and furnishings, including student furniture and band

and athletic uniforms and equipment; (4) renovations, extensions,

additions, repairs, upgrades and improvements to existing school

facilities, including fine arts, exercise/training rooms, physical

education and athletic facilities, new construction of an athletic

complex and improvements to existing stadium, playground updates,

parking lot improvements, paving, painting and flooring updates,

construction of road and sidewalk between school campuses, school-

wide HVAC updates; and enclosing open-air walkways for safety and

security purposes; and (5) paying expenses incident to accomplishing

the foregoing.

23,208.76

-

-

-

Subtotal 2022 Projects

406,633.76

-

-

-

Total

$

445,058.76 $ 5,406,162.49 $ 5,444,587.49 $

-

(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 Talbot 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.

See notes to the basic financial statements.

- 47 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. James Catrett, Superintendent and Members of the Talbot County Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Talbot County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated December 30, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs in findings FS 2023-001, FS 2023-002, and FS 2023-003 that we consider to be significant deficiencies.
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.
School District's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the School District's response to the findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
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
December 30, 2024

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. James Catrett, Superintendent and Members of the Talbot County Board of Education
Report on Compliance for Each Major Federal Program
Qualified Opinions
We have audited the Talbot County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, except for the noncompliance described in the "Basis for Qualified Opinions" section of our report, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Title I Grants to Local Educational Agencies (84.010) and Education Stabilization Fund (84.425) for the year ended June 30, 2023.
Basis for Qualified Opinions
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 qualified opinions 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

Matters Giving Rise to Qualified Opinion on Education Stabilization Fund (84.425) and Title I Grants to Local Educational Agencies (84.010)
As described in the accompanying Schedule of Findings and Questioned Costs, the School District did not comply with requirements regarding the Title I Grants to Local Educational Agencies (84.010) as described in findings FA 2023-001, FA 2023-003, and FA 2023-004 for Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, and Reporting and Education Stabilization Funds (84.425) as described in finding FA 2003-002 for Activities Allowed or Unallowed and Allowable Costs/Cost Principles. Compliance with such requirements is necessary, in our opinion, for the School District to comply with requirements applicable to those programs.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
Government Auditing Standards requires the auditor to perform limited procedures on the School District's response to the noncompliance findings identified in our compliance audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control over Compliance
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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses.
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. We consider the deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs in findings FA 2023-001, FA 2023-002, FA 2023-003, and FA 2023-004 to be material weaknesses.
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 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.
Government Auditing Standards requires the auditor to perform limited procedures on the School District's response to the internal control over compliance findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

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
December 30, 2024

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS

FS 2022-001 Repeat of Prior Year Finding:

Internal Control Over Cash and Cash Equivalents FS 2021-001, FS 2020-001, FS 2019-001, FS 2018-001, FS 2017-001, FS 2016-001, FS 2015-001, FS 2014-001, FS 7301-13-01

Finding Status:

Unresolved

All reconciliations will be performed within 45 days of month-end and bank accounts closed or
switched to quarterly statements will be noted with documentation. All accounts will be monitored to prevent end of month over drafts.

FS 2021-001

Internal Controls Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2020-001, FS 2019-001, FS 2018-001, FS 2017-001, FS 2016-001,

FS 2015-001, FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2020-001

Internal Controls Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2019-001, FS 2018-001, FS 2017-001, FS 2016-001,

FS 2015-001, FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2019-001

Internal Controls Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2018-001, FS 2017-001, FS 2016-001, FS 2015-001,

FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2018-001

Internal Controls Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2017-001, FS 2016-001, FS 2015-001, FS 2014-001,

FS 7301-13-01

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2017-001

Internal Control Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2016-001, FS 2015-001, FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2016-001

Internal Control Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2015-001, FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2015-001

Internal Control Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 2014-001, FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 2014-001

Internal Control Over Cash and Cash Equivalents

Repeat of Prior Year Finding: FS 7301-13-01

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

FS 7301-13-01

Internal Control Over Cash and Cash Equivalents

Finding Status:

Partially Resolved

See response to finding number FS 2022-001.

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS

FS 2022-002 Repeat of Prior Year Finding:

Internal Control Over Capital Assets FS 2021-002

Finding Status:

Unresolved

Physical inventory of capital assets will be performed on a yearly basis. CFO will make sure that fully depreciated assets are removed from the general ledger in a timely manner. CFO will make sure that depreciation of all capital assets are consistently updated.

FS 2021-002

Internal Control Over Capital Assets

Finding Status:

Partially Resolved

See response to finding number FS 2022-002.

FS 2022-003 Repeat of Prior Year Finding:

Internal Controls at the Central Office FS 2021-003, FS 2020-003, FS 2019-004, FS 2018-005, FS 2017-005, FS 2016-005

Finding Status:

Unresolved

District office will review logical access controls to make sure that each user has only their rights to complete their assigned job functions. Board office is under construction at this time to build a
dedicated server closet to ensure physical control access to servers. District office will review its backup and password policies to make sure they are adequate enough and meet guidelines.

FS 2021-003

Internal Controls at the Central Office

Repeat of Prior Year Finding: FS 2020-003, FS 2019-004, FS 2018-005, FS 2017-005,

FS 2016-005

Finding Status:

Partially Unresolved

See response to finding number FS 2022-003.

FS 2020-003

Internal Controls at the Central Office

Repeat of Prior Year Finding: FS 2019-004, FS 2018-005, FS 2017-005, FS 2016-005

Finding Status:

Partially Resolved

See response to finding number FS 2022-003.

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS

FS 2019-004

Internal Controls at the Central Office

Repeat of Prior Year Finding: FS 2018-005, FS 2017-005, FS 2016-005

Finding Status:

Partially Resolved

See response to finding number FS 2022-003.

FS 2018-005

Internal Controls at the Central Office

Repeat of Prior Year Finding: FS 2017-005, FS 2016-005

Finding Status:

Partially Resolved

See response to finding number FS 2022-003.

FS 2017-005

Internal Controls at the Central Office

Repeat of Prior Year Finding: FS 2016-005

Finding Status:

Partially Resolved

See response to finding number FS 2022-003.

FS 2016-005

Internal Controls at the Central Office

Finding Status:

Partially Resolved

See response to finding number FS 2022-003.

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

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2022-001 Federal Awarding Agency: Pass-Through Entity:

Strengthen Controls over Expenditures U.S. Department of Education Georgia Department of Education

Finding Status:

Unresolved

District office has put procedures in action to make sure that all drawdowns are in line with
expenditures. All draw down packets will be viewed and signed off by federal program director. This packet will include detail expenditure sheet for the month, year to date expenditure report and a cover sheet.

FA 2022-002 Federal Awarding Agency: Pass-Through Entity:

Improve Controls over Expenditures U.S. Department of Education Georgia Department of Education

Finding Status:

Unresolved

District office will review payroll process and develop a procedure to ensure proper documentation is kept in an orderly manner.

FA 2022-003 Federal Awarding Agency: Pass-Through Entity: Repeat of Prior Year Finding:

Improve Controls over Cash Management U.S. Department of Education Georgia Department of Education FA 2021-001, FA 2020-001, FA 2019-001, FA 2018-001, FA 2017-002, FA 2016-001, FA 2015-002, FA 2014-003

Finding Status:

Unresolved

District office has put procedures in action to make sure that all drawdowns are in line with expenditures. All draw down packets will be viewed and signed off by federal programs director. This packet will include detail expenditure sheet for the month, year to date expenditure report and a
cover sheet.

FA 2021-001

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2020-001, FA 2019-001, FA 2018-001, FA 2017-002,

FA 2016-001, FA 2015-002, FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

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

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2020-001

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2019-001, FA 2018-001, FA 2017-002, FA 2016-001, FA 2015-002,

FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2019-001

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2018-001, FA 2017-002, FA 2016-001, FA 2015-002,

FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2018-001

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2017-002, FA 2016-001, FA 2015-002, FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2017-002

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2016-001, FA 2015-002, FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

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

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2016-001

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2015-002, FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2015-002

Improve Controls over Cash Management

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2014-003

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2014-003 Federal Awarding Agency: Pass-Through Entity:

Improve Controls over Cash Management U.S. Department of Education Georgia Department of Education

Finding Status:

Unresolved

See response to finding number FA 2022-003.

FA 2022-004 Federal Awarding Agency: Pass-Through Entity: Repeat of Prior Year Finding:

Strengthen Controls over Financial Reporting U.S. Department of Education Georgia Department of Education FA 2021-002, FA 2019-002

Finding Status:

Unresolved

District office has put procedures in action to make sure that all drawdowns are in line with expenditures. All draw down packets will be viewed and signed off by federal program director. This packet will include detail expenditures sheet for the month, year to date expenditure report and a cover sheet.

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

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2021-002

Strengthen Controls over Financial Reporting

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2019-002

Finding Status:

Unresolved

See response to finding number FA 2022-004.

FA 2019-002 Federal Awarding Agency: Pass-Through Entity:

Strengthen Controls over Financial Reporting U.S. Department of Education Georgia Department of Education

Finding Status:

Unresolved

See response to finding number FA 2022-004.

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Section IV Findings and Questioned Costs

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

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

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

Noncompliance material to financial statements noted:

Federal Awards

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

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

Education Stabilization Fund (84.425) Title I Grants to Local Educational Agencies (84.010)

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 84.425

Title 1 Grants to Local Educational Agencies Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

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

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

II FINANCIAL STATEMENT FINDINGS FS 2023-001 Internal Control Over Cash and Cash Equivalents

Internal Control Impact:

Significant Deficiency

Repeat of Prior Year Finding:

FS 2022-001, FS 2021-001, FS 2020-001, FS 2019-001,

FS 2018-001, FS 2017-001, FS 2016-001, FS 2015-001,

FS 2014-001, FS 7301-13-01

Description:

The accounting procedures of the School District continue to be insufficient to provide adequate

internal controls over the cash and cash equivalents functions.

Criteria: The School District management is responsible for designing and maintaining internal controls over
Cash and Cash Equivalents. Further, management is responsible for implementing corrective action to
findings from previous engagements.

Condition: The following Cash and Cash Equivalents related deficiencies were noted:
Bank accounts totaling $17,082.10 were not properly reconciled to the June 30, 2023, general ledger balance.
Three of nine bank reconciliations were not performed and/or reviewed within 45 days. One bank account had an outstanding payroll check over one year totaling $339.11. One bank account had a cash overdraft of $26,702.09.
Cause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of time and resources to fully separate the duties to ensure that the internal controls were sufficient.

Effect: Failure to maintain adequate internal controls over cash activity increases the risk significant misstatements could occur in the financial statements due to error or fraud. In addition, failure to implement corrective actions from findings in previous years raises concerns about the School District's management of local, state and federal funds. Given the increased level of risk of misstatement or fraud, the auditors must consider increasing audit procedures.
Recommendation: Management should take appropriate steps to ensure the time and resources are made available to implement controls over cash to ensure monthly bank reconciliations are performed accurately and in a timely manner by someone independent of the general ledger.

Views of Responsible Officials: We concur with this finding.

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

II FINANCIAL STATEMENT FINDINGS FS 2023-002 Internal Control Over Capital Assets

Internal Control Impact: Repeat of Prior Year Finding:

Significant Deficiency FS 2022-002, FS 2021-002

Description: The accounting procedures of the School District continue to be insufficient to provide adequate
internal controls over capital assets.

Criteria: The School District management is responsible for designing and maintaining internal controls over
capital assets. Chapter IV-7 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish
capital asset policies, define system requirements, implement a capital asset system and maintain capital asset inventory reports.

Condition: A review of the School District's capital asset records revealed the following deficiencies:
Evidence of a physical inventory of capital assets performed within the past seven years was not provided.
Thirty fully depreciated assets with a cost of $1,267,556.77 and accumulated depreciation of $1,267,556.77 were disposed of in prior years; however, they were still maintained on the capital asset listing and the general ledger. An adjustment to the notes to the financial statements was proposed by the auditors and accepted by the School District.
A truck with a cost of $37,800.00 was purchased without obtaining approval from the Board which does not comply with the bids and quotation policy.
Cause: These issues were a result of the School District's inadequate internal control and review procedures over capital assets.

Effect: Failure to maintain adequate internal controls over capital assets increases the risk significant
misstatements could occur in the financial statements due to error or fraud. In addition, it can lead to
inaccurate internal and external reporting, as well as noncompliance with generally accepted
accounting principles.

Recommendation: Management should correct the capital asset listing and strengthen internal controls over the capital
asset process to ensure that capital assets are properly recorded and maintained in accordance with the
School District's approved capital asset policy and generally accepted accounting principles.

Views of Responsible Officials: We concur with this finding.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

II FINANCIAL STATEMENT FINDINGS FS 2023-003 Internal Controls at the Central Office

Internal Control Impact: Repeat of Prior Year Finding:

Significant Deficiency FS 2022-002, FS 2021-003, FS 2020-003, FS 2019-004, FS 2018-005, FS 2017-005, FS 2016-005

Description: The accounting procedures of the School District continue to be insufficient to provide adequate internal controls at the Central Office.
Criteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed appropriately. Further, management is responsible for implementing reported corrective action to findings from previous engagements.

Condition: Accounting Controls (Overall):
The School District does not have adequate logical access controls in place to ensure only appropriate users have access to significant financial applications and supporting infrastructure. We noted several users with access rights that exceeded their need to complete their assigned job functions. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining custody of assets.
The School District does not have adequate password policies. Inadequate physical access controls are in place over the server rooms. It was noted that the
server room is unlocked during working hours. There are no established written organizational standards or procedures over IT functions and
key processes. Considering the School District has only one full time IT personnel, formal written procedures such as back-up policies, job scheduling, and IT risk assessment is crucial. Backup and recovery procedures for the student information system and school food service point of sale system are not adequate. There is no procedure for testing backups to ensure they are working properly. There is no formal policy for managing user access to the financial application, student information system, and school food service point of sale system.
Expenditures/Liabilities/Disbursements: The School District was unable to provide adequate documentation for ten of 16 Custodial Fund expenditures selected for testing totaling $27,408.88.

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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
II FINANCIAL STATEMENT FINDINGS
General Ledger: Our examination of sixty-one journal entries revealed the following deficiencies:
Twelve journal entries and the related supporting documentation could not be provided by the School District.
Two of 49 journal entries located and provided by the School District lacked evidence of supervisory review and approval.
Five of 49 journal entries located and provided by the School District lacked adequate documentation.
Cause: In discussing these deficiencies with the School District, they stated that these issues were a result of management's failure to ensure that internal controls were established, implemented and functioning.
Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of proper controls impacts its reporting and financial position and results of operations. Failure to implement corrective actions from findings in previous years raises concerns about the School District's management of local, state and federal funds. Given the increased level of risk of misstatement or fraud, the auditors must consider increasing audit procedures.
Recommendation: The School District should implement procedures to ensure that key accounting functions are appropriately separated and/or utilize management oversight for these incompatible activities. In addition, the School District should ensure server rooms are properly safeguarded and monitored, and adequate protection from cyber threats exists on all workstations. The School District should review accounting procedures in place and design and implement procedures relative to expenditures, employee compensation and journal entries to strengthen the internal controls over the accounting function.
Views of Responsible Officials: We concur with this finding.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2023-001 Strengthen Controls over Expenditures

Compliance Requirement:

Activities Allowed or Unallowed

Allowable Costs/Cost Principles

Internal Control Impact:

Material Weakness

Compliance Impact:

Material Noncompliance

Federal Awarding Agency:

U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Assistance Listing Number and Title: 84.010 - Title I Grants to Local Educational Agencies

Federal Award Number:

S010A210010-21A (Year: 2022), S010A220010 (Year 2023)

Questioned Costs:

$6,942

Repeat of Prior Year Finding:

FA 2022-001

Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over expenditures as it relates to the Title I Grants to Local Educational Agencies program.
Background: The Title I Grants to Local Educational Agencies (Title I) program was authorized under the Elementary and Secondary Education Act of 1965 to help local educational agencies (LEAs) improve teaching and learning in high-poverty schools in particular for children failing or most at-risk of failing, to meet challenging State academic standards. LEAs may operate targeted assistance programs in which children who are failing or most at-risk of failing may be served or schoolwide programs in which all children in eligible schools may be served.

Title I funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. Title I funds totaling $523,820 were expended and reported on the Talbot County Board of Education's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2023.

Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 Internal Controls.

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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Additionally, provisions included in the Uniform Guidance, Section 200.403 Factors Affecting Allowability of Costs state that "costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the nonFederal entity... (g) Be adequately documented..."
Furthermore, provisions included in the Uniform Guidance, Section 200.430 Compensation-Personal Services prescribe standards for documentation of personnel expenses and state, in part, that "(a) ... Costs for compensation are allowable to the extent that they satisfy... specific requirements..., and that the total compensation for individual employees: (1) is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i)..., [as follows:] (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity..."
Condition: Three nonpersonal services expenditures were randomly selected for testing using a non-statistical sampling approach. The expenditures were reviewed to determine if internal controls were implemented and applicable compliance requirements were met. For one sampled expenditure in the amount of $31, adequate supporting documentation in the form of an invoice was not maintained.
Additionally, three personal services expenditures were randomly selected for testing using a nonstatistical sampling approach. One individually significant expenditure was also selected for testing. These expenditures were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. The following deficiencies were noted:
For all employees tested, supporting documentation was not maintained for additional payments totaling $6,194.
For two employees tested, specific administrative supplements were overpaid and underpaid by $717 and $500, respectively.
Questioned Costs: Upon testing a sample of $1,275 in nonpersonal service expenditures, known questioned costs of $31 were identified for expenditures that were not supported by adequate documentation. Using the total nonpersonal services expenditures population of $74,447, we project the likely questioned costs to be approximately $1,810.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Additionally, upon testing a sample of $38,405 in personal services expenditures, known questioned costs of $6,611 were identified for expenditures not supported by adequate documentation. Using the total personal services expenditures population of $143,515 (excluding benefits payments), we project the likely questioned costs to be approximately $24,705. Furthermore, known questioned costs identified for undocumented personal services payments associated with individually significant items tested totaled $300. Therefore, the known and likely questioned costs identified for all unallowable and/or undocumented payments throughout the sample and individually significant items tested totaled $6,942 and $26,815, respectively.
Cause: Per discussion with management, the School District believes that this is due to change in management in the financial department. Effect or Potential Effect: The School District is not in compliance with the Uniform Guidance or ED guidance related to the Title I program. Failure to ensure that documentation exists to support the allowability of payments from the Title I fund may expose the School District to unnecessary financial strains and shortages as GaDOE may require the School District to return funds associated with unallowable expenditures.
Recommendation: The School District should review current internal control procedures related to Title I program expenditures. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that expenditures are supported by appropriate documentation. In addition, the School District should implement a monitoring process to ensure that all expenditures are compliant with the School District's purchasing and employee compensation policies and procedures.
Views of Responsible Officials: We concur with this finding.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2023-002 Improve Controls over Expenditures

Compliance Requirement:

Activities Allowed or Unallowed

Allowable Costs/Cost Principles

Internal Control Impact:

Material Weakness

Compliance Impact:

Material Noncompliance

Federal Awarding Agency:

U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Assistance Listing Numbers and Titles: COVID-19 84.425D Elementary and Secondary School

Emergency Relief Fund

COVID-19 84.425U American Rescue Plan Elementary

and Secondary School Emergency Relief Fund

COVID-19 84.425W American Rescue Plan

Elementary and Secondary School Emergency Relief Fund

Homeless Children and Youth

Federal Award Numbers:

S425D210012 (Year: 2021), S425U210012 (Year: 2021),

S425W210011 (Year: 2021)

Questioned Costs:

$98,807

Repeat of Prior Year Finding:

FA 2022-002

Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed that the School District's internal control procedures were not operating to ensure that expenditures were appropriately documented to support allowability.
Background: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak.

Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to the coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation.

ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE is responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $1,201,097 were expended and reported on the Talbot County School District's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2023.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 Internal Controls.
Provisions included in the Uniform Guidance, Section 200.403 Factors Affecting Allowability of Costs state that "costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity... (g) Be adequately documented..."
Furthermore, provisions included in the Uniform Guidance, Section 200.430 Compensation-Personal Services prescribe standards for documentation of personnel expenses and state, in part, that "(a) ... Costs for compensation are allowable to the extent that they satisfy... specific requirements..., and that the total compensation for individual employees: (1) is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i)..., [as follows:] (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity..."
Condition: A sample of 12 nonpersonal services expenditures was randomly selected for testing using a nonstatistical sampling approach. In addition, two individually significant items were selected for testing. These expenditures were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. The following deficiencies were noted:
A purchase order was not maintained for two of the expenditures. The check amount, invoice, and purchase requisition form for one expenditure did not agree.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
In addition, a sample of 23 employees was randomly selected for testing using a non-statistical sampling approach. These employees were reviewed to determine if appropriate internal controls were implemented and applicable compliance requirements were met. The following deficiencies were noted:
Timesheets or other supporting documentation could not be provided for payments made to 15 employees.
Timesheets provided for 15 employees did not agree to amounts paid for the corresponding time period.
One employee received a salary increase that was not supported by a board-approved salary scale.
Questioned Costs: Upon testing a sample of $34,392 in nonpersonal services expenditures, known questioned costs of $1,365 were identified. Using the total non-personal services expenditures population of $144,208, we project the likely questioned costs to be approximately $5,723.
Additionally, upon testing a sample of $274,649 in personal services expenditures, known questioned costs of $97,442 were identified. Using the total personal services expenditures population of $864,482, we project the likely questioned costs to be approximately $306,706.
Therefore, the known and likely questioned costs identified for unallowable payments totaled $98,807 and $312,429. The following Assistance Listing Numbers were affected by known and questioned costs: 84.425D and 84.425U.
Cause: Per discussion with management, the School District believes that this is due to change in management in the financial department.
Effect or Potential Effect: The School District is not in compliance with the Uniform Guidance or ED guidance related to the ESSER program. Failure to ensure that documentation exists to support the allowability of payments from the ESSER fund may expose the School District to unnecessary financial strains and shortages as GaDOE may require the School District to return funds associated with unallowable expenditures.
Recommendation: The School District should review current internal control procedures related to ESSER program expenditures. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that all expenditures are supported by appropriate documentation. In addition, the School District should implement a monitoring process to ensure that all expenditures are compliant with the School District's purchasing and employee compensation policies and procedures.
Views of Responsible Officials: We concur with this finding.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2023-003 Improve Controls over Cash Management

Compliance Requirement:

Cash Management

Internal Control Impact:

Material Weakness

Compliance Impact:

Material Noncompliance

Federal Awarding Agency:

U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

AL Numbers and Titles:

84.010 - Title I Grants to Local Educational Agencies

Federal Award Numbers:

S010A210010-21A (Year: 2022), SO10A220010 (Year: 2023)

Questioned Costs:

None Identified

Repeat of Prior Year Findings:

FA 2022-003, FA 2021-001, FA 2020-001, FA 2019-001,

FA 2018-001, FA 2017-002, FA 2016-001, FA 2015-002,

FA 2014-003

Description: The School District made cash drawdowns in excess of immediate cash needs for the Title I Grants to
Local Educational Agencies program.

Background Information: The School District may request Title I Grants to Local Educational Agencies program funds from the Georgia Department of Education (GaDOE) once per month. GaDOE requires the School District to submit DE-0147 Requests for Reimbursement of Monthly Cash Disbursements through the Grants Accounting Online Reporting System to receive program funds. When a DE-0147 request is submitted and approved, the funds are typically disbursed to the School District through an electronic payment process the next week. The School District submitted DE-0147 requests to receive a total of $426,546 in Title I funds from GaDOE during the fiscal year under review.

Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 Internal Controls.

Provisions included in the Uniform Guidance Section 200.305(b) state that "For non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds...the pass-through entity and the disbursement by the non-Federal entity." In addition, the Uniform Guidance Section 200.302(b)(6) requires the entity to develop written cash management procedures.

Further, as noted in the Uniform Guidance Section 200.511, management is responsible for implementing reported corrective action to findings from previous audits.

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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Condition: A review of all cash drawdowns and disbursements related to the Title I program was performed to determine if any excessive cash balances were maintained during the fiscal year under review. Cash balances in excess of program materiality were maintained for the Title I program for 273 days. Additionally, it was noted that the School District did not have appropriate internal controls in place over the cash drawdown process. Cause: In discussing this issue with the School District, they indicated that the lack of review of Federal grants resulted in excess cash drawdown request. Effect: The School District was not in compliance with the Uniform Guidance and GaDOE guidance. In addition, the School District could potentially accrue an interest liability that would be owed back to the federal government. Furthermore, when the School District cannot meet the requirement to minimize the time elapsing between the transfer of funds and disbursement of those funds, provisions included in the Uniform Guidance allow GaDOE to change the method by which the School District is transferred funds and delay the School District's receipt of these funds. This may include a requirement by GaDOE to submit invoices prior to being reimbursed for program expenditures. Recommendation: The School District should establish procedures to accurately forecast the cash needs of the Title I program and minimize the time elapsing between the transfer of funds from GaDOE and the disbursement of such funds by the School District. In addition, these procedures should be documented in writing in accordance with the Uniform Guidance Section 200.302(b)(6). Furthermore, management should develop and implement a monitoring process to ensure that these procedures are followed. Views of Responsible Officials: We concur with this finding.
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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023

lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2023-004 Strengthen Controls over Financial Reporting

Compliance Requirement:

Reporting

Internal Control Impact:

Material Weakness

Compliance Impact:

Material Noncompliance

Federal Awarding Agency:

U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

AL Number and Title:

84.010 - Title I Grants to Local Educational Agencies

Federal Award Numbers:

SO10A210010-21A (Year: 2022), SO10A220010 (Year: 2023)

Questioned Costs:

$84,283

Repeat of Prior Year Finding:

FA 2022-004, FA 2021-002, FA 2019-002

Description: The School District did not file accurate completion reports for the Title I Grants to Local Educational
Agencies program.

Background Information: The Georgia Department of Education (GaDOE) requires the School District to submit a completion report by October 30 after the 15-month period of performance associated with the Title I Grants to Local Educational Agencies (Title I) program ends. These completion reports are filed through the
Grants Application section of the MyGaDOE webportal and reflect budgeted and actual expenditure information for the Title I program for the reporting period. If the total expenditures reflected on the completion report are more than the Title I program funds received by the School District for the grant
period, a DE-0147 Request for Reimbursement of Monthly Cash Disbursements will be automatically generated and the additional funds due to the School District will be disbursed appropriately. Conversely, if the total funds received for the grant period exceed the total expenditures reflected on the
completion report, the Grants Application will prompt the School District to enter a check number for the required refund of excess funds drawn down. Therefore, it is imperative that completion reports are filed by the School District in an accurate and timely manner.

Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 Internal Controls.
Provisions included in the Uniform Guidance Section 200.302(a) state in part that "the non-Federal entity's financial management systems must...be sufficient to permit the preparation of reports required by general and program-specific terms and conditions." In addition, Provisions included in the Uniform Guidance Section 200.302(b)(2) state in part that the non-Federal entity's financial management systems must provide for "accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements."
Further, as noted in the Uniform Guidance Section 200.511, management is responsible for implementing reported corrective action to findings from previous audits.

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TALBOT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Condition: A review of the School District's accounting records and the completion reports related to the Title I-A, Improving Academic Achievement of the Disadvantaged and Title I-A, School Improvement programs for the period ending September 30, 2023 revealed that the expenditures were over reported by $84,283. Questioned Costs: Questioned costs of $84,283 were identified for cash drawdowns in excess of reimbursable expenditures. Cause: In discussing this deficiency with the School District, they stated these issues were a result of turnover within the central office. Effect: The School District was not in compliance with the Uniform Guidance and GaDOE guidance. Failure to accurately report federal award expenditures through the completion report process could lead to the filing of DE-0147 reimbursement requests with GaDOE that do not support actual expenditures. Therefore, the School District obtained more federal funding than they were eligible to receive. Additionally, this funding must be returned to the GaDOE. Recommendation: The School District should establish internal control procedures to ensure that completion reports submitted to GaDOE are supported by the accounting records and DE-0147 reimbursement requests are prepared based upon actual expenditures incurred. In addition, management should develop and implement a monitoring process to ensure that control procedures are being followed. Views of Responsible Officials: We concur with this finding.
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Section V Management's Corrective Action