City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2024 June 30 (including independent auditor's reports).

City of Chickamauga Board of Education
Walker County, Georgia
A Component Unit of the City of Chickamauga, Georgia
Annual Financial Report
For the Fiscal Year Ended June 30, 2024
(Including Independent Auditor's Reports)

City of Chickamauga Board of Education Table of Contents

Section I Financial
Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

4

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

5

E

Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds

6

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

7

G

Statement of Fiduciary Net Position

Fiduciary Funds

8

H

Statement of Changes in Fiduciary Net Position

Fiduciary Funds

9

I Notes to the Basic Financial Statements

10

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

37

2 Schedule of Contributions Teachers Retirement System of Georgia

38

3 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

39

4 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

40

Required Supplementary Information (Continued)

5 Schedule of Contributions School OPEB Fund

41

6 Notes to the Required Supplementary Information

42

7 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

43

Supplementary Information

8 Schedule of Expenditures of Federal Awards

44

9 Schedule of State Revenue

46

10 Schedule of Approved Local Option Sales Tax Projects

48

Section II
Compliance and Internal Control Reports
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance

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

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

Section I Financial

Greg S. Griffin State Auditor

INDEPENDENT AUDITOR'S REPORT
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Ms. Stacy McDaniel, Superintendent and Members of the City of Chickamauga Board of Education

Report on the Audit of the Financial Statements

Disclaimer of Opinion and Unmodified Opinions

We have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga Board of Education (School District) as of and for the year ended June 30, 2024, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements collectively comprise the School District's basic financial statements as listed in the table of contents.
Summary of Opinions

Opinion Unit Governmental Activities Discretely Presented Component Unit Each Major Fund Fiduciary Activities

Type of Opinion Unmodified Disclaimer Unmodified Unmodified

Disclaimer of Opinion on Discretely Presented Component Unit
We do not express an opinion on the accompanying financial statements of the discretely presented component unit and the respective changes in financial position for the year ended June 30, 2024. Because of the significance of the matter described in the Basis for Disclaimer of Opinion on Discretely Presented Component Unit section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District.

Unmodified Opinion on Each of the Other Opinion Units

In our opinion, the accompanying 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, 2024, 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.

270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Basis for Disclaimer of Opinion on Discretely Presented Component Unit
The financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit.
Basis for Unmodified Opinions
We conducted our audit of the financial statements of the governmental activities, each major fund, and fiduciary activities 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 unmodified 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.
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
Auditor's Responsibilities for the Audit of the Discretely Presented Component Unit
Our responsibility is to conduct an audit of the School District's financial statements in accordance with GAAS and Government Auditing Standards and to issue an auditor's report. However, because of the matter described in the Basis for Disclaimer of Opinion on Discretely Presented Component Unit section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit.
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.
Auditor's Responsibilities for the Audit of the Governmental Activities, Each Major Fund, and Fiduciary Activities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance

and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2025 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
June 30, 2025

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024
INTRODUCTION
The discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2024 and June 30, 2023. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal years 2024 and 2023 are as follows:
On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $22.3 million and $20.7 million, respectively, for the fiscal years ended June 30, 2024 and 2023. Of these amounts, $3,143,919 and $2,434,107 respectively, for fiscal years 2024 and 2023 are available for spending at the School District's discretion.
General revenues net of transfers to City Government accounts for $6.9 million in revenue or 35.7% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $12.4 million or 64.3% of total revenues of $19.3 million.
The School District had $17.7 million in expenses related to governmental activities; however, $12.4 million of these expenses were offset by program specific charges for services, operating grants and contributions, and capital grants and contributions. General revenues (primarily taxes) net of transfers to City Government totaling $6.9 million was adequate to provide for these programs.
The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 6.3 and 6.3 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively. Generally, a ratio greater than 2.0 is considered very financially stable.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements.
The government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status.
The fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others.
i

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024
The fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2024 and 2023, the general fund and the capital projects fund represent the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
Government-Wide Statements
The government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's non-fiduciary assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid.
The two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's non-fiduciary assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity:
Governmental Activities All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others.
Fund Financial Statements
The School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State laws. The School District's major governmental funds are the general fund and the capital projects fund.
Governmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into, and out of those funds, and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements.
ii

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024

Fiduciary Funds Custodial funds are used to report resources held by the School District in a purely custodial capacity. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations.
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2024 and 2023.
Table 1 Net Position

Assets Current and Other Assets Capital Assets, Net
Total Assets

Governmental Activities

Fiscal Year

Fiscal Year

2024

2023

$ 11,275,976 30,549,488
41,825,464

$ 10,404,417 29,042,566
39,446,983

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

4,584,874 1,918,830
6,503,704

7,634,754 1,689,352
9,324,106

Liabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability
Total Liabilities

1,790,610 194,836
13,679,787 6,760,337
22,425,570

1,650,537 302,204
15,708,622 6,069,561
23,730,924

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

675,634 2,878,419
3,554,053

544,590 3,792,098
4,336,688

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

30,229,586 6,466,513
(14,346,554)

28,674,140 6,385,995
(14,356,658)

Total Net Position

$ 22,349,545 $ 20,703,477

iii

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 Total assets and deferred outflows of resources decreased by $0.4 million which was primarily due to a decrease in deferred outflow of resources related to defined benefit pension plan offset by an increase in net capital assets. Total liabilities and deferred inflows of resources decreased by $2.1 million which was primarily due to a decrease in net pension liability. The combination of the decrease in total assets and deferred outflows of resources and the decrease in total liabilities and deferred inflows of resources yielded an increase in net position of $1.6 million.
iv

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024

Table 2 shows the changes in net position for fiscal years ending June 30, 2024 and June 30, 2023.

Table 2 Change in Net Position
Revenues Program Revenues: Charges for Services Operating Grants and Contrbutions Capital Grants and Contributions
Total Program Revenues
General Revenues: Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Special Items Proceeds for Sale of Bonds by City Government Premium on Bonds Sold by City Government
Transfers To City Government
Total General Revenues, Special Items and Transfers to City Government
Total Revenues
Program Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt
Total Expenses
Increase in Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2024

2023

$

1,312,125

10,503,181

598,541

12,413,847

$

1,286,757

9,569,607

-

10,856,364

2,578,252

2,155,790

1,226,933 38,717
1,653,833 332,120
1,475,838
-
(404,075)
6,901,618
19,315,465

1,187,332 38,276
981,743 97,963
1,484,555
2,420,000 146,556
(700,750)
7,811,465
18,667,829

10,569,736

9,394,841

1,480,141 113,480 292,770 677,029
1,099,093 305,126
1,950,334 138,946 201,522 7,024

1,456,794 91,924
252,536 631,944 969,756 343,813 1,686,769 134,782 181,511
6,969

28,804 797,384
8,008
17,669,397

36,590 728,917
10,780
15,927,926

$

1,646,068 $

2,739,903

v

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024

Special item revenues decreased $2.6 million for governmental activities during fiscal year 2024. This decrease is due to proceeds from sale of bonds by city and premium on bonds sold by city in fiscal year 2023. Expenses for governmental activities increased $1.7 million during fiscal year 2024. This increase is largely due to increases in salaries and employee benefits and local facility projects.
Governmental Activities
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity.
Table 3 Governmental Activities

Total Cost of Services

Fiscal Year

Fiscal Year

2024

2023

Net Cost of Services

Fiscal Year

Fiscal Year

2024

2023

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Operations of Non-Instructional Services

Enterprise Operations

Food Services

Interest on Long-Term Debt

10,569,736 $
1,480,141 113,480 292,770 677,029
1,099,093 305,126
1,950,334 138,946 201,522 7,024
28,804 797,384
8,008

9,394,841 $
1,456,794 91,924
252,536 631,944 969,756 343,813 1,686,769 134,782 181,511
6,969
36,590 728,917
10,780

1,198,536 $
1,304,644 18,440 78,502
147,723 524,875 302,750 1,281,065 135,331 189,518
7,024
28,804 30,330
8,008

1,167,355
1,239,059 4,113
53,539 165,046 460,781 343,813 1,264,565 133,727 180,519
6,968
36,590 4,707
10,780

Total Expenses

$

17,669,397 $

15,927,926 $

5,255,550 $

5,071,562

Although program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities.

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS

The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $20.2 million and total expenditures and other financing uses of $20.0 million. There was an increase in the fund balance totaling $0.3 million for the governmental funds as a whole.

vi

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024

General Fund Budgeting Highlights

The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2024 and 2023, the School District amended its general fund budget as needed.

For the general fund, actual revenues of $17.7 million was $0.2 million more than final budget.

The actual expenditures and other financing uses of $17.0 million was $0.4 million less than final budget.

The majority of these variances are the result of federal grants. The entire grant award amount, revenue and expenditure, is budgeted. However, many federal grants allow carryover to subsequent years. Therefore, actual expenditures and subsequent revenue drawdowns may not occur in the award year. The variances can also be attributed to the budget philosophy of the School District. Revenue is conservatively estimated, while expenditures are estimated to be higher than anticipated to prepare for the unknown.

CAPITAL ASSETS

At the fiscal years ended June 30, 2024 and June 30, 2023, the School District had $30.5 million and $29.0 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation.
Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2024

2023

Land

$

417,444

Construction in Progress

2,474,464

Buildings and Improvements

24,654,046

Equipment

1,188,329

Land Improvements

1,815,205

$

417,444

112,639

25,201,329

1,298,828

2,012,326

Total

$ 30,549,488 $ 29,042,566

vii

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024

DEBT

At the fiscal year ending June 30, 2024 the School District had $0.2 million in financed purchases. Table 5 summarizes the School District's debt for financed purchases.

Table 5 Debt at June 30

Governmental Activities

Fiscal Year

Fiscal Year

2024

2023

Financed Purchases $

194,836 $

302,204

CURRENT ISSUES
A significant challenge facing the School District is the uncertainty surrounding the immediate and longterm impacts of the COVID-19 Pandemic. With there being no prior precedence, it is difficult to determine how the economy will continue to react, which has a direct relationship to funding, and the expenses involved in how students are being educated and maintaining the health and safety of all. Fortunately, the School District was able to continue paying all employees their full salaries and benefits during the transition to 100% virtual learning beginning in March 2020 and during school shutdown at the end of fiscal year 2020. The School District has offered face-to-face instruction since fiscal year 2021.
The School District is financially challenged by reduction of state revenue appropriations to local School Districts known as "austerity reductions". Since the austerity began in fiscal year 2003 and ended in fiscal year 2018, the School District's state funding was reduced a total of $8.3 million. Though the austerity reduction was eliminated in fiscal year 2019, this is still lost funding that will not be recouped. Due to the impact of COVID-19 on the economy, austerity reductions were reinstated in fiscal year 2021. The initial allotment sheet included a reduction in state funding of $0.8 million, but a portion of that was restored and the actual austerity reduction for fiscal year 2021 was only $0.3 million. For fiscal year 2022, the initial allotment sheet included a reduction in state funding of $0.3 million but it was restored in full at midterm. There was not an austerity reduction in fiscal year 2023 or fiscal year 2024.
Approximately 78.7% of general fund expenditures, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2024. With such personnel heavy expenditures, the School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel.
The employer share of State Health Benefit Plan (SHBP) for non-certificated employees increased to $1,195 from $945 per employee per month effective January 1, 2024. The number of non-certificated employees enrolled in health insurance as of the October 2023 CPI collection was 28. This increase was totally funded by the School District and was estimated to be an additional expense of $42,000 in fiscal year 2024. Effective January 1, 2025, the employer share of SHBP for non-certificated employees will increase to $1,580 per employee per month. The number of non-certificated employees enrolled in health insurance as of the October 2024 CPI collection was 33. This increase is totally funded by the School District and is estimated to be an additional expense of $76,230 in fiscal year 2025. The employer cost of SHBP for non-certificated employees will continue to be an area of concern.

viii

CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024
The School District's millage rate for fiscal year 2023 was 14.25. The net digest for fiscal year 2023 was $138.2 million, which produced approximately $138,150 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The School District received $1.0 million in equalization funding for fiscal year 2023 and $1.7 million for fiscal year 2024. The School District's millage rate for fiscal year 2024 was reduced to 14.00 per a vote by the Chickamauga City Council. The net digest for fiscal year 2024 was $166.6 million, which produced approximately $166,645 per mill. The Chickamauga City Council has voted to maintain a millage rate of 14.00 for fiscal year 2025. It is anticipated pressure will continue to provide local monies to meet mandated educational requirements and operational costs.
The Board of Education is carefully considering the implications of HB 581, "Statewide Floating Homestead Exemption". The state is considering this exemption which is tied to inflation as a local exemption. The impact will be to suppress the digest that taxes will be levied on while allowing local five mill share calculation to be based on the larger digest amount. After careful consideration, the School District has decided NOT to opt out of HB 581.
The School District entered into a Strategic Waivers School System (SWSS/IE) Partnership Contract with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools.
An ongoing challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is continually exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances.
The School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. The School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all students.
CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707.
ix

City of Chickamauga Board of Education

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2024

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Prepaid Items Restricted Assets Cash and Investments with Fiscal Agent or Trustee 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 Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within 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 Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit)
Total Net Position

GOVERNMENTAL ACTIVITIES

COMPONENT UNIT
GORDON LEE CHARITABLE TRUST DECEMBER 31, 2023

$

6,427,020.54 $

-

2,313,082.19

-

2,331.53

-

529,562.83

-

1,709,156.04

-

138,900.65

-

57,361.96

-

34,860.24

-

63,700.05

-

2,891,907.52 27,657,580.33 41,825,463.88

4,476,001.13 -
4,476,001.13

4,584,874.35

-

1,918,830.00

-

6,503,704.35

-

17,458.56

-

1,648,085.90

-

13,214.43

-

111,850.61

-

13,679,787.00

-

6,760,337.00

-

194,836.32

-

22,425,569.82

-

675,634.00

-

2,878,419.00

-

3,554,053.00

-

30,229,586.49

263,385.79 5,786,104.50
417,022.68 (14,346,554.05)

$

22,349,545.41 $

-
4,476,001.13 -
4,476,001.13

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

- 1 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024

EXHIBIT "B"

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

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

$

10,569,736.03 $

932,454.35 $

1,480,141.27

-

113,480.39

-

292,770.39

-

677,028.64

-

1,099,092.50

-

305,125.75

-

1,950,334.48

-

138,946.29

-

201,522.31

-

7,023.50

-

28,803.60 797,383.61
8,008.40

379,671.34
-

$

17,669,397.16 $ 1,312,125.69 $

8,123,355.16 $
175,497.13 95,040.96
214,268.48 521,639.99 574,217.11
2,375.48 422,037.53
3,088.14 1,583.66
-
370,077.24
-
10,503,180.88 $

$

208,561.48

315,389.95
7,665.72 247,231.68 527.42 10,420.89 -
17,305.26
-
598,540.92

General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Transfers to City Government Total General Revenues and Transfers to City Government
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year

- 2 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024

NET (EXPENSES) REVENUES

AND CHANGES IN NET POSITION

PRIMARY

COMPONENT

GOVERNMENT

UNIT

GORDON LEE

GOVERNMENTAL

CHARITABLE TRUST

ACITVITIES

DECEMBER 31, 2023

$

(1,198,536.57) $

(1,304,644.14) (18,439.43) (78,501.91)
(147,722.93) (524,875.39) (302,750.27) (1,281,065.27) (135,330.73) (189,517.76)
(7,023.50)

(28,803.60) (30,329.77)
(8,008.40)

(5,255,549.67)

$

-
-
-
(208,561.48)

2,578,252.29

1,226,932.47 38,717.34
1,653,833.00 332,120.36
1,475,837.37 (404,075.00) 6,901,617.83

1,646,068.16

20,703,477.25

$

22,349,545.41 $

-
513,333.66 513,333.66
304,772.18
4,171,228.95
4,476,001.13

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

EXHIBIT "B" - 3 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2024

EXHIBIT "C"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$

2,486,325.15 $

3,940,695.39 $

6,427,020.54

1,007,745.41

1,305,336.78

2,313,082.19

1,676.77 422,654.35 1,268,381.04 131,134.73
57,361.96 34,860.24 63,700.05

654.76 106,908.48 440,775.00
7,765.92 -

2,331.53 529,562.83 1,709,156.04 138,900.65
57,361.96 34,860.24 63,700.05

$

5,473,839.70 $

5,802,136.33 $

11,275,976.03

$

1,426.73 $

1,648,085.90

-

-

1,649,512.63

16,031.83 $ -
13,214.43 111,850.61 141,096.87

17,458.56 1,648,085.90
13,214.43 111,850.61 1,790,609.50

56,801.91 -
56,801.91

440,775.00 440,775.00

56,801.91 440,775.00 497,576.91

98,560.29 645,548.23 1,109,905.18 1,913,511.46 3,767,525.16

5,220,264.46
5,220,264.46

98,560.29 5,865,812.69 1,109,905.18 1,913,511.46 8,987,789.62

$

5,473,839.70 $

5,802,136.33 $

11,275,976.03

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

- 4 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2024

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB 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.
Georgia State Financing and Investment Commission grant receipts that are not available to pay for current period expenditures are deferred in the funds.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Financed purchases payable
Net position of governmental activities (Exhibit "A")

$

8,987,789.62

$

417,443.93

2,474,463.59

32,674,169.43

2,577,276.68

3,668,986.83

(11,262,852.61)

30,549,487.85

$

(13,679,787.00)

(6,760,337.00)

(20,440,124.00)

$

3,909,240.35

(959,589.00)

2,949,651.35 56,801.91
440,775.00

(194,836.32)

$

22,349,545.41

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

- 5 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024

EXHIBIT "E"

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues
EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Transfers to City Government Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$

2,555,930.66 $

38,717.34

11,172,627.12

1,123,813.07

1,312,125.69

36,312.81

1,475,837.37

17,715,364.06

- $ 1,226,932.47
7,765.92
295,807.55
1,530,505.94

2,555,930.66 1,265,649.81 11,172,627.12 1,131,578.99 1,312,125.69
332,120.36 1,475,837.37 19,245,870.00

9,299,630.14
1,423,288.27 113,478.09 278,968.20 622,185.18
1,029,184.91 286,819.72
1,863,692.51 50,301.06
166,493.05 7,023.50
28,803.60 768,201.10
-
107,367.60 8,008.40
16,053,445.33 1,661,918.73

-
207.26 2,519,752.55
2,519,959.81 (989,453.87)

9,299,630.14
1,423,288.27 113,478.09 278,968.20 622,185.18
1,029,184.91 287,026.98
1,863,692.51 50,301.06
166,493.05 7,023.50
28,803.60 768,201.10 2,519,752.55
107,367.60 8,008.40
18,573,405.14 672,464.86

(983,420.57)
(983,420.57)

983,420.57 -
(404,075.00) 579,345.57

983,420.57 (983,420.57) (404,075.00) (404,075.00)

678,498.16

(410,108.30)

268,389.86

3,089,027.00

5,630,372.76

8,719,399.76

$

3,767,525.16 $

5,220,264.46 $

8,987,789.62

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

- 6 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2024
Net change in fund balances total governmental funds (Exhibit "E")

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However,

in the Statement of Activities, the cost of capital assets is allocated over

their estimated useful lives as depreciation expense.

Capital outlay

$

Depreciation expense

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.

Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Georgia State Financing and Investment Commission grant revenue reported in the Statement of Activities that do not provide current financial resources are not reported as revenue 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. Financed purchase payments

District pension/OPEB contributions are reported as expenditures in the

governmental funds when made. However, they are reported as deferred

outflows of resources in the Statement of Net Position because the reported

net pension/OPEB liability is measured a year before the District's report date.

Pension/OPEB expense, which is the change in the net pension/OPEB liability

adjusted for changes in deferred outflows and inflows of resources related

to pensions/OPEB, is reported in the Statement of Activities.

Pension expense

$

OPEB expense

Change in net position of governmental activities (Exhibit "B")

$ 2,653,428.87 (1,136,101.05)
(1,152,088.45) 452,381.00 $

EXHIBIT "F" 268,389.86
1,517,327.82 (10,406.30) 22,321.63 440,775.00 107,367.60
(699,707.45) 1,646,068.16

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

- 7 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2024
ASSETS Cash and Cash Equivalents
NET POSITION Restricted Individuals, Organizations, and Other Governments

EXHIBIT "G"

CUSTODIAL FUNDS

$

17,634.84

$

17,634.84

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

- 8 -

ADDITIONS Contributions Donors
DEDUCTIONS Other Deductions
Change in Net Position
Net Position - Beginning
Net Position - Ending

CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2024

EXHIBIT "H"

CUSTODIAL FUNDS

$

2,485.20

4,268.86

(1,783.66)

19,418.50

$

17,634.84

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

- 9 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government.
Discretely Presented Component Unit
The Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) the Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 14: Component Unit.
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 and its component unit, 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.

- 10 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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.
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 School District reports the following fiduciary fund type:
Custodial funds are used to report resources held by the School District in a purely custodial capacity.

- 11 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under financed purchases are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
New Accounting Pronouncements
In fiscal year 2024, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. The objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for making decisions or assessing accountability. The adoption of this statement did not have a material impact on the School District's financial statements. This statement will be applied prospectively.
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.

- 12 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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.
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.
Prepaid Items
Payments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements.
Capital Assets
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.

- 13 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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

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

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

Capitalization Policy

Estimated Useful Life

Land

Land Improvements

$

Buildings and Improvements

$

Equipment

$

Intangible Assets

$

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

N/A 15 to 80 years 15 to 80 years
5 to 25 years 15 to 80 years

During the fiscal year, management increased the capital asset threshold to $10,000.00 from $5,000.00 for land improvements, buildings and improvements and equipment. The changes in threshold did not have a material or significant impact on the financial statements.
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.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions

- 14 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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 City of Chickamauga adopted the property tax levy for the 2023 tax digest year (calendar year) on September 11, 2023 (levy date) based on property values as of January 1, 2023. Taxes were due on December 20, 2023 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2023 tax digest are reported as revenue in the governmental funds for fiscal year 2024. The City of Chickamauga Clerk bills and collects the property taxes for the School District 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, 2024, for maintenance and operations amounted to $2,413,366.30.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

The tax millage rate levied for the 2023 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.00 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $142,564.36 during fiscal year ended June 30, 2024.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,226,932.47 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.
The City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2024, the School District provided $404,075.00 of ESPLOST proceeds to the City Government for debt services on general obligation debt.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Superintendent is authorized by the Board to approve adjustments of no more than 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. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
Collateralization of Deposits
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
Categorization of Deposits
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2024, the School District had deposits with a carrying amount of $5,308,221.80, and a bank balance of $6,753,678.26. The bank balances insured by Federal depository insurance were $500,000.00.
At June 30, 2024, $6,253,678.26 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.

In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

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

Cash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position

$ 6,427,020.54 17,634.84

Total cash and cash equivalents

6,444,655.38

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

2,313,082.19

Less: Investment pools reported as cash and cash equivalents
Georgia Fund 1
Total carrying value of deposits - June 30, 2024

3,449,515.77 $ 5,308,221.80

Categorization of Cash Equivalents
The School District reported cash equivalents of $3,449,515.77 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, 2024 was 33 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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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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, 2023

Increases

Decreases

Balances June 30, 2024

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

$

417,443.93 $

- $

- $

417,443.93

112,638.81

2,374,194.22

12,369.44

2,474,463.59

Total Capital Assets Not Being Depreciated

530,082.74

2,374,194.22

12,369.44

2,891,907.52

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

32,504,921.03 2,649,460.71 3,653,350.83

169,248.40 106,719.69
15,636.00

178,903.72
-

32,674,169.43 2,577,276.68 3,668,986.83

7,303,591.79 1,350,632.59 1,641,024.60

716,531.56 206,812.00 212,757.49

168,497.42
-

8,020,123.35 1,388,947.17 1,853,782.09

Total Capital Assets, Being Depreciated, Net

28,512,483.59

(844,496.96)

10,406.30 27,657,580.33

Governmental Activities Capital Assets - Net

$ 29,042,566.33 $ 1,529,697.26 $ 22,775.74 $ 30,549,487.85

Current year depreciation expense by function is as follows:

Instruction Support Services
General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services

$

$

18,119.01

229,820.71

77,158.30

24,631.24

745,468.37
349,729.26 40,903.42

$ 1,136,101.05

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

NOTE 6: INTERFUND TRANSFERS Interfund Transfers

Interfund transfers for the year ended June 30, 2024, consisted of the following:

Transfers to

Transfers From General Fund

Capital Projects Fund

$ 983,420.57

Transfers are used to move property tax revenues collected by the general fund to capital projects fund as a supplemental funding source for capital construction projects.
Transfer to City Government
The City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2016A and 2023 bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general fund of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2024, the School District transferred $404,075.00 of ESPLOST proceeds to the City Government for debt services on said general obligation debt.
The School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt:
Fiscal Year Ended June 30:

2025 2026 2027 2028 2029 2030 - 2033

$ 991,675.00 975,025.00 952,650.00 929,625.00 291,388.00
1,162,115.00

Total

$ 5,302,478.00

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

Balance July 1, 2023

Governmental Activities Balance
Additions Deductions June 30, 2024

Due Within One Year

Financed Purchases

$

302,203.92 $

- $ 107,367.60 $ 194,836.32 $ 194,836.32

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

Obligations Under Financed Purchases
The School District has acquired eight buses under the provisions of various long-term agreements classified as financed purchases for accounting purposes. Payments on the agreements shall be made from the School District's general fund.
If sufficient funds are not appropriated to make payments required under this agreement for the original term or any renewal term, this agreement shall terminate at the end of the then current original term or renewal term, and the School District shall not be obligated to make payments under this agreement beyond the then current term, and all of the School District's right, title and interest in and to the equipment shall terminate at the end of the then current term. If such a non-appropriation occurs, the School District shall, no later than the end of the then-current term, return the equipment to a location in the continental United States specified by the lessor, freight and insurance prepaid by the School District, and in the condition in which it is required to be maintained hereunder.
Governmental Activities

Equipment Less: Accumulated Depreciation

$

721,712.00

324,770.40

$

396,941.60

Debt currently outstanding is as follows:

Purpose

Interest Rate

Issue Date

Buses

2.65%

1/15/2020

Maturity Date

Amount Issued

Amount Outstanding

2/15/2025 $

721,712.00 $

194,836.32

The following is a schedule of total final purchase payments:

Fiscal Year Ended June 30:

Principal

Interest

2025

$

194,836.32 $

5,163.68

NOTE 8: RISK MANAGEMENT
Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters.
Georgia School Boards Association Risk Management Fund
The School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control
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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage.

Workers' Compensation

Georgia School Boards Association Workers' Compensation Fund

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

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

Surety Bond

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

Position Covered

Amount

Superintendent

$

Driver Education School

$

10,000.00 10,000.00

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2024:

Nonspendable

Inventories

$

Prepaid Assets

Restricted

Continuation of Federal Programs $

Capital Projects

Gordon Lee Trust

Committed

School Activity Accounts

$

Future Debt Payments - Computers

Future Debt Payments - Buses

Unassigned

34,860.24 63,700.05 $
228,525.55 5,220,264.46
417,022.68
700,752.34 209,152.84 200,000.00

98,560.29
5,865,812.69
1,109,905.18 1,913,511.46

Fund Balance, June 30, 2024

$

8,987,789.62

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

NOTE 10: SIGNIFICANT COMMITMENTS Commitments under Construction Contracts

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2024 together with funding available:

Project

Unearned Executed Contracts (1)

Payments through June 30, 2024 (2)

Funding Available From State (1)

Chickamauga Elementary School Addition and Renovations Gordon Lee High School Yates Building Renovations Gordon Lee High School Gym Restroom Renovations

$ 1,350,747.04 $ 499,366.15 198,923.32

1,921,322.15 $ 241,390.47 148,210.68

33,477.30 15,497.70
-

$ 2,049,036.51 $

2,310,923.30 $

48,975.00

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

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $249,358.00 for the year ended June 30, 2024. 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, 2024, the School District reported a liability of $6,760,337.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2023. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2022. An expected total OPEB liability as of June 30, 2023 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, 2023. At June 30, 2023, the School District's proportion was 0.061719%, which was an increase of 0.000430% from its proportion measured as of June 30, 2022.
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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

For the year ended June 30, 2024, the School District recognized OPEB expense of ($203,023.00). At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual

experience

$

197,053.00 $ 1,941,648.00

Changes of assumptions

1,228,220.00

844,263.00

Net difference between projected and actual

earnings on OPEB plan investments

4,056.00

-

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

240,143.00

92,508.00

School District contributions subsequent to

the measurement date

249,358.00

-

Total

$ 1,918,830.00 $ 2,878,419.00

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, 2025. 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

2025 2026 2027 2028 2029 Thereafter

$

(470,818.00)

$

(304,551.00)

$

(368,238.00)

$

(141,043.00)

$

63,419.00

$

12,284.00

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

Actuarial Assumptions: The total OPEB liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022 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, 2023:

OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

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

Healthcare cost trend rate Ultimate trend rate Year of Ultimate trend rate

7.00% 4.50% 2032

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. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied generationally. Postretirement 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.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

The actuarial assumptions used in the June 30, 2022 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, 2022 valuation were based on a review of recent plan experience done concurrently with the June 30, 2022 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%

1.50% 9.40%

Total

100.00%

* Net of inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.68% was used as the discount rate, as compared with last year's rate of 3.57%. 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 (3.65% 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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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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 3.68%, 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 (2.68%) or 1-percentage-point higher (4.68%) than the current discount rate:

1% Decrease (2.68%)

Current Discount Rate (3.68%)

1% Increase (4.68%)

School District's proportionate share

of the Net OPEB liability

$

7,663,153.00 $

6,760,337.00 $

5,999,974.00

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

$

5,823,134.00 $

6,760,337.00 $

7,915,706.00

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

NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.

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

- 28 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2024. The School District's contractually required contribution rate for the year ended June 30, 2024 was 19.98% of annual School District payroll, of which 19.73% of payroll was required from the School District and 0.25% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,415,735.35 and $17,626.30 from the School District and the State, respectively.
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 $16.00, 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 $21,300.00.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

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

At June 30, 2024, the School District reported a liability of $13,679,787.00 for its proportionate share of the net pension liability for TRS.

The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the net pension liability

$

13,679,787.00

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

151,755.00

Total

$

13,831,542.00

The net pension liability for TRS was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 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, 2023.
At June 30, 2023, the School District's TRS proportion was 0.046334%, which was a decrease of 0.002042% from its proportion measured as of June 30, 2022.
At June 30, 2024, 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 $124,947.00.
The PSERS net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 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, 2023.
For the year ended June 30, 2024, the School District recognized pension expense of $2,594,772.80 for TRS and $22,551.00 for PSERS and revenue of $26,949.00 for TRS and $22,551.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

At June 30, 2024, 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

$ 694,641.00 $

56,561.00

Changes of assumptions

1,407,356.00

-

Net difference between projected and

actual earnings on pension plan

investments

962,136.00

-

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

105,006.00

619,073.00

School District contributions subsequent to

the measurement date

1,415,735.35

-

Total

$ 4,584,874.35 $ 675,634.00

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, 2025. 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

2025 2026 2027 2028

$

729,899.00

$

431,957.00

$ 1,713,586.00

$

(381,937.00)

- 31 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

Actuarial Assumptions: The total pension liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System:

Inflation Salary increases Investment rate of return

2.50%
3.00% 8.75%, average, including inflation
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, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

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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CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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

Membership Table

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

Service Retirees

General Healthy BelowMedian Annuitant

Male: +2; Female: +2

Male: 101%; Female: 103%

Disability Retirees

General Disabled

Male: -3; Female: 0

Male: 103%; Female: 106%

Beneficiaries

General Below-Median Contingent Survivors

Male: +2; Female: +2

Male: 104%; Female: 99%

The actuarial assumptions used in the June 30, 2022 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

TRS/PSERS Target
Allocation
30.00% 46.30%
1.20% 12.30%
5.20% 5.00%

Long-Term Expected Real Rate of Return*
0.90% 9.40% 13.40% 9.40% 11.40% 10.50%

Total

100.00%

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

- 33 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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

1% Decrease (5.90%)

Current Discount Rate (6.90%)

$ 21,629,334.00 $

13,679,787.00 $

1% Increase (7.90%)
7,187,911.00

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.
NOTE 14: COMPONENT UNIT The Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that died in 1927. First Horizon Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee Book Fund, Gordon Lee Librarian's Salary Fund, Gordon Lee High School Building and Gordon Lee High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner:
Book Fund 0.535%
Librarian's Salary Fund 0.435%
Building Fund 14.7%
Endowment Fund 84.33%
Although the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2023, the Trust distributed $208,561.48 to the School District.

- 34 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

EXHIBIT "I"

Component Unit Restricted Assets consist of the following:
Fair Market Value December 31, 2023

Cash and Cash Equivalents

$

Fixed Income Mutual Funds

Equity Investments

23,430.28 1,202,890.57 3,249,680.28

$

4,476,001.13

The Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707.
NOTE 15: SUBSEQUENT EVENTS
On March 18, 2025, the voters of the City of Chickamauga voted to approve the continuation of the Education Special Purpose Local Option Sales Tax (ESPLOST) of one percent to be imposed on all sales and uses within the district for a period of time not to exceed 20 calendar quarters, to raise not more than $8,308,000. The proceeds are to be used as stated on the official ballot of the City of Chickamauga Board of Education, including:
(a) acquisition, installation, and upgrading of system-wide security, safety equipment, technology equipment, including computers, textbooks and e-books; (b) renovations, improvements, and equipping of existing educational buildings, properties, facilities, and athletic facilities; (c) acquisition, construction, and equipping of new educational buildings, athletic sites and facilities system-wide; (d) acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, and (e) acquisition of real property for future schools, facilities, administrative offices, athletic sites, support services, and other purposes of the City of Chickamauga School System.
Additionally, on March 18, 2025, the voters of the City of Chickamauga approved the issuance of general obligation bonds in the principal amount not to exceed $5,000,000 to forward fund the projects.
The City of Chickamauga, on behalf of the School District, has not issued any of this general obligation debt as of the report date.

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

SCHEDULE "1"

For the Year Ended
June 30

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

School District's proportionate share
of the NPL

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

Total

School District's covered payroll

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

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

2024 2023 2022 2021 2020 2019 2018 2017 2016 2015

0.046334% $ 13,679,787.00 $ 0.048376% $ 15,708,622.00 $ 0.050989% $ 4,509,637.00 $ 0.049544% $ 12,001,496.00 $ 0.050826% $ 10,928,964.00 $ 0.050415% $ 9,358,104.00 $ 0.052910% $ 9,833,486.00 $ 0.052331% $ 10,796,469.00 $ 0.053486% $ 8,142,712.00 $ 0.053783% $ 6,794,773.00 $

151,755.00 $ 13,831,542.00 $ 6,834,109.57 181,193.00 $ 15,889,815.00 $ 6,609,973.99
51,297.00 $ 4,560,934.00 $ 6,708,995.74 147,039.00 $ 12,148,535.00 $ 6,465,832.76 132,672.00 $ 11,061,636.00 $ 6,278,074.30 109,702.00 $ 9,467,806.00 $ 6,072,083.32 110,583.00 $ 9,944,069.00 $ 6,143,523.50 125,643.00 $ 10,922,112.00 $ 5,807,063.88
95,150.00 $ 8,237,862.00 $ 5,711,698.44 54,198.00 $ 6,848,971.00 $ 5,530,641.43

200.17% 237.65%
67.22% 185.61% 174.08% 154.12% 160.06% 185.92% 142.56% 122.86%

76.29% 72.85% 92.03% 77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03%

- 37 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "2"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered
payroll

2024

$

2023

$

2022

$

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

1,415,735.35 $ 1,350,498.80 $ 1,294,501.49 $ 1,264,355.71 $ 1,350,336.21 $ 1,296,389.36 $ 1,008,880.33 $
866,902.64 $ 819,130.00 $ 742,415.82 $

1,415,735.35 $ 1,350,498.80 $ 1,294,501.49 $ 1,264,355.71 $ 1,350,336.21 $ 1,296,389.36 $ 1,008,880.33 $
866,902.64 $ 819,130.00 $ 742,415.82 $

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

7,175,483.18 6,834,109.57 6,609,973.99 6,708,995.74 6,465,832.76 6,278,074.24 6,072,083.32 6,143,523.50 5,807,063.88 5,711,698.44

19.73% 19.76% 19.58% 18.85% 20.88% 20.65% 16.62% 14.11% 14.11% 13.00%

- 38 -

CITY OF CHICKAMAUGA 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

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

2024 2023 2022 2021 2020 2019 2018 2017 2016 2015

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

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

124,947.00 $ 178,990.00 $
17,485.00 $ 116,852.00 $ 114,528.00 $ 113,029.00 $
98,022.00 $ 124,359.00 $
79,756.00 $ 65,987.00 $

124,947.00 $ 178,990.00 $
17,485.00 $ 116,852.00 $ 114,528.00 $ 113,029.00 $
98,022.00 $ 124,359.00 $
79,756.00 $ 65,987.00 $

372,643.13 336,223.32 355,869.24 365,546.58 324,673.67 320,079.48 295,654.46 297,155.02 287,438.33 275,204.77

N/A

85.67%

N/A

81.21%

N/A

98.00%

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

- 39 -

CITY OF CHICKAMAUGA 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

School District's covered-employee
payroll

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

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

2024 2023 2022 2021 2020 2019 2018

0.061719% $ 6,760,337.00 $ 0.061289% $ 6,069,561.00 $ 0.060675% $ 6,571,604.00 $ 0.059035% $ 8,670,867.00 $ 0.059695% $ 7,325,858.00 $ 0.060555% $ 7,696,354.00 $ 0.062750% $ 8,816,350.00 $

-

$ 6,760,337.00 $ 6,138,620.73

-

$ 6,069,561.00 $ 5,967,972.05

-

$ 6,571,604.00 $ 5,978,968.38

-

$ 8,670,867.00 $ 5,524,349.13

-

$ 7,325,858.00 $ 5,350,889.40

-

$ 7,696,354.00 $ 5,165,643.73

-

$ 8,816,350.00 $ 5,252,940.80

110.13% 101.70% 109.91% 156.96% 136.91% 148.99% 167.84%

6.05% 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.

- 40 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

SCHEDULE "5"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2024

$

2023

$

2022

$

2021

$

2020

$

2019

$

2018

$

2017

$

249,358.00 $ 237,273.00 $ 221,604.00 $ 225,701.00 $ 199,643.00 $ 321,500.00 $ 313,849.00 $ 327,185.00 $

249,358.00 $ 237,273.00 $ 221,604.00 $ 225,701.00 $ 199,643.00 $ 321,500.00 $ 313,849.00 $ 327,185.00 $

-

$

6,541,626.05

-

$

6,138,620.73

-

$

5,967,972.05

-

$

5,978,968.38

-

$

5,524,349.13

-

$

5,350,889.40

-

$

5,165,643.73

-

$

5,252,940.80

3.81% 3.87% 3.71% 3.77% 3.61% 6.01% 6.08% 6.23%

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

- 41 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2024

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 adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability.
School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: June 30, 2022 valuation: The tobacco use assumption and aging factors were revised.
June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System.
June 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study.
June 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%.
June 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised.
June 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies.
June 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, to 2.22% as of June 30, 2020, to 2.20% as of June 30, 2021, to 3.57% as of June 30, 2022, and to 3.68% as of June 30, 2023.
- 42 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

SCHEDULE "7"
VARIANCE OVER/UNDER

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues

$

2,155,600.00 $

2,449,477.00 $

2,555,930.66 $

-

-

38,717.34

10,725,288.00

11,001,149.00

11,172,627.12

808,486.00

1,179,283.00

1,123,813.07

1,368,390.00

1,337,803.00

1,312,125.69

21,930.00

35,723.00

36,312.81

1,490,671.00

1,538,030.00

1,475,837.37

16,570,365.00

17,541,465.00

17,715,364.06

106,453.66 38,717.34
171,478.12 (55,469.93) (25,677.31)
589.81 (62,192.63) 173,899.06

EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures
Excess of Revenues over (under) Expenditures

9,260,916.00
1,501,068.00 114,041.00 270,720.00 638,803.00
1,034,551.00 235,837.00
1,785,326.00 198,100.00 169,420.00 6,969.00 34,315.00 757,195.00 -
16,007,261.00 563,104.00

9,461,866.00
1,517,503.00 130,979.00 284,090.00 636,555.00
1,029,116.00 290,037.00
1,954,137.00 205,708.00 170,161.00 7,024.00 29,300.00 767,724.00 153,167.01
16,637,367.01 904,097.99

9,299,630.14
1,423,288.27 113,478.09 278,968.20 622,185.18
1,029,184.91 286,819.72
1,863,692.51 50,301.06
166,493.05 7,023.50
28,803.60 768,201.10
-
107,367.60 8,008.40
16,053,445.33 1,661,918.73

162,235.86
94,214.73 17,500.91
5,121.80 14,369.82
(68.91) 3,217.28 90,444.49 155,406.94 3,667.95
0.50 496.40 (477.10) 153,167.01
(107,367.60) (8,008.40)
583,921.68 757,820.74

OTHER FINANCING USES Other Uses

(300,000.00)

(846,320.00)

(983,420.57)

(137,100.57)

Net Change in Fund Balances

263,104.00

57,777.99

678,498.16

620,720.17

Fund Balances - Beginning

2,747,836.78

2,747,836.78

3,089,027.00

341,190.22

Adjustments

8,210.01

(2,434.53)

-

2,434.53

Fund Balances - Ending

$

3,019,150.79 $

2,803,180.24 $

3,767,525.16 $

964,344.92

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 43 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024

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 Supply Chain Assistance Grant 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 Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U.S. Department of Education
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.555

245GA324N1199 $ 245GA324N1199 237WAWA3N8903

31,063.12 640,407.84
36,722.85 708,193.81

10.560

245GA904N2533

6,728.72 714,922.53

84.425D 84.425U 84.425U

S425D210012 S425U210012 S425U210012

9,688.50
69,470.14
1,350.00 80,508.64

84.027A 84.027A 84.173A 84.173A

H027A220073 H027A230073 H173A220081 H173A230081

62,942.00 176,945.57
874.00 4,148.00 244,909.57

84.048A 84.424A 84.367A 84.367A 84.010A 84.010A

V048A230010 S424A230011 S367A220001 S367A230001 S010A220010 S010A230010
$

9,383.00 11,813.00 14,769.00
9,348.52 22,242.00 122,270.51 189,826.03 515,244.24
1,230,166.77

- 44 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024

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 City of Chickamauga Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2024. 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.

- 45 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2024
AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-Term Adjustment Hold-Harmless Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Dyslexia Grant Food Services Hygiene Products Math and Science Supplements One Time QBE Adjustment Preschool Disability Services School Security Grant Teachers Retirement Vocational Education Vocational Supervisors Office of the State Treasurer Public School Employees Retirement

SCHEDULE "9"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

514,407.00

48,029.00

1,412,628.00

50,928.00

680,944.00

53,203.00

1,249,758.00

1,064,942.00

434,091.00

1,128,960.00

435,397.00

80,246.00

90,942.00

12,716.00

197,328.00

64,358.00

29,895.00

1,025.00

481,429.00 526,360.00 345,598.00 191,398.00

794.00 45,414.00 1,653,833.00

2,492.00 24,546.00
1,127.00 3,126.82 122,385.00 6,308.00 150,000.00 17,626.30 21,873.00 7,220.00

21,300.00

$

11,172,627.12

See notes to the basic financial statements.

- 46 -

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CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024

SCHEDULE "10"

PROJECT
2017 ESPLOST
(i) Acquisition, construction, and equipping of new educational buildings and facilities;
(ii) Acquisition and installation of system-wide security and safety equipment; (iii) Acquisition, installation, and upgrading of system-wide technology and
equipment, including computers, text books, and e-books; (iv) Renovations, improvements, and equipping of existing educational
buildings, properties, and facilities; (v) Acquisition of any property, both real and personal, and equipment
necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and (vi) Acquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District.
Subtotal 2017 Projects
2021 ESPLOST
(i) Electrical upgrades and replacement of the fire alarm system at Chickamauga Elementary School;
(ii) Replacement of the fire alarm system at Gordon Lee Middle School; (iii) Replacement of artificial turf at Gordon Lee High School football field; (iv) System-wide improvements for drainage and flooding issues; (v) Acquisition, construction, and equipping of new educational buildings,
athletic sites and facilities; (vi) Acquisition and installation of system-wide security and safety equipment; (vii) Acquisition, installation, and upgrading of system-wide technology and
equipment, including computers, text books, and e-books; (viii) Renovations, improvements, and equipping of existing educational
buildings, athletic sites, properties, and facilities; (ix) Acquisition of any property, both real and personal, and equipment
necessary in connection with the above described capital outlay projects, and; (x) Acquisition of real property for future schools, facilities, administrative offices, athletic sites, support services, and other purposes of the City of Chickamauga School District.
Subtotal 2021 Projects
Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

2,000,000.00 $

14,603,287.06

25,000.00

-

50,000.00

-

500,000.00

5,476,712.94

Completed Completed
Completed
12/31/2024 (5)

125,000.00
200,000.00 2,900,000.00

-
20,080,000.00

Completed Completed

400,000.00 85,000.00
500,000.00 20,000.00
225,000.00 15,000.00
30,000.00
1,425,000.00

85,000.00
20,000.00
225,000.00 15,000.00
30,000.00
3,201,315.00

150,000.00

150,000.00

150,000.00 3,000,000.00

150,000.00 3,876,315.00

$

5,900,000.00 $

23,956,315.00

Completed (6) 6/30/2027
Completed (5) 6/30/2027 6/30/2027 6/30/2027 6/30/2027
6/30/2027 (6)
6/30/2027
6/30/2027

- 48 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024

SCHEDULE "10"

PROJECT
2017 ESPLOST
(i) Acquisition, construction, and equipping of new educational buildings and facilities;
(ii) Acquisition and installation of system-wide security and safety equipment; (iii) Acquisition, installation, and upgrading of system-wide technology and
equipment, including computers, text books, and e-books; (iv) Renovations, improvements, and equipping of existing educational
buildings, properties, and facilities; (v) Acquisition of any property, both real and personal, and equipment
necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and (vi) Acquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District.
Subtotal 2017 Projects

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3) (4)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$

- $ 14,603,287.06 $ 14,603,287.06 $

-

-

-

-

-

-

-

-

-

193,870.45

4,565,361.78

-

-

-

-

-

-

-

-

-

-

193,870.45

19,168,648.84

14,603,287.06

-

2021 ESPLOST

(i) Electrical upgrades and replacement of the fire alarm system at

Chickamauga Elementary School;

-

-

-

-

(ii) Replacement of the fire alarm system at Gordon Lee Middle School;

-

-

-

-

(iii) Replacement of artificial turf at Gordon Lee High School football field;

-

-

-

-

(iv) System-wide improvements for drainage and flooding issues;

-

-

-

-

(v) Acquisition, construction, and equipping of new educational buildings,

athletic sites and facilities;

-

-

-

-

(vi) Acquisition and installation of system-wide security and safety equipment;

-

-

-

-

(vii) Acquisition, installation, and upgrading of system-wide technology and

equipment, including computers, text books, and e-books;

-

-

-

-

(viii) Renovations, improvements, and equipping of existing educational

buildings, athletic sites, properties, and facilities;

1,938,822.89

-

-

-

(ix) Acquisition of any property, both real and personal, and equipment

necessary in connection with the above described capital outlay projects,

and;

-

-

-

-

(x) Acquisition of real property for future schools, facilities, administrative

offices, athletic sites, support services, and other purposes of the City

of Chickamauga School District.

-

-

-

-

Subtotal 2021 Projects

1,938,822.89

-

-

-

Total

$ 2,132,693.34 $ 19,168,648.84 $ 14,603,287.06 $

-

(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 City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt
incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows:

Prior Years Current Year
Total

$ 334,527.78 105,875.00
$ 440,402.78

(5) Replacement of artificial turf at Gordon Lee High School football field has already been completed. The expenditures for this project are reported on the 2017 ESPLOST "Renovations, improvements, and equipping of existing educational buildings, properties, and facilities" line.
(6) Electrical upgrades and replacement of the fire alarm system at Chickamauga Elementary School has already been completed with the ongoing Chickamauga Elementary School Addition and Renovations project. These expenditures are reported on the 2021 ESPLOST "Renovations, improvements, and equipping of existing educational buildings, athletic sites, properties, and facilities" line.

See notes to the basic financial statements.

- 49 -

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 Ms. Stacy McDaniel, Superintendent and Members of the City of Chickamauga Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga Board of Education (School District) as of and for the year ended June 30, 2024, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements collectively comprise the School District's basic financial statements. We have issued our report thereon dated June 30, 2025. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Our report disclaims an opinion on the discretely presented component unit. Because of the matter described in the "Basis for Disclaimer of Opinion" section of our report on the School District's financial statements, we were not able to obtain sufficient appropriate audit evidence to provide a basis for our opinion on the discretely presented component unit.
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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Additionally, if the scope of our work had been sufficient to enable us to express an opinion on the discretely presented component unit, other instances of noncompliance or other matters may have been identified and reported herein.
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
June 30, 2025

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 Ms. Stacy McDaniel, Superintendent and Members of the City of Chickamauga Board of Education
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Chickamauga 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, 2024. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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

requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
June 30, 2025

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

CITY OF CHICKAMAUGA BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2024
PRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements
Type of auditor's report issued: Governmental Activities Discretely Presented Component Unit Each Major Fund 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:

All major programs

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

Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

10.553, 10.555

Child Nutrition Cluster

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

Auditee qualified as low-risk auditee?

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

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