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

ANNUAL FINANCIAL REPORT FISCAL YEAR 2021
City of Thomasville Board of Education
Thomas County, Georgia
Including Independent Auditor's Report
Greg S. Griffin | State Auditor

City of Thomasville Board of Education Table of Contents

Section I

Financial

Independent Auditor's Report

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G

Statement of Fiduciary Net Position

Fiduciary Funds

7

H

Statement of Changes in Fiduciary Net Position

Fiduciary Funds

8

I Notes to the Basic Financial Statements

9

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

39

2 Schedule of Contributions Teachers Retirement System of Georgia

40

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

41

4 Schedule of Contributions Employees' Retirement System of Georgia

42

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

43

City of Thomasville Board of Education

Table of Contents Section I

Schedules

Required Supplementary Information

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

44

7 Schedule of Contributions School OPEB Fund

45

8 Notes to the Required Supplementary Information

46

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

48

Supplementary Information

10 Schedule of Expenditures of Federal Awards

50

11 Schedule of State Revenue

52

12 Schedule of Approved Local Option Sales Tax Projects

54

Section II

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

Section III

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

Findings and Questioned Costs
Schedule of Findings and Questioned Costs

City of Thomasville Board of Education Table of Contents Section V Management's Corrective Action for Current Year Findings
Schedule of Management's Corrective Action

Section I Financial

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards

is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 21, 2023 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
February 21, 2023

City of Thomasville Board of Education

CITY OF THOMASVILLE BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Taxes State Government Federal Government Local Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Net Pension Liability Net OPEB Liability Deposits and Unearned Revenues Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

12,268,601.65

777,751.35 2,153,359.45 4,624,697.67
13,728.30 27,271.95
8,714.13 543,608.92 41,253,922.94 61,671,656.36

9,103,877.05 5,067,544.00 14,171,421.05

519,634.80 3,708,320.77
340,657.34 56,871.67
33,183,094.00 25,915,808.00
368,539.75
2,155,029.55 4,787,640.47 71,035,596.35

1,182,576.00 5,759,731.00 6,942,307.00

39,558,876.47

63,785.78 2,675,562.95
223,090.62 (44,656,141.76)

$

(2,134,825.94)

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

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CITY OF THOMASVILLE BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021

EXHIBIT "B"

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

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR

GRANTS AND

SERVICES

CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$

21,851,060.70 $

185,496.88 $

18,061,227.38 $

2,324,033.19 1,565,122.70 570,656.96 568,527.49 3,170,818.95 549,226.04 2,992,311.03
712,481.53 296,298.41 15,750.00

93,600.00 -

609,523.10 582,239.20 550,965.47 1,034,334.00 1,738,810.56
101,575.01 2,036,218.43
102,733.11 83,611.36
-

237,994.29 84,208.91
2,082,096.29 164,765.09

$

37,185,351.58 $

214,783.25 -
493,880.13 $

113,297.46 15,478.67 1,899,939.67
-
26,929,953.42

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

Change in Net Position

Net Position - Beginning of Year (Restated)

Net Position - End of Year

$

(3,604,336.44)
(1,714,510.09) (982,883.50)
(19,691.49) 465,806.51 (1,432,008.39) (447,651.03) (862,492.60) (609,748.42) (212,687.05) (15,750.00)
(124,696.83) (68,730.24) 32,626.63 (164,765.09)
(9,761,518.03)
13,020,675.97 24,512.84
3,058,835.59 299,303.20
13,038.67 1,094,694.91
117,500.00 17,628,561.18
7,867,043.15
(10,001,869.09)
(2,134,825.94)

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

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CITY OF THOMASVILLE BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2021

EXHIBIT "C"

ASSETS

Cash and Cash Equivalents

$

Accounts Receivable, Net

Taxes

State Government

Federal Government

Local

Inventories

Prepaid Items

Total Assets

$

LIABILITIES

Accounts Payable

$

Salaries and Benefits Payable

Payroll Withholdings Payable

Deposits and Unearned Revenue

Total Liabilities

DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - Intergovernmental
Total Deferred Inflows of Resources

GENERAL FUND
9,595,839.41 $
503,702.48 2,153,359.45 4,624,697.67
13,728.30 27,271.95
-
16,918,599.26 $
519,634.80 $ 3,708,320.77
340,657.34 368,539.75 4,937,152.66
250,749.01 330,793.38 581,542.39

CAPITAL PROJECTS
FUND

214,376.49 $
8,714.13
223,090.62 $

-

$

-

-

-

-

-

DEBT SERVICE
FUND

2,458,385.75 $
274,048.87 -
2,732,434.62 $

-

$

-

-

-

-

-

TOTAL
12,268,601.65
777,751.35 2,153,359.45 4,624,697.67
13,728.30 27,271.95
8,714.13
19,874,124.50
519,634.80 3,708,320.77
340,657.34 368,539.75 4,937,152.66
250,749.01 330,793.38 581,542.39

FUND BALANCES Nonspendable Restricted Assigned Unassigned
Total Fund Balances

Total Liabilities, Deferred Inflows

of Resources, and Fund Balances

$

27,271.95 36,513.83 496,326.47 10,839,791.96 11,399,904.21
16,918,599.26 $

8,714.13 214,376.49
223,090.62
223,090.62 $

2,732,434.62
2,732,434.62

35,986.08 2,983,324.94
496,326.47 10,839,791.96 14,355,429.45

2,732,434.62 $

19,874,124.50

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

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

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability
Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Revenues that are not available to pay for current period expenditures are deferred in the funds. Property taxes Intergovernmental
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Bonds payable Accrued interest payable Energy efficiency lease payable Compensated absences payable
Net position of governmental activities (Exhibit "A")

$

14,355,429.45

$

543,608.92

46,277,058.05

1,583,431.09

2,808,647.09

(9,415,213.29)

41,797,531.86

$

(33,183,094.00)

(25,915,808.00)

(59,098,902.00)

$

7,921,301.05

(692,187.00)

7,229,114.05

$

250,749.01

330,793.38

581,542.39

$

(4,180,000.00)

(56,871.67)

(2,606,279.94)

(156,390.08)

$

(6,999,541.69) (2,134,825.94)

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

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CITY OF THOMASVILLE BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021

EXHIBIT "E"

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues
EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures
SPECIAL ITEM Sale of Building
Net Change in Fund Balances
Fund Balances - Beginning (Restated)
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

13,262,083.98 $

299,303.20

15,751,175.75

10,820,966.13

493,880.13

7,629.86

1,094,694.91

41,729,733.96

- $ 2,399.04 2,399.04

- $ 3,204,022.35
3,009.77 3,207,032.12

13,262,083.98 3,503,325.55 15,751,175.75 10,820,966.13 493,880.13 13,038.67 1,094,694.91 44,939,165.12

19,586,368.92
2,179,953.78 1,409,418.56
538,442.67 535,965.21 3,094,108.54 534,790.72 2,929,103.44 591,373.26 277,040.34 15,750.00 237,994.29 84,208.91 1,993,000.04
-
34,007,518.68 7,722,215.28

44,534.48
49,221.26
114,889.00 51,514.00
260,158.74 (257,759.70)

-
1,075.00 -
2,102,813.20 189,202.45
2,293,090.65 913,941.47

19,630,903.40
2,179,953.78 1,458,639.82
538,442.67 535,965.21 3,094,108.54 535,865.72 2,929,103.44 706,262.26 277,040.34 15,750.00 237,994.29 84,208.91 1,993,000.04
51,514.00
2,102,813.20 189,202.45
36,560,768.07 8,378,397.05

117,500.00 7,839,715.28

3,560,188.93

$

11,399,904.21 $

(257,759.70) 480,850.32 223,090.62 $

913,941.47 1,818,493.15 2,732,434.62 $

117,500.00 8,495,897.05 5,859,532.40 14,355,429.45

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

- 5 -

CITY OF THOMASVILLE BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2021

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Other assets reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Sales taxes Intergovernmental
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. Bond principal retirements Energy efficiency lease payments
District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Net decrease in accrued interest Net decrease in compensated absences
Change in net position of governmental activities (Exhibit "B")

$

8,495,897.05

$

218,889.00

(788,765.08)

$

(216,895.17)

(145,186.76)

276,265.46

(569,876.08) (46,432.09)
(85,816.47)

$

2,020,000.00

82,813.20

2,102,813.20

$

(1,818,838.31)

(254,599.00)

(2,073,437.31)

$

24,437.36

19,457.49

43,894.85

$

7,867,043.15

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

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CITY OF THOMASVILLE BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2021

PRIVATE PURPOSE TRUSTS

EXHIBIT "G"
CUSTODIAL FUNDS

ASSETS Cash Investments
Total Assets
NET POSITION Held in Trust for Private Purposes Restricted
Individuals, Organizations, and Other Governments
Total Net Postion

$

- $

161,236.57

161,236.57

161,236.57

-

$

161,236.57 $

3,803.01 -
3,803.01
3,803.01 3,803.01

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

- 7 -

ADDITIONS Investment Earnings Interest Miscellaneous Total Additions
Change in Net Position
Net Position - Beginning (Restated)
Net Position - Ending

CITY OF THOMASVILLE BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021
PRIVATE PURPOSE TRUSTS

EXHIBIT "H"
CUSTODIAL FUNDS

$

326.77 $

-

326.77

326.77

160,909.80

$

161,236.57 $

1,070.00 1,070.00
1,070.00
2,733.01
3,803.01

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

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The City of Thomasville Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and bond proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports for financial resources that are restricted, committed, or assigned included taxed (sales) legally restricted for the payment of general longterm principal and interest.
The School District reports the following fiduciary fund types:
Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments.
Custodial funds are used to report resources held by the School District in a purely custodial capacity.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
New Accounting Pronouncements
In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of the GASB Statement No. 84 is described in the restatement note.
In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
Investments
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
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
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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.
Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements.
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.
Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment Intangible Assets

Any amounts

$

50,000.00

$

50,000.00

$

50,000.00

$

50,000.00

N/A 80 years
15 to 80 years 10 to 25 years
Over 1 year

During the fiscal year, management changed the estimated useful life for equipment from 5 to 25 years to 10 to 25 years. The change in threshold does 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.
Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on services already rendered.
Vacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 20 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end.
Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 Thomasville adopted the property tax levy for the 2020 tax digest year (calendar year) on October 1, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 21, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The City of Thomasville Clerk bills and collects the property taxes for the School District, withholds 1.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $12,282,462.87.
The tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18.422 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $955,108.27 during fiscal year ended June 30, 2021.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,204,022.35 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

The City of Thomasville (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 2021, the School District provided $2,118,580.00 of ESPLOST proceeds to the City Government for debt services on said 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, except the funds listed on the schedule, 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.
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. At June 30, 2021, $256,004.64 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all the School District's deposits.
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,

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

(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, 2021, the School District had deposits with a carrying amount of $9,089,907.51 and a bank balance of $9,066,012.28. The bank balances insured by Federal depository insurance were $829,998.57 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $2,674,443.54.
At June 30, 2021, $5,561,570.17 of the School District's bank balances was exposed to custodial credit risk, $5,305,565.53 of the balance was in the State's Secure Deposit Program (SDP) and $256,004.64 was uninsured and uncollateralized.
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.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Cash and cash equivalents

Statement of Net Position

$

Statement of Fiduciary Net Position

Total cash and cash equivalents

12,268,601.65 3,803.01
12,272,404.66

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

161,236.57

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

3,343,733.72

Total carrying value of deposits - June 30, 2021

$ 9,089,907.51

Categorization of Cash Equivalents
The School District reported cash equivalents of $3,343,733.72 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021 was 36 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, 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 THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

NOTE 5: CAPITAL ASSETS

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

Governmental Activities Capital Assets,
Not Being Depreciated: Land

Balances July 1, 2020

Increases

Decreases

Balances June 30, 2021

$

556,331.92 $

- $

12,723.00 $

543,608.92

Capital Assets Being Depreciated: Buildings and Improvements Equipment Land Improvements

46,440,496.05 1,522,282.09 2,704,647.09

114,889.00 104,000.00

163,438.00 53,740.00
-

46,277,058.05 1,583,431.09
2,808,647.09

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements

7,550,250.83 540,389.55 719,276.74

580,811.29 100,361.78 107,592.01

129,728.91 53,740.00
-

8,001,333.21 587,011.33
826,868.75

Total Capital Assets, Being Depreciated, Net

41,857,508.11

(569,876.08)

33,709.09

41,253,922.94

Governmental Activities Capital Assets - Net

$ 42,413,840.03 $ (569,876.08) $

46,432.09 $ 41,797,531.86

Current year depreciation expense by function is as follows:

Instruction Support Services
School Administration Student Transportation Services Food Services

$ 666,006.04

$

260.00

75,856.64

76,116.64 46,642.40

$ 788,765.08

NOTE 6: SHORT-TERM DEBT
The School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Short-term debt activity for the fiscal year is as follows:

Beginning Balance

Issued

Redeemed

Ending Balance

Tax Anticipation Notes

$

- $ 1,000,000.00 $ 1,000,000.00 $

-

NOTE 7: LONG-TERM LIABILITIES

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

Balance July 1, 2020

Governmental Activities

Balance

Additions

Deductions

June 30, 2021

Due Within One Year

General Obligation (G.O.) Bonds Energy Efficiency Leases Compensated Absences(1)

$ 6,200,000.00 $ 2,689,093.14 175,847.57

- $ 2,020,000.00 $

-

82,813.20

133,027.96

152,485.45

4,180,000.00 $ 2,065,000.00

2,606,279.94

90,029.55

156,390.08

-

$ 9,064,940.71 $ 133,027.96 $ 2,255,298.65 $ 6,942,670.02 $ 2,155,029.55

(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements.
General Obligation Debt Outstanding
The School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2021. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.
During the current year, voters of the City of Thomasville voted to approve the issuance of general obligation bonds by the City, in the principal amount not to exceed $42,000,000.00 to pay the costs of: (i) constructing, renovating and equipping MacIntyre Park campus which includes MacIntyre Park Middle and Scholars Academy, including CTAE, new classrooms, cafeteria, and athletic faculties, and (ii) constructing, renovating and equipping Harper Elementary, Scott Elementary, Jerger Elementary, and Thomasville High School for the School District of the City of Thomasville. As of June 30, 2021, none of these general obligation bonds have been issued.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

General obligation bonds currently outstanding are as follows:

Description

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2016

1.59%

5/10/2016 4/1/2023 $ 10,000,000.00 $ 4,180,000.00

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

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

2022 2023

$ 2,065,000.00 $ 66,462.00

2,115,000.00

33,628.00

Total Principal and Interest $ 4,180,000.00 $ 100,090.00

Obligations Under Financed Purchases

An energy efficiency lease agreement dated November 15, 2016 was executed by and between the School District, the lessee, and Texas Capital Bank, N. A., the lessor. The agreement authorized the borrowing of $2,897,758.00 for the purchase of energy efficiency equipment, machinery, supplies, building modifications and other energy saving items. Payments of the lease shall be made from the School District's capital projects fund.

The School District's outstanding financed purchase of $2,606,279.94 contain provisions that in an event of default, outstanding amounts may become immediately due if the School District is unable to make payment.
Debt currently outstanding is as follows:

Purpose

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Schneider Electric Energy Saving Contract

3.37%

11/15/2016 11/15/2036 $ 2,897,758.00 $ 2,606,279.94

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

The following is a schedule of total finance purchase payments:

Fiscal Year Ended June 30:

Principal

Interest

2022 2023 2024 2025 2026 2027 - 2031 2032 - 2036 2037

$

90,029.55 $

97,621.85

105,606.77

114,001.63

122,824.47

762,802.34

1,059,314.96

254,078.37

87,831.64 84,797.65 81,507.79 77,948.84 74,106.99 301,959.59 154,396.02 8,562.44

Total Principal and Interest $ 2,606,279.94 $

871,110.96

Compensated Absences
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.
NOTE 8: RISK MANAGEMENT
Insurance
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years.
Unemployment Compensation
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020

$

2021

$

- $

2,200.50 $

2,200.50 $

-

- $

6,914.18 $

6,914.18 $

-

Surety Bond

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

Position Covered

Amount

Superintendent

$ 50,000.00

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2021:

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

$

27,271.95

8,714.13 $

35,986.08

$

36,513.83

214,376.49

2,732,434.62

2,983,324.94

496,326.47 10,839,791.96

Fund Balance, June 30, 2021

$ 14,355,429.45

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.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

NOTE 10: SIGNIFICANT COMMITMENTS

Operating Leases
The School District leases intangible assets under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $40,583.20 for governmental activities, for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021:

Year Ending

Governmental Activities

2022

$

40,583.20

NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare
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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 $621,196.00 for the year ended June 30, 2021. 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, 2021, the School District reported a liability of $25,915,808.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.176446%, which was a decrease of 0.001697% from its proportion measured as of June 30, 2019.
For the year ended June 30, 2021, the School District recognized OPEB expense of $875,795.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual

experience

$

- $ 2,829,202.00

Changes of assumptions

4,285,899.00

2,305,950.00

Net difference between projected and actual

earnings on OPEB plan investments

67,546.00

-

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

92,903.00

624,579.00

School District contributions subsequent to

the measurement date

621,196.00

-

Total

$ 5,067,544.00 $ 5,759,731.00

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2022 2023 2024 2025 2026 Thereafter

$

(668,733.00)

$

(670,546.00)

$

(476,141.00)

$

(4,735.00)

$

363,041.00

$

143,731.00

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

OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

7.30%, compounded annually, net of investment expense, and including inflation

Healthcare cost trend rate

Pre-Medicare Eligible Medicare Eligible Ultimate trend rate

7.00% 5.25%

Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate

4.50% 4.50%

Pre-Medicare Eligible

2029

Medicare Eligible

2023

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:
For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period 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, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
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

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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
Total

30.00% 70.00%
100.00%

0.50% 9.20%

* Net of Inflation

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

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

1% Decrease (1.22%)

Current Discount Rate (2.22%)

1% Increase (3.22%)

School District's proportionate share of the Net OPEB liability

$ 30,446,799.00 $

25,915,808.00 $ 22,292,281.00

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

$ 21,577,515.00 $

25,915,808.00 $ 31,532,673.00

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 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 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.65% of payroll was required from the School District and 0.41% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,189,751.83 and $69,769.92 from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate for the year ended June 30, 2021 was 19.91% of annual covered payroll for old, 24.66% for new plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $14,039.22 for the current fiscal year.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon

- 30 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 $25,110.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $33,183,094.00 for its proportionate share of the net pension liability for TRS ($33,084,295.00) and ERS ($98,799.00).
The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the net pension liability

$ 33,084,295.00

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

695,711.00

Total

$ 33,780,006.00

The net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 0.136577%, which was a decrease of 0.003868% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.002344%, which was an increase of 0.000395% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $152,415.00.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.

For the year ended June 30, 2021, the School District recognized pension expense of $5,178,443.68 for TRS, ($10,059.32) for ERS and $30,671.00 for PSERS and revenue of $145,755.00 for TRS and $30,671.00 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.

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

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual

experience

$ 1,440,831.00 $

- $

1,203.00 $

-

Changes of assumptions

3,407,720.00

-

-

-

Net difference between projected and actual

earnings on pension plan investments

796,841.00

-

1,396.00

-

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

242,508.00

1,162,095.00

9,587.00

20,481.00

School District contributions subsequent to the

measurement date

3,189,751.83

-

14,039.22

-

Total

$ 9,077,651.83 $ 1,162,095.00 $

26,225.22 $

20,481.00

The 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 pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2022 2023 2024 2025

$

778,870.00 $

$ 1,669,881.00 $

$ 1,624,520.00 $

$

652,534.00 $

(15,079.00) 3,944.00 1,620.00 1,220.00

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Teachers Retirement System:

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

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

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

Employees' Retirement System:

Inflation Salary increases Investment rate of return

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

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

- 33 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Public School Employees Retirement System:

Inflation Salary increases Investment rate of return

2.75% N/A 7.30%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

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

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

Asset Class

TRS Target Allocation

ERS/PSERS Target
Allocation

Long-Term Expected Real Rate of Return*

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

30.00% 51.00%
1.50% 12.40%
5.10% -

30.00% 46.20%
1.30% 12.40%
5.10% 5.00%

(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00%

Total

100.00%

100.00%

* Rates shows are net of the 2.75% assumed rate of inflation with the exception of TRS, which assumed a rate of 2.50% rate of inflation.

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CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

Teachers Retirement System:

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

School District's proportionate share of

the net pension liability

$

52,463,794.00 $

33,084,295.00 $ 17,198,662.00

Employees' Retirement System:

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

School District's proportionate share of

the net pension liability

$

138,992.00 $

98,799.00 $

64,498.00

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

Defined Contribution Plan
In January 1981, the School District began an employer paid 403(b) annuity plan for all. The School District selected Variable Annuity Life Insurance Company (VALIC) as the provider of this plan. For each employee covered under PSERS, the Board began contributing to the plan an amount equal 4 percent of the employee's base pay, dropping to 2 percent for the 2011-2012 fiscal year. The employee becomes vested in the plan with 2 years of experience. Employees who had already achieved 2 years of experience at the time the plan was implemented were vested upon enrollment.
Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 2 years of service to the School District. If an employee terminates employment prior to achieving 2 years of service, funds paid on behalf of the non-vested employee are credited back to the School District.
The vendor for the plan changed to Hartford in November 2006 and to Mass Mutual in 2013.

- 35 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2021 2020 2019

100% 100% 100%

$ 343,295.68

$ 366,729.49

$

349,213.41

NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE
For fiscal year 2021, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in "New Accounting Pronouncements," which requires the restatement of the June 30, 2020 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles.

Net Position, July 1, 2020 as previously reported

$

(10,015,938.75)

Prior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification

14,069.66

Net Position, July 1, 2020, as restated

$ (10,001,869.09)

Fund Balance (General Fund), July 1, 2020, as previously reported
Prior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification
Fund Balance (General Fund), July 1, 2020, as restated

$

3,546,119.27

14,069.66

$

3,560,188.93

Net Position (Custodial Funds), July 1, 2020 as previously reported

$

Prior Period Adjustment - Implementation of GASB No. 84: Restatement for Custodial Funds Beginning Net Position

Net Position (Custodial Funds), July 1, 2020, as restated

$

-
2,733.01 2,733.01

Funds Held for Others of $14,069.66, previously presented in Fiduciary Funds, was reclassified to Net Position and Fund Balance (General Fund).
NOTE 15: SPECIAL ITEM
During fiscal year 2021, the School District sold the R.C Balfour Preschool building for $117,500.00. This is reflected as a special item on Exhibit B (Statement of Activities) of this report.

- 36 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

NOTE 16: SUBSEQUENT EVENTS
In the subsequent fiscal year, the School District issued $38,770,000.00 of its $42,000,000.00 voter authorized general obligation bonds. The proceeds from these bonds will be used for to pay the costs of: (i) constructing, renovating and equipping MacIntyre Park campus which includes MacIntyre Park Middle and Scholars Academy, including CTAE, new classrooms, cafeteria, and athletic faculties, and (ii) constructing, renovating and equipping Harper Elementary, Scott Elementary, Jerger Elementary, and Thomasville High School for the School District of the City of Thomasville. The remaining voter authorized general obligation bonds of $3,230,000.00, remains unissued as of the report date.
On May 18th, 2021, the City of Thomasville Board of Education entered into an agreement to sell the property (building and land) located at 915 Lester Street, Thomasville, GA 31792, known as the Dunlap School, to the Thomasville Payroll Development for $10.00. The sale was completed on December 10, 2021, with the transfer of the land occurring on the same date. The School District's Note 5 for Capital Assets reflects the price of this asset in Land for $11,513.00, that is not being depreciated and in Buildings being depreciated for $207,952.60. As of June 30, 2021, the Building had a remaining net book value of $42,675.46.

- 37 -

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CITY OF THOMASVILLE 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

2021 2020 2019 2018 2017 2016 2015

0.136577% $ 33,084,295.00 $ 0.140445% $ 30,199,473.00 $ 0.143447% $ 26,626,836.00 $ 0.140116% $ 26,040,990.00 $ 0.147081% $ 30,344,450.00 $ 0.149375% $ 22,740,860.00 $ 0.159512% $ 20,152,237.00 $

695,711.00 565,521.00 417,648.00 390,106.00 438,411.00 305,546.00 298,155.00

$ 33,780,006.00 $ 30,764,994.00 $ 27,044,484.00 $ 26,431,096.00 $ 30,782,861.00 $ 23,046,406.00 $ 20,450,392.00

$ 17,940,167.23 $ 17,464,755.82 $ 17,351,144.56 $ 16,339,657.87 $ 16,369,248.13 $ 16,017,281.04 $ 16,619,380.78

184.41% 172.92% 153.46% 159.37% 185.37% 141.98% 121.26%

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

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

- 39 -

CITY OF THOMASVILLE 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

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

3,189,751.83 $ 3,716,348.68 $ 3,581,682.81 $ 2,866,488.00 $ 2,297,282.56 $ 2,302,624.81 $ 2,077,614.70 $

3,189,751.83 $ 3,716,348.68 $ 3,581,682.81 $ 2,866,488.00 $ 2,297,282.56 $ 2,302,624.81 $ 2,077,614.70 $

-

$ 17,098,516.11

-

$ 17,940,167.23

-

$ 17,464,755.82

-

$ 17,351,144.56

-

$ 16,339,657.87

-

$ 16,369,248.13

-

$ 16,017,281.04

18.66% 20.72% 20.51% 16.52% 14.06% 14.07% 12.97%

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

- 40 -

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

SCHEDULE "3"

For the Year Ended June 30

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

School District's proportionate share of
the NPL

School District's covered payroll

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

Plan fiduciary net position as a
percentage of total pension liability

2021 2020 2019 2018

0.002344% $ 0.001949% $ 0.004234% $ 0.004040% $

98,799.00 $ 80,426.00 $ 174,061.00 $ 164,078.00 $

58,806.59 52,360.30 107,989.47
-

168.01% 153.60% 161.18%
0.00%

76.21% 76.74% 76.68% 76.33%

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

- 41 -

CITY OF THOMASVILLE BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "4"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

14,039.22 $ 14,501.68 $ 12,974.85 $ 26,792.19 $

14,039.22 $ 14,501.68 $ 12,974.85 $ 26,792.19 $

-

$

-

$

-

$

-

$

56,931.12 58,806.59 52,360.30 107,989.47

24.66% 24.66% 24.78% 24.81%

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

- 42 -

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

SCHEDULE "5"

For the Year Ended
June 30

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

School District's proportionate share of the NPL

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

Total

School District's covered payroll

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

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

2021 2020 2019 2018 2017 2016 2015

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

-

$

152,415.00 $ 152,415.00 $

390,314.53

-

$

133,616.00 $ 133,616.00 $ 363,980.73

-

$

131,113.00 $ 131,113.00 $ 368,255.89

-

$

110,276.00 $ 110,276.00 $

324,119.53

-

$

156,801.00 $ 156,801.00 $ 323,674.72

-

$

93,626.00 $ 93,626.00 $

265,522.14

-

$

74,883.00 $ 74,883.00 $

228,419.29

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

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

- 43 -

CITY OF THOMASVILLE BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND

SCHEDULE "6"

For the Year Ended
June 30

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

School District's proportionate share of the NOL

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

Total

School District's covered-
employee payroll

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

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

2021 2020 2019 2018

0.176446% $ 25,915,808.00 $ 0.178143% $ 21,861,968.00 $ 0.179232% $ 22,779,838.00 $ 0.178095% $ 25,022,275.00 $

-

$ 25,915,808.00 $ 18,141,801.75

-

$ 21,861,968.00 $ 17,727,755.37

-

$ 22,779,838.00 $ 17,652,256.29

-

$ 25,022,275.00 $ 16,937,996.30

142.85% 123.32% 129.05% 147.73%

3.99% 4.63% 2.93% 1.61%

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

- 44 -

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

SCHEDULE "7"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2021

$

2020

$

2019

$

2018

$

2017

$

621,196.00 $ 596,701.00 $ 959,423.00 $ 928,943.00 $ 928,598.00 $

621,196.00 $ 596,701.00 $ 959,423.00 $ 928,943.00 $ 928,598.00 $

-

$ 17,845,544.27

-

$

18,141,801.75

-

$ 17,727,755.37

-

$ 17,652,256.29

-

$ 16,937,996.30

3.48% 3.29% 5.41% 5.26% 5.48%

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

- 45 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Teachers Retirement System Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Employees' Retirement System Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two onetime 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.
Public School Employees Retirement System Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to 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).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.

- 46 -

CITY OF THOMASVILLE BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.

The June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.

- 47 -

CITY OF THOMASVILLE BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2021

SCHEDULE "9"

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues
EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses)
SPECIAL ITEM Sale of Building
Net Change in Fund Balances
Fund Balances - Beginning (Restated)
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

12,700,000.00 $

12,700,000.00 $

100,000.00

100,000.00

13,449,175.00

14,451,503.21

-

9,478,600.50

90,000.00

278,000.00

18,325.00

20,325.00

482,570.00

727,570.00

26,840,070.00

37,755,998.71

13,262,083.98 $ 299,303.20 15,751,175.75
10,820,966.13 493,880.13 7,629.86
1,094,694.91 41,729,733.96

562,083.98 199,303.20 1,299,672.54 1,342,365.63 215,880.13
(12,695.14) 367,124.91 3,973,735.25

17,961,609.18
1,890,675.66 907,443.65 594,382.00 587,441.00
2,458,992.00 395,938.00
1,805,000.00 655,135.00 315,000.00 18,750.00 -
27,590,366.49 (750,296.49)

22,804,399.55
2,501,556.18 1,707,231.82 676,757.00 930,004.00 2,791,424.45 632,028.00 1,940,135.00 976,954.00 506,045.00
21,250.00 -
1,935,497.00 37,423,282.00
332,716.71

19,586,368.92
2,179,953.78 1,409,418.56
538,442.67 535,965.21 3,094,108.54 534,790.72 2,929,103.44 591,373.26 277,040.34 15,750.00 237,994.29 84,208.91 1,993,000.04 34,007,518.68 7,722,215.28

3,218,030.63
321,602.40 297,813.26 138,314.33 394,038.79 (302,684.09) 97,237.28 (988,968.44) 385,580.74 229,004.66
5,500.00 (237,994.29)
(84,208.91) (57,503.04) 3,415,763.32 7,389,498.57

-

100,000.00

-

(100,000.00)

-

-

-

(100,000.00)

-

100,000.00

-

-

-

-

117,500.00

117,500.00

(750,296.49)

332,716.71

7,839,715.28

7,506,998.57

2,887,874.44

2,887,874.44

3,560,188.93

672,314.49

(605.40)

3,499.27

-

(3,499.27)

$

2,136,972.55 $

3,224,090.42 $

11,399,904.21 $

8,175,813.79

- 48 -

CITY OF THOMASVILLE BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2021

SCHEDULE "9"

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

(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various funds omitted from the budget are as follows:

Revenues

Expenditures

School Activity Accounts

$

Special Education Federal Program

After School Program

Fresh Fruit and Vegetble Program

R.O.T.C Program

765,919.62 $ 89,071.93 127,155.46 14,287.90 54,348.35

738,343.10 86,430.35 110,370.21 15,038.55 22,850.13

$

1,050,783.26 $

973,032.34

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.

- 49 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program Total Other Programs Total U. S. Department of Agriculture
Education, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development Rural Education Rural Education Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

215GA324N1199 $ 215GA324N1199

549,795.50 1,211,937.87 1,761,733.37

10.579 10.582

215GA350N8103 215GA324L1603

19,218.14 15,038.55 34,256.69 1,795,990.06

84.425D 84.425D
84.425U

S425D200012 S425D210012
S425U210012

1,123,941.70 4,964,969.30
335,860.00 6,424,771.00

84.027A 84.027A 84.173A

H027A190073 H027A200073 H173A190081

186,552.16 449,978.30
12,721.75 649,252.21

84.048A 84.371C 84.358B 84.358B 84.424A 84.367A 84.010A 84.010A 84.010A

V048A200010 S371C190016-19A
S358B190010 S358B200010 S424A200011 S367A190001 S010A190010 S010A200010 S010A200010-20A

32,687.15 245,352.77
27,216.00 50,075.70 26,504.41
2,441.80 241,737.57 144,995.64 1,104,611.44 1,875,622.48 8,949,645.69

- 50 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

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

12. UNKNOWN

22,850.13

$

10,768,485.88

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 Thomasville Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies

Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Note 4. Donated Personal Protective Equipment

In response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management and Homeland Security Agency (GEMA/HS). GEMA/HS, then, donated PPE with an estimated fair market value of $3,000.00 to the City of Thomasville Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

See notes to the basic financial statements.

- 51 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021
AGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Teachers Retirement Vocational Education Vocational Supervisors
Office of the State Treasurer Public School Employees Retirement
Other

SCHEDULE "11"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

846,558.99

640,790.90 562,486.34 1,327,675.38
1,141,211.81 577,336.71 850,461.31 1,450,579.11 1,482,085.46 320,327.08 2,422,376.86 1,459,707.00 222,072.24 96,178.67 28,413.89 312,842.63 139,840.90 57,923.00
1,363.00
767,592.41 848,311.30 631,562.00 (732,411.00)

44,448.00 54,532.00
42,400.00 1,528.00 17,712.69 24,121.92
69,769.92 7,810.07 6,957.16

25,110.00

1,500.00

$

15,751,175.75

See notes to the basic financial statements.

- 52 -

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CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

PROJECT
Renovations, new construction, and improvements to Thomasville High School to include improvement/replacement of storm drains; improvement to the AFJROTC/CTAE Tech Building to comply with industry certified standards; upgrade restrooms; and renovation of science labs.
Renovations, new construction, and improvements to MacIntyre Park Middle School & Scholars Academy Building to include renovations/addition to the auditorium stage; improvement/upgrades to lighting and sound system; new stage curtains; parking lot improvements; furnishings; electrical upgrades; restroom and hallway renovations; and upgrades to the cafeteria.
Renovations and improvements to Harper Elementary School to the kitchen and cafeteria;
Renovations, new construction, and improvements to Jerger Elementary School to include playground upgrades; improvements to drainage on campus; construction/ improvement of covered drive-thru (extend front/cafeteria area); and landscape improvements including new turf near gym;
Renovations, new construction, and improvements to Scott Elementary School to include HVAC repair/replacements, roof repair and replacement as needed, and new construction;
Renovations, new construction, and improvements to Scholars Academy to include renovation of the "multi-purpose" room (old media center); South Building moisture eradication; exterior lighting at North and South Buildings; and separate intercom systems for SA, MPMS, and fieldhouse;
Renovations, new construction, and improvements systemwide to: athletic facilities for all sports, including landscape improvements for athletic fields including but not limited to fencing and other upgrades; stadium renovations; heating and air conditioning systems; roof renovations/modifications; acquisition of lawn equipment and maintenance equipment; technology upgrades/replacements and acquisition of software; computers, routers, tablets, switches, cabling; infrastructure modifications; band/music/fine arts program upgrades; acquiring instruments, uniforms; equipment (accessory support); establish landscaping (including drainage); perform signage improvements; parking lot resurfacing and/or new construction furnishings; acquisition and installation of safety & security system upgrades/ installation; cameras; alarm systems; entry/exit identification system; new intercom systems; lighting (exterior); crisis kits (first aid kits, defib machines, etc.); computer controlled HVAC Systems; and transportation upgrades including acquisition of replacement/new buses and replacement vehicles to fleet.

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

5,332,313.00 $

55,000.00

6/30/2022

-

87,000.00

1,500,000.00

2,500,000.00

6/30/2022 6/30/2022

-

70,000.00

6/30/2022

-

25,000.00

6/30/2022

-

-

6/30/2022

3,120,000.00

7,100,000.00

6/30/2023 - 54 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

PROJECT

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

Renovations, new construction, and improvements to

Thomasville High School to include improvement/replacement

of storm drains; improvement to the AFJROTC/CTAE Tech

Building to comply with industry certified standards; upgrade

restrooms; and renovation of science labs.

$

- $

41,136.84 $

- $

-

Renovations, new construction, and improvements to

MacIntyre Park Middle School & Scholars Academy Building

to include renovations/addition to the auditorium stage;

improvement/upgrades to lighting and sound system; new

stage curtains; parking lot improvements; furnishings;

electrical upgrades; restroom and hallway renovations; and

upgrades to the cafeteria.

-

86,524.78

-

-

Renovations and improvements to Harper Elementary School to the kitchen and cafeteria;

-

2,006,179.48

-

-

Renovations, new construction, and improvements to Jerger

Elementary School to include playground upgrades;

improvements to drainage on campus; construction/

improvement of covered drive-thru (extend front/cafeteria

area); and landscape improvements including new turf near gym;

-

68,364.44

-

-

Renovations, new construction, and improvements to Scott

Elementary School to include HVAC repair/replacements,

roof repair and replacement as needed, and new construction;

14,400.00

9,514.29

-

-

Renovations, new construction, and improvements to

Scholars Academy to include renovation of the "multi-purpose"

room (old media center); South Building moisture eradication;

exterior lighting at North and South Buildings; and separate

intercom systems for SA, MPMS, and fieldhouse;

-

-

-

-

Renovations, new construction, and improvements system-

wide to: athletic facilities for all sports, including landscape

improvements for athletic fields including but not limited to

fencing and other upgrades; stadium renovations; heating

and air conditioning systems; roof renovations/modifications;

acquisition of lawn equipment and maintenance equipment;

technology upgrades/replacements and acquisition of

software; computers, routers, tablets, switches, cabling;

infrastructure modifications; band/music/fine arts program

upgrades; acquiring instruments, uniforms; equipment

(accessory support); establish landscaping (including

drainage); perform signage improvements; parking lot

resurfacing and/or new construction furnishings; acquisition

and installation of safety & security system upgrades/

installation; cameras; alarm systems; entry/exit identification

system; new intercom systems; lighting (exterior); crisis kits

(first aid kits, defib machines, etc.); computer controlled

HVAC Systems; and transportation upgrades including

acquisition of replacement/new buses and replacement

vehicles to fleet.

226,430.61

6,828,677.09

-

-

- 55 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

PROJECT
Renovations, new construction, and improvements to athletic facilities and programs including acquisition of material, as needed, and installation of new lighting at stadium field and practice field; new softball parking lot, floor coverings, wall painting, lighting, volleyball (add-on Sport Title IX), relocate home-side (to original side), replace scoreboards (football, baseball), renovate restrooms and concessions at stadium, renovate fieldhouse locker rooms, construct new scoreboard in new gym; and upgrade/renovations of the gym including new metal skin, windows, floors, and locker rooms;
Renovations, new construction, and improvements to Jackson Street Board Office including renovation and/or new construction of warehouse and maintenance facilities; and
Renovations, new construction, and improvements to the Federal Building Broad Street Office including intercom system, completion of the "Innovation Classroom" space and other second floor space; renovation of windows for energy conservation; and exterior upgrades.
Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

30,000.00 -

200,000.00

6/30/2022

-

6/30/2022

-

100,000.00

$

9,982,313.00 $

10,137,000.00

6/30/2022

- 56 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

PROJECT

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

Renovations, new construction, and improvements to athletic

facilities and programs including acquisition of material, as

needed, and installation of new lighting at stadium field and

practice field; new softball parking lot, floor coverings, wall

painting, lighting, volleyball (add-on Sport Title IX), relocate

home-side (to original side), replace scoreboards (football,

baseball), renovate restrooms and concessions at stadium,

renovate fieldhouse locker rooms, construct new scoreboard

in new gym; and upgrade/renovations of the gym including

new metal skin, windows, floors, and locker rooms;

10,614.00

155,633.62

-

-

Renovations, new construction, and improvements to Jackson

Street Board Office including renovation and/or new

construction of warehouse and maintenance facilities; and

-

-

-

-

Renovations, new construction, and improvements to the Federal Building Broad Street Office including intercom system, completion of the "Innovation Classroom" space and other second floor space; renovation of windows for energy conservation; and exterior upgrades.

-

98,793.54

-

-

Total

$

251,444.61 $ 9,294,824.08 $

$

(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 Thomas County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt.
Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the basic financial statements.

- 57 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. Raymond L. Bryant, Jr., Superintendent and Members of the City of Thomasville Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Thomasville Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated February 21, 2023. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying Schedule of Findings and
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Questioned Costs, we did identify a certain deficiency in internal control that we consider to be a material weakness and certain deficiencies in internal control that we consider to be significant deficiencies.
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. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs in finding FS 2021-001 to be a material weakness.
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. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs in findings FS 2021-002 and FS 2021-003 to be significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
School District's Response to Findings
The School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
February 21, 2023

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

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
February 21, 2023

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

CITY OF THOMASVILLE BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS

FS 2020-001 Internal Control Procedures

Repeat of Prior Year Finding:

FS 2019-002, FS 2018-003, FS 2017-003, FS 2016-003

Finding Status:

Unresolved

The School District's size creates challenges with separation of duties. Several staff provide support and complete numerous aspects of the accounting function. However, the School District has been utilizing additional staff to review work and signoff to insure adequate controls. Additionally, significant turnover has impacted the system's ability to provide the best internal control systems and oversight.
FS 2019-002 Internal Control Procedures Repeat of Prior Year Finding: FS 2018-003, FS 2017-003, FS 2016-003

Finding Status:

Unresolved

See response to finding number FS 2020-001.
FS 2018-003 Internal Control Procedures Repeat of Prior Year Finding: FS 2017-003, FS 2016-003

Finding Status:

Unresolved

See response to finding number FS 2020-001.

FS 2017-003 Internal Control Procedures Repeat of Prior Year Finding: FS 2016-003

Finding Status:

Unresolved

See response to finding number FS 2020-001.

FS 2016-003 Internal Control Procedures

Finding Status:

Unresolved

See response to finding number FS 2020-001.

- 1 -

CITY OF THOMASVILLE BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS

FS 2020-002 Internal Controls over School Activity Accounts

Repeat of Prior Year Finding:

FS 2019-003, FS 2018-004

Finding Status: Unresolved
The entity will review their internal control procedures and ensure they are designed and operating appropriately. This will include review, prior to submission, of reports to ensure their accuracy.
FS 2019-003 Internal Controls over School Activity Accounts Repeat of Prior Year Finding: FS 2018-004

Finding Status:

Unresolved

See response to finding number FS 2020-002.

FS 2018-004 Internal Controls over School Activity Accounts

Finding Status:

Unresolved

See response to finding number FS 2020-002.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2020-001 Improve Controls over Financial Reporting

Federal Awarding Agency:

U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding:

FA 2019-001, FA 2018-003

Finding Status: Previously Reported Corrective Action Implemented

FA 2019-001 Improve Controls over Financial Reporting

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Repeat of Prior Year Finding: FA 2018-003

Finding Status:

Previously Reported Corrective Action Implemented

- 2 -

CITY OF THOMASVILLE BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2018-003 Improve Controls over Financial Reporting

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

Finding Status:

Previously Reported Corrective Action Implemented

- 3 -

Section IV Findings and Questioned Costs

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

SUMMARY OF AUDITOR'S RESULTS

Financial Statements

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

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

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

All major programs

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

Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

84.425

Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

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

- 1 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

II FINANCIAL STATEMENT FINDINGS FS 2021-001 Internal Control Procedures

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

Material Weakness None FS 2020-001, FS 2019-002, FS 2018-003, FS 2017-003, FS 2016-003

Description: The accounting procedures of the School District were insufficient to provide adequate internal controls over numerous control categories.

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

Condition: Cash and Cash Equivalents
A separation of duties issue in the cash maintenance process was noted. Finance personnel had the ability to complete bank reconciliations, record and process revenue, and record journal entries.
One out of twenty bank reconciliations reviewed by the auditor, did not have an entity reviewer's signature.
Five out of twenty bank reconciliations reviewed by the auditor, were noted as not reviewed in a timely manner. The review occurred in January 2022.
Seven out of twenty bank reconciliations reviewed by the auditor, did not note the date the review was performed.
Cash by bank and fund is not being maintained correctly, causing an understatement to cash of $47,741.82.
It was noted that $256,004.64 of the bank balances held at Synovus and Thomasville National Banks were not collateralized as required by O.C.G.A. 45-8-12.
Capital Assets A capital asset totaling $104,000 was not capitalized.
General Ledger A review of federal grant fund balances revealed that several grants were not properly closed out at year end. Federal programs should be reviewed each year to determine if funds need to be refunded to the grantor, or if a transfer or receivable is necessary to cover a deficit balance. Reconciliations over the general ledger to remove outdated activity and ensure adequate funds are requested for reimbursement are not being performed.

- 2 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
II FINANCIAL STATEMENT FINDINGS
Revenues/Receivables/Receipts A separation of duties issue in the revenue process was noted. Finance personnel record, process, and report the revenue/receivable and receipts, complete bank reconciliations and record journal entries. Due to not ensuring revenue recognition criteria was properly met, Title I Grants to Local Education Agencies programs has a net overstatement to revenue of $1,145,298.99 and Education Stabilization Fund programs has a net understatement to revenue of $1,418,406.96. An audit adjustment was proposed and accepted by the School District.
Expenditures/Liability/Disbursements An unidentified variance was noted between the financial statements and the accounts payable listing, in the amount of $40,118.50.
Employee Compensation A variance was noted between the financial statements and the salaries and benefits payable listing, in the amount of $684,773.08. Auditors proposed a correcting entry and it was accepted by the School District.
Journal Entries Journal entries initiated and recorded by the Chief Finance Officer, there is no control procedure requiring approval. One out of fifty-six journal entries reviewed, had no documentation provided. Thirteen out of fifty-six journal entries reviewed, had no documentation to support the entry made. Seven out of fifty-six journal entries reviewed, had no evidence of review and approval. Fifteen out of fifty-six journal entries reviewed, had no evidence of a separate preparer and reviewer. Two out of fifty-six journal entries reviewed, did not have adequate documentation to support the amount of the entry made.
Cause: Through discussions with School District personnel and management, it was determined these errors were caused due to the entity having a small financial staff and no review was performed to ensure proper procedures were performed and that amounts were properly recorded. Additionally, it was noted there were insufficient accounting controls and procedures in place.
Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of financial position and results of operations and could have impacted a decision maker.
- 3 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

II FINANCIAL STATEMENT FINDINGS
Recommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting function.
Views of Responsible Officials: We concur with this finding.

FS 2021-002 Internal Controls over School Activity Accounts

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

Significant Deficiency None FS 2020-002, FS 2019-003, FS 2018-004

Description: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts.

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

Condition: Revenues/Receivables/Receipts During a review of twenty-two school activity receipts, we observed the following control deficiencies:
There is an inadequate separation of duties of those personnel that record funds received, take deposits to the bank, and reconcile the activity.
Two of the receipts lacked adequate documentation verifying the amount initially collected by School District personnel.
One receipt lacked a deposit slip. One receipt had no documentation at all. One receipt was recorded incorrectly as revenue instead of a transfer.
Expenditures/Liabilities/Disbursements During a review of nineteen school activity expenditures, we observed the following control deficiencies:
There is an inadequate separation of duties of personnel that record approved expenditures, initiate check runs, and reconcile the activity.
Five expenditures had the requestor and approver being the same individual.

- 4 -

CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

II FINANCIAL STATEMENT FINDINGS
One expenditure did not have proper supporting documentation One expenditure was charged to the wrong school account. One expenditure was recorded incorrectly as an expenditure instead of a transfer.
Cause: Through discussions with School District personnel and management, it was determined these errors were caused due to the entity having a small financial staff and policies and procedures not being adequate to ensure appropriate supporting documentation was used and stored for standardized retrieval.

Effect:
The lack of adequate separation of duties and the failure to maintain adequate internal controls over student activity accounts increase the risk of theft, fraud, or misuse of School District resources that may result in errors and/or irregularities not being detected in a timely manner.

Recommendation:
Management should implement procedures to ensure that disbursement and receipt of funds within the school activity accounts are adequately documented and recorded in the financial records. Additionally, management should establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures.

Views of Responsible Officials: We concur with this finding.

FS 2021-003 Strengthen Controls over Financial Reporting

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

Significant Deficiency None No

Description: The School District did not have adequate internal controls in place over the financial statement reporting process.

Criteria:
Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB).

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CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
II FINANCIAL STATEMENT FINDINGS
GASB Statement No. 34, Basic Financial Statements Management's Discussion and Analysis - for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental fund balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements.
Chapter II 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles.
Condition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information presented for audit:
School activity account transactions for fiscal year 21 were not included in the client prepared financial statements. Cash, revenues, and expenditures were understated by $27,577.52, $765,919.62 and $738,342.10 respectively.
State accounts receivables and revenue were overstated by $98,197.92. Restatement amount for the implementation of GASB No. 84 was overstated by $2,733.01. Net position, net investment for capital assets was overstated by $1,071,660.86. A subsequent event related to the Dunlap property was not disclosed in the client prepared
financial statements. Several misclassifications between revenue and expenditure accounts were noted. Several misstatements noted within the entity's schedules and note disclosures. Audit adjustments were proposed and accepted by the School District for all items listed above.
Cause: These issues were a result of the School District's inadequate controls and review procedures over the financial statements.
Effect: Significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations.
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CITY OF THOMASVILLE BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021 II FINANCIAL STATEMENT FINDINGS Recommendation: The School District should strengthen the internal controls and review procedures over the financial process to ensure that the financial statements presented for audit are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of the applicable GAAP statements, the applicable GASB pronouncements, and the School District's operations. The School District should also consider implementing the use of a review checklist to assist in the review process over the financial statements. Views of Responsible Officials: We concur with this finding. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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Section V Management's Corrective Action