ANNUAL FINANCIAL REPORT FISCAL YEAR 2021
Ben Hill County Board of Education
Fitzgerald, Georgia
Including Independent Auditor's Report
Greg S. Griffin | State Auditor Kristina A. Turner | Deputy State Auditor

Ben Hill County Board of Education

Table of Contents

Section I

Financial

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G

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

37

2 Schedule of Contributions Teachers Retirement System of Georgia

38

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

39

Ben Hill County Board of Education Table of Contents Section I

Schedules

Required Supplementary Information

4 Schedule of Contributions Employees' Retirement System of Georgia

40

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

41

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

42

7 Schedule of Contributions School OPEB Fund

43

8 Notes to the Required Supplementary Information

44

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

46

Supplementary Information

10 Schedule of Expenditures of Federal Awards

47

11 Schedule of State Revenue

49

12 Schedule of Approved Local Option Sales Tax Projects

50

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 and Questioned Costs Section IV

Findings and Questioned Costs Schedule of Findings and Questioned Costs

Ben Hill County 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 Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County 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 Ben Hill County 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
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, 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 August 9, 2022 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
August 9, 2022

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
INTRODUCTION
The discussion and analysis of the Ben Hill County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2021. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal year 2021 are as follows:
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.
The School District received $765,292 more in equalization funds as part of an overall increase of $684,455 in state revenue in general fund over the prior year. The Federal Government provided grant revenue of $6.7 million through CARES (or ESSER) funding. Expenditures of these Federal funds will continue into fiscal year 2022 and beyond.
On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $10.6 million.
The School District had $41.5 million in expenses relating to governmental activities for the fiscal year. Program specific charges for services and grants and contributions of $41.5 million were sufficient to offset the above-mentioned expenses.
The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities (excluding net pension, OPEB and other long-term liabilities) was 3.7 based on the Statement of Net Position as of June 30, 2021. Generally, a ratio greater than 2.0 is considered very financially stable.
The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $7.7 million, an increase of $3.1 million from the June 30, 2020 fund balance.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District.
i

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Government-Wide Statements
The government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole.
The Statement of Net Position presents information on all of the School District's non-fiduciary assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between these reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating.
The Statement of Activities presents information showing how the School District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes).
These statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid.
The government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and federal grant funds finance most of these activities.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds or fiduciary funds.
Governmental funds - Governmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general, capital projects and debt service funds, which are considered to be major funds.
ii

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Fiduciary funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations.
Notes to the financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. This schedule is intended to demonstrate the School District's compliance with the legally adopted and amended budgets.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $10.6 million.
The largest portion of the School District's net position of $48.6 million, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending.
The School District reports a restricted net position of $6.5 million, which consists of SPLOST funds to be used for capital projects, debt service funds to be used for servicing debt, school nutrition funds to be used for student meals and reserve for bus replacement.
The remaining portion of the School District's net position represents an unrestricted net position deficit of $44.5 million. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively, of the financial statements.
The School District has current assets of $35.7 million. These assets include $27.1 million of cash and cash equivalents. The School District's capital assets are $64.0 million.
iii

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Table 1 provides a summary of the School District's net position for fiscal year 2021 compared to fiscal year 2020.

Table 1 Net Position

Assets Current and Other Assets Capital Assets, Net

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020 (1)

$ 35,730,452 $ 63,996,022

39,651,707 39,587,881

Total Assets

99,726,474

79,239,588

Deferred Outflows of Resources

14,701,940

9,405,538

Total Assets and Deferred Outflows of Resources

114,428,414

88,645,126

Liabilities Current and Other Liabilities Long-Term Liabilties

69,589,668 27,527,749

55,712,785 28,772,050

Total Liabilities

97,117,417

84,484,835

Deferred Inflows of Resources

6,739,020

8,400,191

Total Liabilities and Deferred Inflows of Resources

103,856,437

92,885,026

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

48,554,706 6,519,759
(44,502,488)

36,611,632 4,964,284
(45,815,816)

Total Net Position

$ 10,571,977 $

(4,239,900)

(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information.

iv

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Change in Net Position

The change in net position was an increase of $14.7 million from fiscal year 2020 to fiscal year 2021.

Table 2 shows the changes in net position for fiscal year 2021 compared to the changes in net position for fiscal year 2020.
Table 2 Change in Net Position

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

Governmental Activities

Fiscal Year

Fiscal Year

Net

2021

2020 (1)

Change

$ 338,488 $ 293,241 $

31,878,333 24,449,587

9,324,753

77,220

45,247 7,428,746 9,247,533

Total Program Revenues

41,541,574 24,820,048 16,721,526

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

7,262,527 26,499

6,822,594 25,994

2,653,295 84,091
3,867,212 40,617
702,900

2,626,192 83,711
3,101,920 189,201 556,172

439,933 505
27,103 380
765,292 (148,584) 146,728

Total General Revenues

14,637,141 13,405,784

1,231,357

Total Revenues

56,178,715 38,225,832 17,952,883

Program Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Operation Interest on Long-Term Debt

28,024,166 24,883,468

1,075,695 381,448 332,512
1,263,520 2,442,920
610,710 2,450,919 1,804,119
130,410 11,450

991,667 1,555,657
342,049 1,069,972 2,325,185 1,059,110 2,516,281 1,712,580
25,995 1,117,299

143,831 1,970,512
847,448

178,039 996,727 466,514

3,140,698
84,028 (1,174,209)
(9,537) 193,548 117,735 (448,400) (65,362)
91,539 104,415 (1,105,849)
(34,208) 973,785 380,934

Total Expenses

41,489,660 39,240,543

2,249,117

Change in Net Position

$ 14,689,055 $ (1,014,711) $ 15,703,766

(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements of additional information.
v

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Revenues
The School District's total revenue was $56.2 million for the year. Grants and contributions make up 80.2% and property taxes accounted for 13.0% of the School District's revenue.
Expenses
The School District's total expenses were $41.5 million. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 67.5% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 5.9% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure.

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
The focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year.
At the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $25.8 million, a decrease in fund balance of $9.1 million from the prior year.
General Fund
The general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $7.7 million, representing an unassigned fund balance of $6.5 million and a restricted, nonspendable and assigned fund balance of $1.2 million. Fund balance increased by $3.1 million as a result of an increase in state, federal and local funding for the fiscal year. The School District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available unassigned general fund balance of 17.3% of the $37.3 million general fund expenditures.
Capital Projects Fund
The capital projects funds accounts for capital projects managed by the School District. After expenditures of $25.8 million for construction of the new Fitzgerald High School, bond payments, and other expenditures the capital projects fund had a decrease in fund balance of $12.2 million and ended the year with a fund balance of $18.1 million.
Table 3 Governmental Fund Balances

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

General Fund Capital Projects Fund Debt Service Fund

$ 7,668,765 $ 4,458,887

18,112,662

30,309,132

-

-

Total

$ 25,781,427 $ 34,768,019

vi

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

General Fund Budgeting Highlights

The School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students.
In the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. The Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, is included in the financial statements. For fiscal year 2021, the School District's general fund had a favorable budget variance of $6.5 million. There was an $8.7 million unfavorable budget variance for revenues with a $15.2 million favorable budget variance for expenditures.

The $8.7 million unfavorable revenue budget variance is attributed to less state and federal funds collected than what was budgeted.
The $15.2 million favorable expenditure budget variance is attributable to less actual expenditures for instruction and maintenance and operation of plant than what was budgeted.
Capital Assets and Debt Administration

Capital Assets
At fiscal year ended June 30, 2021, the School District had $64.0 million invested in capital assets (net of accumulated depreciation). The capital assets increased by $24.4 million due to the additions to construction in progress of Fitzgerald High School and purchases of equipment. The net change in capital assets (net of accumulated depreciation) from fiscal year 2020 to fiscal year 2021 was $24.4 million.
Additional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements.
Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

Land Construction In Progress Buildings and Improvements Equipment Land Improvements

$

2,787,329 $

2,787,329

26,582,785

1,275,284

32,693,670

33,567,516

1,559,148

1,474,905

373,090

482,847

Total

$

63,996,022 $

39,587,881

vii

BEN HILL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Long-Term Debt

During the prior year, the School District issued general obligation bonds totaling $24,680,000 to build a new school.
General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2019

3% to 5% 12/12/2019

4/1/2037 $ 24,680,000 $ 23,680,000

CURRENT ISSUES
In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 continued throughout the fiscal year 2021 and continues to have a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government.
REQUESTS FOR INFORMATION
This report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Dawn Clements, Chief Operating Officer, Ben Hill County Board of Education, 509 West Palm Street, Fitzgerald, GA 31750. One may also call (229) 409-5500, visit our website www.benhill.k12.ga.us or send an email to dawn.clements@benhillschools.org.

viii

Ben Hill County Board of Education

BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Taxes State Government Federal Government Local Other 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 Interest Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Bus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

27,068,792.57

741,491.79 4,114,685.20 3,617,464.37
138,755.95 13,134.08 32,128.39 4,000.00
29,370,114.13 34,625,907.45 99,726,473.93

9,238,185.00 5,463,755.00 14,701,940.00

507,053.73 3,804,364.62
265,437.50 2,575,661.47 2,388,248.30
1,823.94 32,300,305.00 27,746,773.00
1,284,301.52 26,243,447.42
97,117,416.50

984,599.00 5,754,421.00 6,739,020.00

48,554,706.40

168,538.00 271,245.73 265,437.50 5,814,538.03 (44,502,488.23)

$

10,571,977.43

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

- 1 -

BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021

EXHIBIT "B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR SERVICES

GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

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

28,024,165.56 $
1,075,695.38 381,448.32 332,512.16
1,263,520.02 2,442,919.66
610,709.87 2,450,919.41 1,804,119.36
130,409.54 11,449.49
143,831.07 -
1,970,511.96 847,448.48

258,142.26 $ 25,223,914.63 $

64,000.00 -

207,776.27 316,538.88 428,647.81 675,968.85 1,042,119.38 20,044.83 1,068,705.62 1,135,954.94
1,217.64 11,085.45

16,346.00 -

1,746,358.39 -

7,951,802.43 $

5,409,693.76

112,772.54 12,008.94 40,282.45 248,983.24 231,660.00 153,549.76 -

(867,919.11) (64,909.44) 208,908.19 (575,542.23) (1,400,800.28) (550,382.59) (1,069,230.55) (436,504.42)
24,357.86 (364.04)

263,132.45 310,561.66
-

(143,831.07) 263,132.45 102,754.09 (847,448.48)

Total Governmental Activities

$ 41,489,660.28 $

338,488.26 $ 31,878,332.69 $ 9,324,753.47

51,914.14

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

7,262,526.52 26,499.20
2,653,294.54 84,091.57
3,867,212.00 40,617.02
702,899.78 14,637,140.63

Change in Net Position

14,689,054.77

Net Position - Beginning of Year (Restated)

(4,117,077.34)

Net Position - End of Year

$

10,571,977.43

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

- 2 -

BEN HILL COUNTY 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 Other Inventories Prepaid Items
Total Assets
LIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - State Funds
Total Deferred Inflows of Resources
FUND BALANCES Nonspendable Restricted Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources, and Fund Balances

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

5,211,809.59 $

21,856,982.98 $

501,714.81 2,642,941.73 3,617,464.37
138,755.95 13,134.08 32,128.39 4,000.00

239,776.98 1,471,743.47
-

$

12,161,948.92 $ 23,568,503.43 $

-

$

27,068,792.57

-

741,491.79

-

4,114,685.20

-

3,617,464.37

-

138,755.95

-

13,134.08

-

32,128.39

-

4,000.00

-

$

35,730,452.35

$

334,306.86 $

172,746.87 $

3,804,364.62

-

-

2,575,661.47

-

2,388,248.30

1,823.94

-

4,140,495.42

5,136,656.64

- $ -

507,053.73 3,804,364.62 2,575,661.47 2,388,248.30
1,823.94 9,277,152.06

352,689.10 -
352,689.10

319,184.60 319,184.60

-

352,689.10

-

319,184.60

-

671,873.70

32,128.39 407,655.34 750,854.14 6,478,126.53 7,668,764.40

18,112,662.19
18,112,662.19

-

32,128.39

-

18,520,317.53

-

750,854.14

-

6,478,126.53

-

25,781,426.59

$

12,161,948.92 $ 23,568,503.43 $

-

$

35,730,452.35

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

-3-

BEN HILL COUNTY 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 Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability
Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Taxes that are not available to pay for current period expenditures are deferred in the funds.
State grants that are not available to pay current period expenditures are deferred in the funds.
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Bonds payable Accrued interest payable Unamortized bond premiums
Net position of governmental activities (Exhibit "A")

$

25,781,426.59

$

2,787,329.22

26,582,784.91

49,398,031.48

6,864,534.63

2,994,268.28

(24,630,926.94)

63,996,021.58

$

(32,300,305.00)

(27,746,773.00)

(60,047,078.00)

$

8,253,586.00

(290,666.00)

7,962,920.00 352,689.10 319,184.60

$

(23,680,000.00)

(265,437.50)

(3,847,748.94)

$

(27,793,186.44) 10,571,977.43

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

- 4 -

BEN HILL COUNTY 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 Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning (Restated)
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

7,253,428.36 $

84,091.57

23,545,744.44

12,460,435.35

338,488.26

16,626.20

702,899.78

44,401,713.96

- $ 2,966,365.11 8,773,908.87
23,990.82 11,764,264.80

- $ -

7,253,428.36 3,050,456.68 32,319,653.31 12,460,435.35
338,488.26 40,617.02
702,899.78 56,165,978.76

25,460,619.81
1,015,521.28 298,651.16 295,757.56
1,208,408.38 2,313,322.38
579,292.53 2,305,952.65
1,687,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42
-
37,338,635.43 7,063,078.53

164,123.59
21,960.98 150,042.12 176,000.00 25,322,881.37
25,835,008.06 (14,070,743.26)

-
-
1,000,000.00 1,101,750.00 2,101,750.00
(2,101,750.00)

25,624,743.40
1,015,521.28 298,651.16 295,757.56
1,230,369.36 2,313,322.38
579,292.53 2,455,994.77
1,863,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42 25,322,881.37
1,000,000.00 1,101,750.00
65,275,393.49 (9,109,414.73)

(3,976,023.89) (3,976,023.89)

3,976,023.89 (2,101,750.00) 1,874,273.89

3,087,054.64

(12,196,469.37)

4,581,709.76

30,309,131.56

$

7,668,764.40 $

18,112,662.19 $

2,101,750.00 -
2,101,750.00

6,077,773.89 (6,077,773.89)
-

-

(9,109,414.73)

-

34,890,841.32

- $

25,781,426.59

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

- 5 -

BEN HILL COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 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
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Taxes reported in the funds are not reported as revenue in the Statement of Activities during the current period.
State grants reported in the Statement of Activities that do not provide current financial resources are not reported as revenue in the funds.
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. 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 Amortization of bond premium
District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Net decrease in accrued interest
Change in net position of governmental activities (Exhibit "B")

$

(9,109,414.73)

$

25,733,229.09

(1,325,088.72)

24,408,140.37 35,597.36
(313,070.57) 319,184.60

$

1,000,000.00

244,301.52

1,244,301.52

$

(1,566,089.78)

(339,594.00)

(1,905,683.78)

10,000.00

$

14,689,054.77

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

- 6 -

BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2021
ASSETS Cash and Cash Equivalents NET POSITION Held in Trust for Private Purposes

EXHIBIT "G"

PRIVATE PURPOSE TRUSTS

$

8,761.73

$

8,761.73

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

-7-

BEN HILL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021
ADDITIONS Contributions Donors Investment Earnings Interest Miscellaneous
Total Additions
DEDUCTIONS Other Deductions
Change in Net Position
Net Position - Beginning Net Position - Ending

EXHIBIT "H"

PRIVATE PURPOSE TRUSTS

$

7,000.00

16.73 1,449.49

8,466.22

7,000.00

1,466.22

7,295.51

$

8,761.73

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

-8-

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

- 9 -

BEN HILL COUNTY 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), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest.
The School District reports the following fiduciary fund type:
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.
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.

- 10 -

BEN HILL COUNTY 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, 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 post-employment 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.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
- 11 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Inventories
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

Prepaid Items
Payments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements.

Capital Assets
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.
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 Construction In Progress Intangible - Software All Other - Intangible Assets

Any Amount

$

50,000.00

$

50,000.00

$

5,000.00

$

50,000.00

$ 100,000.00

$

10,000.00

N/A 15 Years
60 to 75 Years 5 to 25 Years N/A 10 Years 20 Years

- 12 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straightline method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
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.
- 13 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

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

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

Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Property Taxes

The Ben Hill County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on July 30, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 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 Ben Hill County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $6,432,091.26.

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

18.11 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $794,837.90 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 $2,966,365.11 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.
- 14 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
Collateralization of Deposits
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and - 15 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

(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, School District had deposits with a carrying amount of $12,987,272.59, and a bank balance of $14,268,237.02. The bank balances insured by Federal depository insurance were $500,000.00 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 $9,140,894.00.
At June 30, 2021, $4,627,343.02 of the School District's bank balances was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

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BEN HILL COUNTY 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

$ 27,068,792.57 8,761.73

Total cash and cash equivalents

27,077,554.30

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

14,090,281.71

Total carrying value of deposits - June 30, 2021

$ 12,987,272.59

Categorization of Cash Equivalents
The School District reported cash equivalents of $14,090,281.91 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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BEN HILL COUNTY 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 Construction in Progress

Balances July 1, 2020

Increases

Decreases

Balances June 30, 2021

$ 2,787,329.22 $

- $

1,275,283.82

25,307,501.09

- $ 2,787,329.22

-

26,582,784.91

Total Capital Assets Not Being Depreciated

4,062,613.04

25,307,501.09

-

29,370,114.13

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

49,492,298.52 6,525,323.63 2,994,268.28
15,924,782.37 5,050,418.39
2,511,421.50

425,728.00
-

94,267.04 86,517.00
-

49,398,031.48 6,864,534.63 2,994,268.28

873,846.56 341,485.45 109,756.71

94,267.04 86,517.00
-

16,704,361.89 5,305,386.84
2,621,178.21

Total Capital Assets Being Depreciated, Net

35,525,268.17

(899,360.72)

-

34,625,907.45

Governmental Activities Capital Assets - Net

$ 39,587,881.21 $ 24,408,140.37 $

- $ 63,996,021.58

Current year depreciation expense by function is as follows:

Instruction

Support Services

Educational Media Services

$

General Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Food Services

16,433.75 1,750.00 5,870.15 74,627.93 187,567.63 22,376.00

$ 971,206.77
308,625.46 45,256.52

$ 1,325,088.75

- 18 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

NOTE 6: INTERFUND TRANSFERS Interfund Transfers Interfund transfers for the year ended June 30, 2021, consisted of the following:

Transfers to

Transfers From

Capital Projects

General Fund

Fund

EXHIBIT "I"

Capital Projects Fund Debt Service Fund

$ 3,976,023.89 $ -

2,101,750.00

Total

$ 3,976,023.89 $ 2,101,750.00

Transfers are used to move property tax revenues collected by the general fund to capital projects fund as required match or supplemental funding source for capital construction projects. Transfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund to provide funding to service debt.

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 $ 24,680,000.00 $

Unamortized Bond Premiums

4,092,050.46

$ 28,772,050.46 $

- $ 1,000,000.00 $ 23,680,000.00 $ 1,040,000.00

-

244,301.52

3,847,748.94

244,301.52

- $ 1,244,301.52 $ 27,527,748.94 $ 1,284,301.52

General Obligation Debt Outstanding
The School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 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 a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.

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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Of the total amount originally authorized, $2,720,000.00 remains unissued. General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2019 3% to 5% 12/12/2019 4/1/2037 $ 24,680,000.00 $ 23,680,000.00

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

Unamortized Bond Premium

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

$ 1,040,000.00 $ 1,061,750.00 $

244,301.52

1,080,000.00

1,020,150.00

244,301.52

1,125,000.00

976,950.00

244,301.52

1,180,000.00

920,700.00

244,301.52

1,240,000.00

861,700.00

244,301.52

7,050,000.00

3,451,750.00

1,221,507.60

8,945,000.00

1,559,100.00

1,221,507.60

2,020,000.00

80,800.00

183,226.14

Total Principal and Interest $ 23,680,000.00 $ 9,932,900.00 $ 3,847,748.94
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.
Workers' Compensation
Georgia Education Workers' Compensation Trust
The School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also
- 20 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium.

Unemployment Compensation
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020 $

-

$

1,320.00

$

1,320.00

$

-

2021 $

-

$

2,855.50

$

2,855.50

$

-

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

Position Covered

Amount

Superintendent

$

Military Property Custodian

$

Each Principal

$

Director of Budget and Finance

$

Each Lunchroom Manager and Assistant Manager $

Each Secretary and Bookkeeper

$

Payroll Administrator

$

99,000.00 24,000.00
9,000.00 8,000.00 4,000.00 4,000.00 3,000.00

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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Nonspendable Inventories
Restricted Bus Replacement Continuation of Federal Programs Capital Projects Debt Service
Assigned School Activity Accounts Donated Funds
Unassigned

$

32,128.39

$ 168,538.00 239,117.34
17,581,787.19 530,875.00

18,520,317.53

$

107,650.87

643,203.27

750,854.14 6,478,126.53

Fund Balance, June 30, 2021

$ 25,781,426.59

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

NOTE 10: SIGNIFICANT COMMITMENTS
Commitments under Construction Contracts The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2021, together with funding available:

Project

Unearned Executed Contracts (1)

Payments through June 30, 2021 (2)

Funding Available From State (1)

FHS High School

$ 18,029,487.06 $ 26,188,136.28 $ 2,323,125.93

(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end.
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $693,545.00 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 $27,746,773.00 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 0.188912%, which was an increase of 0.000872% from its proportion measured as of June 30, 2019.

- 23 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

For the year ended June 30, 2021, the School District recognized OPEB expense of $1,033,139.00. 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

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and

actual experience

$

- $ 3,029,086.00

Changes of assumptions

4,588,700.00

2,468,866.00

Net difference between projected and actual earnings on OPEB plan investments

72,319.00

-

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

109,191.00

256,469.00

School District contributions

subsequent to the measurement date

693,545.00

-

Total

$ 5,463,755.00 $ 5,754,421.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 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

$ (620,509.00) $ (622,449.00) $ (437,601.00) $ 59,143.00 $ 464,258.00 $ 172,947.00

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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

7.00% 5.25%

Ultimate trend rate Pre-Medicare Eligible Medicare Eligible

4.50% 4.50%

Year of Ultimate trend rate

Pre-Medicare Eligible

2029

Medicare Eligible

2023

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 changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.
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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class

Target allocation

Long-Term Expected Real Rate of Return*

Fixed income Equities

30.00% 70.00%

0.50% 9.20%

Total

100.00%

*Net of Inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 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.

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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

Sensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the collective net OPEB liability of the participating employers 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

$ 32,597,881.00 $

27,746,773.00 $ 23,867,242.00

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 collective net OPEB liability of the participating employers, as well as what the collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint 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

$ 23,101,978.00 $

27,476,773.00 $ 33,760,434.00

OPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.
NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
Teachers Retirement System of Georgia (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A.47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and
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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 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 18.81% of payroll was required from the School District and 0.25% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,331,133.00 and $39,510.10 from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
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
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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 24.66% of annual covered payroll for old plan members of which 19.91% was required from the School District and 4.75% was contributed on behalf of the School District by the state. Additionally, the School District's total required contribution rate was 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 $16,089.00 for the current fiscal year.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $56,280.00.
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 $32,300,305.00 for its proportionate share of the net pension liability for TRS ($32,192,613.00) and ERS ($107,692.00).

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BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

$ 32,192,613.00

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

120,635.00 $ 32,313,248.00

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 0.132896%, which was an increase of 0.002634% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.002555%, which was an increase of 0.000194% 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 $360,715.00.
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 $4,886,164.00 for TRS, $19,970.00 for ERS and $72,588.00 for PSERS and revenue of ($5,773.00) for TRS and $72,588.00 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.

- 30 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

Deferred

Outflows of

Inflows of

Resources

Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$ 1,401,998.00 $

- $

1,312.00 $

-

Changes of assumptions

3,315,876.00

-

-

-

Net difference between projected and actual

earnings on pension plan investments

775,364.00

-

1,521.00

-

Changes in proportion and differences

between School District contributions and

proportionate share of contributions

388,705.00

984,599.00

6,187.00

-

School District contributions subsequent to the

measurement date

3,331,133.00

-

16,089.00

-

Total

$ 9,213,076.00 $ 984,599.00 $

25,109.00 $

-

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

$ 786,603.00 $ 3,540.00 $ 1,514,643.00 $ 2,384.00 $ 1,782,533.00 $ 1,765.00 $ 813,565.00 $ 1,331.00

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BEN HILL COUNTY 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

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

7.25%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually
Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.
The actuarial assumptions used in the June 30, 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

2.75%

Salary increases

3.25% - 7.00%, including inflation

Investment rate of return

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.

- 32 -

BEN HILL COUNTY 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

2.75%

Salary increases

N/A

Investment rate of return

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.

- 33 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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 shown 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.
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.

- 34 -

BEN HILL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "I"

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

$

51,049,799.00 $

32,192,613.00 $

16,735,127.00

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

$

151,504.00 $

107,692.00 $

70,304.00

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

Net Position, July 1, 2020 as previously reported

$ (4,239,900.37)

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

122,823.03

Net Position, July 1, 2020, as restated

$ (4,117,077.34)

Fund Balance (General Fund), July 1, 2020, as previously reported

$ 4,458,886.73

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

122,823.03

Fund Balance (General Fund), July 1, 2020, as restated

$ 4,581,709.76

Funds Held for Others of $122,823.03, previously presented in Fiduciary Funds, was reclassified to Net Position and Fund Balance (General Fund).

- 35 -

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

SCHEDULE "1"

For the Year Ended
June 30

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

School District's proportionate share of the NPL

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

Total

School District's covered payroll

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

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

2021 2020 2019 2018 2017 2016 2015

0.132896% $ 32,192,613.00 $ 0.130262% $ 28,009,852.00 $ 0.133661% $ 24,810,345.00 $ 0.140963% $ 26,198,408.00 $ 0.142743% $ 29,449,472.00 $ 0.147075% $ 22,390,708.00 $ 0.154807% $ 19,557,823.00 $

120,635.00 107,729.00 116,570.00 213,917.00 244,066.00 189,996.00 160,953.00

$ 32,313,248.00 $ 28,117,581.00 $ 24,926,915.00 $ 26,412,325.00 $ 29,693,538.00 $ 22,580,704.00 $ 19,718,776.00

$ 17,203,475.45 $ 15,963,784.68 $ 15,994,439.37 $ 16,314,149.47 $ 15,786,646.73 $ 15,656,895.31 $ 15,932,172.02

187.13% 175.46% 155.12% 160.59% 186.55% 143.01% 122.76%

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.

- 37 -

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

SCHEDULE "2"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $
2,041,552.01 $

3,331,133.00 $ 3,623,230.00 $ 3,323,640.00 $ 2,676,096.72 $ 2,309,164.92 $ 2,234,505.20 $
2,041,552.01 $

-

$

17,711,587.22

-

$

17,203,475.45

-

$ 15,963,784.68

-

$

15,994,439.37

-

$

16,314,149.47

-

$

15,786,646.73

-

$

15,656,895.31

18.81% 21.06% 20.82% 16.73% 14.15% 14.15% 13.04%

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

- 38 -

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

SCHEDULE "3"

For the Year Ended June 30

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 2017 2016 2015

0.002555% $ 0.002361% $ 0.002196% $ 0.002523% $ 0.002585% $ 0.002558% $ 0.002591% $

107,692.00 $ 97,427.00 $ 90,278.00 $ 102,467.00 $ 122,281.00 $ 103,635.00 $ 97,179.00 $

65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.36 58,346.42

163.92% 177.57% 161.14% 165.59% 203.47% 177.19% 166.56%

76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99%

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

- 39 -

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

SCHEDULE "4"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $

16,089.00 $ 16,200.78 $ 13,596.00 $ 13,899.49 $ 15,352.05 $ 14,856.00 $ 12,844.08 $

-

$

-

$

-

$

-

$

-

$

-

$

-

$

65,243.16 65,696.44 54,867.38 56,023.77 61,878.66 60,097.22 58,488.26

24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96%

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

- 40 -

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

SCHEDULE "5"

For the Year Ended
June 30

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

School District's proportionate share of the NPL

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

Total

School District's covered payroll

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

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

2021 2020 2019 2018 2017 2016 2015

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

-

$

360,715.00 $ 360,715.00 $

777,289.13

-

$

338,812.00 $ 338,812.00 $ 783,850.97

-

$

293,873.00 $ 293,873.00 $ 813,644.00

-

$

273,648.00 $ 273,648.00 $ 730,766.58

-

$

383,890.00 $ 383,890.00 $

725,869.10

-

$

242,736.00 $ 242,736.00 $ 783,445.60

-

$ 224,650.00 $ 224,650.00 $ 846,638.60

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.

- 41 -

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

SCHEDULE "6"

For the Year Ended
June 30

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

School District's proportionate share of the NOL

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

Total

School District's covered-
employee payroll

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

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

2021 2020 2019 2018

0.188912% $ 27,746,773.00 $ 0.188040% $ 23,076,542.00 $ 0.188132% $ 23,911,000.00 $ 0.188905% $ 26,541,077.00 $

-

$ 27,746,773.00 $ 15,452,349.64

-

$ 23,076,542.00 $ 14,511,158.88

-

$ 23,911,000.00 $ 14,202,987.29

-

$ 26,541,077.00 $ 14,340,666.23

179.56% 159.03% 168.35% 185.08%

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.

- 42 -

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

SCHEDULE "7"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2021

$

2020

$

2019

$

2018

$

693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $

693,545.00 $ 638,857.00 $ 1,012,725.00 $ 975,069.00 $

-

$

16,104,571.59

-

$ 15,452,349.64

-

$

14,511,158.88

-

$ 14,202,987.29

4.31% 4.13% 6.98% 6.87%

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

- 43 -

BEN HILL COUNTY 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.

- 44 -

BEN HILL COUNTY 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.

- 45 -

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

SCHEDULE "9"

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

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

$

- $

6,325,000.00 $

7,253,428.36 $

928,428.36

-

60,000.00

84,091.57

24,091.57

14,850.00

23,695,659.66

23,545,744.44

(149,915.22)

2,872,541.00

22,874,736.88

12,460,435.35

(10,414,301.53)

-

146,100.00

338,488.26

192,388.26

-

12,516.00

16,626.20

4,110.20

-

19,789.12

702,899.78

683,110.66

2,887,391.00

53,133,801.66

44,401,713.96

(8,732,087.70)

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 Operation Food Services Operation Total Expenditures
Excess of Revenues over (under) Expenditures

22,341,781.55
1,025,957.79 972,090.16 333,693.40
1,070,336.89 2,120,580.45
617,235.20 2,463,189.00
1,724,731.56 86,756.00 65,500.00 197,401.00
2,001,636.00 35,020,889.00 (32,133,498.00)

35,555,725.88
1,387,276.70 1,124,642.16 339,780.40 1,086,627.89 2,146,740.45 628,038.20 5,393,737.00 2,476,157.06
94,405.00 65,500.00 197,401.00 2,093,650.41 52,589,682.15 544,119.51

25,460,619.81
1,015,521.28 298,651.16 295,757.56
1,208,408.38 2,313,322.38
579,292.53 2,305,952.65
1,687,152.11 108,815.08 10,000.00 143,831.07 1,911,311.42 37,338,635.43 7,063,078.53

10,095,106.07
371,755.42 825,991.00 44,022.84 (121,780.49) (166,581.93)
48,745.67 3,087,784.35
789,004.95 (14,410.08) 55,500.00 53,569.93 182,338.99
15,251,046.72 6,518,959.02

OTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses)

411,868.00 (411,868.00)
-

656,868.00 (411,868.00) 245,000.00

(3,976,023.89) (3,976,023.89)

(656,868.00) (3,564,155.89) (4,221,023.89)

Net Change in Fund Balances

(32,133,498.00)

789,119.51

3,087,054.64

2,297,935.13

Fund Balances - Beginning (Restated)

3,799,913.93

3,799,913.93

4,581,709.76

781,795.83

Adjustments

9,740.97

(33,818.00)

-

33,818.00

Fund Balances - Ending

$

(28,323,843.10) $

4,555,215.44 $

7,668,764.40 $

3,113,548.96

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

See notes to the basic financial statements.

- 46 -

BEN HILL COUNTY 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 Child Nutrition Discretionary Grants Limited Availability Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Pass-Through From Rural Utilities Services 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 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 English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Achievement Program Rural Education Achievement Program Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.579

215GA324N1199 $ 215GA324N1199 215GA350N8103

360,954.12 1,386,076.18
19,270.09 1,766,300.39

10.560 10.855

205GA904N2533 RUS-21-01-DLT

6,233.78 297,213.30 303,447.08 2,069,747.47

84.425D 84.425D
84.425U

S425D200012 S425D210012
S425U210012

1,486,334.00 4,917,277.58
337,545.49 6,741,157.07

84.027A 84.173A

H027A200073 H173A200081

651,592.22 34,388.24 685,980.46

84.048A 84.371C 84.365A 84.011 84.011 84.358B 84.358B 84.367A 84.010A 84.010A

V048A200010 S371C190016-19A
S365A200010 S011A190011 S011A200011 S365B190010 S365B200010 S367A200001 S010A190010 S010A200010

49,168.00 202,786.40
10,423.84 858.00
26,751.81 533.00
59,947.85 1,300.00 493,092.00 2,020,729.52 2,865,590.42 10,292,727.95

- 47 -

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant Pass-Through From Children and Youth Coordinating Council Abstinence Education Total U. S. Department of Health and Human Services
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

93.575 93.235

NIG95295

16,232.00
99,246.47 115,478.47

12. UNKNOWN

51,676.38

$

12,529,630.27

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 Ben Hill County 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.

See notes to the basic financial statements.

- 48 -

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

AGENCY/FUNDING

GRANTS

Bright From the Start:

Georgia Department of Early Care and Learning

Pre-Kindergarten Program

$

Summer Transition 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

Mid-term Adjustment Hold-Harmless

Amended Formula Adjustment

Charter System Adjustment

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Education Equalization Funding Grant

Other State Programs

Food Services

Hygiene Products

Math and Science Supplements

Preschool Disability Services

Pupil Transportation - State Bonds

Teachers Retirement

Vocational Education

Vocational Supervisors

Georgia State Financing and Investment Commission

Reimbursement on Construction Projects

Office of the State Treasurer

Public School Employees Retirement

Technical College System of Georgia

Vocational - Technology School

$

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAPITAL PROJECTS FUND

782,096.26 $ 113,844.08

- $ -

1,018,005.00 325,181.00
1,749,344.00 1,126,614.00 804,761.00 1,070,159.00 2,038,762.00 1,573,114.00 578,063.00 2,659,777.00 727,469.00 1,223,843.00
145,514.00 122,620.00 384,555.00 118,277.00 67,203.00
1,518.00
567,663.00 844,140.00 777,457.00 37,306.00 (583,658.00) 304,832.00
398,298.00 154,440.00
61,232.00 3,867,212.00
53,350.00 1,877.00
14,850.00 101,002.00 77,220.00
39,510.10 128,365.00
13,649.00
-
56,280.00
-
23,545,744.44 $

-
-
-
-
7,651,112.20
-
1,122,796.67
8,773,908.87 $

See notes to the basic financial statements.

TOTAL
782,096.26 113,844.08
1,018,005.00 325,181.00
1,749,344.00 1,126,614.00 804,761.00 1,070,159.00 2,038,762.00 1,573,114.00 578,063.00 2,659,777.00 727,469.00 1,223,843.00
145,514.00 122,620.00 384,555.00 118,277.00 67,203.00
1,518.00
567,663.00 844,140.00 777,457.00 37,306.00 (583,658.00) 304,832.00
398,298.00 154,440.00
61,232.00 3,867,212.00
53,350.00 1,877.00
14,850.00 101,002.00 77,220.00
39,510.10 128,365.00
13,649.00
7,651,112.20
56,280.00
1,122,796.67
32,319,653.31
- 49 -

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

PROJECT 2016
(i) Replacement of schools and/or construction of new schools, including and necessary demolition;
(ii) Adding to, renovating, repairing, improving, furnishing, and/or equipping existing school buildings, including the central office, transportation and maintenance facilities, including necessary demolition;
(iii) Adding to, constructing, renovating, furnishing, and/or equipping athletic facilities;
(iv) Acquiring equipment, instruments and/or materials for the fine arts, vocational, physical education and athletic departments;
(v) Renovations, additions, and/or improvements to parking, traffic access facilities and transportation department, including paving and any necessary site work;
(vi) Acquiring instructional and/or administrative technology equipment and materials;
(vii) Acquiring safety, security, and/or fire protecting equipment;
(viii) Acquiring buses, vehicles, and/or transportation equipment;
(ix) Acquiring property; and
(x) Paying a portion of the principal and interest on the current general obligation debt and general obligation debt to be issued (collectively, the "Projects").
Total

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$ 3,500,000.00 $ 26,448,730.45

2022

500,000.00 500,000.00 200,000.00

500,000.00 500,000.00 200,000.00

2022 2022 2022

1,000,000.00

1,000,000.00

1,000,000.00 100,000.00 750,000.00 500,000.00

1,000,000.00 100,000.00 812,805.00 1,521,309.21

2022
2022 2022 2022 2022

7,950,000.00

7,950,000.00

$ 16,000,000.00 $ 40,032,844.66

2037

- 50 -

BEN HILL COUNTY 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

(i) Replacement of schools and/or construction of new schools,

including and necessary demolition;

$ 25,307,501.37 $ 1,141,229.08 $

- $

-

(ii) Adding to, renovating, repairing, improving, furnishing, and/or

equipping existing school buildings, including the central office,

transportation and maintenance facilities, including necessary

demolition;

67,900.00

389,649.24

-

-

(iii) Adding to, constructing, renovating, furnishing, and/or equipping

athletic facilities;

-

237,990.20

-

-

(iv) Acquiring equipment, instruments and/or materials for the fine

arts, vocational, physical education and athletic departments;

15,380.00

37,994.69

-

-

(v) Renovations, additions, and/or improvements to parking, traffic

access facilities and transportation department, including paving

and any necessary site work;

-

-

-

-

(vi) Acquiring instructional and/or administrative technology equipment and materials;

211,341.19

689,209.16

-

-

(vii) Acquiring safety, security, and/or fire protecting equipment;

-

73,694.28

-

-

(viii) Acquiring buses, vehicles, and/or transportation equipment;

228,848.00

583,957.00

-

-

(ix) Acquiring property; and

-

1,521,309.21

-

-

(x) Paying a portion of the principal and interest on the current

general obligation debt and general obligation debt to be issued

(collectively, the "Projects").

2,105,787.50

1,676,787.41

-

-

Total

$ 27,936,758.06 $ 6,351,820.27 $

- $

-

(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 Ben Hill 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.

- 51 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Ben Hill County 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 August 9, 2022. 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 first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs in finding FS 2021-001 that we consider to be a significant deficiency.
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 finding 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
August 9, 2022

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Ms. Dawn Clements, Interim Superintendent and Members of the Ben Hill County Board of Education
Report on Compliance for Each Major Federal Program
We have audited the Ben Hill County 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.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying Schedule of Findings and Questioned Costs in finding FA 2021-001. Our opinion on each major federal program is not modified with respect to this matter.
The School District's response to the noncompliance finding 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 compliance and, accordingly, we express no opinion on the response.
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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we did identify a certain deficiency in internal control over compliance, described in the accompanying Schedule of Findings and Questioned Costs in finding FA 2021-001 that we consider to be a significant deficiency.

The School District's response to the internal control over compliance finding 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 compliance and, accordingly, we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
August 9, 2022

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

BEN HILL COUNTY 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 Controls over Financial Reporting

Finding Status:

Unresolved

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

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

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

Noncompliance material to financial statements noted:

Federal Awards

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

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

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 No Yes No
No Yes
Unmodified Yes
$750,000.00 No

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

II FINANCIAL STATEMENT FINDINGS

FS 2021-001 Internal Controls over Financial Reporting

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

Significant Deficiency
None FS 2020-001

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).

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:

Contracts payable and capital assets, non-depreciable were understated by $2,455,253.09 on the government-wide financial statements and contracts payable and expenditures were understated by $2,455,253.09 in the capital projects fund due to an unrecorded contract payable. This misstatement was material to government-wide and capital projects fund. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
State funds were overstated and unavailable revenue was understated by $319,184.60 in the capital projects fund due to funds not being collected within the School District's revenue recognition period of 120 days after year end. This misstatement was significant to the capital projects fund. An adjustment was proposed by the auditors and accepted by the School District.
The School District understated the amount expended in current year on the Schedule of Approved Local Option Sales Tax Projects by $23,445,861.44, amount expended in prior years by $3,961,613.85, and overstated total completion cost by $6,881,103.04. Adjustments were proposed by the auditors and accepted by the School District.

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

The pension schedules for TRS, ERS, and PSERS and the schedules for the School OPEB Fund, which are Required Supplementary Information, were submitted for audit excluding information for the current fiscal year.
Other audit adjustments and reclassifications were proposed by the auditors and accepted by the School District to properly present the School District's financial statements, note disclosures and supplemental information.
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 over the financial statement process could impact the reporting of the School District's financial position and results of operations.
Recommendation: The School District should strengthen their internal controls and review procedures over the financial reporting 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, 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

FA 2021-001 Strengthen Controls over Expenditures

Compliance Requirement:
Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Numbers and Titles:
Federal Award Numbers:
Questioned Costs:

Activities Allowed or Unallowed
Allowable Costs / Cost Principles Significant Deficiency
Nonmaterial Noncompliance U.S. Department of Education
Georgia Department of Education COVID-19 84.425D Elementary and Secondary School
Emergency Relief Fund COVID-19 84.425U American Rescue Plan Elementary
and Secondary School Emergency Relief Fund S425D200012 (Year: 2020), S425D210012 (Year: 2021),
S425U210012 (Year: 2021) $74,566

Description: A review of expenditures charged to the Elementary and Secondary Emergency Relief Fund programs (Assistance Listing Numbers 84.425D and 84.425U) revealed that the School District's internal control procedures were not operating to ensure that expenditures were appropriately documented to support
allowability.

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
Background Information: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways, including providing additional funding for local educational agencies (LEAs) navigating the impact of the COVID-19 outbreak.
Provisions included in Title VIII of the CARES Act created the Education Stabilization Fund to provide financial resources to educational entities to prevent, prepare for, and respond to coronavirus. The CARES Act allocated $30.75 billion, the Coronavirus Response and Relief Supplemental Appropriations Act allocated an additional $81.9 billion, and the American Rescue Plan Act added $165.1 billion in funding to the Education Stabilization Fund. Multiple Education Stabilization Fund subprograms were created and allotted funding through the various COVID-19-related legislation. Of these programs, the Elementary and Secondary School Emergency Relief (ESSER) Fund was created to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools across the nation.
ESSER funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of Education (ED). GaDOE was responsible for distributing funds to LEAs and overseeing the expenditure of funds by LEAs. ESSER funds totaling $6,741,157 were expended and reported on the Ben Hill County Board of Education's Schedule of Expenditures of Federal Awards (SEFA) for fiscal year 2021.
Criteria: As a recipient of federal awards, the School District is required to establish and maintain effective internal control over federal awards that provides reasonable assurance of managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.303 Internal Controls.
In addition, provisions included in Title VIII of the CARES Act state that the Education Stabilization Fund was established "to prevent, prepare for, and respond to coronavirus." Specifically, Section 18003(d) of the CARES Act lists 12 allowable uses of ESSER funds by LEAs.
Furthermore, provisions included in the Uniform Guidance, Section 200.403 Factors Affecting Allowability of Costs state that "costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the nonFederal entity... (g) Be adequately documented..."
Moreover, provisions included in the Uniform Guidance, Section 200.430 CompensationPersonal Services prescribe standards for documentation of personnel expenses and state, in part, that "(a) ... Costs for compensation are allowable to the extent that they satisfy... specific requirements..., and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i)..., [as follows:] (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed.

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity..."
Lastly, as a condition of receiving federal subawards from the GaDOE, LEAs are required to prepare an annual budget that reflects how funding will be expended. This budget is submitted in the Consolidated Application system and required to be reviewed and approved by the GaDOE program and grants management prior to expending federal program funds. LEA personnel must also provide programspecific assurances related to the ESSER program within the Consolidated Application system. These assurances are reflected in the Uniform Guidance, Section 200.415 Required Certifications, and include provisions that require LEAs "to assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets..."
Condition: A sample of 60 employees was randomly selected for testing using a non-statistical sampling approach. These employees were reviewed to determine if internal controls were properly functioning, and applicable compliance requirements were met. It was noted that six employees received retention bonuses totaling $4,000 for which they were not eligible based upon the stated criteria.
In addition, all nonpersonal services expenditures, which totaled $71,0174, were tested to determine if appropriate internal controls were implemented and applicable compliance requirements were met. It was noted that prior approval was not obtained from the GaDOE for one expenditure in the amount of $70,566 as this expenditure was not reflected in the approved budget within the Consolidated Application system as required.
Questioned Costs: Upon testing a sample of $532,025 in personal services expenditures, known questioned costs of $4,000 were identified. Using the total personal services expenditure population of $4,584,115 (excluding benefits payments), we project the likely questioned costs to be approximately $34,465. In addition, upon testing the entire population of $71,014 in nonpersonal services expenditures, known questioned costs of $70,566 were identified. The following assistance listing numbers were affected by the known questioned costs: 84.425D and 84.425U.
Cause: In discussing these deficiencies with management, they stated that preliminary guidance associated with the ESSER program was ambiguous, and cumulative, clarifying guidance was not published until more than a year after the initial ESSER funding was allocated to the School District. Therefore, the School District misinterpreted the initial guidance that was available at the beginning of Fiscal Year 2021. Therefore, there was a lack of internal controls over salaries paid with ESSER funding.
Effect: The School District is not in compliance with the Uniform Guidance or ED guidance related to the ESSER program. Failure to ensure that appropriate documentation exists to support the allowability of payments from the ESSER fund may expose the School District to unnecessary financial strains and shortages as ED or GaDOE may require the School District to return funds associated with improperly documented expenditures and/or unapproved expenditures.

BEN HILL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
Recommendation: The School District should review current internal control procedures related to ESSER program expenditures. Where vulnerable, the School District should develop and/or modify its policies and procedures to ensure that expenditures are appropriately documented and are appropriately approved by the GaDOE within the Consolidated Application system prior to the expending of federal program funds.
Views of Responsible Officials: We concur with this finding.

Section V Management's Corrective Action