BIBB COUNTY SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Bibb County School District Finance Division 484 Mulberry Street Macon, Georgia 31201 FOR THE FISCAL YEAR ENDED JUNE 30, 2003 Prepared by: BIBB COUNTY SCHOOL DISTRICT Bibb County School District Finance Division 484 Mulberry Street COMPREHENSIVEMaAcoNn, NGeUorgAiaL312F01INANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Bibb County School District Finance Division 484 Mulberry Street Macon, Georgia 31201 BIBB COUNTY SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................... i vii GFOA Certificate of Achievement................................................................................................................. viii Board of Public Education for Bibb County Function and Composition ........................................ ix xii Bibb County School District Superintendent and Administrative Staff ...................................xiii and xiv Organizational Chart ....................................................................................................................................... xv II. FINANCIAL SECTION Independent Auditor's Report.................................................................................................................... 1 3 Management's Discussion and Analysis ................................................................................................ 4 11 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ..................................................................................................................... 12 Statement of Activities ..............................................................................................................13 and 14 Fund Financial Statements: Balance Sheet Governmental Funds ................................................................................................ 15 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds .................................................................................................... 16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................... 17 Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund ................................................................... 18 Statement of Net Position Proprietary Funds.................................................................................. 19 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds........................................................................................................... 20 Statement of Cash Flows Proprietary Funds.......................................................................21 and 22 Statement of Fiduciary Net Position Fiduciary Funds .................................................................... 23 Statement of Changes in Fiduciary Net Position Fiduciary Funds ............................................... 24 Notes to Financial Statements ..................................................................................................... 25 68 Required Supplementary Information: Schedule of Proportionate Share of the Net Pension Liability Teachers Retirement System of Georgia ....................................................................................... 69 Schedule of Contributions Teachers Retirement System of Georgia ........................................... 70 Notes to Required Supplementary Information Teachers Retirement System of Georgia ....................................................................................... 71 Schedule of Proportionate Share of the Net Pension Liability Public School Employees Retirement System .............................................................................. 72 BIBB COUNTY SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page II. FINANCIAL SECTION (CONTINUED) Required Supplementary Information (continued) Notes to Required Supplementary Information Public School Employees Retirement System .............................................................................. 73 Schedule of Proportionate Share of the Net Pension Liability Employees' Retirement System ...................................................................................................... 74 Schedule of Contributions Employees' Retirement System.......................................................... 75 Notes to Required Supplementary Information Employees' Retirement System........................ 76 Schedule of Proportionate Share of the Net OPEB Liability School OPEB Fund ........................................................................................................................... 77 Schedule of Contributions School OPEB Fund............................................................................... 78 Notes to Required Supplementary Information School OPEB Fund ................................................................................................................................ 79 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet Nonmajor Governmental Funds .......................................................... 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds .................................................................................. 81 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds 2011 Issue .................................................................................................... 82 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds 2016 Issue .................................................................................................... 83 Combining Statement of Net Position Nonmajor Enterprise Funds ............................................. 84 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds ......................................................................... 85 Combining Statement of Cash Flows Nonmajor Enterprise Funds ..................................86 and 87 Combining Statement of Net Position Internal Service Funds ...................................................... 88 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds .................................................................................. 89 Combining Statement of Cash Flows Internal Service Funds ....................................................... 90 Combining Statement of Assets and Liabilities Agency Funds .................................................... 91 Combining Statement of Changes in Assets and Liabilities Agency Funds................................ 92 III. STATISTICAL SECTION Net Position by Activity Last Ten Fiscal Years....................................................................93 and 94 Changes in Net Position Last Ten Fiscal Years ..................................................................95 and 96 Fund Balances, Governmental Funds Last Ten Fiscal Years ............................................97 and 98 BIBB COUNTY SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page III. STATISTICAL SECTION (CONTINUED) Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years .....................99 and 100 Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years ...........101 and 102 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ..............................103 and 104 Principal Property Taxpayers Current Year and Nine Years Ago................................................ 105 Property Tax Levies and Collections Last Ten Fiscal Years........................................................ 106 Ratios of Outstanding Debt by Type Last Ten Fiscal Years ........................................................ 107 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years .......................................... 108 Legal Debt Margin Last Ten Fiscal Years.........................................................................109 and 110 Direct and Overlapping Governmental Activities Debt.................................................................... 111 Demographic and Economic Statistics Last Ten Fiscal Years .................................................... 112 Principal Employers Current Year and Nine Years Ago ............................................................... 113 Operating Statistics Last Ten Fiscal Years.................................................................................... 114 District Employees Last Ten Fiscal Years .......................................................................115 and 116 Teacher Salaries Last Ten Fiscal Years ......................................................................................... 117 Free and Reduced Price Lunch Eligibility Last Ten Fiscal Years................................................ 118 School Data Last Ten Fiscal Years ....................................................................................... 119 131 IV. SINGLE AUDIT SECTION 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 ...............................132 and 133 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance .................... 134 136 Schedule of Expenditures of Federal Awards ........................................................................ 137 138 Notes to Schedule of Expenditures of Federal Awards................................................................... 139 Schedule of Findings and Questioned Costs ......................................................................... 140 143 Schedule of Prior Year Findings ........................................................................................................ 144 Management's Corrective Action Plan .............................................................................................. 145 I. INTRODUCTORY SECTION STRENGTH OF CHARACJTanEuRaAryN2D8C, 2O0L1L9EGE OR CAREER READY To the Honorable Members of the Board of Public Education for Bibb County and Citizens of Bibb County, Georgia: As required by State law (O.C.G.A. 50-6-6), every general purpose local government must publish a complete set of audited financial statements at the close of each fiscal year. This report is published to fulfill that requirement for the fiscal year ended June 30, 2018. Based upon a comprehensive framework of internal control that it has established for this purpose, management assumes full responsibility for the completeness and reliability of the information contained in this report. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. Mauldin & Jenkins, Certified Public Accountants, LLC, has issued an unmodified ("clean") opinion on the Bibb County School District's financial statements for the year ended June 30, 2018. The independent auditor's report is located at the front of the financial section of this report. A single audit was also conducted to meet 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). The results of the Single Audit are presented in the last section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE BIBB COUNTY SCHOOL DISTRICT Bibb County, the 55th county formed in Georgia, was created in 1822 and built up to support Macon, a town which had sprung up across the Ocmulgee River from the frontier post known as Fort Hawkins. Houston, Jones, Monroe and Twiggs counties gave up territory to create Bibb, which takes its name from a distinguished Georgian, Dr. William Wyatt Bibb. He was Alabama's first elected Governor. Macon bears the name of a North Carolinian, Nathaniel Macon. On July 31, 2012, the voters of Macon and Bibb County approved Georgia House Bill 1171, creating a consolidated Macon-Bibb County government with a nine-member commission led by an elected mayor who serves as the president of the Board of Commissioners. The new Macon-Bibb County government was sworn in on Tuesday, December 31, 2013 before a crowd of hundreds at City Hall, unifying the city and county 17 months after voters approved consolidation and nearly a century after the idea was first seriously proposed. The merger of the city and county became effective on January 1, 2014. The new governmental entity is called Macon-Bibb County. The Bibb County School District is a political subdivision of the State of Georgia, the boundaries of which are coextensive in the territorial limits of Macon-Bibb County. The District is separate from and legally and fiscally independent of the Board of Commissioners and all other political subdivisions in the state. The District is the only public school district in Macon-Bibb County and is vested, pursuant to constitutional authority, with the power to conduct a system of public education within its boundaries. The Board of Public Education for Bibb County (Board) is the official governing body of the District and as such is responsible for the operation of all public schools within Macon-Bibb County. Annually, the Board elects a President, Vice-President, and Treasurer. The Superintendent also serves as an ex-officio Secretary of the Board. The Superintendent is appointed by the Board for a term that is determined by the Board. As its Chief Executive Officer, the Superintendent has general supervisory and administrative responsibility for all departments and personnel of the District. The Georgia Constitution provides that the management and control of the School District shall be under the Board of Education. The eight elected Board members have policy and decision-making authority. i i The school district's first locally approved charter school (Academy for Classical Education ACE) opened its doors on Monday, August 4, 2014 with 759 kindergarten through 8th grade students, with intentions of adding one additional grade each year. As of June 30, 2018, ACE had 1,541 students in kindergarten through eleventh grade. The school is located in North Bibb County in a partially renovated 200,000 square foot former corporate building sitting on 39 acres. According to the founders of ACE, former Bibb County School District Educators Laura Perkins and Esterine Stokes, an ACE classical education means extensive Latin study that starts in the 3rd grade and continues in every subsequent grade. The mission of ACE is to build the foundation of knowledge and critical thinking skills necessary for children to become independent learners for life. The Bibb County School District embraces a long held tradition of excellence in education and is committed to providing achievement and performance for every school, for every classroom, and for every child. A pervasive belief within this system of schools is that each student, regardless of socio-economic status, race, neighborhood, or family structure, deserves an education that will establish a foundation for life-long success. The full-time student enrollment in October 2017 was 24,110, an increase of 122 over the prior year. Regardless of economic status, 100% of our students are eligible for meal service at no charge because of the Community Eligibility Provision, which is part of the Healthy, Hunger-Free Kids Act of 2010 of the National School Lunch Program (NSLP). The District employs approximately 3,359 employees, including over 1,600 teachers. It is the responsibility of each employee within the District, regardless of job title, to do his/her part to provide a thorough and efficient educational program for all students. Through collaborative efforts, District employees ensure that all pre-kindergarten through twelfth grade students attending Bibb County schools are provided a high quality education in a safe and comfortable environment and that human and technological resources are effectively utilized in preparing graduates for post-high school objectives. The Bibb County School District recognizes its obligation to the greater community to create an educational system that will encourage community growth and enhance the quality of life for all citizens. The standard curricula provide a solid educational foundation for the students served in our twenty-two elementary, six middle, and six high schools. Included in these numbers are three elementary, one middle school, and five high school magnet programs as well as a college and career academy that provides CTAE courses aligned to post-secondary credentials. Students from throughout the District may apply to attend any of the magnet schools. Elementary magnet offerings include math and science, fine arts, and communicative arts. Additionally, there are three specialty programs designed to serve specific student populations. Northwoods Academy serves regular pre-kindergarten students along with special needs students in collaborative environments. Elam Alexander Academy is a community-based delivery system that serves severely emotionally disturbed/behavioral disordered students and students with autism from Macon-Bibb County as well as six surrounding counties. The Bibb County Alternative School (currently known as SOAR Academy) provides a structured and positive learning environment in an alternative setting for students who have chronic aggressive behavior issues and have gone through the documented Response to Intervention (RTI) process without positive results. Other highlights of the Bibb County School District include: Gifted Programs System-wide Special Education Instruction Advanced Placement and Pre-Advanced Placement Programs Technology/Career Education Programs 21st Century Classroom Technology Instruction of English to Speakers of Other Languages School House Health Services Mentors and Tutoring Programs Before and After-School Programs Apprenticeship Programs Athletics and Physical Education The District is required to adopt an initial budget for the fiscal year no later than June 30th preceding the beginning of the fiscal year on July 1st. This annual budget serves as the foundation for the Bibb County School District's financial planning and control. Effective with the Fiscal Year 2017 budget, the budget is now adopted at the legal level of budgetary control which is the departmental level. The District converted to a new accounting software system (MUNIS) during the FY2016-2017 school year. Due to this conversion, the legal level is now at the departmental level instead of the previous budget center level. The Superintendent has broad discretion to delegate the authority to transfer operational appropriations within the departmental level as necessary to ensure the efficient operation of schools and departments within the District. ii LOCAL ECONOMY One of Macon's key strengths is its strategic location in the heart of Georgia. At the crossroads of interstates 75 and 16, and just 75 minutes south of Atlanta, Macon has become an attractive location for businesses. A population of over 390,000 in a 30-mile radius; 4 major seaports within a 4-hour truck travel time; international airfreight facilities only 75 minutes away; 2 railroads and the largest rail switching center on the East coast make Macon an ideal location. A strategic location and small town attributes coupled with the amenities of a larger city, Macon is the place where people come from all over Middle Georgia to work; receive state of the art medical services; attend Medical, Engineering, and Law Schools; receive award winning information technology training; and enjoy a wide variety of retail, restaurants, and entertainment offerings.4 Macon-Bibb County is filled with cultural and entertainment opportunities. Macon-Bibb County is the home of over 10 museums, 5 tours, 7 annual festivals, and a multitude of events including the Macon Cherry Blossom Festival, Ocmulgee Indian Festival, Tubman Pan African Festival, Mid-Summer Macon, Arrowhead Indian Festival and many others. In addition to Capricorn Records, the list of musicians who have called Macon 'home' includes such notable performers as "Little Richard" Penniman, Otis Redding, the Allman Brothers Band, Robert McDuffie and Jason Aldean. In the Museum District you'll find Georgia's largest African American Museum; the Tubman African American Museum and the Georgia Sports Hall of Fame. The Museum of Arts & Sciences is an additional attraction offering visitors extraordinary exhibits and educational opportunities. Macon-Bibb County has two theater groups, the Macon Little Theatre and Theatre Macon. Three local colleges also offer regular season performances. The Macon Ballet and touring groups perform here regularly, with the Nutcracker of Middle Georgia each holiday season. The Macon Symphony Orchestra and the Macon Pops perform with local and national musicians. 4 The exceptional quality of higher education available in Macon-Bibb County is increasingly recognized as a valuable community asset. One of the most beneficial features of Macon-Bibb County's network of local universities, colleges, and technical schools is its visionary approach to developing specific employee training programs for individual industries and companies, including courses developed specifically for GEICO at Middle Georgia State University and Central Georgia Technical College to Mercer University's School of Engineering internship and co-op programs with area businesses. These alliances have fostered a positive and invaluable relationship between local businesses and educational institutions. 4 At approximately 250 square miles, Macon-Bibb County is the 119th largest of Georgia's 159 counties and ranks 15th in the state with a population total of 152,862. According to the Georgia Department of Labor, Macon-Bibb County had a 2017 civilian workforce of 69,653 2 with a 4.5% unemployment rate versus a 6.0% unemployment rate in 2016.2 A listing of the major employers of Macon-Bibb County, GA is provided in the schedules which follow: Largest Private Employers4 Employers # of Employees GEICO Coliseum Medical Centers Mercer University Georgia Farm Bureau Federation YKK (USA), Inc. 5,500 1,805 1,000 998 790 Largest Public Employers4 Employers # of Employees Navicent Health Medical Center Bibb County School District 3 Macon-Bibb Government 4,800 3,359 1,760 Middle Georgia State University 680 United States Postal Service 600 iii On December 21, 2016 the Macon-Bibb County Industrial Authority (MBCIA) and the Macon Economic Development Commission (MEDC) announced that the two groups had signed an agreement to restructure the Economic Development Team for Macon-Bibb County, Georgia that was effective January 1, 2017. During that month, the two groups transitioned the MBCIA into the role as the single point of contact for industrial recruitment in Macon-Bibb County. In this new role, the MBCIA is responsible for marketing Macon-Bibb County to new businesses and industries, and is responsible for Authority Resource (land, incentives, etc.) involved in the recruitment process. The MEDC continues to focus on Talent Recruitment/Retention, Workforce Development, Exiting Industry/Retention and Growth, and Entrepreneurship/Small Business Development for Macon-Bibb. This new agreement strengthens Macon-Bibb's economic development team, a team that has been recognized for excellence across the state and the South, says MEDC Chair Starr Purdue. 4 Other Economic Development News: In June 2017, Macon-Bibb's Tyson Foods Distribution Center announced plans to expand its current facility from about 182,000 square feet to 345,000 square feet and add over 100 jobs. This includes a $59 million investment and a 152,000 square foot addition to the existing facility. In August 2017, Irving Consumer Products announced plans to locate a $400 million manufacturing plant in MaconBibb County, creating 200 jobs. The 135 year old Canadian based family business produces premium household store brand paper products for a variety of top retailers. The company plans to locate a state of the art 700,000 square foot facility in the Sofkee Industrial Park. 4 In October 2017, Governor Nathan Deal announced that Amazon, Inc. will create more than 500 full-time jobs at their new fulfillment center to be located in Macon-Bibb County. This will be the company's fourth fulfillment center in the state of Georgia. Amazon will lease one million square feet of industrial space in Macon for the facility. The newly created jobs will include warehouse, management, and supervisory positions. As a result, Amazon will invest $90 million in Macon-Bibb County. That includes $5.7 million for the site located on Skipper Road. In December 2017, Atlanta-based Graphic Packaging Holding Company stated that it will invest $136 million in the modernization of its Macon mill helping retain more than 460 manufacturing jobs according to an announcement by the Georgia Department of Economic Development (GDEcD) and the Macon-Bibb County Industrial Authority. GDEcD stated Georgia successfully competed against other states to win this investment. Graphic Packaging's Macon Mill makes paperboard used in packaging for the food and beverage industry. Robins Air Force Base: Robins Air Force Base in Warner Robins, Georgia is located approximately 16 miles south of Macon-Bibb County is the largest industrial complex in Georgia. According to the installation's latest economic impact statement, Robins contributed $2.87 billion to the Georgia economy in fiscal 2017. According to the fiscal 2017 statement, Robins had a total workforce of 22,257, which is made up of 13,686 appropriated fund civilians, 5,938 military members and 2,633 other employees. The report further states that Robins Air Force Base spent $1.38 billion in salaries. The largest portion of that payout money, $993.6 million, was paid to civilians working on the base, while military members accounted for $373.3 million, and non-federal civilians and contract employees accounted for just above $14.3 million. Additionally the base awarded $7.4 billion in contracts. On August 15, 2018, it was reported in the Macon Telegraph that Robins Air Force Base would fill 1200 new jobs by the end of 2019. This additional workforce will have an annual economic impact of $69 million and over $345 million over the next five years according to a statement from Robins Air Force Base. 5 1U.S. Census Bureau 2GA Department of Labor 3District Records 4Macon Economic Development Commission 5Economic Impact Statement Robins Air Force Base iv DISTRICT MAJOR INITIATIVES Vision Statement Each student demonstrates strength of character and is college or career ready. Mission Statement The Bibb County School District will develop a highly trained staff and an engaged community dedicated to educating each student for a 21st century global society. Core Values Competence Loyalty Open Communication Defined Autonomy Honor Non-Negotiables Positive Behavioral Interventions and Supports (PBIS) Response to Intervention (RTI) Formative Instructional Practices (FIP) Teacher Key Effectiveness System (TKES) and Leader Keys Effectiveness System (LKES) Strategic Plan The Bibb County Board of Education approved a comprehensive strategic plan, Victory In Our Schools, in October 2015. The strategic plan is guided by five areas of focus: Student Achievement, Student and Stakeholder Engagement, Leader & Teacher Effectiveness, Reliable Organization and Learning and Growth. Listed below are the key components of the Victory In Our Schools strategic plan: Increase Content Mastery Increase Post School Readiness Increase Graduation Rate and Post-Secondary Options Partner with Students Partner with Parents Partner with Community Be a Professional Learning Community (PLC) Know Technology Do Standards-Based Classrooms Manage Processes and Projects Manage Finances and Personnel Manage Perceptions Maintain a Safe Learning and Working Environment Recruit and Retain the Right People Respect BCSD Value and Culture Grow from Evaluations AdvancED Accreditation The February 2018 final report from the District's October 2017 accreditation visit from AdvancED indicated that the Bibb County School District has successfully achieved accreditation for the next five years and exceeded expectations in several of the Resource Capacity standards. According to the official report, the District earned 342.79 out of a score of 100 to 400 points on its five-year review from AdvancEd. "That's an amazing score", said District Superintendent Dr. Curtis Jones, Jr. The report did not include any areas needing improvement. v On November 8, 2015 Bibb County residents voted in favor of a referendum extending again the one-cent Special Purpose Local Option Sales Tax for capital improvements. The referendum approved a maximum collection of $185 million over the period covering January 1, 2016 December 31, 2020. Highlights of the projects include: 1 new elementary school Consolidation of Appling Middle School and Northeast High School to one shared campus Renovating, extending, repairing and equipping existing facilities Acquiring, improving and renovating various athletic facilities Constructing and equipping a replacement facility for campus police and transportation Controlled access entrances and updating security technology throughout the District Constructing, furnishing and equipping auditoriums Capital outlay projects for education purposes for use by approved charter school operators New technology, fine arts equipment, athletic equipment, safety and security systems throughout the District New school buses, vehicles, maintenance, custodial and transportation equipment LONG-TERM FINANCIAL PLANNING The Finance Division provides Multi-Year General Fund Projections to the Board of Education annually during budget sessions. This document is continually adjusted as reasonable assumptions about future trends are replaced with more concrete information. Over the past three years, the percentage of General Fund Balance to General Fund Expenditures has been 13.5%, 16.9% and 16.0%. FINANCIAL POLICIES AND LEGISLATION Fund Balance Board policy establishes certain expectations related to fund balance. As of June 30, 2018, total fund balance in the General Fund was 13.0% of budgeted expenditures, well within the required minimum of 8%. Internal Controls Management of the District is responsible for establishing and maintaining an internal control structure which is designed to ensure that the assets are protected from loss or theft and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefit likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state, and local financial assistance, the District is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. The internal control structure is subject to periodic evaluation by management. Budgetary Controls The District maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Public Education for Bibb County. Activities of the general, capital projects, and special revenue funds are included in the annual appropriated budget. The level of budgetary control is established by program within an individual fund. As demonstrated by the statements and schedules included in the financial section of this report, the District continues to meet its responsibility for sound financial management. The District is required to adopt a final budget no later than June 30th at the close of each fiscal year. An administrative budget review team aligns requests with priorities and proposed expenditures with anticipated revenues to arrive at a budget for consideration by the Superintendent and the Board of Education. In accordance with local board policy and state law, two public hearings are held to provide an opportunity for community response to the proposed budget. vi AWARDS AND ACKNOWLEDGEMENTS Certificates of Achievement and Excellence The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Bibb County School District for its comprehensive annual financial report for the fiscal year ended June 30, 2017. This was the nineteenth consecutive year the School District has achieved this prestigious award. The Certificate of Achievement is a prominent national award recognizing conformity with the highest standards for preparation of state and local governmental financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report conforms to the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We wish to express appreciation to Vicki Hulett, Executive Director of Accounting, Carol Tims, Financial Assistant to Chief Financial Officer and the entire Accounting Department Staff without whose dedicated and committed efforts this report could not have been completed. We also acknowledge the active participation and professional support of Mauldin & Jenkins. Audit Partner Miller Edwards and the staff of Mauldin & Jenkins, particularly Hope Pendergrass, have been instrumental to the completion of this comprehensive annual financial report. We also extend appreciation to the members of the Board of Public Education for Bibb County for their interest and support in planning and conducting the financial operations of the District in a responsible and progressive manner. vii STRENGTH OF CHARACTER AND COLLEGE OR CAREER READY 2018 Board Members Front Row: Mrs. Susan K. Sipe, Lester M. Miller and Mrs. Ella M. Carter Back Row: Dr. Thelma D. Dillard, Daryl J. Morton, Dr. Sundra M. Woodford, Robert M. Easter and Dr. Wanda S. West ix STRENGTH OF CHARACTER AND COLLEGE OR CAREER READY Lester M. Miller President District 4 Dr. Thelma D. Dillard Vice-President District 2 Daryl J. Morton Treasurer At-large Mrs. Ella M. Carter District 1 x STRENGTH OF CHARACTER AND COLLEGE OR CAREER READY Mrs. Susan K. Sipe District 3 Dr. Sundra M. Woodford District 5 Robert M. Easter District 6 Dr. Wanda S. West At-Large xi (ADD BOARD SEAL) BOARD OF PUBLIC EDUCATION FOBibRb CBoPuIrBnetpyBaSrecdChobOoyl:DUisNtriTctY Finance Division As of June 30, 2018, the members o4f8t4hMe BulobaerrdryaSntrdeeytear of expiration of their terms are as follows: Macon, Georgia 31201 Name District Years in Office Expiration of Current Term Lester M. Miller, President District 4 5 Dr. Thelma D. Dillard, Vice President District 2 5 Daryl J. Morton, Treasurer At-large 3 Mrs. Susan K. Sipe District 3 9 Robert M. Easter District 6 1 Mrs. Ella M. Styles Carter District 1 9 Dr. Sundra M. Woodford District 5 1 Dr. Wanda S. West At-large 7 December 31, 2020 December 31, 2020 December 31, 2018 December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2018 Function and Composition All matters relating to education and operations in the Bibb County School District (District) are governed and controlled by the Board of Public Education for Bibb County (Board) as provided by Georgia law. The Board is legally responsible for the operation of the District and all related policy. It shall be the purpose of the Board to provide education of the best obtainable quality for the residents of Bibb County within the limitations imposed by the taxpayer's ability to pay and his/her willingness to support the educational program. The Board shall be the representative, not only of the citizens of Bibb County, but of the State Board of Education as well. The Board currently consists of eight elected members, six elected from single member districts and two elected county-wide. Successors to the initial elected members of the Board are elected in the general election conducted immediately prior to the expiration of the term of office for which they offer as a candidate. The newly elected board members take office on the first day of January following their election and serve for a term of four years and until their successors are duly elected and qualified. Regular board meetings are held on the third Thursday of each month at 6:30 p.m. usually in the Board Room at the Central Office, but sometimes at The Bibb County School District's Professional Learning Center. All meetings are open to the public. Special meetings may be called at other times by the Board President. At all meetings, a majority of the entire membership constitutes a quorum. xxii STRENGTH OF CHARACTER AND COLLEGE OR CAREER READY Curtis L. Jones Jr., Ed.D. Superintendent The Bibb County School District welcomed Dr. Curtis L. Jones Jr. as Superintendent on April 6, 2015. Dr. Jones immediately began working on Bibb County School District's Strategic Plan, "Victory in Our Schools," with a focus on the Vision Each student demonstrates strength of character and is college or career ready. His Strategic Goals are Goal 1 Increase Student Achievement; Goal 2 Increase Student and Stakeholder Engagement; Goal 3 Increase Leader and Teacher Effectiveness; Goal 4 Be a Reliable Organization; and Goal 5 Learning and Growth. These goals will assist the district with its mission of developing a highly trained staff and an engaged community dedicated to educating each student for a 21st century global society. During his 20+ year career in education, Dr. Jones has been a JROTC Instructor, high school principal, and assistant superintendent. Before becoming an educator, he served in the United States Army from 1977-1997, retiring as a Lieutenant Colonel. Dr. Jones is a 1977 graduate of United States Military Academy at West Point. Dr. Jones has received numerous accolades and awards during his tenure in education. He currently serves as a governing board member for the American Association for School Administrators (AASA) and Past President for the Georgia School Superintendents Association (GSSA). He received the Bill Barr Leadership Award from GSSA in 2016 the President's Award in 2012. He is married to Evelyn, an elementary school principal. They have three children and are the proud grandparents of two granddaughters. xxiiii STRENGSTtHreOngFthCoHfACRhAaCraTcEteRr aAnNdDCColOleLgLeEoGr ECaOrReeCr ARReaEdEyR READY ADMINISTRATIVE STAFF as of December 2018 Superintendent's Senior Cabinet Curtis L Jones Jr., Ed.D. Keith Simmons Jamie Cassady Ron Collier Randy Howard Paige Busbee Tanzy Kilcrease Lori Rodgers Stephanie Hartley Superintendent Chief of Staff School Operations Assistant Superintendent Student Affairs Chief Financial Officer Chief Legal Counsel Assistant Superintendent Human Resources Assistant Superintendent Teaching and Learning Assistant Superintendent District Effectiveness/Federal Programs Director of Communications Community & School Affairs Instructional Services Lindsey Allen Donna Jackson Floyd Jolley Jennifer Mellor Cassandra Washington Barney Hester Ben Bridges Bertha Caldwell April Harriger Tony Jones Michelle Lenderman Monica Radcliff Janice Flowers Executive Officer of Secondary Education Executive Officer of Elementary Schools Executive Director of Teaching and Learning Executive Director of Program for Exceptional Children Executive Director of Career, Technical and Agricultural Education Director of Athletics, Health & Physical Education Director of Fine Arts & Magnet Programs Director of Professional Learning Director of Northwoods Academy Director of Research, Assessment and Accountability Director of Media Services Director of Instructional Technology Interim Director of Before and After School Programs Central Services/Operations Ed Aaron Jason Daniel Vicki Hulett Rose Powell Timikel Sharpe Myra Abrams Russell Bentley David Gowan Anthony Jackson Eddie Montgomery Beverly Stewart Elaine Wilson Executive Director of Personnel Executive Director of Capital Projects Executive Director of Accounting Executive Director of Technology Services Executive Director of School Nutrition Director of Human Resources, School Nutrition Department Chief of Campus Police Director of Safety/Risk Management Director of Transportation Director of Maintenance Director of Student Support Services Director of Procurement xiv xiv BCSD Organizational Chart SY 2018 xv Board of Education Superintendent Executiv e Assistant Board Clerk Asst. Supt. Human Resources Asst. Supt. Student Affairs Asst. Supt. Teaching & Learning Chief of Staff Chief Financial Officer Asst. Supt. District Effectiv eness Chief Legal Counsel Director of Communications & School Affairs Benefits Counselors Curriculum Transportation Accounting Federal & State Programs Tribunals Web Services Certification Psychologists Instruction School Nutrition Payroll Homeless Serv ices Legal Serv ices Internal Communications Compensation Social Workers Pre-K Technology/ REAA Grants Family Engagement External Communications Personnel Truancy Serv ices Academic Interv entions Maintenance Inv entory School Improv ement Community Partnerships Worker's Compensation GNETS Professional Learning Capital Improv ements Budget Before & After School Programs Talent Management Behav ior Specialists Gifted/Adv anced Academics Safety & Risk Management Procurement CTAE PEC Response to Interv entions Athletics, Health & PE Migrant PBIS ESOL Campus Police Nurses Fine Arts/Magnet Programs Custodial Operations Alternativ e Education Northwoods Principal Superv isors II. FINANCIAL SECTION bibb county school district independent audit report INDEPENDENT AUDITOR'S REPORT To the Members of the Board of Education of the Bibb County School District Macon, Georgia Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Bibb County School District as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Bibb County 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 entity'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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Bibb County School District as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows, thereof, and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 13, the Bibb County School District implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, as of July 1, 2017. This standard significantly changed the accounting for the Bibb County School District's net other post-employment benefits (OPEB) liability and the related disclosures. 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 (on pages 4 through 11), the schedules of proportionate share of the net pension liability, the schedules of pension contributions, the schedules of proportionate share of the net OPEB liability, and the schedules of OPEB contributions (on pages 69 through 79) 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. 2 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bibb County School District's basic financial statements. The combining and individual nonmajor fund financial statements and schedules; schedule of expenditures of federal awards, 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 the schedule of expenditures of special purpose local option sales tax proceeds, as required by the Official Code of Georgia 48-8-121, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory and statistical sections are also presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules, schedule of expenditures of federal awards, and schedule of expenditures of special purpose local option sales tax proceeds (collectively the "supplementary information") are the responsibility of management and were derived from and relate 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2019, on our consideration of the Bibb County 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 solely is 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 Bibb County 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 Bibb County School District's internal control over financial reporting and compliance. Macon, Georgia January 28, 2019 3 bibb county school district management discussion and analysis MANAGEMENT'S DISCUSSION AND ANALYSIS As administration of the Bibb County School District, we offer readers of the Bibb County School District's financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-vii of this report. FINANCIAL HIGHLIGHTS Key financial highlights for FY2018 are as follows: The assets and deferred outflows of the Bibb County School District exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $152,708,024. This amount includes the negative unrestricted net position of $334,005,828 which is primarily composed of the District's proportionate share of net pension liability related to the implementation of GASB Statement No.68 Accounting and Financial Reporting for Pensions and our proportionate share of net other postemployment benefit liability related to the implementation of GASB Statement No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. The Bibb County School District's total net position decreased $183,917,799. This decrease is primarily due to the implementation of GASB Statement No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. At the close of the current fiscal year, the Bibb County School District's governmental funds reported combined fund balances of $67,805,157, an increase of $5,862,147 in comparison with the prior year. Approximately 41.8% of this amount ($28,347,669) is available for spending at the government's discretion. At the end of the current fiscal year, unrestricted fund balance for the General Fund was $32,070,701 or approximately 12.9% of total General Fund expenditures. The Bibb County School District's total long-term outstanding debt increased $165,613,488. This increase is due to the increase in pension liability combined with the implementation of GASB Statement No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis provided here is intended to serve as an introduction to the Bibb County School District's basic financial statements. The Bibb County School District's basic financial statements consist of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Bibb County School District's finances in a manner similar to private-sector business. The statement of net position presents financial information on all of the Bibb County School District's assets, liabilities, and deferred inflows/outflows of resources, with the difference 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 Bibb County School District is improving or deteriorating. The statement of activities presents information showing how the Bibb County 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 and earned but unused compensated absences). 4 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 Both of the government-wide financial statements distinguish functions of the Bibb County School District that are principally supported by property taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Bibb County School District include instruction, general administration, maintenance and operations, student transportation, and interest on long-term debt. The business-type activities of the Bibb County School District include school food services, stadiums, Hutchings Academy and the wellness center. The government-wide financial statements can be found on pages 12 -14 of this report. 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 Bibb County School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. All of the funds of the Bibb County School District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide 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. Such information may be useful in assessing a government's near-term financing requirements. 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 government'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 Bibb County School District maintains four 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 Fund and the SPLOST Projects Fund, which are considered to be major funds. Data from the other two governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report. The Bibb County School District adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 12 24 of this report. Proprietary Funds. The Bibb County School District maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Enterprise funds may be used to account for any activity or service that charges a fee to external users to cover the cost of operations, including cost of depreciation and debt service. The District operates its food service, stadiums, Hutchings Academy and district-wide wellness center as enterprise funds. Internal Service funds account for goods and services that are provided to other funds in return for a fee to cover the cost of operations, including depreciation and debt service costs. The District's internal service funds include workers' compensation and unemployment compensation. Proprietary fund statements use the accrual basis of accounting similar to the district-wide statements. The basic proprietary fund financial statements can be found on pages 19 22 of this report. Fiduciary Funds. The District is the trustee, or fiduciary, for assets that belong to others, such as the dependent care spending account fund, the medical spending account fund and school clubs and organizations within the principals' accounts. The District is responsible for ensuring that the assets reported in these funds are used only for intended purposes and by those to whom the assets belong. The District excludes these activities from the district-wide financial statements because it cannot use the assets to finance its operations. The fiduciary fund financial statements can be found on pages 23 and 24 of this report. 5 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 25 68 of this report. GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS As noted earlier, net position over time, may serve as a useful indicator of a government's financial position. In the case of the Bibb County School District, assets and deferred outflows exceeded liabilities and deferred inflows by $152,708,024 at the close of the most recent fiscal year. BIBB COUNTY SCHOOL DISTRICT'S NET POSITION For the Fiscal Years Ended June 30, 2018 and June 30, 2017 (in thousands) Assets: Current and other assets Capital assets Total assets Governmental Activities FY2018 FY2017 Business-type Activities FY2018 FY2017 Total Combined Activities FY2018 FY2017 Total Change $ % $ 113,184 $ 96,644 $ 12,629 $ 14,403 $ 125,813 $ 111,047 $ 14,766 13.3% 447,999 439,405 8,283 7,341 456,282 446,746 9,536 2.1% 561,183 536,049 20,912 21,744 582,095 557,793 24,302 4.4% Deferred Outflows: Pensions Other post-employment benefits Total deferred inflows 31,761 14,675 46,436 52,905 - 52,905 509 1,306 1,815 777 32,270 53,682 (21,412) -39.9% - 15,981 - 15,981 - 777 48,251 53,682 (5,431) -10.1% Liabilities: Long-term liabilities outstanding Net pension liability Other post-employment benefits Other liabilities Total liabilities 5,212 188,413 179,182 36,791 409,598 6,006 216,855 27,489 250,350 3,022 15,944 1,201 20,167 3,181 850 4,031 5,212 191,435 195,126 37,992 429,765 6,006 220,036 28,339 254,381 (794) (28,601) 195,126 9,653 175,384 -13.2% -13.0% 34.1% 68.9% Deferred Inflows: Pensions Other post-employment benefits Total deferred inflows 20,194 25,121 45,315 20,171 - 20,171 323 2,235 2,558 296 20,517 20,467 50 0.2% - 27,356 - 27,356 - 296 47,873 20,467 27,406 133.9% Net position: Net investment in capital assets Restricted for capital projects Unrestricted Total net position $ 445,487 32,944 (325,725) 152,706 $ 436,390 27,529 (145,486) 318,433 $ 8,283 - (8,281) 2 $ 7,341 - 10,852 18,193 $ 453,770 32,944 (334,006) 152,708 $ 443,731 27,529 (134,634) 336,626 $ 10,039 5,415 (199,372) (183,918) 2.3% 19.7% 148.1% -54.6% The Bibb County School District's overall net position decreased $183,917,799 or 54.6% from the prior fiscal year. This decrease is primarily due to the implementation of GASB Statement No.75. By far, the largest portion of the Bibb County School District's net position ($453,769,875) reflects its investment in capital assets (e.g., land and land improvements, buildings, equipment, and construction in progress), less any related outstanding debt that was used to acquire those assets. The Bibb County School District uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the Bibb County School District's investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 6 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 As a result of the implementation of GASB Statement No.68 in FY2015 and GASB Statement No.75 in FY2018, the District's net position has been significantly negatively impacted by the inclusion of net pension liability of $191.4 million and Other Post-Employment Benefits liability of $195.1 million at June 30, 2018. An additional portion of the Bibb County School District's net position ($32.9 million) represents resources that are subject to external restrictions on how they may be used. Governmental Activities. The Bibb County School District Governmental Activities overall net position decreased from $318,432,852 to $152,706,110. This $165,726,742 or 52.0% decrease is primarily due to the implementation of GASB Statement No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. BIBB COUNTY SCHOOL DISTRICT'S CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2018 and June 30, 2017 (in thousands) Governmental Activities Business-type Activities Total Combined Activities FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 Revenues: Program revenues: Charges for services $ 4,605 $ 5,273 $ 845 $ 886 $ 5,450 $ 6,159 $ Operating grants and contributions 153,749 150,667 16,600 16,960 170,349 167,627 Capital grants and contributions 1,214 217 - - 1,214 217 Total Change $ % (709) 2,722 997 -11.5% 1.6% 100.0% Total program revenues 159,568 156,157 17,445 17,846 177,013 174,003 3,010 1.7% General revenues: Property taxes Sales taxes Other taxes Grants and contributions not restricted to specific programs Gain on the sale of assets Unrestricted investment earnings Total general revenues Total revenues 83,045 31,468 1,062 7,881 949 124,405 283,973 82,307 29,263 1,397 1,696 315 114,978 271,135 - 6 139 145 17,590 - 3 60 63 17,909 83,045 31,468 1,062 7,881 6 1,088 124,550 301,563 82,307 29,263 1,397 1,696 3 375 115,041 289,044 738 2,205 (335) 0.9% 7.5% -24.0% 6,185 3 713 9,509 12,519 364.7% 100.0% 190.1% 8.3% 4.3% Expenses: Instruction General administration Maintenance and operations Student transportation Interest on long-term debt School nutrition services Stadiums Wellness center Hutchings Academy Total expenses 222,758 7,573 19,637 12,851 84 262,903 216,652 6,460 19,015 11,004 96 253,227 19,149 225 25 33 19,432 17,831 267 218 7 18,323 222,758 7,573 19,637 12,851 84 19,149 225 25 33 282,335 216,652 6,460 19,015 11,004 96 17,831 267 218 7 271,550 6,106 1,113 622 1,847 (12) 1,318 (42) (193) 26 10,785 2.8% 17.2% 3.3% 16.8% -12.5% 7.4% -15.7% -88.5% 4.0% Increase (decrease) in net position before transfers Transfers Increase (decrease) in net position 21,070 (250) 20,820 17,908 (250) 17,658 (1,842) 250 (1,592) (414) 250 (164) 19,228 - 19,228 17,494 - 17,494 1,734 - 1,734 9.9% 0.0% 9.9% Net position - beginning Net position - ending 131,886 300,775 1,594 18,357 133,480 319,132 (185,652) -58.2% $ 152,706 $ 318,433 $ 2 $ 18,193 $ 152,708 $ 336,626 $ (183,918) -54.6% 7 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 Business-type Activities. For the Bibb County School District's business-type activities, overall net position decreased from $18,192,971 to $1,914 in the current fiscal year. The decrease in net position for business-type activities (food services, stadiums, Hutchings Academy and wellness center operations) of $18,191,057 from the prior fiscal year and is primarily due to the implementation of GASB Statement No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. FINANCIAL ANALYSIS of GOVERNMENTAL FUNDS Governmental Funds. The focus of the Bibb County 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 Bibb County School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Bibb County School District itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the Bibb County School District's governing Board of Education. As noted earlier, the Bibb County School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has two major governmental funds: The General Fund and the SPLOST Projects Fund. The General Fund is the District's primary operating fund and is used to account for all financial resources of the general government except those required to be accounted for in another fund. The SPLOST Projects Fund is used to account for the proceeds of a one percent Special Purpose Local Option Sales Tax used to finance building renovations, land and building acquisitions, and the construction of new educational and administrative facilities. On June 30, 2018, the Bibb County School District's governmental funds reported combined fund balances of $67,805,157, an increase of $5,862,147 in comparison with the prior year. Approximately 41.8% of this amount ($28,347,669) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form ($222,902), 2) restricted for particular purposes ($32,943,977), 3) committed for particular purposes ($2,567,577), or 4) assigned for particular purposes ($3,732,032). General Fund. The General Fund is the chief operating fund of the Bibb County School District. At the end of the current fiscal year, unassigned fund balance of the General Fund was $28,347,669 while total fund balance decreased to $32,293,603. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents approximately 11.4% of total General Fund expenditures while total fund balance represents approximately 13.0% of that same amount. The net change in the General Fund's total fund balance was a decrease of $21,736 from the prior fiscal year. Total operating revenues exceeded expenditures by $228,264. Transfers to other funds totaled $250,000; primarily used for stadium expenditures. SPLOST (Special Purpose Local Option Sales Tax) Projects Fund. As of June 30, 2018, the SPLOST Projects Fund, a major fund, had an ending fund balance of $32,943,977, an increase of $5,415,133 from the prior year. The increase in fund balance was due to SPLOST receipts exceeding capital project expenditures. Proprietary Funds. The Bibb County School District's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net position of School Food Service at the end of the year was a negative ($8,013,719) and net investment of capital assets was $8,268,124 for a total net position of $254,405, a decrease of $18,150,944 from the prior year. The decrease is primarily due to the implementation of GASB No.75 Accounting and Financial Reporting for Post-Employment Benefits other than Pensions. 8 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 GENERAL FUND BUDGETARY HIGHLIGHTS Original budget compared to final budget. Historically each year the District has to amend the General Fund original estimated revenues or original budgeted appropriations as well as the original budgeted expenditures as federal grant notifications are received after the completion of the original budget. Final budget compared to actual results. The most significant differences between estimated revenues and actual revenues were as follows: Revenue Source Local sources State sources Federal sources Estimated Revenues $ 84,216,000 130,652,742 37,222,233 Actual Revenues $ 87,779,137 133,181,720 27,076,728 $ Difference $ 3,563,137 2,528,978 (10,145,505) % Difference 4.1% 1.9% -37.5% The increase in local revenue is due to property and other tax revenue increases. Tax collections including property, tag/title, real estate transfer, intangible, and pilot taxes were up over $3.6 million. The $3.6 million increase in local revenue is due to local property tax receipts and legal settlements. The district received $1.7 million more in property taxes than budgeted. The district also received over $1.5 million in e-rate funds from Cox Enterprises, Inc. related to FY2015 expenses. Finally, the district received over $750,000 in legal settlements from Progressive Consulting Technologies, Inc. and Comp Tech. The increase in state revenues is primarily due to an increase in State QBE Funds combined with increases in other state grants. The shortfall in the above federal revenue sources were caused primarily by federal grants. Federal grants are budgeted per the award amount plus any amount which is available for carryover from the previous year. Various federal grants also are fifteen month grants which means they run longer than the twelve month fiscal year. These grants are budgeted at the full award because there is no way to make an estimate of any monies which may carryover. Actual revenues are recorded for these grants as the revenue becomes available or as the expenditures are incurred. Therefore, the actual revenues extend over multiple fiscal years. A review of actual expenditures compared to the appropriations in the final budget yields several significant variances. Expenditure Instruction General administration Maintenance & operations Estimated Expenditures $ 214,420,658 9,509,052 20,339,790 Actual Expenditures $ 212,187,166 7,065,522 18,333,312 $ Difference $ (2,233,492) (2,443,530 (2,006,478) % Difference -1.1% -34.6% -10.9% The instruction shortfall of $2.2 million in the above expenditure projections were caused primarily by federal and state grants, which extend over multiple fiscal years, being budgeted in their entirety in the first fiscal year that funds become awarded. Actual expenditures are recorded for these grants as the expenditures are incurred. Therefore, the actual expenditures extend over multiple fiscal years as well. The general administration results are primarily from staffing vacancies. The shortfall in the maintenance and operations expenditure projections were caused by efficiency of newer building construction and the implementation of energy conservation measures. 9 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital assets. The Bibb County School District's investment in capital assets for its governmental and businesstype activities as of June 30, 2018, amounts to $456,282,113 (net of accumulated depreciation). This investment in capital assets includes land and land improvements, buildings, equipment, and construction in progress. The total increase in capital assets for the current fiscal year was approximately 2.1%. BIBB COUNTY SCHOOL DISTRICT'S CAPITAL ASSETS (Net of Accumulated Depreciation) For the Fiscal Years Ended June 30, 2018 and June 30, 2017 (in thousands) Governmental Activities Business-type Activities Total Combined Activities Total Change Land Construction in progress Buildings Equipment Land improvements FY2018 FY2017 FY2018 FY2017 FY2018 FY2017 $ 13,690 $ 13,690 $ - $ - $ 13,690 $ 13,690 $ 12,552 390,704 25,299 5,754 2,480 393,619 24,003 5,612 100 5,184 2,999 - 5,318 2,023 - 12,652 395,888 28,298 5,754 2,480 398,937 26,026 5,612 $ % - 0.0% 10,172 (3,049) 2,272 142 410.2% -0.8% 8.7% 2.5% Total Capital Assets $ 447,999 $ 439,404 $ 8,283 $ 7,341 $ 456,282 $ 446,745 $ 9,537 2.1% Major capital asset events (in millions) during the current fiscal year included the following: Decrease in buildings for renovations and construction Increase in construction in progress on SPLOST Projects Increase in capital equipment $ (3.0) 10.2 2.3 Net changes in Capital Assets $ 9.5 Additional information on the Bibb County School District's capital assets can be found in Note #7 on pages 41 and 42 of this report. Long-term Debt. At the end of the current fiscal year, the Bibb County School District had total long-term debt outstanding of $390,687,967 which is comprised of note payable, net pension liability, net other post-employment benefits liability, and compensated absences. 10 BIBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2018 BIBB COUNTY SCHOOL DISTRICT'S OUTSTANDING DEBT For the Fiscal Years Ended June 30, 2018 and June 30, 2017 Note Payable Net Pension Liability Net OPEB Liability Compensated Absences Totals Combined Governmental and Business Type Activities Total Change FY2018 FY2017 $ % $ 2,512,238 $ 3,014,474 $ (502,236) 191,435,058 220,036,251 (28,601,193) 195,125,560 210,386,999 (15,261,439) 1,615,111 1,462,521 152,590 $ 390,687,967 $ 434,900,245 $ (44,212,278) -16.7% -13.0% -7.3% 10.4% -10.2% During the current fiscal year, the Bibb County School District's total debt decreased by $44,212,278 or 10.2% primarily as a result of the decrease in the net pension liability and net Other Post-Employment liability. The Bibb County School District maintains an "Aa2" rating from Moody's Investors Service for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue up to 10% of the average full valuation. Currently the Bibb County District does not have any bonded debt. So based on the debt limitation, the amount available is $401,307,932. Additional information on the Bibb County School District's long-term debt can be found in Note #9 on pages 43 45 of this report. Economic Factors and Next Year's Budgets and Tax Rates. The following economic factors currently affect the Bibb County School District and were considered in developing the FY2019 fiscal year budget. In June 2018, the Board adopted the FY2019 General Fund operating budget which includes $214.3 million in operating revenues and transfers in and $218.0 million in operating expenditures and transfers out. On the expenditure side, continued increases are expected in health insurance premiums, pension, and other employee benefit costs. For FY2019, the Teacher Retirement System (TRS) increased its employer contribution from 16.81% to 20.9%, representing an overall 24.3% increase in pension costs. For FY2019, the Board of Education adopted a 0.5 mill tax rate decrease from 19.814 to 19.314 mills to provide some relief to local taxpayers. It is anticipated that this tax rate decrease will yield $2 million less in property tax revenue. For the first time since FY2003, the Governor of Georgia and the Georgia State Legislature eliminated all austerity reduction for FY2019, thus fully funding the state's QBE funding formula. As the District anticipates the opening of more charter schools and decreased student enrollment, plans are underway to consolidate two elementary schools which will reduce the total number from 22 to 21. Requests for Information. This financial report is designed to provide a general overview of the Bibb County School District's finances for all those with an interest in the district's financial status. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Bibb County School District, Office of the CFO, 484 Mulberry Street, Suite 400, Macon, GA, 31201. 11 bibb county school district basic financial statements bibb county school district government-wide financial statements BIBB COUNTY SCHOOL DISTRICT STATEMENT OF NET POSITION JUNE 30, 2018 ASSETS Cash Investments Receivables: Accounts Intergovernmental Internal balances Inventories Prepaid and other assets Capital assets, non-depreciable Capital assets, depreciable (net of accumulated depreciation) Total assets DEFERRED OUTFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred outflows of resources LIABILITIES Accounts payable Retainage payable Intergovernmental accounts payable Accrued interest payable Accrued payroll and payroll withholdings Unearned revenue Accrued claims, due within one year Accrued claims, due in more than one year Notes payable due within one year Notes payable due in more than one year Compensated absences due within one year Compensated absences due in more than one year General obligation bonds due within one year, net of unamortized discount Net pension liability Net other post-employment benefit liability Total liabilities DEFERRED INFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred inflows of resources NET POSITION (DEFICIT) Net investment in capital assets Restricted for capital projects Unrestricted Total net position (deficit) Primary Government Governmental Activities Business-type Activities Total Component Unit Academy for Classical Education $ 13,122,885 $ 65,760,010 1,397,563 32,202,788 477,681 - 222,902 26,242,171 421,757,120 561,183,120 2,191,371 $ 9,917,763 41,489 369,958 (477,681) 584,458 1,982 99,585 8,183,237 20,912,162 15,314,256 $ 75,677,773 1,439,052 32,572,746 584,458 224,884 26,341,756 429,940,357 582,095,282 826,445 2,695,934 424,018 29,255,289 33,201,686 31,761,338 14,674,970 46,436,308 509,253 1,305,774 1,815,027 32,270,591 15,980,744 48,251,335 4,360,818 1,579,630 5,940,448 10,736,373 923,478 119,668 - 24,960,759 50,824 600,271 484,432 532,391 1,979,847 1,325,410 289,701 188,413,081 179,182,006 409,598,241 275,418 99,585 - 810,863 15,577 - 3,021,977 15,943,554 20,166,974 11,011,791 1,023,063 119,668 - 25,771,622 66,401 600,271 484,432 532,391 1,979,847 1,325,410 289,701 191,435,058 195,125,560 429,765,215 182,108 - 27,760 1,227,779 - 34,911,547 6,342,754 7,517,712 50,209,660 20,194,104 25,120,973 45,315,077 323,046 2,235,255 2,558,301 20,517,150 27,356,228 47,873,378 66,860 572,455 639,315 445,487,053 32,943,977 (325,724,920) $ 152,706,110 $ 8,282,822 - (8,280,908) 453,769,875 32,943,977 (334,005,828) 1,914 $ 152,708,024 $ (2,536,306) - (9,170,535) (11,706,841) The accompanying notes are an integral part of these financial statements. 12 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Program Revenues Functions/Programs Governmental activities: Instruction General administration Maintenance and operations Student transportation Interest on long-term debt Total governmental activities Expenses $ 222,758,006 7,572,905 19,637,436 12,850,636 83,679 262,902,662 Charges for Services $ 4,604,926 - - - - 4,604,926 Operating Grants and Contributions $ 140,353,877 4,746,736 6,020,520 2,627,814 - 153,748,947 Business-type activities: School food services Stadiums Wellness center Hutchings Academy Total business-type activities Total primary government 19,148,812 774,008 16,600,007 225,676 - - 25,171 31,929 - 32,959 39,340 - 19,432,618 845,277 16,600,007 $ 282,335,280 $ 5,450,203 $ 170,348,954 Component unit: Academy for Classical Education Total component unit $ 14,736,893 $ $ 14,736,893 $ 387,499 $ 1,105,693 387,499 $ 1,105,693 General revenues: Property taxes Sales taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of assets Transfers Total general revenues and transfers Change in net position Net position, beginning of year, as restated Net position, end of year The accompanying notes are an integral part of these financial statements. Capital Grants and Contributions $ 1,136,283 - - 77,320 - 1,213,603 - - - - - $ 1,213,603 $ - $ - 13 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Total Component Unit Academy for Classical Education $ (76,662,920) $ - $ (76,662,920) $ - (2,826,169) - (2,826,169) - (13,616,916) - (13,616,916) - (10,145,502) - (10,145,502) - (83,679) - (83,679) - (103,335,186) - (103,335,186) - (1,774,797) (1,774,797) - - (225,676) (225,676) - - 6,758 6,758 - - 6,381 6,381 - - (1,987,334) (1,987,334) - (103,335,186) (1,987,334) (105,322,520) - - - - (13,243,701) - - - (13,243,701) 83,045,079 31,467,695 1,061,942 7,881,481 949,070 - (250,000) 124,155,267 139,209 5,941 250,000 395,150 83,045,079 31,467,695 1,061,942 7,881,481 1,088,279 5,941 - 124,550,417 20,820,081 (1,592,184) 19,227,897 131,886,029 1,594,098 133,480,127 $ 152,706,110 $ 1,914 $ 152,708,024 11,109,100 11,109,100 (2,134,601) (9,572,240) $ (11,706,841) 14 bibb county school district fund financial statements BIBB COUNTY SCHOOL DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2018 Cash Investments Receivables: Accounts Intergovernmental Due from other funds Prepaid and other assets ASSETS Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts payable Retainage payable Due to other funds Due to other governments Unearned revenue - grants Accrued payroll and payroll withholdings Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - grants Total deferred inflows of resources FUND BALANCES General SPLOST Projects Nonmajor Governmental Funds Total Governmental Funds $ 7,628,445 $ 2,195,196 $ 1,366,308 $ 11,189,949 30,414,587 34,010,160 1,335,263 65,760,010 1,396,420 29,457,394 429,164 222,902 $ 69,548,912 2,745,394 77,330 - $ 39,028,080 - $ 2,701,571 1,396,420 32,202,788 506,494 222,902 $ 111,278,563 $ 5,494,497 $ 5,122,376 $ - 923,478 81,577 25,002 119,668 - 50,824 - 24,947,416 13,247 30,693,982 6,084,103 119,500 $ 10,736,373 - 923,478 14,398 120,977 - 119,668 - 50,824 96 24,960,759 133,994 36,912,079 4,344,767 - - 4,344,767 2,216,560 - - 2,216,560 6,561,327 - - 6,561,327 Nonspendable Restricted Committed Assigned Unassigned 222,902 - 3,723,032 28,347,669 32,943,977 - 2,567,577 - Total fund balances Total liabilities, deferred inflows of resources and fund balances 32,293,603 32,943,977 2,567,577 $ 69,548,912 $ 39,028,080 $ 2,701,571 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. Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Internal service funds are used by management to charge the costs of various benefits and services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Net position of governmental activities 222,902 32,943,977 2,567,577 3,723,032 28,347,669 67,805,157 447,999,291 6,561,327 (370,601,205) 941,540 $ 152,706,110 The accompanying notes are an integral part of these financial statements. 15 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 REVENUES Local sources State sources Federal sources Interest income On-behalf payments Other sources Total revenues EXPENDITURES Current: Instruction General administration Maintenance and operations Student transportation On-behalf payments Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess of revenues over expenditures OTHER FINANCING USES Transfers out Total other financing uses Net change in fund balances FUND BALANCES, beginning of year FUND BALANCES, end of year General SPLOST Projects Nonmajor Governmental Funds Total Governmental Funds $ 87,779,137 $ 31,467,695 $ 133,181,720 - 27,076,728 - 556,459 374,568 499,864 - 53,795 - 249,147,703 31,842,263 1,812,880 $ 121,059,712 - 133,181,720 - 27,076,728 18,043 949,070 - 499,864 - 53,795 1,830,923 282,820,889 212,187,166 7,065,522 18,333,312 10,245,449 499,864 2,211 502,236 83,679 248,919,439 1,202,252 25,224,878 26,427,130 969,575 - 246,647 52,448 93,503 1,362,173 213,156,741 7,065,522 18,579,959 11,500,149 499,864 25,320,592 502,236 83,679 276,708,742 228,264 5,415,133 468,750 6,112,147 (250,000) - (250,000) - (21,736) 5,415,133 32,315,339 27,528,844 $ 32,293,603 $ 32,943,977 $ 468,750 2,098,827 2,567,577 $ (250,000) (250,000) 5,862,147 61,943,010 67,805,157 The accompanying notes are an integral part of these financial statements. 16 BIBB COUNTY SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds. $ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The net effect of the disposal of capital assets is to decrease net position. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Some expenses 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. Internal service funds are used by management to charge costs of various services and benefits to individual funds. The net revenue (expense) of certain activities of internal service funds is reported with governmental activities. $ The accompanying notes are an integral part of these financial statements. 5,862,147 9,593,331 (998,534) 1,228,242 502,236 4,041,428 591,231 20,820,081 17 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018 REVENUES Local sources State sources Federal sources Interest income On-behalf payments Other sources Total revenues EXPENDITURES Current: Instruction General administration Maintenance and operations Student transportation On-behalf payments Capital outlay Debt service: Principal retirements Interest and fiscal charges Total expenditures Excess (deficiency) of 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 of year FUND BALANCES, end of year Budget Original Final $ 84,216,000 130,314,017 33,899,478 200,000 50,000 248,679,495 $ 84,216,000 130,652,742 37,222,233 200,000 50,000 252,340,975 Actual $ 87,779,137 133,181,720 27,076,728 556,459 499,864 53,795 249,147,703 Variance with Final Budget $ 3,563,137 2,528,978 (10,145,505) 356,459 499,864 3,795 (3,193,272) 210,804,125 8,505,370 22,901,397 8,513,848 20,000 502,236 83,180 251,330,156 214,420,658 9,509,052 20,339,790 9,949,833 20,000 502,236 83,180 254,824,749 212,187,166 7,065,522 18,333,312 10,245,449 499,864 2,211 502,236 83,679 248,919,439 2,233,492 2,443,530 2,006,478 (295,616) (499,864) 17,789 (499) 5,905,310 (2,650,661) (2,483,774) 228,264 2,712,038 600,000 (1,150,000) (550,000) 600,000 (1,150,000) (550,000) (250,000) (250,000) (3,200,661) (3,033,774) (21,736) 32,315,339 32,315,339 32,315,339 $ 29,114,678 $ 29,281,565 $ 32,293,603 $ (600,000) 900,000 300,000 3,012,038 - 3,012,038 The accompanying notes are an integral part of these financial statements. 18 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2018 CURRENT ASSETS Cash Investments Receivables: Accounts Intergovernmental Due from other funds Prepaid items Inventories Total current assets NONCURRENT ASSETS Construction in progress Buildings Furniture and equipment Total depreciable assets Less accumulated depreciation Total noncurrent assets Total assets ASSETS Business-type Activities - Enterprise Funds School Food Service Nonmajor Enterprise Funds Total Enterprise Funds Governmental Activities - Internal Service Funds $ 2,088,011 $ 9,842,337 41,489 369,958 4,247 1,982 584,458 12,932,482 103,360 $ 75,426 2,191,371 $ 9,917,763 - 41,489 - 369,958 - 4,247 - 1,982 - 584,458 178,786 13,111,268 1,932,936 - 1,143 - 1,934,079 99,585 9,929,324 9,284,709 19,214,033 (11,045,494) 8,268,124 21,200,606 78,525 78,525 (63,827) 14,698 193,484 99,585 9,929,324 9,363,234 19,292,558 (11,109,321) 8,282,822 21,394,090 - 1,934,079 DEFERRED OUTFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred outflows of resources LIABILITIES CURRENT LIABILITIES Accounts payable Due to other funds Accrued payroll and payroll withholdings Unearned revenue Retainage payable Accrued claims expense Total current liabilities NONCURRENT LIABILITIES Accrued claims expense, net of current position Net pension liability Net other post-employment benefit liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred inflows of resources NET POSITION (DEFICIT) Investment in capital assets Unrestricted Total net position (deficit) 478,096 31,157 509,253 - 1,297,873 7,901 1,305,774 - 1,775,969 39,058 1,815,027 - 267,675 324,201 806,002 15,527 99,585 - 1,512,990 7,743 65,563 4,861 50 - 78,217 2,837,084 15,847,085 18,684,169 20,197,159 184,893 96,469 281,362 359,579 303,281 2,221,730 2,525,011 19,765 13,525 33,290 8,268,124 (8,013,719) $ 254,405 $ 14,698 (175,025) (160,327) 275,418 389,764 810,863 15,577 99,585 - 1,591,207 115,840 - 484,431 600,271 3,021,977 15,943,554 18,965,531 20,556,738 484,432 - 484,432 1,084,703 323,046 - 2,235,255 - 2,558,301 - 8,282,822 (8,188,744) 94,078 $ 849,376 849,376 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. Net position of business-type activities The accompanying notes are an integral part of these financial statements. 19 (92,164) $ 1,914 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING REVENUES Local sources Total operating revenues Business-type Activities - Enterprise Funds School Food Service Nonmajor Enterprise Funds Total Enterprise Funds $ 774,008 $ 774,008 71,269 $ 71,269 845,277 845,277 Governmental Activities - Internal Service Funds $ 2,218,244 2,218,244 OPERATING EXPENSES Food service operations Central support services Enterprise operations Maintenance and operations Depreciation Total operating expenses Operating income (loss) NON-OPERATING REVENUES Intergovernmental revenues Interest earned Gain on the sale of capital assets Total non-operating revenues 18,656,958 - 514,712 19,171,670 (18,397,662) 16,600,007 139,209 5,941 16,745,157 261,642 19,112 3,052 283,806 (212,537) - 18,656,958 - 261,642 19,112 517,764 19,455,476 (18,610,199) 16,600,007 139,209 5,941 16,745,157 27,440 1,576,715 1,604,155 614,089 - Income (loss) before transfers (1,652,505) (212,537) (1,865,042) 614,089 Transfers in Change in net position (1,652,505) 250,000 37,463 250,000 (1,615,042) 614,089 NET POSITION (DEFICIT), beginning of year, as restated NET POSITION (DEFICIT), end of year 1,906,910 $ 254,405 $ (197,790) (160,327) 235,287 $ 849,376 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. Change in net position of business-type activities 22,858 $ (1,592,184) The accompanying notes are an integral part of these financial statements. 20 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from local sources Receipts from interfund services provided Payments to suppliers Payments to employees Payments on behalf of employees Payments for interfund services used Net cash provided by (used in) operating activities CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Subsidy from federal and state grants Transfers from other funds Net cash provided by non-capital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Proceeds from sale of capital assets Net cash provided by investing activities Business-type Activities - Enterprise Funds School Food Service Nonmajor Enterprise Funds Total Enterprise Funds Governmental Activities - Internal Service Funds $ 822,896 $ - (9,888,200) (5,418,362) (2,681,156) - 71,269 - (144,156) (79,970) (22,449) - $ 894,165 $ - (10,032,356) (5,498,332) (2,703,605) - 2,217,282 (2,177,042) (17,164,822) (175,306) (17,340,128) 40,240 16,593,761 - 16,593,761 - - 250,000 250,000 - 16,593,761 250,000 16,843,761 - (1,476,573) - (1,476,573) - (1,476,573) - (1,476,573) - 139,209 22,568 161,777 - 139,209 - - 22,568 - - 161,777 - (Continued) 21 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Business-type Activities - Enterprise Funds School Food Service Nonmajor Enterprise Funds Total Enterprise Funds Governmental Activities - Internal Service Funds Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year $ (1,885,857) $ 13,816,205 $ 11,930,348 $ 74,694 $ (1,811,163) $ 104,092 13,920,297 178,786 $ 12,109,134 $ 40,240 1,892,696 1,932,936 Classified as: Cash Investments $ 2,088,011 $ 9,842,337 $ 11,930,348 $ 103,360 $ 2,191,371 $ 75,426 9,917,763 178,786 $ 12,109,134 $ 1,932,936 - 1,932,936 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation (Increase) decrease in accounts receivable Decrease in due from other funds (Increase) decrease in prepaids Decrease in inventories Increase (decrease) in accounts payable Increase (decrease) in due to other funds Increase (decrease) in payroll related liabilities Increase in unearned revenue Increase in retainage payable Decrease in accrued claims expense Net cash provided by (used in) operating activities $ (18,397,662) $ (212,537) $ (18,610,199) $ 614,089 514,712 48,301 260 (947) 20,777 151,712 (144,956) 542,809 587 99,585 - $ (17,164,822) $ 3,052 - 2,463 - (3,961) 65,563 (29,886) - 517,764 48,301 260 1,516 20,777 147,751 (79,393) 512,923 587 99,585 - (175,306) $ (17,340,128) $ (962) (12,292) (560,595) 40,240 The accompanying notes are an integral part of these financial statements. 22 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 Cash Investments Accounts receivable Total assets Accounts payable Due to others Total liabilities Reserved for leadership awards ASSETS LIABILITIES NET POSITION The accompanying notes are an integral part of these financial statements. W. D. Ryals Memorial Private-Purpose Trust Fund Agency Funds $ - $ 852,416 2,312 23,894 - 322 2,312 876,632 - - - 876,632 - 876,632 $ 2,312 $ - 23 BIBB COUNTY SCHOOL DISTRICT STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 ADDITIONS Interest income Total additions Change in net position NET POSITION, beginning of year NET POSITION, end of year The accompanying notes are an integral part of these financial statements. W. D. Ryals Memorial Private-Purpose Trust Fund $ 31 31 31 2,281 $ 2,312 24 BIBB COUNTY SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Bibb County School District (the "District") was incorporated on August 23, 1872, and provides for a system of education for the children in the City of Macon, Georgia ("Macon") and Bibb County, Georgia ("Bibb County") as authorized by its charter. The District operates under a Board/Superintendent form of government. The eight-member Board of Education (the "Board") is elected by the public and the Board appoints the superintendent. During the year ended June 30, 2005, the citizens of Bibb County voted to give the Board the power to determine the millage rate at which school taxes are levied and to incur bonded indebtedness with voters' approval. In previous years, the District was reported as a component unit of Bibb County. However, beginning with the fiscal year ended June 30, 2005, the District is reported as its own primary government. As required by accounting principles generally accepted in the United States of America, the financial statements of the reporting entity include those of the Bibb County School District (the "primary government") and its component unit. The component unit discussed below is included in the District's reporting entity because of the significance of their operational or financial relationship with the District. Management has determined exclusion of the entity from the financial statements of the District would be considered misleading. In conformity with accounting principles generally accepted in the United States of America, as set forth in Governmental Accounting Standards Board Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34, the financial statements of the component unit are discretely presented in the governmentwide financial statements. Discretely Presented Component Unit The Academy for Classical Education (the "Academy") is responsible for the public education of all students attending its school. The Academy was created through a contract between the Bibb County School District and the Academy whereby all State funding associated with the students attending the Academy and certain specified local funds are turned over to the Academy to cover the cost of its operations. The fiscal year ended June 30, 2015 was the first year of operations for the Academy. The Academy is located in Bibb County, Georgia providing education for almost 1,394 students in grades kindergarten through tenth grade. In future years, one grade will be added each year until the school serves kindergarten through twelfth grade. Complete financial statements for the Academy may be obtained at the entity's administrative offices: Academy for Classical Education 5665 New Forsyth Road Macon, Georgia 31210 www.acemacon.org 25 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to those who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 26 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and the fiduciary fund financial statements. Agency funds have no measurement focus; however, they use the accrual basis of accounting to recognize receivables and payables. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, intergovernmental grants, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. Revenue from grants and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted; matching requirements, in which the District must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. 27 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The State of Georgia reimburses the District for teachers' salaries and operating costs through the Quality Basic Education (QBE) Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally, teachers are contracted for the school year (July 1 June 30) and paid over a 12-month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the District over the same 12-month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued, as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board (GASB) Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The SPLOST Projects Fund accounts for the proceeds of a 1% Special Purpose Local Option Sales Tax. Funds are used for: building renovations; land and building acquisitions; and construction of new educational and administrative facilities. The District reports the following major proprietary fund: The School Food Service Fund accounts for the monies and commodities received from the federal and state governments and the School Food Service's cafeteria sales for the purpose of maintaining the District's breakfast, lunch, and snack programs. 28 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Additionally, the District reports the following fund types: The Capital Projects Funds account for the acquisition of capital assets and construction or improvement of major capital projects such as construction of new schools. The Enterprise Funds account for the operations of the stadiums, Wellness Center, and Hutchings College and Career Academy. The Internal Service Funds account for workers' compensation and unemployment compensation services that are provided to other departments or funds of the District on a cost-reimbursement basis. The Private-purpose Trust Fund accounts for resources devoted to the presentation of an award to a student and teacher each year at Appling Middle School. All resources of the fund, including any earnings on invested resources, may be used to support this purpose. There is no requirement that any portion of the resources be preserved as capital. The Agency Funds are used to account for school activity funds related to school-wide fundraising activities and to account for flex medical and dependent care for the employees of the District. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the District's school food service program and the general fund. Elimination of these charges would distort the direct costs reported for the various functions concerned. Amounts reported as program revenues include: 1) charges for services provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 29 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the District's internal service funds are charges for goods and services provided. Operating expenses of the enterprise funds and internal service funds include the cost of these goods and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. D. Cash and Investments The District's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the District to invest in: obligations of the United States, the State of Georgia and other political subdivisions of the State of Georgia, and other states; prime bankers' acceptances; repurchase agreements; and the Georgia local government investment pool (Georgia Fund 1). Georgia Fund 1, created by O.C.G.A. 36-83-8, is a stable net asset value investment pool which follows Standard & Poor's criteria for AAAf rated money market funds and is regulated by the Georgia Office of the State Treasurer. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1 per share value). The asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participants' shares sold and redeemed based on $1 per share. The pool also adjusts the value of its investments to fair market value as of year-end and the District's investment in the Georgia Fund 1 is reported at fair value. 30 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year as well as all other outstanding balances between funds are reported as "due to/from other funds". Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". F. On-Behalf Payments The State of Georgia makes certain health insurance and pension plan payments on behalf of the District for its employees. The District records these payments as both a revenue and an expenditure in the General Fund. The total of the on-behalf payments for the fiscal year ended June 30, 2018 was $499,864. G. Inventories and Prepaid Items Inventories of the School Food Service Fund are stated at cost using the first-in, first-out method. Donated food commodities are recorded at fair value. The District utilizes the consumption method to recognize inventory usage. Under the consumption method, inventories are recorded as expenses when used rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The consumption method is used to account for prepaid items in the District's funds. H. Capital Assets Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. 31 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets (Continued) Capital assets are depreciated using the straight line method over the following estimated useful lives: Asset Years Land improvements Buildings Equipment 20 25-50 4-20 I. Deferred Outflows/Inflows of Resources GASB Statements No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and No. 65, Items Previously Reported as Assets and Liabilities, established accounting and financial reporting for deferred outflows/inflows of resources and the concept of net position as the residual of all other elements presented in a statement of net position. In addition to assets, the statement of financial position/governmental funds balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Governmental Activities report several types of deferred outflows of resources related to the reporting of the net pension liability and net OPEB liability. See also Note 12 Retirement Plans and Note 13 Other Post-Employment Benefits. In addition to liabilities, the statement of financial position/governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In addition to the items related to changes in the net pension liability and net OPEB liability as discussed below, the District has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and grants. These amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. The Governmental Activities and Business-Type Activities report deferred inflows of resources related to the reporting of the net pension liability and net OPEB liability. These deferred inflows of resources will be amortized over five years. 32 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. 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 fiduciary net position of the Teacher Retirement System of Georgia (TRS), the Public School Employees Retirement System (PSERS), and the Employees' Retirement System (ERS), and additions to/deductions from each plan's fiduciary net position have been determined on the same basis as they are reported by each 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. K. Other Post-Employment Benefits (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 the School OPEB Fund's fiduciary net position have been determined on the same basis as they are reported by the 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. L. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, governmental fund types report the face amount of debt issued as other financing sources. M. Compensated Absences Accumulated unpaid sick leave costs are not vested and are not accrued in any fund, but are recognized as expenditures or expenses, when paid. Accumulated unpaid vacation costs are accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. 33 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Fund Equity Fund equity at the governmental fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net position". Fund Balance Generally, fund balance represents the difference between the assets and liabilities under the current financial resources measurement focus of accounting. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows: Nonspendable Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in spendable form (i.e., items that are not expected to be converted to cash, or (b) legally or contractually required to be maintained intact. Restricted Fund balances are reported as restricted when there are limitations imposed on their use either through enabling legislation or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Committed Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education through the adoption of a resolution. Likewise, fund balances that have been committed cannot be used for any other purposes unless the Board of Education removes the commitment of these funds through formal action of the adoption of a resolution. For a fund balance to show as committed for a fiscal year, the Board must adopt the resolution prior to June 30 even though the dollar amount of the commitment may be determined at a date subsequent to June 30. Assigned Fund balances are reported as assigned when amounts are constrained by the District's intent to be used for the specific purposes, but are neither restricted nor committed. Through resolution, the Board of Education has authorized the Chief Financial Officer or Accounting Director to assign fund balances. Unassigned Fund balances are reported as unassigned as the residual amount when the balances do not meet any of the above criterion. The School District reports positive unassigned fund balance only in the General Fund. Negative unassigned fund balance may be reported in all funds. 34 NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Fund Equity (Continued) Flow Assumptions When both restricted and unrestricted amounts of fund balances are available for use of expenditures incurred, it is the District's policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the District's policy to use fund balance in the following order: Committed Assigned Unassigned Net Position Net position represents the difference between assets and liabilities in reporting which utilizes the economic resources measurement focus. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the District has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted using the same definition as used for restricted fund balance as described in the section above. All other net position is reported as unrestricted. O. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 35 NOTES TO FINANCIAL STATEMENTS NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The Governmental Fund Balance Sheet includes a reconciliation between fund balance total governmental funds and net position governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds." The details of this $370,601,205 difference are as follows: Notes payable Compensated absences Net pension liability Net other post-employment benefit liability Pensions - deferred inflows of resources Net OPEB - deferred inflows of resources Pensions - deferred outflows of resources Net OPEB - deferred outflows of resources Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities $ (2,512,238) (1,615,111) (188,413,081) (179,182,006) (20,194,104) (25,120,973) 31,761,338 14,674,970 $ (370,601,205) B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances includes a reconciliation between net changes in fund balances total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." 36 NOTES TO FINANCIAL STATEMENTS NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS (CONTINUED) B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities (Continued) The details of this $9,593,331 difference are as follows: Capital outlay Depreciation expense Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 23,295,329 (13,701,998) $ 9,593,331 Another element of that reconciliation states that "Some expenses 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." The details of this $4,041,428 difference are as follows: Change in compensated absences Adjustment to record pension expense and related revenue for pension special funding situations, net of fund level amounts Change in net pension liability and deferred inflows and outflows related to pension activity Change in net OPEB liability and deferred inflows and outflows related to pension activity Net adjustment to reduce net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ (152,590) (51,858) 7,327,062 (3,081,186) $ 4,041,428 37 NOTES TO FINANCIAL STATEMENTS NOTE 3. LEGAL COMPLIANCE BUDGETS Budgetary Data. The District adopts an annual budget on a basis consistent with accounting principles generally accepted in the United States of America for the General Fund. The SPLOST Projects Fund adopts a project length budget. Proprietary fund budgets are prepared and utilized as a management tool to assess the operations of the enterprise and internal service funds. All annual appropriations lapse at fiscal year-end. The budget is a complete financial plan for the District's fiscal year, usually the school year, and is based upon careful estimates of expenditures and probable incomes. The District's budget consists of the educational plan, expenditures for the educational plan and sources and amount of revenue. Prior to the first Monday in June, the administration of the District prepares and submits a proposed budget to the Board for approval. After the budget has been tentatively approved by the Board, the budget must be advertised, in form and manner to be prescribed by the Board, at least one time in a newspaper of general circulation in Bibb County. Subsequent to this procedure, the Board shall revise the budget as necessary and adopt a final school budget. The approved budget shall be certified and forwarded to the Georgia Department of Education for final approval. The budget is amended during the first six months and a mid-year review budget is prepared and approved by the Board. The budget is formally adopted at the program level and the legal level of the District's budgetary controls is the program level. Any amendments made after midyear review may be approved by the District's management. 38 NOTES TO FINANCIAL STATEMENTS NOTE 4. DEPOSITS AND INVESTMENTS Credit Risk. As of June 30, 2018, the District's investments were all rated AAAf by Standard & Poor's. As of June 30, 2018, the District had the following investments: Investment Georgia Fund I, AAAf Maturities 10-day weighted average Fair Value $ 75,703,979 Investments are reported in the following activities: Governmental Business-type Fiduciary $ 65,760,010 9,917,763 26,206 $ 75,703,979 Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the District's investment policy limits all operating investments to instruments that mature within one year. All non-operating investments are best matched with their cash flow needs, with investment life of no more than five years. Fair Value Measurements. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Georgia Fund 1 is an investment pool which does not meet the criteria of GASB Statement No. 79 and is thus valued at fair value in accordance with GASB Statement No. 31. As a result, the District does not disclose investment in the Georgia Fund 1 within the fair value hierarchy. Custodial Credit Risk Deposits. Custodial risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits and investments (other than federal and state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. As of June 30, 2018, the District's bank balance of $17,441,086 was fully collateralized in compliance with state requirements. Custodial Credit Risk Investments. For investments, this is the risk that, in the event of the failure of the depository financial institution, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. As of June 30, 2018, the District was not exposed to custodial credit risk for investments. 39 NOTES TO FINANCIAL STATEMENTS NOTE 5. RECEIVABLES Intergovernmental receivables at June 30, 2018, for the District's individual major funds including the applicable allowances for uncollectible accounts are as follows: General SPLOST School Food Service Intergovernmental Accounts Less allowance for uncollectibles Net total receivable $ 34,794,960 $ 1,396,420 (5,337,566) $ 30,853,814 $ 2,745,394 $ - 2,745,394 $ 369,958 41,489 411,447 NOTE 6. PROPERTY TAXES Bibb County bills and collects property taxes for the District. Property taxes are levied (assessed) on all taxable real, public utility and personal property (including vehicles) located within the County as of January 1st of each year. Assessed values for property tax purposes are determined by the Bibb County Board of Tax Assessors for all property except public utilities and motor vehicles. Assessed value is set at 40% of market value. The State of Georgia establishes values for public utilities and motor vehicles. Real property taxes for 2017 were levied on August 18, 2017, and are due in two installments - the first payment was due October 16, 2017, and the final payment was due by November 15, 2017. Bibb County may place liens on property once the related tax payments become delinquent. The property tax receivable allowance is equal to 20% of outstanding property taxes at June 30, 2018. Vehicle personal property taxes are due upon each respective payor's date of birth on an annual basis. Beginning in April 2013, a title ad valorem tax is assessed upon sale of a vehicle, which replaces the personal property tax due annually on the payor's date of birth. 40 NOTES TO FINANCIAL STATEMENTS NOTE 7. CAPITAL ASSETS A. Primary Government Capital asset activity for the fiscal year ended June 30, 2018, is as follows: Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total Capital assets, being depreciated: Land improvements Buildings Equipment Total Less accumulated depreciation for: Land improvements Buildings Equipment Total Total capital assets, being depreciated, net Governmental activities capital assets, net Business-type activities: Capital assets, not being depreciated: Construction in progress Total Capital assets, being depreciated: Buildings Equipment Total Less accumulated depreciation for: Buildings Equipment Total Total capital assets, being depreciated, net Business-type activities capital assets, net Beginning Balance Increases Decreases Transfers Ending Balance $ 13,690,136 $ 2,480,318 16,170,454 8,783,224 503,352,616 45,234,261 557,370,101 (3,171,500) (109,733,725) (21,230,836) (134,136,061) 423,234,040 $ 439,404,494 $ - $ 14,015,745 14,015,745 440,414 5,658,486 3,180,684 9,279,584 (447,236) (9,912,796) (3,341,966) (13,701,998) (4,422,414) 9,593,331 $ - $ (486,968) (486,968) (1,854,275) (81,319) (1,935,594) 1,359,326 64,702 1,424,028 (511,566) (998,534) $ - $ (3,457,060) (3,457,060) 149,490 1,834,322 1,473,248 3,457,060 - 3,457,060 - $ 13,690,136 12,552,035 26,242,171 9,373,128 508,991,149 49,806,874 568,171,151 (3,618,736) (118,287,195) (24,508,100) (146,414,031) 421,757,120 447,999,291 $ - $ - 9,951,260 8,235,505 18,186,765 (4,633,925) (6,212,200) (10,846,125) 7,340,640 $ 7,340,640 $ 99,585 $ 99,585 1,376,988 1,376,988 (122,015) (395,749) (517,764) 859,224 859,224 $ - $ - (21,936) (249,259) (271,195) 10,509 244,059 254,568 (16,627) (16,627) $ - $ - - - - - $ 99,585 99,585 9,929,324 9,363,234 19,292,558 (4,745,431) (6,363,890) (11,109,321) 8,183,237 8,282,822 41 NOTES TO FINANCIAL STATEMENTS NOTE 7. CAPITAL ASSETS (CONTINUED) A. Primary Government (Continued) Depreciation expense was charged to functions/programs of the District as follows: Governmental activities: Instruction $ General administration Maintenance and operations Student transportation Total depreciation expense - governmental activities $ Business-type activities: School food services $ Other activities Total depreciation expense - business-type activities $ 11,051,113 860,090 730,316 1,060,479 13,701,998 514,712 3,052 517,764 B. Discretely Presented Component Unit Academy for Classical Education Capital assets, not being depreciated: Land improvements Construction in progress Total Capital assets, being depreciated: Building improvements Buildings Equipment Total Less accumulated depreciation for: Building improvements Buildings Equipment Total Total capital assets, being depreciated, net Total capital assets, net Beginning Balance Increases Decreases Transfers Ending Balance $ 392,696 $ 31,322 $ 4,661,548 1,536,071 5,054,244 1,567,393 - $ - - $ (6,197,619) (6,197,619) 424,018 - 424,018 2,216,089 21,628,584 1,224,531 25,069,204 479,356 - 305,359 784,715 - - 2,695,445 - 6,197,619 27,826,203 - - 1,529,890 - 6,197,619 32,051,538 (531,418) (354,840) - (846,521) (618,185) - (274,764) (170,521) - (1,652,703) (1,143,546) - - (886,258) - (1,464,706) - (445,285) - (2,796,249) 23,416,501 $ 28,470,745 $ (358,831) 1,208,562 $ - $ 6,197,619 - $ 29,255,289 29,679,307 42 NOTES TO FINANCIAL STATEMENTS NOTE 8. FUND BALANCE CLASSIFICATION The following is an analysis of fund balance as of June 30, 2018. Nonspendable: Prepaids Restricted for: Capital projects Committed for: Student activities Capital projects Assigned for: Subsequent year's budget Unassigned General SPLOST Projects Nonmajor Governmental Funds $ 222,902 $ - $ - 32,943,977 - - - - 3,723,032 - 28,347,669 - $ 32,293,603 $ 32,943,977 $ - - 518,714 2,048,863 2,567,577 NOTE 9. LONG-TERM DEBT A. Primary Government Energy Services Note Payable. On November 15, 2012, the Board of Education approved a resolution authorizing the negotiation and execution of a note payable for certain energy conservation measures related to the retrofit and installation of induction lighting throughout the District. This resolution resulted in the execution of a master lease agreement for the costs of installation/construction of approximately $3,935,000 together with interest paid under the master lease to finance the installation/construction phase of approximately $750,000 and the evaluation, measurement and verification costs over the guaranteed period of approximately $1,615,000 for total project cost of approximately $6,300,000 exclusive of actual annual expenses and savings and allowable adjustments during the installation/construction phase. 43 NOTES TO FINANCIAL STATEMENTS NOTE 9. LONG-TERM DEBT (CONTINUED) A. Primary Government (Continued) The future minimum note obligations and the net present value of these minimum note payments as of June 30, 2018, are as follows: Year Ending June 30, 2019 2020 2021 2022 2023 Total Principal $ 532,391 548,469 633,157 735,444 62,777 $ 2,512,238 Interest $ 67,609 $ 51,531 34,258 13,684 223 $ 167,305 $ Total 600,000 600,000 667,415 749,128 63,000 2,679,543 Long-term liability activity for the year ended June 30, 2018, is as follows: Governmental activities: Note payable Net pension liability Net OPEB liability Claims payable Compensated absences Governmental activities: Long-term liabilities Business-type activities: Net pension liability Net OPEB liability Business-type activities: Long-term liabilities Beginning Balance Additions Reductions Ending Balance Due Within One Year $ 3,014,474 $ 216,854,907 193,196,445 1,645,836 1,462,521 $ 416,174,183 $ - $ (502,236) $ 23,611,405 (52,053,231) 17,756,333 (31,770,772) 1,604,155 (2,165,288) 473,463 (320,873) 43,445,356 $ (86,812,400) $ 2,512,238 $ 188,413,081 179,182,006 1,084,703 1,615,111 372,807,139 $ 532,391 - 600,271 289,701 1,422,363 $ 3,181,344 $ 378,955 $ (538,322) $ 3,021,977 $ - 17,190,554 1,579,759 (2,826,759) 15,943,554 - $ 20,371,898 $ 1,958,714 $ (3,365,081) $ 18,965,531 $ - For governmental activities, compensated absences, net pension liability, and net OPEB liability are liquidated primarily by the General Fund. 44 NOTES TO FINANCIAL STATEMENTS NOTE 9. LONG-TERM DEBT (CONTINUED) B. Discretely Presented Component Unit Academy for Classical Education Bonds payable Less: unamortized discount Net pension liability Net OPEB liability Long-term liabilities Beginning Balance $ 34,990,000 (80,760) 5,726,783 6,443,119 $ 47,079,142 Additions $ - 2,307 1,976,915 1,926,039 $ 3,905,261 Reductions $ - $ - (1,360,944) (851,446) $ (2,212,390) $ Ending Balance Due Within One Year 34,990,000 $ - (78,453) - 6,342,754 - 7,517,712 - 48,772,013 $ - NOTE 10. OPERATING LEASES The District, as lessor, leases excess space in its central office building (approximately 30% of the total square footage) to various private companies and accounts for these leases as operating leases. The cost of the building, related depreciation and net book value of the central office building is as follows: Cost of building Accumulated depreciation Net book value $ 8,511,484 (3,215,441) $ 5,296,043 Lease terms vary and extend through October 31, 2025. Rental revenues under these operating leases during the year ended June 30, 2018, were $487,598. Minimum future rentals to be received under operating leases are as follows: Year Ending June 30, 2019 2020 2021 2022 2023 2024-2025 $ 487,598 467,528 602,694 457,493 457,493 662,463 $ 3,135,269 45 NOTES TO FINANCIAL STATEMENTS NOTE 11. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund balances as of June 30, 2018, is as follows: Due to/from other funds: Receivable Fund General Fund SPLOST Projects Fund School Food Service Total General Fund SPLOST Projects Fund Payable Fund School Food Service Nonmajor Enterprise Funds Nonmajor Governmental Funds Total $ - $ 25,002 $ 324,201 $ 65,563 $ 77,330 - - 4,247 - - - $ 81,577 $ 25,002 $ 324,201 $ 65,563 $ 14,398 $ - 14,398 $ 429,164 77,330 4,247 510,741 These balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Interfund transfers: Transfers Out Transfers In General Fund Nonmajor Enterprise Funds Total $ 250,000 $ 250,000 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that the statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the General Fund and other funds to finance various programs accounted for in other funds in accordance with budgetary authorizations. 46 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS Teachers Retirement System Plan Description All teachers of the District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 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. TRS issues a publicly available financial report that can be obtained at http://www.trsga.com/publications. Benefits Provided TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. Contributions Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2018. The school district's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual school district payroll. District contributions to TRS were $20,858,843 for the year ended June 30, 2018. 47 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Teachers Retirement System (Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for support provided to the District by the State of Georgia for certain public school support personnel. The amounts recognized by the 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 District were as follows: District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability associated with the District $ 191,033,920 96,272 Total $ 191,130,192 The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2017. At June 30 2017, the District's proportion was 1.027876%, which was a decrease of 0.0355581% from its proportion measured as of June 30, 2016. 48 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Teachers Retirement System (Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) For the year ended June 30, 2018, the District recognized pension expense of $19,743,168 and revenue of $(48,718) for support provided by the State of Georgia for certain support personnel. At June 30, 2018, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between District contributions and proportionate share of contributions District contributions subsequent to the measurement date Deferred Outflows of Resources Deferred Inflows of Resources $ 7,145,845 $ 4,187,700 720,942 - - 1,314,633 20,858,843 18,385,747 - Total $ 32,192,388 $ 20,421,322 District contributions subsequent to the measurement date of $20,858,843, 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, 2019. 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 ending June 30: 2019 2020 2021 2022 2023 $ (8,290,713) 4,422,657 1,350,011 (6,564,729) (5,003) 49 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Teachers Retirement System (Continued) Actuarial Assumptions The total pension liability as of June 30, 2017, was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 2.75% 3.75% 9.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation Post-retirement mortality rates were based on the 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) for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for death 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. The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014. The long-term expected rate of return on pension plan investments was determined using a lognormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan 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. 50 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Teachers Retirement System (Continued) 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 Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Total Target allocation (%) 30.00 39.80 3.70 1.50 19.40 5.60 100.00 Long-term expected real rate of return (%) (0.50) 9.00 12.00 13.50 8.00 12.00 Discount Rate The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the 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 (6.50%) or 1percentage-point higher (8.50%) than the current rate: District's proportionate share of the net pension liability 1.00% Decrease (6.50%) Current Discount Rate (7.50%) 1.00% Increase (8.50%) $ 313,509,077 $ 191,033,920 $ 90,141,919 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS financial report which is publicly available at www.trsga.com/publications. 51 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) 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/formspubs/formspubs. Benefits Provided A member may retire and elect to receive normal monthly retirement benefits after completion of 10 years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of 10 years of service. Upon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. Contributions The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. 52 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Public School Employees Retirement System (PSERS) (Continued) Pension Liabilities and Pension Expense At June 30, 2018, the District did not have a liability for a proportionate share of the net pension liability because of the related State of Georgia support. The amount of the State's proportionate share of the net pension liability associated with the District is as follows: State of Georgia's proportionate share of the Net Pension Liability associated with the District $ 2,609,861 The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017, was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. For the year ended June 30, 2018, the District recognized pension expense of $525,989 and revenue of $525,989 for support provided by the State of Georgia. Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increase Investment rate of return 2.75% N/A 7.50% Net pension plan investment expense, including inflation Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two 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 five 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, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014. 53 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Public School Employees Retirement System (PSERS) (Continued) Actuarial Assumptions (Continued) The long-term expected rate of return on 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 Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives Total Target allocation (%) 30.00 37.20 3.40 1.40 17.80 5.20 5.00 100.00 Long-term expected real rate of return (%)* (0.50) 9.00 12.00 13.50 8.00 12.00 10.50 * Rates shown are net of the 2.75% assumed rate of inflation. Discount Rate The discount rate used to measure the total pension liability was 7.50%. 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 pension plan's fiduciary net position was 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. 54 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Employees Retirement System (ERS) Plan Description 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/formspubs/formspubs. 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, post-retirement 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% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. 55 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Employees Retirement System (ERS) (Continued) Contributions (Continued) Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2018 was 24.69% of annual covered payroll for Old and New Plan members and 21.69% for GSEPS members. The District's contributions to ERS totaled $72,895 for the year ended June 30, 2018. 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. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the District reported a liability for its proportionate share of the net pension liability in the amount of $401,138. The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017, was determined using standard roll-forward techniques. The District's proportion of the net pension liability was based on contributions to ERS during the fiscal year ended June 30, 2017. At June 30, 2017, the Employer's proportion was 0.009877%, which was a decrease of 0.003509% from its proportion measured as of June 30, 2016. For the year ended June 30, 2018, the District recognized pension expense of $(17,259). At June 30, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Deferred Outflows of Resources $ 4,395 $ Deferred Inflows of Resources 3 Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between Employer contributions and proportionate share of contributions Employer contributions subsequent to the measurement date Total $ 913 - 72,895 78,203 $ 999 94,826 - 95,828 56 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Employees Retirement System (ERS) (Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) District contributions subsequent to the measurement date of $72,895 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2019. 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 ending June 30: 2019 2020 2021 2022 $ (65,361) (18,288) 4,503 (11,374) Actuarial Assumptions The total pension liability as of June 30, 2017, was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement: Inflation rate Salary increases Investment rate of return 2.75% 3.25% - 7.00%, average, including inflation 7.50%, 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 two 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 seven years for males and set forward three 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. The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014. 57 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Employees Retirement System (ERS) (Continued) Actuarial Assumptions (Continued) The long-term expected rate of return on pension plan investments was determined using a lognormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan 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 Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives Total Target allocation (%) 30.00 37.20 3.40 1.40 17.80 5.20 5.00 100.00 Long-term expected real rate of return (%)* (0.50) 9.00 12.00 13.50 8.00 12.00 10.50 * Rates shown are net of the 2.75% assumed rate of inflation. Discount Rate The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was 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. 58 NOTES TO FINANCIAL STATEMENTS NOTE 12. RETIREMENT PLANS (CONTINUED) Employees Retirement System (ERS) (Continued) Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the 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 (6.50%) or 1percentage-point higher (8.50%) than the current rate: District's proportionate share of the net pension liability 1.00% Decrease (6.50%) Current Discount Rate (7.50%) 1.00% Increase (8.50%) $ 566,186 $ 401,138 $ 260,347 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued ERS financial report which is publicly available at www.ers.ga.gov/formspubs/formspubs. 59 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS Plan Description The District participates in the State of Georgia School Employees Post-employment Benefit Fund (the "School OPEB Fund") which is an other post-employment benefit ("OPEB") plan administered by the State of Georgia Department of Community Health ("DCH"). Certified teachers and non-certified employees of the Board 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 of the State of Georgia and administered by a Board of Community Health ("DCH 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 DCH Board. The School OPEB Fund is included in the State of Georgia Comprehensive Annual Financial Report which is publicly available and can be obtained at https://sao.georgia.gov/comprehensive-annual-financialreports. Benefits 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 DCH Board, the School OPEB Fund is substantially funded on a pay-as-yougo basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions required and made to the School OPEB Fund from the Board were $7,293,321 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. 60 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Effective July 1, 2017, the District implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, which significantly changed the District's accounting for OPEB amounts. The information disclosed in this note is presented in accordance with this new standard. At June 30, 2018, the District reported a liability of $195,125,560 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 was determined using standard roll-forward techniques. The District's proportion of the net OPEB liability was actuarially determined based on employer contributions to the School OPEB Fund during the fiscal year ended June 30, 2017. At June 30, 2017, the District's proportion was 1.388798%, which was a decrease of (0.030790)% from its proportion measured as of June 30, 2016. For the year ended June 30, 2018, the District recognized OPEB expense of $10,648,669. At June 30, 2018, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Changes of assumptions Net difference between projected and actual earnings on OPEB plan investments Changes in proportion and differences between District contributions and proportionate share of contributions District contributions subsequent to the measurement date $ - $ 14,858,314 57,071 - 8,630,352 7,293,321 12,497,914 - Total $ 15,980,744 $ 27,356,228 61 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) District contributions subsequent to the measurement date of $7,293,321 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2019. 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 ending June 30: 2019 2020 2021 2022 2023 2024 $ (3,353,695) (3,353,695) (3,353,695) (3,353,695) (3,367,963) (1,886,062) Actuarial Assumptions The total OPEB liability as of June 30, 2017, was determined by an actuarial valuation as of June 30, 2016, 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, 2017: Inflation Salary increases Long-term expected rate of return Healthcare cost trend rate: Pre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate 2.75% TRS - 3.25 9.00%, including inflation PSERS N/A 3.88%, compounded annually, net of investment expense, and including inflation 7.75% 5.75% 5.00% 5.00% 2022 62 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Actuarial Assumptions (Continued) 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 RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward one year for males) was used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) was used for death after disability retirement. For PSERS Members: The RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) was used for the period after service retirement and for beneficiaries of deceased members. The RP2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward five years for both males and females) was used for the period after disability retirement. The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension system, which covered the five-year period ended June 30, 2014. Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the Board 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. Additionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies, and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. 63 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Actuarial Assumptions (Continued) 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 Local Government Investment Pool Target Allocation 100% Long-Term Expected Real Rate of Return 3.88% Discount rate The discount rate has changed since the prior measurement date from 3.07% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year taxexempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyer Index). The projection of cash flows used to determine the discount rate assumed that the current sharing of costs between the employer and the member will continue and that contributions 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 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the long-term expected rate of return on OPEB plan investments was applied to discount projected benefit payments until 2029. The discount rate of 3.58% was the single rate which, when applied to all projected benefit payments, resulted in the same present value of benefit payments when the above discussed calculations are combined. The calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. 64 NOTES TO FINANCIAL STATEMENTS NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Sensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1percentage-point higher (4.58%) than the current rate: District's proportionate share of the net OPEB liability 1% Decrease (2.58%) Current Discount Rate (3.58%) 1% Increase (4.58%) $ 231,676,650 $ 195,125,560 $ 166,279,347 Sensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rate: The following presents the District's proportionate share of the net OPEB liability calculated using the healthcare cost trend rates of 5.00% to 7.75%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1percentage-point lower (4.00% to 6.75%) or 1-percentage-point higher (6.00% to 8.75%) than the current rates: District's proportionate share of the net OPEB liability 1% Decrease (4.00% to 6.75%) Healthcare Cost Trend Rate (5.00% to 7.75%) 1% Increase (6.00% to 8.75%) $ 161,736,859 $ 195,125,560 $ 238,597,598 NOTE 14. DEFERRED COMPENSATION PLAN The District offers its employees a tax deferred annuity plan created in accordance with Internal Revenue Code Section 403b. The plan, available to all District employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. It is the opinion of the District's legal counsel that the District has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. The District believes these assets are not available to satisfy the claims of general creditors in the future. 65 NOTES TO FINANCIAL STATEMENTS NOTE 15. RISK MANAGEMENT The District is exposed to various risks of loss for claims associated with torts; theft of, damage to and destruction of assets; errors and omissions; natural disaster; workers' compensation; unemployment compensation; and dental benefits. The District is self-insured for workers' compensation and unemployment compensation. Premiums are paid into internal service funds by user funds and are available to pay claims, claim reserves, and administrative costs of the program. These interfund premiums are recognized as revenue in the internal service funds. The premiums are calculated on the basis of the percentage of that fund's payroll to total payroll. Liabilities are reported when it is probable that a loss has been incurred and the amount can be reasonably estimated including amounts of claims incurred, but not yet reported. An excess coverage insurance policy covers individual claims in excess of $500,000 loss per occurrence, up to the statutory limit. The District has not experienced any significant reduction in insurance coverage from the previous years nor has it paid any settlements in excess of insurance coverage in the past three years. Changes in the balances of claims liabilities for the past two fiscal years for the funds for which the District is self-insured are as follows: Workers' Compensation Fund Unpaid claims, beginning of fiscal year Incurred claims and changes in estimates Claim payments Unpaid claims, end of fiscal year June 30, 2018 $ 1,645,836 1,576,715 (2,137,848) $ 1,084,703 June 30, 2017 $ 1,715,027 2,200,593 (2,269,784) $ 1,645,836 As of June 30, 2018, $484,431 of the unpaid workers' compensation claims are due within one year. Unemployment Compensation Fund Unpaid claims, beginning of fiscal year Incurred claims and changes in estimates Claim payments Unpaid claims, end of fiscal year June 30, 2018 $ - 27,440 (27,440) $ - June 30, 2017 $ - 58,062 (58,062) $ - 66 NOTES TO FINANCIAL STATEMENTS NOTE 16. COMMITMENTS AND CONTINGENCIES The District is involved in a number of legal matters which either have or could result in litigation. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the District. The District participates in numerous state and federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing grants, refunds of any money received may be required and the collectability of any related receivable at June 30, 2018, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying basic financial statements for such contingencies. The District is committed under outstanding construction contracts in the capital projects funds in the amount of $51,348,245. Construction contracts include new school construction and expansion and renovation of existing facilities. NOTE 17. TAX ABATEMENTS For the year ended June 30, 2018, the District's tax revenues were reduced by $6,459,179 under agreements entered into by the Macon-Bibb County Industrial Authority and the Macon-Bibb County Urban Development Authority. Under these agreements, taxes on both real and personal property are reduced based on investments made by the corporation to whom the incentives were offered. In order to qualify, certain eligibility requirements must be met and are based on the economic development goals of each project. Generally, a project will create employment opportunities, promote trade and commerce in the County, and increase the tax base. If a company fails to meet the criteria established in the agreement, recovery payments may apply. 67 NOTES TO FINANCIAL STATEMENTS NOTE 18. CHANGE IN ACCOUNTING PRINCIPLE The District implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, through which accounting for OPEB plans and the related disclosure requirements were modified. A restatement to the July 1, 2017 beginning net position for the governmental and business-type activities, the School Food Service Fund and Wellness Center Fund, was made to recognize this change in accounting principle. The resulting adjustments are as follows: Net position, Governmental Activities, as previously reported Deferred outflows - OPEB Net OPEB liability Net position, Governmental Activities, as restated $ 318,432,852 6,649,622 (193,196,445) $ 131,886,029 Net position, Business-type Activities, as previously reported Deferred outflows - OPEB Net OPEB liability Net position, Business-type Activities, as restated $ 18,192,971 591,681 (17,190,554) $ 1,594,098 Net position, School Food Service Fund, as previously reported Deferred outflows - OPEB Net OPEB liability Net position, School Food Service Fund, as restated $ 18,405,349 588,101 (17,086,540) $ 1,906,910 Net position, Wellness Center Fund, as previously reported Deferred outflows - OPEB Net OPEB liability Net position, Wellness Center Fund, as restated $ (128,676) 3,580 (104,014) $ (229,110) 68 bibb county school district required supplementary information BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30, 2018 District's proportion of the net pension liability District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability associated with the District Total District's proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension 2018 1.027876% 2017 1.063457% 2016 1.138128% 2015 1.173353% $ 191,033,920 $ 219,403,037 $ 173,268,686 $ 148,237,675 96,272 134,515 177,055 233,849 $ 191,130,192 $ 219,537,552 $ 173,445,741 $ 148,471,524 $ 118,020,491 $ 116,609,215 $ 122,369,574 $ 119,705,334 161.87% 79.33% 188.15% 76.06% 141.59% 81.44% 123.84% 84.03% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 69 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30, 2018 2018 2017 2016 2015 Contractually required contributions $ 20,858,843 $ 16,841,524 $ 16,640,135 $ 16,091,599 Contributions in relation to the contractually required 20,858,843 16,841,524 16,640,135 16,091,599 Contribution deficiency (excess) $ - $ - $ - $ - District's covered payroll Contributions as a percentage of covered payroll $ 124,085,919 $ 118,020,491 $ 116,609,215 $ 122,369,574 16.81% 14.27% 14.27% 13.15% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 70 BIBB COUNTY SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30, 2018 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. In 2010, assumed rates of salary increases 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 the rates of mortality, retirement, disability, withdrawal, and salary increases. The expectation of retired life mortality was changed to the 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). 71 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018 Districts's proportion of the net pension liability District's proportionate share of the net pension liability State of Georgia's proportionate share of the net position liability associated with the District 2018 0.00% 2017 0.00% 2016 0.00% 2015 0.00% $ - $ - $ - $ - 2,609,861 3,330,650 2,201,966 1,764,249 Total $ 2,609,861 $ 3,330,650 $ 2,201,966 $ 1,764,249 District's covered payroll $ 4,995,782 $ 4,398,447 $ 3,895,721 $ 7,554,145 District's proportionate share of the net pension liability as a percentage of its covered payroll N/A N/A N/A N/A Plan fiduciary net position as a percentage of the total pension 85.69% 81.00% 87.00% 88.29% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 72 BIBB COUNTY SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018 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. In 2010, assumed rates of salary increases 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 the rates of mortality, retirement, and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward three years for males and two years for females). 73 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018 District's proportion of the net pension liability District's proportionate share of the net pension liability District's covered payroll District's proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension 2018 0.009877% 2017 0.013386% 2016 0.014033% 2015 0.019619% $ 401,138 $ 633,214 $ 568,533 $ 735,834 $ 241,835 $ 311,239 $ 325,087 $ 436,547 165.87% 76.33% 203.45% 72.34% 174.89% 76.20% 168.56% 77.99% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 74 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018 2018 2017 2016 2015 Contractually required contributions $ Contributions in relation to the contractually required contribution Contribution deficiency (excess) $ 72,895 $ 72,895 - $ 59,709 $ 59,709 - $ 62,565 $ 62,565 - $ 71,389 71,389 - District's covered payroll Contributions as a percentage of covered payroll $ 295,241 $ 241,835 $ 253,095 $ 325,087 24.69% 24.69% 24.72% 21.96% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 75 BIBB COUNTY SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018 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. 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 the rates of mortality, retirement, withdrawal, and salary increases. 76 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30, 2018 2018 District's proportion of the net OPEB liability 1.388798% District's proportionate share of the net OPEB liability $ 195,125,560 District's covered-employee payroll $ 103,879,397 District's proportionate share of the net OPEB liability as a percentage of its covered-employee payroll 187.84% Plan fiduciary net position as a percentage of the total OPEB liability 1.61% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. 77 BIBB COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30, 2018 Contractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) District's covered-employee payroll Contributions as a percentage of covered-employee payroll 2018 $ 7,293,321 7,293,321 $ - $ 98,314,469 7.42% Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they b 78 BIBB COUNTY SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30, 2018 Changes of Benefit Terms In the June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicareeligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. Changes of Assumptions In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. In the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. In the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. 79 bibb county school district combining fund statements & schedules BIBB COUNTY SCHOOL DISTRICT NONMAJOR GOVERNMENTAL FUNDS CAPITAL IMPROVEMENTS SCHOOL DISCRETIONARY To account for local major capital expenditures funded from local sources. To account for the portion of the school activity resources used for general governmental expenditures. BIBB COUNTY SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2018 ASSETS Cash Investments Total assets LIABILITIES Accounts payable Due to other funds Accrued payroll and payroll withholdings Total liabilities FUND BALANCES Committed for: Capital projects Student activities Total fund balances Total liabilities and fund balances Capital Projects Capital Improvements Special Revenue School Discretionary Total Nonmajor Governmental Funds $ 832,839 $ 1,335,263 533,469 $ - 1,366,308 1,335,263 $ 2,168,102 $ 533,469 $ 2,701,571 $ 119,239 $ - - 119,239 261 $ 14,398 96 14,755 119,500 14,398 96 133,994 $ 2,048,863 $ - 2,048,863 - $ 518,714 518,714 2,048,863 518,714 2,567,577 $ 2,168,102 $ 533,469 $ 2,701,571 80 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 REVENUES Local sources Interest earned Total revenues EXPENDITURES Current: Instruction Maintenance and operations Student transportation Capital outlay Total expenditures Net change in fund balances FUND BALANCES, beginning of year FUND BALANCES, end of year Capital Projects Capital Improvements Special Revenue School Discretionary Total Nonmajor Governmental Funds $ 750,000 $ 1,062,880 $ 1,812,880 18,043 - 18,043 768,043 1,062,880 1,830,923 245,783 93,503 339,286 969,575 864 52,448 - 1,022,887 969,575 246,647 52,448 93,503 1,362,173 428,757 39,993 468,750 1,620,106 478,721 2,098,827 $ 2,048,863 $ 518,714 $ 2,567,577 81 BIBB COUNTY SCHOOL DISTRICT NONMAJOR ENTERPRISE FUNDS STADIUMS WELLNESS CENTER HUTCHINGS ACADEMY To account for the operations of Henderson Stadium and the Ed Defore Sports Complex. To account for the operation of the Wellness Center. To account for the operations of the various business enterprise ventures of the students in the industry pathway programs at the Hutchings College and Career Academy. BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - 2011 ISSUE FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Original Estimated Cost1 Current Estimated Cost5 Prior Years2,3 Current Year4 Total Acquiring, constructing, and equipping five new elementary schools Renovating, extending, repairing, and equipping existing school facilities Acquiring, constructing, and equipping various athletic facilities $ 74,529,000 $ 50,084,922 $ 50,080,990 $ 3,932 $ 50,084,922 33,999,000 39,453,304 38,713,844 342,080 39,055,924 13,375,000 16,020,601 13,585,414 4,493 13,589,907 Constructing and equipping a replacement facility for maintenance and custodial operations Providing controlled access entrances at existing schools and improving school site safety and traffic flow throughout the District Purchasing new technology, fine arts equipment, athletic equipment, and safety and security systems throughout the District Purchasing school buses, vehicles, and maintenance, custodial, and transportation equipment Planning for new District site acquisition, site development and construction, and paying expenses incident to accomplishing the foregoing projects2 6,577,000 5,949,000 20,000,000 8,500,000 13,200,000 5,481,127 5,029,650 11,080,177 8,701,708 29,511,537 27,473,208 10,347,810 8,164,263 22,836,381 22,836,381 448,615 1,606,779 495,176 1,675,952 - 5,478,265 10,308,487 27,968,384 9,840,215 22,836,381 $ 176,129,000 $ 184,815,859 $ 174,585,458 $ 4,577,027 $ 179,162,485 1 The original resolution calling for the imposition of the Local Option Sales Tax includes an amount not to exceed $198,500,000. The original amount budgeted is less than the not to exceed amount as a conservative measure not to exceed actual collected. Adjustments to the budget may be made as collections are received. Tax collections began in January 2011. 2 Included in the expenditures shown above, the District has incurred interest to provide advanced funding for the above projects. Prior year interest was $3,403,244. 3 Included in the expenditures shown above are expenditures which were funded by grant funds in the amount of $15,943,889 and E-rate funds of $3,915,794. 4 Included in the expenditures shown above are expenditures which were funded by grant funds in the amount of $77,340 5 Included in estimated costs are bond expenditures. 82 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS - 2016 ISSUE FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Original Estimated Cost1 Current Estimated Cost Acquiring, constructing, and equipping one new elementary school Consolidation of Appling Middle School and Northeast High School to a shared campus Renovating, extending, repairing, and equipping existing school facilities Acquiring, constructing, and equipping various athletic facilities $ 19,000,000 $ 15,000,000 $ 45,000,000 33,980,081 1,000,000 54,245,602 28,734,479 1,000,000 Constructing and equipping a replacement facility for campus policy and transportation Providing controlled access entrances and updating security technology throughout the District Constructing, furnishing, and equipping auditoriums, including new auditioriums at Rutland High School and Westside High School Capital outlay projects for educational purposes for us by approved charter school operators Purchasing new technology, fine arts equipment, athletic equipment, and safety and security systems throughout the District Purchasing school buses, vehicles, and maintenance, custodial, and transportation equipment Planning for new District site acquisition, demolition of surplus property, site development and construction, and paying expenses incident to accomplishing the foregoing projects 5,000,000 4,000,000 18,000,000 4,776,342 22,635,720 4,000,000 8,819,251 6,844,000 2,156,000 18,000,000 1,522,342 22,635,720 4,000,000 9,439,515 $ 166,211,394 $ 163,577,658 $ Prior Years2 Current Year - $ - $ 470,793 3,480,645 34,677 4,519,676 5,503,412 481,358 139,140 351,371 4,866,116 434,642 37,724 359,138 18,555,873 107,746 45,000 541,959 825,198 17,146 529,653 24,066,760 $ 4,615,596 21,850,103 $ Total - 4,990,469 8,984,057 516,035 5,005,256 786,013 82,724 901,097 19,381,071 124,892 5,145,249 45,916,863 1 The original resolution calling for the imposition of the Local Option Sales Tax includes an amount not to exceed $185,000,000. The original amount budgeted is less than the not to exceed amount as a conservative measure not to exceed actual collected. Adjustments to the budget may be made as collections are received. Tax collections began in January 2016. 2 Included in the expenditures shown above are expenditures which were funded by grant funds in the amount of $216,527. Total expenditures, 2011 Issue Total expenditures, 2016 Issue Total expenditures SPLOST Fund $ 4,577,027 21,850,103 26,427,130 83 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS JUNE 30, 2018 CURRENT ASSETS Cash Investments ASSETS Total current assets CAPITAL ASSETS Furniture and equipment Total depreciable assets Less accumulated depreciation Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred outflows of resources LIABILITIES CURRENT LIABILITIES Accounts payable Due to other funds Accrued payroll and payroll withholdings Unearned revenue Total current liabilities NONCURRENT LIABILITIES Net pension liability Net other post-employment benefit liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Pensions Other post-employment benefits Total deferred inflows of resources NET POSITION (DEFICIT) Investment in capital assets Unrestricted Total net position (deficit) Stadiums Wellness Center Hutchings Academy Total Nonmajor Enterprise Funds $ 83,069 $ - 83,069 75,426 75,426 $ 20,291 $ - 20,291 103,360 75,426 178,786 63,396 63,396 (54,125) 9,271 92,340 15,129 15,129 (9,702) 5,427 80,853 - 20,291 78,525 78,525 (63,827) 14,698 193,484 - 31,157 - 7,901 - 39,058 - 31,157 - 7,901 - 39,058 7,743 42,863 - 50,606 22,700 4,861 50 27,611 - 7,743 65,563 - 4,861 - 50 - 78,217 - - 50,606 184,893 96,469 281,362 308,973 - 184,893 96,469 - 281,362 - 359,579 - 19,765 - 13,525 - 33,290 - 19,765 - 13,525 - 33,290 9,271 5,427 - 32,463 (227,779) 20,291 $ 41,734 $ (222,352) $ 20,291 $ 84 14,698 (175,025) (160,327) BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING REVENUES Local sources Total operating revenues Stadiums Wellness Center Hutchings Academy Total Nonmajor Enterprise Funds $ - $ 31,929 $ 39,340 $ 71,269 - 31,929 39,340 71,269 OPERATING EXPENSES Enterprise operations Maintenance and operations Depreciation Total operating expenses 204,959 19,112 1,605 225,676 23,724 - 1,447 25,171 32,959 - 32,959 261,642 19,112 3,052 283,806 Operating income (loss) before transfers (225,676) 6,758 6,381 (212,537) Transfers in 250,000 - - 250,000 Change in net position 24,324 6,758 6,381 37,463 NET POSITION (DEFICIT), beginning of year, as restated 17,410 (229,110) 13,910 (197,790) NET POSITION (DEFICIT), end of year $ 41,734 $ (222,352) $ 20,291 $ (160,327) 85 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from local sources Payments to suppliers Payments to employees Payments on behalf of employees Stadiums Wellness Center Hutchings Academy Total Nonmajor Enterprise Funds $ - $ (134,984) (45,978) (4,207) 31,929 $ 21,324 (33,992) (18,242) 39,340 $ (30,496) - 71,269 (144,156) (79,970) (22,449) Net cash provided by (used in) operating activities (185,169) 1,019 8,844 (175,306) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers from other funds 250,000 - - 250,000 Net cash provided by non-capital financing activities 250,000 - - 250,000 Net increase in cash and cash equivalents 64,831 1,019 8,844 74,694 Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 18,238 $ 83,069 $ 74,407 75,426 $ 11,447 20,291 $ 104,092 178,786 Classified as: Cash Investments $ 83,069 $ - $ 83,069 $ - $ 75,426 75,426 $ 20,291 $ - 20,291 $ 103,360 75,426 178,786 (Continued) 86 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation Decrease in prepaid items Decrease in accounts payable Increase in due to other funds Decrease in payroll related liabilities Stadiums Wellness Center $ (225,676) $ 6,758 1,605 - (3,961) 42,863 - 1,447 - 22,700 (29,886) Hutchings Academy Total Nonmajor Enterprise Funds $ 6,381 $ (212,537) 2,463 - 3,052 2,463 (3,961) 65,563 (29,886) Net cash provided by (used in) operating activities $ (185,169) $ 1,019 $ 8,844 $ (175,306) 87 BIBB COUNTY SCHOOL DISTRICT INTERNAL SERVICE FUNDS WORKERS' COMPENSATION UNEMPLOYMENT COMPENSATION To account for the self-insured workers' compensation claims activity of the District. To account for the provision of unemployment benefits of the employees of the District. BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2018 ASSETS Cash Accounts receivable Total assets LIABILITIES CURRENT LIABILITIES Accounts payable Accrued claims expense, current portion Total current liabilities NONCURRENT LIABILITIES Accrued claims expense Total liabilities Unrestricted NET POSITION Total net position Workers' Compensation Unemployment Compensation Total Internal Service Funds $ 1,468,561 $ 1,143 1,469,704 464,375 $ 1,932,936 - 1,143 464,375 1,934,079 115,840 484,431 600,271 484,432 1,084,703 - 115,840 - 484,431 - 600,271 - 484,432 - 1,084,703 385,001 464,375 849,376 $ 385,001 $ 464,375 $ 849,376 88 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING REVENUES Local sources Total operating revenues OPERATING EXPENSES Central support services Maintenance and operations Total operating expenses Change in net position NET POSITION, beginning of year NET POSITION, end of year Workers' Compensation Unemployment Compensation Total Internal Service Funds $ 1,961,716 $ 1,961,716 256,528 $ 2,218,244 256,528 2,218,244 1,576,715 1,576,715 385,001 - $ 385,001 $ 27,440 - 27,440 27,440 1,576,715 1,604,155 229,088 614,089 235,287 235,287 464,375 $ 849,376 89 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided Payments for interfund services used Net cash provided by (used in) operating activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Classified as: Cash Reconciliation of operating income to net cash provided by (used in) operating activities: Operating income Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Increase in accounts receivable Decrease in accounts payable Decrease in accrued claims expense Net cash provided by operating activities Workers' Compensation Unemployment Compensation Total Internal Service Funds $ 1,960,754 $ (2,137,848) (177,094) 256,528 $ 2,217,282 (39,194) (2,177,042) 217,334 40,240 (177,094) 1,645,655 $ 1,468,561 $ 217,334 40,240 247,041 1,892,696 464,375 $ 1,932,936 1,468,561 $ 1,468,561 $ 464,375 1,932,936 464,375 $ 1,932,936 $ 385,001 $ 229,088 $ 614,089 (962) (538) (560,595) $ (177,094) $ (11,754) - 217,334 $ (962) (12,292) (560,595) 40,240 90 BIBB COUNTY SCHOOL DISTRICT AGENCY FUNDS STUDENT ACTIVITY SECTION 125 CAFETERIA PLAN To account for the portion of student activity funds related to school-wide fund raising activities. To account for flex medical and dependent care for the employees of the District. BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2018 ASSETS Cash Accounts receivable Investments Total assets Student Activity Section 125 Cafeteria Plan Totals $ 406,844 $ 445,572 $ 852,416 - 322 322 - 23,894 23,894 $ 406,844 $ 469,788 $ 876,632 LIABILITIES Due to others Total liabilities $ 406,844 $ 469,788 $ 876,632 $ 406,844 $ 469,788 $ 876,632 91 BIBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 STUDENT ACTIVITY ASSETS Cash Accounts receivable Prepaid and other assets Total assets LIABILITIES Due to others Total liabilities SECTION 125 CAFETERIA PLAN ASSETS Cash Investments Accounts receivable Total assets Balance July 1, 2017 Increases Decreases Balance June 30, 2018 $ 511,927 $ 2,073,355 $ 2,178,438 $ 528 - 528 5,000 - 5,000 $ 517,455 $ 2,073,355 $ 2,183,966 $ 406,844 - 406,844 $ 517,455 $ 2,073,355 $ 2,183,966 $ $ 517,455 $ 2,073,355 $ 2,183,966 $ 406,844 406,844 $ 400,485 $ 23,571 - 808,128 $ 323 322 763,041 $ - 445,572 23,894 322 $ 424,056 $ 808,773 $ 763,041 $ 469,788 LIABILITIES Due to others Total liabilities TOTAL AGENCY FUNDS ASSETS Cash Investments Accounts receivable Prepaid and other assets Total assets LIABILITIES Due to others Total liabilities $ 424,056 $ 808,773 $ 763,041 $ 469,788 $ 424,056 $ 808,773 $ 763,041 $ 469,788 $ 912,412 $ 2,881,483 $ 2,941,479 $ 852,416 23,571 323 - 23,894 528 322 528 322 5,000 - 5,000 - $ 941,511 $ 2,882,128 $ 2,947,007 $ 876,632 941,511 2,882,128 2,947,007 876,632 $ 941,511 $ 2,882,128 $ 2,947,007 $ 876,632 92 III. S T A T I S T I C A L S E C T I O N III. STATISTICAL SECTION This part of the Bibb County School District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the District's overall financial health. Contents Page Financial Trends ...................................................................................................................................... 93 98 These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time. Revenue Capacity.................................................................................................................................. 99 106 These schedules contain information to help the reader assess the District's most significant local revenue sources. Debt Capacity....................................................................................................................................... 107 111 These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. Demographic and Economic Information .....................................................................................112 and 113 These schedules offer demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place. Operating Information ......................................................................................................................... 114 131 These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the District's financial reports for the relevant year. BIBB COUNTY SCHOOL DISTRICT NET POSITION BY ACTIVITY1 LAST TEN FISCAL YEARS Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business-type activities Net investment in capital assets Unrestricted Total business-type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position 2009 2010 2011 2012 $ 298,357,488 3 $ 322,745,988 3 $ 336,728,828 3 $ 345,725,006 3 5,133,225 2 1,760,689 2 42,340,704 4 35,715,288 4 16,032,105 23,564,010 7,573,552 29,133,665 $ 319,522,818 $ 348,070,687 $ 386,643,084 $ 410,573,959 $ 9,577,078 $ 9,123,658 $ 8,555,886 $ 8,372,765 6,992,596 8,360,053 9,904,584 9,964,608 $ 16,569,674 $ 17,483,711 $ 18,460,470 $ 18,337,373 $ 307,934,566 3 $ 331,869,646 3 $ 345,284,714 3 $ 354,097,771 3 5,133,225 2 1,760,689 2 42,340,704 4 35,715,288 4 23,024,701 31,924,063 17,478,136 39,098,273 $ 336,092,492 $ 365,554,398 $ 405,103,554 $ 428,911,332 1 Per Audited Financial Statements. 2 Net position is restricted for debt service for the 2004 Contractual Obligation, related to the financing of the Central Office Building and the 2005 and 2006 General Obligation Bonds. 3 Increase in assets is due to completion of Capital Improvement Program construction projects. 4 Net position is restricted for debt service for the 2004 Contractual Obligation, related to the financing of the Central Office Building and the 2010 General Obligation Bonds. 5 Net position reflects the implementation of GASB Statement No. 68 for pensions. Previous years were not updated to reflect the prior period adjustment required in FY15. 6 Net position reflects the implementation of GASB Statement No. 75 for other post-employment benefit plans. Previous years were not updated to reflect the prior period adjustment required in FY18. 93 2013 2014 2015 2016 2017 2018 $ 351,383,227 3 $ 371,973,663 3 $ 411,682,794 3 $ 430,576,027 3 $ 436,390,020 3 $ 445,487,053 3 43,712,893 4 41,245,665 4 21,366,620 23,290,305 27,528,844 32,943,977 27,067,312 28,585,951 (167,355,742) 5 (153,091,162) 5 (145,486,012) 5 (325,724,920) 5,6 $ 422,163,432 $ 441,805,279 $ 265,693,672 $ 300,775,170 $ 318,432,852 $ 152,706,110 $ 8,033,338 $ 7,448,327 $ 7,130,065 $ 7,733,958 $ 7,340,640 $ 8,282,822 9,996,834 11,060,218 10,001,160 10,623,338 10,852,331 (8,280,908) $ 18,030,172 $ 18,508,545 $ 17,131,225 $ 18,357,296 $ 18,192,971 $ 1,914 $ 359,416,565 3 $ 379,421,990 3 $ 418,812,859 3 $ 438,309,985 3 $ 443,730,660 $ 453,769,875 43,712,893 4 41,245,665 4 21,366,620 23,290,305 27,528,844 32,943,977 37,064,146 39,646,169 (157,354,582) 5 (142,467,824) 5 (134,633,681) (334,005,828) $ 440,193,604 $ 460,313,824 $ 282,824,897 $ 319,132,466 $ 336,625,823 $ 152,708,024 94 BIBB COUNTY SCHOOL DISTRICT CHANGES IN NET POSITION 1 LAST TEN FISCAL YEARS Expenses Primary government: Governmental activities: Instruction General administration Maintenance and operations Student transportation Interest on long-term debt Total governmental activities expenses Business-type activities: School food services Stadiums Wellness center Hutchings Academy Total business-type activities expenses Total primary government expenses Program revenues Primary government: Governmental activities: Charges for services, Instruction 5 Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: School food services Stadiums Wellness center Hutchings Academy Operating grants and contributions Total business-type activities program revenues Total primary government revenues General revenues and other changes in net position Primary government: Governmental activities: Property taxes Sales taxes Other taxes Grants and contributions not restricted to specific programs Investment earnings Gain on sale of assets Transfers Extraordinary item 4 in net position Business-type activities: Investment earnings Gain (loss) on sale of assets Transfers in net position in net position Change in net position Governmental activities Business-type activities Total primary government change in net position 2009 2010 2011 $ 186,486,038 3 $ 195,062,200 3 $ 199,491,917 5,160,074 4,783,358 4,668,333 17,485,871 15,930,446 16,500,975 9,875,234 8,474,016 8,373,330 2,665,569 1,649,316 1,071,614 221,672,786 225,899,336 230,106,169 12,903,810 249,546 41,657 - 13,195,013 234,867,799 13,441,035 237,981 38,835 - 13,717,851 239,617,187 13,432,390 230,871 41,938 - 13,705,199 243,811,368 5,181,042 124,491,161 2 9,548,527 139,220,730 4,916,137 135,185,194 2 334,270 140,435,601 4,442,339 147,108,861 1,048,870 152,600,070 1,880,137 223,800 53,230 - 11,609,534 13,766,701 152,987,431 1,792,702 450 49,770 - 12,514,978 14,357,900 154,793,501 1,651,755 2,175 45,473 - 12,722,185 14,421,588 167,021,658 71,635,050 30,837,248 803,972 2,834,008 1,171,573 (25,746) 1,091,763 108,347,868 76,107,910 30,708,113 704,466 6,679,391 71,788 - (260,064) 114,011,604 77,490,597 33,274,668 775,254 4,678,040 109,937 11,606 (250,000) 116,090,102 60,504 29,586 25,746 115,836 108,463,704 13,924 - 260,064 273,988 114,285,592 10,370 - 250,000 260,370 116,350,472 25,895,812 687,524 $ 26,583,336 28,547,869 914,037 $ 29,461,906 38,584,003 976,759 $ 39,560,762 1 Per Audited Financial Statements. 2 Decrease in operating grants and contributions is due to a reduction in State QBE funding in 2009 due to the reduction in State Health insurance rates. 3 Decrease in instructional expenses is due to a decrease in the State Health Insurance rate for 2009 only. 4 The Extraordinary Item reflects an insurance reimbursement due to the District for tornado damage. 5 All charges for services in governmental activities are allocated to the instruction function. 95 2012 2013 2014 2015 2016 2017 2018 $ 203,772,832 5,861,574 16,352,520 8,625,627 591,481 235,204,034 $ 205,659,113 6,211,520 18,236,055 9,152,170 252,873 239,511,731 $ 190,364,402 5,215,289 20,426,804 11,549,958 19,671 227,576,124 $ 196,468,392 5,167,493 20,132,996 10,594,376 151,109 232,514,366 $ 195,955,268 4,759,529 19,187,800 9,152,453 104,347 229,159,397 $ 216,651,601 6,459,667 19,014,928 11,004,051 96,142 253,226,389 $ 222,758,006 7,572,905 19,637,436 12,850,636 83,679 262,902,662 14,985,982 236,514 79,914 - 15,302,410 250,506,444 15,831,626 224,022 41,180 - 16,096,828 255,608,559 14,894,576 257,388 37,533 - 15,189,497 242,765,621 16,482,281 238,188 51,403 - 16,771,872 249,286,238 16,970,986 248,195 44,548 - 17,263,729 246,423,126 17,831,199 266,576 218,188 7,089 18,323,052 271,549,441 19,148,812 225,676 25,171 32,959 19,432,618 282,335,280 4,356,387 123,193,096 133 127,549,616 1,632,573 2,825 39,775 - 13,245,440 14,920,613 142,470,229 2,985,532 137,796,072 630,000 141,411,604 1,572,918 8,100 51,745 - 13,911,752 15,544,515 156,956,119 3,022,010 135,353,965 2,106,421 140,482,396 1,410,199 8,325 44,525 - 14,040,401 15,503,450 155,985,846 2,863,690 141,585,311 5,969,435 150,418,436 896,391 2,384 42,642 - 16,576,213 17,517,630 167,936,066 3,273,133 144,741,808 9,751,642 157,766,583 1,021,825 2,700 38,165 - 17,170,063 18,232,753 175,999,336 5,272,721 150,667,178 216,527 156,156,426 829,349 120 34,990 20,999 16,960,358 17,845,816 174,002,242 4,604,926 153,748,947 1,213,603 159,567,476 774,008 - 31,929 39,340 16,600,007 17,445,284 177,012,760 74,724,411 34,782,651 778,481 21,469,657 80,093 - (250,000) 131,585,293 74,167,428 30,436,212 1,055,738 4,307,244 116,990 42,221 (230,000) 109,895,833 75,155,287 29,266,620 945,425 1,415,932 95,507 11,606 (154,802) 106,735,575 73,371,367 29,916,162 857,679 2,975,284 94,963 - (230,002) 106,985,453 73,941,113 29,746,664 1,148,187 1,731,235 137,113 - (230,000) 106,474,312 82,306,656 29,262,925 1,396,848 1,695,974 315,242 - (250,000) 114,727,645 83,045,079 31,467,695 1,061,942 7,881,481 949,070 - (250,000) 124,155,267 8,700 - 250,000 258,700 131,843,993 11,232 3,880 230,000 245,112 110,140,945 9,618 - 154,802 164,420 106,899,995 12,912 - 230,002 242,914 107,228,367 27,047 - 230,000 257,047 106,731,359 60,447 2,464 250,000 312,911 115,040,556 139,209 5,941 250,000 395,150 124,550,417 23,930,875 (123,097) 11,795,706 (307,201) 19,641,847 478,373 24,889,523 988,672 35,081,498 1,226,071 17,657,682 (164,325) 20,820,081 (1,592,184) $ 23,807,778 $ 11,488,505 $ 20,120,220 $ 25,878,195 $ 36,307,569 $ 17,493,357 $ 19,227,897 96 BIBB COUNTY SCHOOL DISTRICT FUND BALANCES, GOVERNMENTAL FUNDS 1 LAST TEN FISCAL YEARS General Fund Nonspendable Restricted Assigned Unassigned Reserved Unreserved Total general fund All Other Governmental Funds Nonspendable Restricted Committed Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds 2009 2010 2011 3 2012 $ - $ - $ 92,982 $ 244,860 - - 42,727 - - - 3,717,583 8,060,032 - - 18,259,199 16,666,784 685,198 1,292,518 - - 10,840,762 15,410,414 7 - - $ 11,525,960 4 $ 16,702,932 $ 22,112,491 $ 24,971,676 $ - $ - $ - $ - - - 42,297,977 40,245,768 - - 2,314,783 2,274,362 6,106,997 6 1,760,689 6 - - 700,554 633,146 633,146 - 1,833,298 3,255,939 3,255,939 - $ 8,640,849 $ 5,649,774 $ 48,501,845 2 $ 42,520,130 1 Per Audited Financial Statements. 2 The increase in fund balance is primarily due to the issuance of the Series 2010 General Obligation Bonds ($30,000,000) on September 29, 2010. 3 The School District implemented GASB No. 54 for the fiscal year ended June 30, 2011. 4 The $6.2 million decrease in the General Fund balance was primarily due to the use of reserve funds to finance FY 2009 governmental operations. 5 Continued reductions is due to the use of these funds to finance the 2005 Capital Improvement Program expenditures. 6 The increase in fund balance is primarily due to the increase in furlough days taken by District employees coupled with a concerted effort to curtail expenditures. 97 2013 2014 2015 2016 2017 2018 $ 533,396 $ 609,305 $ 239,718 $ 410,957 $ 408,265 $ 222,902 - - - - - - 7,396,557 7,465,783 6,182,492 1,795,524 2,554,577 3,723,032 16,573,293 - 17,768,672 - 15,222,178 - 23,173,055 - 29,352,497 - 28,347,669 - - - - - - - $ 24,503,246 $ 25,843,760 $ 21,644,388 $ 25,379,536 $ 32,315,339 $ 32,293,603 $ - $ - $ 6,823 $ - $ - $ - 43,712,893 41,245,665 21,366,620 23,290,305 27,528,844 32,943,977 2,306,739 1,969,668 1,761,495 2,216,583 2,098,827 2,567,577 - - - - - - - - - - - - - - - - - - $ 46,019,632 $ 43,215,333 $ 23,134,938 $ 25,506,888 $ 29,627,671 $ 35,511,554 98 BIBB COUNTY SCHOOL DISTRICT CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS 1 LAST TEN FISCAL YEARS Revenues: Local sources State sources Federal sources Interest income On-behalf payments Other sources Total revenues Expenditures: Current: Instruction General administration Maintenance and operations Student transportation On-behalf payments Capital outlay Debt service: Principal retirement Interest and fiscal charges Bond issuance costs Total expenditures Excess of revenues over expenditures Other financing sources (uses) Proceeds from capital lease Proceeds from sale of assets Bond proceeds Premium on bonds issued Transfers in Transfers out Total other financing sources (uses) Extraordinary item Net change in fund balances Debt service as a percentage of non-capital expenditures 2009 2010 2011 2012 $ 107,880,029 111,055,542 23,399,757 1,171,573 5 2,007,493 75,682 245,590,076 $ 110,920,286 98,802,821 6 42,423,489 6 71,788 493,035 23,051 252,734,470 $ 116,883,410 107,977,489 39,504,593 109,937 547,296 71,444 265,094,169 $ 114,926,700 106,601,196 41,682,410 80,093 296,016 263,586,415 179,223,368 4,862,351 17,200,273 8,944,807 2,007,493 66,215,229 25,500,694 3,285,050 1,050 307,240,315 (61,650,239) 184,828,737 4,598,669 15,806,509 7,566,211 493,035 8,421,802 2 26,112,319 2,226,069 525 250,053,876 2,680,594 190,720,299 4,556,517 16,252,755 7,488,491 547,296 9,545,322 2 20,630,529 1,729,622 377,000 251,847,831 13,246,338 193,547,986 5,464,792 16,225,211 7,858,200 296,016 26,042,084 10,316,102 1,312,666 - 261,063,057 2,523,358 1,399,644 427,100 - 4,757,595 (5,148,132) 1,436,207 1,091,763 4 175,000 24,817,885 3 (25,487,582) 3 (494,697) - 30,000,000 2,701,490 24,591,646 (26,166,929) 31,126,207 - $ (59,122,269) $ 2,185,897 $ 44,372,545 17,002 28,754,722 (30,528,527) (1,756,803) - $ 766,555 12.02% 11.66% 9.25% 4.94% 1 Per Audited Financial Statements. 2 Decrease in Capital Outlay is due to the sunset of the 2005 Capital Improvement Program. 3 Includes transfers from the SPLOST Fund to the Debt Service Fund for payment on the 2005 Bonds. 4 The Extraordinary Item reflects an insurance reimbursement due to the District for tornado damage. 5 Decrease in Interest Revenue is due to the reduction in funds available for investment as we complete the 2005 Capital Improvement Program projects as well as the significant reduction in interest rates. 6 Decrease in state revenues and increase in federal revenues is due to the replacement of state revenues with federal revenues by the State of Georgia along with an increase in federal funding due to the receipt of ARRA funding. 99 2013 2014 2015 2016 2017 2018 $ 109,409,813 103,222,294 36,593,385 116,990 456,379 42,221 249,841,082 $ 109,365,858 103,047,361 35,486,462 95,507 470,833 11,606 248,477,627 $ 107,455,922 116,258,325 33,716,689 94,963 490,225 75,964 258,092,088 $ 108,287,322 127,153,940 28,823,502 137,113 478,332 51,073 264,931,282 $ 120,115,562 119,476,359 29,664,740 315,242 468,043 106,957 270,146,903 $ 121,059,712 133,181,720 27,076,728 949,070 499,864 53,795 282,820,889 188,285,121 6,376,750 18,027,739 8,454,927 456,379 22,902,159 11,652,770 1,080,627 - 257,236,472 (7,395,390) 180,180,576 4,866,993 19,930,398 10,917,474 470,833 19,045,691 11,578,392 795,089 - 247,785,446 692,181 191,986,673 5,167,445 19,903,719 9,638,364 490,225 53,651,548 434,231 151,109 281,423,314 (23,331,226) 188,558,129 4,768,804 19,009,020 8,197,322 478,332 37,436,482 291,486 104,347 258,843,922 6,087,360 196,085,273 6,104,050 18,307,905 9,936,759 468,043 27,514,371 327,774 96,142 - 258,840,317 11,306,586 213,156,741 7,065,522 18,579,959 11,500,149 499,864 25,320,592 502,236 83,679 - 276,708,742 6,112,147 10,108,763 20,764,413 (20,446,714) 10,426,462 15,408,845 (17,564,811) (2,155,966) (948,541) (948,541) 608,902 51 (589,215) 19,738 - (250,000) (250,000) - (250,000) (250,000) - - - - - - $ 3,031,072 $ (1,463,785) $ (24,279,767) $ 6,107,098 $ 11,056,586 $ 5,862,147 5.29% 5.44% 0.25% 0.18% 0.18% 0.23% 100 BIBB COUNTY SCHOOL DISTRICT ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Residential Property Commercial Property Assessed Value Motor Industrial Vehicle Property Property Other Property Total Property 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ 1,901,158,428 2,341,798,092 2,314,060,733 2,281,356,418 2,184,969,532 2,141,522,348 2,096,647,260 2,034,777,589 2,023,324,452 2,008,937,892 $ 1,319,503,758 1,556,431,280 1,516,041,435 1,491,104,317 1,441,064,425 1,459,212,160 1,455,905,068 1,475,420,757 1,514,467,545 1,572,253,004 $ 401,994,543 399,391,541 362,589,484 367,285,446 352,449,693 340,062,977 360,473,200 385,341,214 401,927,651 457,218,675 $ 335,337,890 359,153,810 349,085,600 347,406,200 338,215,220 357,594,990 301,551,920 210,348,700 158,458,740 118,018,850 $ 186,710,140 208,388,119 204,613,278 241,146,055 239,112,624 247,068,452 253,240,795 262,818,098 270,981,269 279,915,930 $ 4,144,704,759 4,865,162,842 4,746,390,530 4,728,298,436 4,555,811,494 4,545,460,927 4,467,818,243 4,368,706,358 4,369,159,657 4,436,344,351 Source: Bibb County Tax Commissioner's Office Notes: The county assesses property at 40% of actual value. Actual tax value is calculated by dividing assessed value (before exemptions) by 40%. Tax rates are per $1,000 of assessed value. 101 Total Taxable Property Less Exemptions $ 379,612,640 390,804,653 378,145,013 389,946,690 384,341,159 379,268,253 391,859,575 396,425,213 398,899,448 423,265,034 Assessed Value $ 3,765,092,119 4,474,358,189 4,368,245,517 4,338,351,746 4,171,470,335 4,166,192,674 4,075,958,668 3,972,281,145 3,970,260,209 4,013,079,317 Actual Value $ 10,361,761,898 12,162,907,105 11,865,976,325 11,820,746,090 11,389,528,735 11,363,652,318 11,169,545,608 10,921,765,895 10,922,899,143 11,090,860,878 Total Direct Tax Rate 19.7988 17.9450 17.9450 17.9450 17.9450 17.9450 17.9450 17.9450 19.9450 19.8140 Assessed Value as a Percentage of Actual Value 36.34% 36.79% 36.81% 36.70% 36.63% 36.66% 36.49% 36.37% 36.35% 36.18% 102 BIBB COUNTY SCHOOL DISTRICT DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Bibb County School District Maintenance and Operations Total Direct Rate - School District 2009 2010 2011 $ 19.7988 $ 19.7988 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 County Rates (Direct) General Bond Fire District Total Direct Rate - County $ 11.6739 - 1.3748 $ 13.0487 $ 10.0030 - 1.2040 $ 11.2070 $ 10.0030 - 1.2055 $ 11.2085 City Rates Macon General Bond Total Direct Rate - City Source: Bibb County Tax Commissioner's Office $ 10.1600 - $ 10.1600 $ 9.8000 - $ 9.8000 $ 9.8000 - $ 9.8000 103 2012 2013 2014 2015 2016 2017 2018 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 17.9450 $ 19.9450 $ 19.9450 $ 19.8140 $ 19.8140 $ 12.0030 - 1.4885 $ 13.4915 $ 12.0030 - 1.5162 $ 13.5192 $ 12.0030 - 1.5199 $ 13.5229 $ 14.6520 - $ 14.6520 $ 14.6520 - $ 14.6520 $ 14.6520 - $ 14.6520 $ 17.6520 - $ 17.6520 $ 9.8000 $ 9.7000 $ 9.7000 $ 4.8500 $ - $ - $ - - - - - - - - $ 9.8000 $ 9.7000 $ 9.7000 $ 4.8500 $ - $ - $ - 104 BIBB COUNTY SCHOOL DISTRICT PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Employer Graphic Packaging International, Inc. Georgia Power Company Norfolk Southern Combined Railroad Coliseum Medical Centers YKK (USA), Inc. Shoppes at River Crossing, LLC Armstrong World Industries, Inc. Wal-Mart DDRTC Eisenhower Crossing, LLC Atlanta Gas Light Co. Bellsouth (AT&T) Telecommunications Macon Mall Paragon Trade Brands, Inc. Atlantic Southeast Airlines Taxable Assessed Value 2018 Rank Percentage of Total Taxable Assessed Value $ 85,101,849 1 73,091,512 2 43,021,340 3 36,853,666 4 32,288,578 5 25,813,174 6 24,035,956 7 21,306,364 8 18,832,640 9 17,064,076 10 - - - - - - - - $ 377,409,155 2.14% 1.84% 1.08% 0.93% 0.81% 0.65% 0.61% 0.54% 0.47% 0.43% 9.50% Source: Bibb County Tax Commissioner's Office Taxable Assessed Value 2009 Rank Percentage of Total Taxable Assessed Value $ 61,366,706 1 39,029,476 3 -25,370,239 8 56,016,664 2 -24,797,202 9 27,662,606 7 --30,508,003 6 37,248,157 4 35,240,551 5 23,191,367 10 $ 360,430,971 1.63% 1.04% 0.67% 1.49% 0.66% 0.73% 0.81% 0.99% 0.94% 0.62% 9.58% 105 BIBB COUNTY SCHOOL DISTRICT PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Tax Year Taxes Levied for the Fiscal Year (Original Levy) Adjustments Total Adjusted Levy Collected within the Fiscal Year of the Levy Percentage Collections in of Original Subsequent Amount Levy Years Tax Collections to Date Percentage of Adjusted Amount Levy 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $ 74,544,306 80,292,358 78,388,166 77,851,722 74,857,035 74,762,330 73,143,079 71,282,586 79,190,029 79,518,277 $ (358,415) (712,967) 450,155 (609,636) 135,083 396,649 833,595 1,102,490 1,293,859 711,774 $ 74,185,891 79,579,391 78,838,321 77,242,086 74,992,118 75,158,979 73,976,674 72,385,076 80,483,888 80,230,051 $ 71,846,462 72,902,664 75,026,552 73,518,853 72,188,549 70,398,953 68,935,730 68,223,914 76,340,411 76,557,481 96.38% 90.80% 95.71% 94.43% 96.44% 94.16% 94.25% 95.71% 96.40% 96.28% $ 1,822,713 6,281,468 3,323,620 3,365,247 2,334,901 2,124,980 1,977,070 1,726,790 1,144,735 - $ 73,669,175 79,184,132 78,350,172 76,884,100 74,523,450 72,523,933 70,912,800 69,950,704 77,485,146 76,557,481 99.30% 99.50% 99.38% 99.54% 99.38% 96.49% 95.86% 96.64% 96.27% 95.42% Source: Bibb County Tax Commissioner's Office 106 BIBB COUNTY SCHOOL DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General Obligation Bonds $ 46,292,205 3 20,339,517 5 32,122,599 6 22,130,745 7 11,213,891 8 - 11 - Capital Leases Governmental Activities Total Note Primary Payable Government % of Personal Income 1 $ 3,118,950 4 2,506,631 1,876,102 780,000 5,445,157 9 4,571,791 - - $ 49,411,155 - 22,846,148 - 33,998,701 - 22,910,745 $ 3,935,839 10 20,594,887 3,865,810 8,437,601 3,633,734 3,633,734 3,342,248 3,342,248 3,014,474 3,014,474 2,512,238 2,512,238 0.99% 0.46% 0.68% 0.41% 0.37% 0.15% 0.06% 0.06% 0.05% 0.04% Population 155,216 156,460 155,547 156,433 156,462 155,791 154,314 153,721 152,760 152,862 Per Capita 2 318.34 146.02 218.58 146.46 131.63 54.16 23.55 21.74 19.73 16.43 1 Source: U.S. Department of Commerce, Bureau of Economic Analysis 1 Notes: See additional personal income data on Schedule of Demographic and Economic Statistics on page 112. 2 Source: U.S. Department of Commerce, Bureau of Economic Analysis 2 Notes: See additional population statistics on Schedule of Demographic and Economic Statistics on page 112. 3 Includes 2005 General Obligation Bonds of $45,500,000 plus unamortized Bond Premium of $792,205. The reduction is due to the payoff of the 2006 General Obligation Bonds and the partial payment of the 2005 Bonds. 4 Increase is due to the lease/purchase of 17 school buses. 5 Includes 2005 General Obligation Bonds of $20,000,000 plus unamortized Bond Premium of $339,517. The reduction is due to a $25,500,000 principal payment made on the 2005 Bonds in March 2010. 6 Includes 2010 General Obligation Bonds of $30,000,000 plus unamortized Bond Premium of $2,122,599. The final payment on the 2005 Bonds was made in March 2011. 7 Includes 2010 General Obligation Bonds of $20,780,000 plus unamortized Bond Premium of $1,350,745. The reduction is due to a $9,220,000 principal payment made on the 2010 Bonds in March 2012. 8 Includes 2010 General Obligation Bonds of $10,635,000 plus unamortized Bond Premium of $578,891. The reduction is due to a $10,145,000 principal payment made on the 2010 Bonds in March 2013. 9 Increase is due to the Macon Promise Neighborhood Capital Lease. 10 Increase is due to the Wipro Note payable. 11 Decrease is due to the payoff of the 2010 General Obligation Bonds. The final payment of $10,635,000 was made in March 2014. Note: Amounts above do not include the debt for the Academy for Classical Education (ACE) charter school. 107 BIBB COUNTY SCHOOL DISTRICT RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (amounts expressed in thousands, except per capita amount) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General Obligation Bonds $ 46,292 20,339 3 32,123 22,131 5 11,214 6 - 1 - Less: Amounts Available in Debt Service Fund $ 5,133 2 387 14,311 4 10,795 10,269 - Total $ 41,159 19,952 17,812 11,336 945 - % of Estimated Actual Taxable Value of Property 0.40% 0.16% 0.15% 0.10% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% Per Capita 265 128 114 72 6 - 1 The $11.2 million decrease in GO Bonds is due to the final payment being made on the Series 2010 Issue in March 2014. 2 The $23.7 million decrease in debt service reflects the first principal payments made in March 2009 on the Series 2005 and 2006 Bond Issues ($10,500,000 and $14,535,000, respectively). 3 The $25.9 million decrease in debt service reflects a principal payment made in March 2010 on the Series 2005 Issue ($25,500,000). 4 The $13.9 million increase in debt service represents the amount reserved to cover the first principal payment on the Series 2010 Issue in April 2012. 5 The $9.9 million decrease in GO Bonds reflects a principal payment made in March 2012 on the Series 2010 Issue ($9,220,000). 6 The $10.9 million decrease in GO Bonds reflects a principal payment made in March 2013 on the Series 2010 Issue ($10,145,000). 108 Debt limit Total net debt applicable to limit Legal debt margin BIBB COUNTY SCHOOL DISTRICT LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 1 2009 2010 2011 2012 $ 394,416,758 $ 447,435,819 $ 436,824,552 $ 433,835,175 45,500,000 2 20,000,000 3 30,000,000 4 20,780,000 $ 348,916,758 $ 427,435,819 $ 406,824,552 $ 413,055,175 1 Source: Bibb County Tax Commissioner's Office 2 Represents $56.0 million General Obligation Bonds issued December 29, 2005 and $14.535 million General Obligation Bonds issued February 1, 2006 for the 2005 Capital Improvement Program. 3 Represents $20.0 million General Obligation Bonds issued December 29, 2005 for the 2005 Capital Improvement Program. 4 Represents $30 million General Obligation Bonds issued September 29, 2010 for the 2010 Capital Improvement Program. 109 2013 2014 2015 2016 2017 2018 $ 417,147,034 $ 416,619,267 $ 405,595,866 $ 397,228,115 $ 397,026,021 $ 401,307,932 10,635,000 4 - - - - - $ 406,512,034 $ 416,619,267 $ 405,595,866 $ 397,228,115 $ 397,026,021 $ 401,307,932 Total net debt applicable to the limit as a percentage of debt limit 0.00% Legal Debt Margin Calculation for Fiscal Year 2018 Gross tax digest for the School District as of January 1, 2017 Less school bond exemptions Net bond tax digest Debt limit (10% of net bond tax digest) Less amount of outstanding debt applicable to limit Legal debt margin $ 4,436,344,351 423,265,034 4,013,079,317 401,307,932 $ 401,307,932 110 BIBB COUNTY SCHOOL DISTRICT DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2018 Debt Outstanding Direct Contractual Obligation Debt Contractual Obligation Debt $ Total Direct Contractual Obligation Debt Overlapping Debt General Obligation Debt Series 2012 Special Purpose Local Option Sales Tax Bonds - County Series 2012 SPLOST County unamortized premium Series 2012 Special Purpose Local Option Sales Tax Bonds - City Series 2012 SPLOST City unamortized premium Series 2017 Special Purpose Local Option Sales Tax Bonds Series 2017 SPLOST Unamortized premium Series 2014 Tax Allocation District Bonds Second Street Total Overlapping General Obligation Debt 2,512,238 2,512,238 4,175,000 123,086 3,700,000 30,477 35,000,000 5,194,890 3,174,277 51,397,730 Contractual Obligation Debt Macon-Bibb County Industrial Authority Revenue Bonds Series 2015 Revenue Refunding Bass Pro Shop Project and Sofkee Park Series 2015 Revenue Refunding unamortized premium Macon-Bibb County Urban Development Authority Revenue Bonds Series 2007 Hotel Project Series 2010 Revenue Refunding Series 2010 Revenue Refunding unamortized premium Series 2013B Public Projects Series 2013B Public Projects unamortized premium Series 2015A Revenue Bonds Series 2015B Revenue Bonds Series 2016A Revenue Bonds Series 2016B Revenue Bonds Series 2017A Revenue Refunding Bonds Series 2017A Revenue Refunding Bonds unamortized premium Series 2017B Revenue Refunding Bonds Series 2017B Revenue Refunding Bonds unamortized premium Certificates of Participation Capital Lease Macon-Bibb County Urban Development Authority Promissory Note Total Overlapping Contractual Obligation Debt 8,250,000 327,968 7,845,000 4,330,000 44,862 1,995,000 24,108 12,190,000 6,240,000 3,985,910 2,000,000 14,965,000 2,954,299 3,285,000 34,018 13,452,000 917,681 1,288,954 84,129,800 Total Overlapping Debt 135,527,530 Total Direct and Overlapping Debt $ 138,039,768 Estimated Percentage Applicable Estimated Share of Direct and Overlapping Debt 100% $ 2,512,238 2,512,238 100% 100% 100% 100% 100% 100% 100% 4,175,000 123,086 3,700,000 30,477 35,000,000 5,194,890 3,174,277 51,397,730 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 8,250,000 327,968 7,845,000 4,330,000 44,862 1,995,000 24,108 12,190,000 6,240,000 3,985,910 2,000,000 14,965,000 2,954,299 3,285,000 34,018 13,452,000 917,681 1,288,954 84,129,800 135,527,530 $ 138,039,768 ________________________ Source: Macon-Bibb County Notes Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the County. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Bibb County. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. 111 BIBB COUNTY SCHOOL DISTRICT DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Population1 155,216 156,460 155,547 156,433 156,462 155,791 154,314 153,721 152,760 152,862 Personal Income2 (thousands of dollars) $ 4,956,780 4,972,280 5,476,147 5,592,551 5,570,724 5,684,094 5,725,181 5,899,611 6,008,761 6,119,162 Per Capita Personal Income2 $ 31,935 31,780 35,206 35,750 35,604 36,485 37,101 38,379 39,335 40,031 Median Age3 35.95 34.94 35.50 35.60 36.00 36.10 36.30 36.50 35.60 36.80 School Enrollment Unemployment Rate4 24,968 6 25,109 5 24,961 8 24,730 9 24,508 10 24,180 11 24,354 12 24,457 13 23,988 14 24,110 15 10.2% 7 10.7% 10.9% 10.4% 10.0% 8.7% 7.2% 3 6.1% 6.0% 4.5% 1 Source: U.S. Census Bureau, Population Estimates Program. 2 Source: U.S. Department of Commerce, Bureau of Economic Analysis. Figures are for the prior calendar year. 3 Source: Middle GA Regional Development Center. 4 Source: GA Department of Labor. 5 FY 2010 includes Pre-Kindergarten through 12th Grade plus 106 students served by Residential Treatment Facilities. 6 Includes Pre-Kindergarten through 12th Grade plus 114 students served by Residential Treatment Facilities. 7 Substantial increase in the unemployment rate is due to the collapse of local, state, national and international (global) economies related to the downturn in housing, financial and other related industries. 8 FY 2011 includes Pre-Kindergarten through 12th Grade plus 51 students served by Residential Treatment Facilities. 9 FY 2012 includes Pre-Kindergarten through 12th Grade plus 21 students served by Residential Treatment Facilities. 10 FY 2013 includes Pre-Kindergarten through 12th Grade plus 31 students served by Residential Treatment Facilities. 11 FY 2014 includes Pre-Kindergarten through 12th Grade plus 49 students served by Residential Treatment Facilities. 12 FY 2015 includes Pre-Kindergarten through 12th Grade plus 48 students served by Residential Treatment Facilities and 759 students enrolled at the Academy for Classical Education (ACE) Charter School. 13 FY 2016 includes Pre-Kindergarten through 12th Grade plus 44 students served by Residential Treatment Facilities and 1,130 students enrolled at the Academy for Classical Education (ACE) Charter School. 14 FY 2017 includes Pre-Kindergarten through 12th Grade plus 62 students served by Residential Treatment Facilities and 1,394 students enrolled at the Academy for Classical Education (ACE) Charter School. 15 FY 2018 includes Pre-Kindergarten through 12th Grade plus 26 students served by Residential Treatment Facilities and 1,541 students enrolled at the Academy for Classical Education (ACE) Charter School. 112 BIBB COUNTY SCHOOL DISTRICT PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employer GEICO Navicent Health Medical Center Bibb County School District Macon-Bibb Government Coliseum Health Systems Mercer University Wal-Mart Super Stores YKK (USA), Inc. United States Postal Service Ricoh USA Georgia Farm Bureau Federation The Boeing Company City of Macon, Georgia Bibb County, Georgia Employees4 2018 Rank4 Percentage of Total Employment2 5,500 1 4,800 2 3,359 3 3 1,805 4 1,760 5 1,000 6 998 7 790 8 740 8 680 9 600 10 554 11 - - - - 22,586 7.90% 6.89% 4.82% 2.59% 2.53% 1.44% 1.43% 1.13% 1.06% 0.98% 0.86% 0.80% - 32.43% Employees1 2009 Rank1 Percentage of Total Employment2 3,978 2 4,000 1 3,776 3 3 - - 1,250 6 1,340 5 - - 740 8 683 9 - - - - 505 10 1,400 4 931 7 18,603 4.70% 4.73% 4.46% 1.48% 1.58% 0.87% 0.81% 0.60% 1.65% 1.10% 21.98% 1 Source: Macon-Bibb County Industrial Authority. 2 Source: Georgia Department of Labor. 3 Source: District records, does not include Academy for Classical Education (ACE) charter school employees. 4 Source: Macon Economic Development Commission 113 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 BIBB COUNTY SCHOOL DISTRICT OPERATING STATISTICS LAST TEN FISCAL YEARS Total Governmental Activities Expenditures1 $ 221,672,786 225,899,336 230,106,169 235,204,034 239,511,731 227,576,124 232,514,366 229,159,397 253,226,389 262,902,662 Full Student Membership2 24,968 25,109 24,961 24,730 24,508 24,180 24,354 24,457 23,988 24,110 Cost per Pupil 8,878 8,997 9,219 9,511 9,773 9,412 9,547 9,370 10,556 10,904 Percentage Change -3.69% 1.33% 2.47% 3.17% 2.75% -3.69% 1.44% -1.86% 12.66% 3.30% Teaching Staff (FTEs)3 $ 1,653 1,650.86 1,667.23 1,572.38 1,585.06 1,519.13 1,573.03 1,553.20 1,518.00 1,619.94 Pupil/ Teacher Ratio 15.10 15.21 14.97 15.73 15.46 15.92 15.48 15.75 15.80 14.88 1 Per Audited Financial Statements. 2 Source: School District Records (includes Pre-Kindergarten through 12th Grade). 3 Source: GA Department of Education: Full-Time Equivalent teaching slots. Note: The FY 2015 through FY 2018 student membership includes the Academy for Classical Education (ACE) charter school's students. 114 BIBB COUNTY SCHOOL DISTRICT DISTRICT EMPLOYEES1 LAST TEN FISCAL YEARS (as of October 31 of each fiscal year) Classroom Teachers Administrators and Supervisors Media Specialists, Guidance Counselors, and Psychologists Professional/Technical Support Aides and Clerical Personnel Transportation and Maintenance Personnel Food Service Personnel and Custodians Other 2009 1,841 194 125 70 696 272 509 69 3,776 2010 1,825 154 129 121 622 261 478 38 3,628 2011 1,686 187 114 61 637 283 449 78 3,495 _________________________ 1 Source: School District Records. 2 Increase due to reclassification of Academic/Career/Instructional/Performance Learning Coaches from classroom teachers to Media Specialists, Guidance Counselors and Psychologists. 3 Increase due to additional substitute bus drivers and monitors on payroll. 4 Decreases due to district-wide staffing reductions as a result of decreases in revenue. 5 Decreases due to district-wide staffing reductions and the opening of the new Academy for Classical Education (ACE) charter school. ACE's employee information is not included. 6 Increase due to additional bus drivers and monitors required to accommodate academic program changes. 7 Increase due to additional part-time cafeteria employees required to serve charter schools and student enrollment increases. 8 Increase due to efforts to reduce student/teacher ratio. 115 2012 1,665 184 167 2 62 625 284 454 101 3 3,542 2013 1,527 184 154 56 578 251 445 78 3,273 4 2014 1,563 208 159 53 553 278 446 54 3,314 2015 1,523 205 155 56 526 247 392 82 3,186 5 2016 1,541 212 154 62 554 288 6 419 7 114 3 3,344 2017 1,531 212 155 75 561 300 424 74 3,332 2018 1,587 8 211 142 76 576 305 443 73 3,413 116 BIBB COUNTY SCHOOL DISTRICT TEACHER SALARIES LAST TEN FISCAL YEARS Number of Full and Part Time Teachers2 Fiscal 4 Yr 5 Yr 6 Yr 7 Yr Year Bachelors Masters Specialists Doctoral Other Total Minimum Salary (based on 4 yr cert/ 0 yrs exp)1 Maximum Salary Bibb Co (based on Average 7 yr cert/ Annual 21+ yrs exp)1 Salary2 Statewide Average Annual Salary2 2009 790 713 189 2010 728 725 223 2011 582 786 335 2012 599 727 247 2013 631 700 242 2014 605 653 254 2015 668 643 251 2016 646 651 240 2017 622 648 223 2018 681 675 240 15 3 1,710 $ 33,749 $78,099 $50,222 $ 52,823 19 10 1,705 33,749 78,099 50,668 53,138 85 9 1,797 33,749 27 3 1,603 3 33,749 78,099 78,099 49,740 51,569 54,274 53,002 31 9 1,613 33,749 78,099 51,304 52,956 33 3 1,548 33,749 78,099 51,540 52,973 37 6 1,605 33,749 78,099 50,821 53,424 40 6 1,583 33,749 78,099 50,665 54,215 43 11 1,547 34,760 80,441 52,462 55,530 40 12 1,648 34,760 80,441 48,201 56,333 1 Source: School District records. 2 Source: Georgia Department of Education. 3 Decrease in number of teachers is due to a change in the staffing allocation formulas coupled with the loss of positions formerly funded with federal ARRA funds. Note: The FY 2015 through FY 2018 teacher salary information includes the Academy for Classical Education (ACE) charter school teachers. 117 BIBB COUNTY SCHOOL DISTRICT FREE & REDUCED PRICE LUNCH ELIGIBILITY1 LAST TEN FISCAL YEARS (as of October 31 of each fiscal year) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of Students Eligible for Free Meals 16,948 17,682 18,046 18,249 18,401 18,729 23,990 24,263 2 22,644 2 24,080 2 Number of Students Eligible for Reduced Price Meals 1,747 1,570 1,237 1,043 1,130 1,085 - Total Number of Students Eligible for Free and Reduced Price Meals 18,695 19,252 19,283 19,292 19,531 19,814 23,990 24,263 2 22,644 2 24,080 2 Total Student Enrollment (FTE) 24,968 25,109 24,961 24,730 24,508 24,180 24,354 24,457 23,988 24,110 % of Students Eligible for Reduced Price Meals 74.88% 76.67% 77.25% 78.01% 79.69% 81.94% 98.51% 99.21% 94.40% 99.88% 1 Source: Georgia Department of Education. Note: In fiscal year 2015, the School District implemented the Community Eligibility Provision (CEP), whereby all students are eligible to eat free and reimbursement is based on a pre-determined percentage of total meals served. The Academy for Classical Education (ACE) Charter School students are included in these totals. 2 Source: School District Records. 118 ELEMENTARY SCHOOLS ALEXANDER II MAGNET Grade levels served Square feet Capacity Enrollment BARDEN Grade levels served Square feet Capacity Enrollment BERND Grade levels served Square feet Capacity Enrollment BROOKDALE Grade levels served Square feet Capacity Enrollment BRUCE Grade levels served Square feet Capacity Enrollment BURDELL/HUNT MAGNET Grade levels served Square feet Capacity Enrollment BURGHARD Grade levels served Square feet Capacity Enrollment BURKE Grade levels served Square feet Capacity Enrollment CARTER Grade levels served Square feet Capacity Enrollment DANFORTH Grade levels served Square feet Capacity Enrollment HARTLEY Grade levels served Square feet Capacity Enrollment HEARD Grade levels served BIBB COUNTY SCHOOL DISTRICT SCHOOL DATA 19 LAST TEN FISCAL YEARS FY 2009 FY 2010 FY 2011 FY 2012 K - Gr 5 80,263 554 28 572 14 Pre K - Gr 5 62,445 536 28 414 Pre K - Gr 5 60,102 27 480 28 525 Pre K - Gr 5 58,713 27 628 28 482 11 Pre K - Gr 5 58,271 27 443 28 540 K - Gr 5 62,181 573 28 488 Pre K - Gr 5 57,745 499 28 378 Pre K - Gr 5 53,812 517 28 352 Pre K - Gr 5 61,945 27 517 28 515 Pre K - Gr 5 50,140 462 28 358 Pre K - Gr 5 62,187 536 28 363 Pre K - Gr 5 119 K - Gr 5 80,263 554 545 K - Gr 5 63,559 554 546 K - Gr 5 63,559 554 552 Pre K - Gr 5 62,445 536 379 Pre K - Gr 5 62,445 536 387 K - Gr 5 62,445 536 367 Pre K - Gr 5 60,102 480 502 Pre K - Gr 5 60,102 480 473 Pre K - Gr 5 60,102 480 454 Pre K - Gr 5 58,713 628 412 Pre K - Gr 5 58,713 628 477 Pre K - Gr 5 58,713 628 480 Pre K - Gr 5 58,271 443 478 Pre K - Gr 5 58,271 443 468 Pre K - Gr 5 58,271 443 459 K - Gr 5 62,181 573 497 K - Gr 5 62,181 573 487 K - Gr 5 62,181 573 491 Pre K - Gr 5 57,745 499 388 Pre K - Gr 5 57,745 499 370 - 16 - - - - - - - Pre K - Gr 5 57,745 499 361 - Pre K - Gr 5 61,945 517 562 Pre K - Gr 5 61,945 517 570 Pre K - Gr 5 61,945 517 562 Pre K - Gr 5 50,140 462 350 Pre K - Gr 5 50,140 462 369 Pre K - Gr 5 50,140 462 279 Pre K - Gr 5 Pre K - Gr 5 62,187 62,187 536 536 384 21,16 374 Pre K - Gr 5 62,187 536 356 Pre K - Gr 5 Pre K - Gr 5 Pre K - Gr 5 FY 2013 K - Gr 5 63,559 554 536 K - Gr 5 62,445 536 372 Pre K - Gr 5 60,102 480 467 Pre K - Gr 5 58,713 628 481 Pre K - Gr 5 58,271 443 500 K - Gr 5 62,181 573 501 Pre K - Gr 5 57,745 499 325 - Pre K - Gr 5 61,945 517 579 Pre K - Gr 5 50,140 462 302 Pre K - Gr 5 62,187 536 411 Pre K - Gr 5 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 K - Gr 5 63,559 554 586 14 K - Gr 5 62,445 536 373 Pre K - Gr 5 60,102 480 450 Pre K - Gr 5 58,713 628 459 Pre K - Gr 5 58,271 443 510 K - Gr 5 62,181 573 507 Pre K - Gr 5 57,745 499 320 - Pre K - Gr 5 61,945 517 592 Pre K - Gr 5 50,140 462 331 Pre K - Gr 5 62,187 536 466 Pre K - Gr 5 K - Gr 5 63,559 554 526 K - Gr 5 80,263 554 524 K - Gr 5 62,445 536 374 K - Gr 5 62,445 536 287 Pre K - Gr 5 60,102 480 415 Pre K - Gr 5 56,654 480 400 Pre K - Gr 5 58,713 628 473 Pre K - Gr 5 59,879 628 407 Pre K - Gr 5 58,271 443 506 Pre K - Gr 5 58,271 443 469 K - Gr 5 62,181 573 542 Pre K - Gr 5 57,745 499 310 K - Gr 5 62,181 573 500 - 32 - - - - - - - - - Pre K - Gr 5 61,945 517 543 Pre K - Gr 5 50,140 462 328 Pre K - Gr 5 61,945 517 505 - 33 - Pre K - Gr 5 62,187 536 437 Pre K - Gr 5 62,187 536 436 Pre K - Gr 5 Pre K - Gr 5 120 K - Gr 5 80,263 554 518 - 37 - Pre K - Gr 5 56,654 480 411 Pre K - Gr 5 59,879 628 376 Pre K - Gr 5 58,271 443 471 K - Gr 5 62,181 573 495 - - Pre K - Gr 5 61,945 517 468 - Pre K - Gr 5 62,187 536 443 Pre K - Gr 5 K - Gr 5 80,263 525 39 509 - 37 - 39 - Pre K - Gr 5 56,654 475 39 445 Pre K - Gr 5 59,879 625 39 371 Pre K - Gr 5 58,271 475 39 445 K - Gr 5 62,181 525 39 511 - 39 - - 39 - Pre K - Gr 5 61,945 512 39 468 - 39 - Pre K - Gr 5 62,187 524 39 488 Pre K - Gr 5 Square feet Capacity Enrollment HERITAGE Grade levels served Square feet Capacity Enrollment INGRAM/PYE Grade levels served Square feet Capacity Enrollment JONES Grade levels served Square feet Capacity Enrollment LANE Grade levels served Square feet Capacity Enrollment MARTIN LUTHER KING JR (MLK) Grade levels served Square feet Capacity Enrollment MORGAN Grade levels served Square feet Capacity Enrollment PORTER Grade levels served Square feet Capacity Enrollment RICE Grade levels served Square feet Capacity Enrollment RILEY Grade levels served Square feet Capacity Enrollment SKYVIEW Grade levels served Square feet Capacity Enrollment SOUTHFIELD Grade levels served Square feet Capacity Enrollment BIBB COUNTY SCHOOL DISTRICT SCHOOL DATA 19 LAST TEN FISCAL YEARS FY 2009 41,485 27 591 28 584 Pre K - Gr 5 72,146 27 610 28 715 11 Pre K - Gr 5 46,205 21 425 28 310 Pre K - Gr 5 63,368 27 443 28 448 Pre K - Gr 5 47,830 27 425 28 497 - Pre K - Gr 5 54,839 480 28 485 11 Pre K - Gr 5 50,321 27 480 28 528 Pre K - Gr 5 56,364 27 499 28 513 Pre K - Gr 5 55,971 480 28 409 Pre K - Gr 5 76,463 27 591 28 703 11 - 121 FY 2010 41,485 591 632 FY 2011 41,485 591 652 FY 2012 41,485 591 652 Pre K - Gr 5 72,146 610 702 Pre K - Gr 5 72,146 610 751 Pre K - Gr 5 72,146 610 762 Pre K - Gr 5 75,492 591 632 Pre K - Gr 5 21 75,492 591 16 602 Pre K - Gr 5 75,492 591 579 Pre K - Gr 5 63,368 443 435 Pre K - Gr 5 63,368 443 410 Pre K - Gr 5 63,368 443 439 Pre K - Gr 5 47,830 425 511 Pre K - Gr 5 47,830 425 542 Pre K - Gr 5 47,830 425 535 - - - - - - - - - - - - Pre K - Gr 5 54,839 480 518 Pre K - Gr 5 54,839 480 509 Pre K - Gr 5 54,839 480 497 Pre K - Gr 5 50,321 480 542 Pre K - Gr 5 50,321 480 522 Pre K - Gr 5 50,321 480 508 Pre K - Gr 5 56,364 499 579 Pre K - Gr 5 56,364 499 558 Pre K - Gr 5 56,364 499 558 Pre K - Gr 5 55,971 480 444 Pre K - Gr 5 55,971 480 401 Pre K - Gr 5 55,971 480 432 Pre K - Gr 5 76,463 591 658 Pre K - Gr 5 76,463 591 566 Pre K - Gr 5 76,463 591 579 - - - - - - - - - - - - FY 2013 41,485 591 645 Pre K - Gr 5 72,146 610 819 Pre K - Gr 5 75,492 591 638 Pre K - Gr 5 63,368 443 417 Pre K - Gr 5 47,830 425 518 - Pre K - Gr 5 54,839 480 526 Pre K - Gr 5 50,321 480 495 Pre K - Gr 5 56,364 499 484 Pre K - Gr 5 55,971 480 409 Pre K - Gr 5 76,463 591 545 - FY 2014 41,485 591 586 Pre K - Gr 5 72,146 610 816 Pre K - Gr 5 75,492 591 668 Pre K - Gr 5 63,368 443 363 Pre K - Gr 5 47,830 425 518 - Pre K - Gr 5 54,839 480 514 Pre K - Gr 5 50,321 480 477 Pre K - Gr 5 56,364 499 511 Pre K - Gr 5 55,971 480 420 Pre K - Gr 5 76,463 591 542 - FY 2015 96,544 750 584 FY 2016 96,544 750 625 FY 2017 96,544 750 584 Pre K - Gr 5 72,146 610 765 Pre K - Gr 5 72,146 610 748 Pre K - Gr 5 72,146 610 727 Pre K - Gr 5 75,492 591 635 Pre K - Gr 5 63,368 443 335 Pre K - Gr 5 75,492 591 628 - 33 - Pre K - Gr 5 75,492 591 476 - Pre K - Gr 5 47,830 425 531 Pre K - Gr 5 47,830 425 503 Pre K - Gr 5 47,830 425 534 - Pre K - Gr 5 54,839 480 503 Pre K - Gr 5 96,612 750 685 Pre K - Gr 5 54,839 480 414 Pre K - Gr 5 96,612 750 738 - 37 - Pre K - Gr 5 50,321 480 461 Pre K - Gr 5 56,364 499 527 Pre K - Gr 5 50,321 480 455 - 32 - Pre K - Gr 5 50,321 480 460 - Pre K - Gr 5 55,971 480 409 Pre K - Gr 5 55,971 480 348 Pre K - Gr 5 55,971 480 370 Pre K - Gr 5 76,463 591 522 Pre K - Gr 5 76,463 591 515 Pre K - Gr 5 76,463 591 500 - Pre K - Gr 5 - 114,883 - 900 - 807 122 Pre K - Gr 5 114,883 900 803 FY 2018 96,544 775 39 577 Pre K - Gr 5 72,146 650 39 765 Pre K - Gr 5 75,492 650 39 456 - 39 - Pre K - Gr 5 47,830 438 39 477 Pre K - Gr 5 96,612 775 39 720 - 37 - 39 - Pre K - Gr 5 50,321 475 39 418 - 39 - Pre K - Gr 5 55,971 500 39 349 Pre K - Gr 5 76,463 675 39 496 Pre K - Gr 5 114,883 900 39 837 SPRINGDALE Grade levels served Square feet Capacity Enrollment TAYLOR Grade levels served Square feet Capacity Enrollment UNION Grade levels served Square feet Capacity Enrollment VETERANS Grade levels served Square feet Capacity Enrollment VINEVILLE MAGNET Grade levels served Square feet Capacity Enrollment WILLIAMS Grade levels served Square feet Capacity Enrollment MIDDLE SCHOOLS APPLING Grade levels served Square feet Capacity Enrollment BALLARD Grade levels served Square feet Capacity Enrollment BLOOMFIELD Grade levels served Square feet Capacity Enrollment HOWARD Grade levels served Square feet Capacity Enrollment MILLER Grade levels served Square feet Capacity Enrollment RUTLAND BIBB COUNTY SCHOOL DISTRICT SCHOOL DATA 19 LAST TEN FISCAL YEARS FY 2009 Pre K - Gr 5 72,276 27 628 28 622 Pre K - Gr 5 71,309 27 554 28 540 Pre K - Gr 5 71,683 27 591 28 686 11 - K - Gr 5 69,629 27 499 28 476 Pre K - Gr 5 63,956 27 462 28 336 FY 2010 Pre K - Gr 5 72,276 628 622 Pre K - Gr 5 71,309 554 518 Pre K - Gr 5 71,683 591 667 - K - Gr 5 69,629 499 504 Pre K - Gr 5 63,956 462 352 FY 2011 FY 2012 Pre K - Gr 5 72,276 628 662 Pre K - Gr 5 72,276 628 659 Pre K - Gr 5 71,309 554 567 Pre K - Gr 5 71,309 554 594 Pre K - Gr 5 71,683 591 623 Pre K - Gr 5 71,683 591 610 - - - - - - - - K - Gr 5 69,629 499 516 K - Gr 5 69,629 499 535 Pre K - Gr 5 63,956 462 350 Pre K - Gr 5 63,956 462 309 Gr 6 - Gr 8 109,674 27 784 28 686 Gr 6 - Gr 8 108,398 27 804 28 604 11 Gr 6 - Gr 8 114,883 27 941 28 610 11 Gr 6 - Gr 8 126,479 27 902 28 939 11 Gr 6 - Gr 8 116,050 27 804 28 778 123 Gr 6 - Gr 8 109,674 784 682 Gr 6 - Gr 8 108,398 804 587 Gr 6 - Gr 8 114,883 941 541 Gr 6 - Gr 8 126,479 902 918 Gr 6 - Gr 8 116,050 804 845 Gr 6 - Gr 8 109,674 784 630 Gr 6 - Gr 8 108,398 804 525 Gr 6 - Gr 8 114,883 941 512 Gr 6 - Gr 8 126,479 902 1,032 Gr 6 - Gr 8 116,050 804 774 Gr 6 - Gr 8 109,674 784 629 Gr 6 - Gr 8 108,398 804 484 Gr 6 - Gr 8 114,883 941 511 Gr 6 - Gr 8 126,479 902 1,013 Gr 6 - Gr 8 116,050 804 785 FY 2013 Pre K - Gr 5 72,276 628 693 Pre K - Gr 5 71,309 554 564 Pre K - Gr 5 71,683 591 612 - K - Gr 5 69,629 499 534 Pre K - Gr 5 63,956 462 308 FY 2014 Pre K - Gr 5 72,276 628 684 Pre K - Gr 5 71,309 554 567 Pre K - Gr 5 71,683 591 587 - K - Gr 5 69,629 499 555 14 Pre K - Gr 5 63,956 462 311 FY 2015 Pre K - Gr 5 72,276 628 622 Pre K - Gr 5 71,309 554 568 Pre K - Gr 5 71,683 591 653 - K - Gr 5 69,629 499 560 Pre K - Gr 5 63,956 462 296 FY 2016 Pre K - Gr 5 72,276 628 570 Pre K - Gr 5 71,309 554 526 Pre K - Gr 5 71,683 591 548 - PreK - Gr 5 69,629 499 503 Pre K - Gr 5 63,956 462 279 FY 2017 Pre K - Gr 5 72,276 628 557 Pre K - Gr 5 71,309 554 552 Pre K - Gr 5 71,683 591 507 Pre K - Gr 5 109,200 775 811 PreK - Gr 5 69,629 499 534 Pre K - Gr 5 63,956 462 289 FY 2018 Pre K - Gr 5 72,276 650 39 616 Pre K - Gr 5 71,309 625 39 553 Pre K - Gr 5 71,683 650 39 505 Pre K - Gr 5 109,200 775 39 850 PreK - Gr 5 69,629 500 39 499 Pre K - Gr 5 63,956 475 39 337 Gr 6 - Gr 8 109,674 784 604 Gr 6 - Gr 8 108,398 804 455 Gr 6 - Gr 8 114,883 941 526 Gr 6 - Gr 8 126,479 902 1,023 Gr 6 - Gr 8 116,050 804 809 Gr 6 - Gr 8 109,674 784 649 Gr 6 - Gr 8 108,398 804 401 Gr 6 - Gr 8 114,883 941 473 Gr 6 - Gr 8 126,479 902 1,024 Gr 6 - Gr 8 116,050 804 881 Gr 6 - Gr 8 109,674 784 634 Gr 6 - Gr 8 108,398 804 390 Gr 6 - Gr 8 114,883 941 467 Gr 6 - Gr 8 126,479 902 921 Gr 6 - Gr 8 116,050 804 849 Gr 6 - Gr 8 109,674 784 609 Gr 6 - Gr 8 108,398 804 737 - 34 - Gr 6 - Gr 8 126,479 902 933 Gr 6 - Gr 8 128,564 804 792 124 Gr 6 - Gr 8 109,674 784 583 Gr 6 - Gr 8 108,398 804 756 - Gr 6 - Gr 8 126,479 902 926 Gr 6 - Gr 8 128,564 804 763 Gr 6 - Gr 8 109,674 800 39 559 Gr 6 - Gr 8 108,398 875 39 725 - 39 - Gr 6 - Gr 8 126,479 875 39 993 Gr 6 - Gr 8 128,564 800 39 668 BIBB COUNTY SCHOOL DISTRICT Grade levels served Square feet Capacity Enrollment WEAVER Grade levels served Square feet Capacity Enrollment HIGH SCHOOLS CENTRAL Grade levels served Square feet Capacity Enrollment HOWARD Grade levels served Square feet Capacity Enrollment HUTCHINGS Grade levels served Square feet Capacity Enrollment NORTHEAST Grade levels served Square feet Capacity Enrollment RUTLAND Grade levels served Square feet Capacity Enrollment SOUTHWEST Grade levels served Square feet Capacity Enrollment WESTSIDE Grade levels served Square feet Capacity Enrollment CHARTER SCHOOL ACADEMY FOR CLASSICAL EDUCATION Grade levels served Square feet Capacity Enrollment MACON CHARTER ACADEMY Grade levels served Square feet Capacity Enrollment SCHOOL DATA 19 LAST TEN FISCAL YEARS FY 2009 Gr 6 - Gr 8 126,479 27 902 28 998 Gr 6 - Gr 8 120,277 27 1,039 28 884 FY 2010 Gr 6 - Gr 8 126,479 902 1,030 Gr 6 - Gr 8 120,277 1,039 818 FY 2011 Gr 6 - Gr 8 126,479 902 1,023 Gr 6 - Gr 8 120,277 1,039 898 FY 2012 Gr 6 - Gr 8 126,479 902 977 Gr 6 - Gr 8 120,277 1,039 964 Gr 9 - Gr 12 107,025 861 28 1,119 29 Gr 9 - Gr 11 164,155 29 1,008 753 Gr 9 - Gr 12 132,693 27 798 28 380 Gr 9 - Gr 12 231,914 27 1,008 28 883 Gr 9 - Gr 12 159,322 27 861 28 1,125 Gr 9 - Gr 12 155,184 1,407 28 855 Gr 9 - Gr 12 183,187 27 1,071 28 1,293 29 Gr 9 - Gr 12 202,844 1,008 1,094 Gr 9 - Gr 12 19 202,844 1,008 1,073 Gr 9 - Gr 12 202,844 1,008 1,035 Gr 9 - Gr 12 177,130 1,008 1,103 Gr 9 - Gr 12 3 177,130 1,008 29 1,134 Gr 9 - Gr 12 177,130 1,008 1,158 Gr 9 - Gr 12 132,693 798 346 Gr 9 - Gr 12 100,074 798 296 Gr 9 - Gr 12 100,074 798 318 Gr 9 - Gr 12 231,914 1,008 835 Gr 9 - Gr 12 231,914 1,008 813 Gr 9 - Gr 12 231,914 1,008 736 Gr 9 - Gr 12 159,322 861 1,176 Gr 9 - Gr 12 159,322 861 1,132 Gr 9 - Gr 12 159,322 861 1,126 Gr 9 - Gr 12 192,511 1,008 933 Gr 9 - Gr 12 7 192,511 1,008 994 Gr 9 - Gr 12 192,511 1,008 969 Gr 9 - Gr 12 183,187 1,071 1,123 Gr 9 - Gr 12 183,187 1,071 1,140 Gr 9 - Gr 12 183,187 1,071 1,198 - - 125 - - - - - - - - - - - - - - - - - - - - - - - - FY 2013 Gr 6 - Gr 8 126,479 902 969 Gr 6 - Gr 8 120,277 1,039 924 FY 2014 Gr 6 - Gr 8 126,479 902 942 Gr 6 - Gr 8 120,277 1,039 875 FY 2015 Gr 6 - Gr 8 126,479 902 881 Gr 6 - Gr 8 120,277 1,039 841 FY 2016 Gr 6 - Gr 8 126,479 902 912 Gr 6 - Gr 8 120,277 1,039 788 FY 2017 Gr 6 - Gr 8 126,479 902 896 Gr 6 - Gr 8 120,277 1,039 809 FY 2018 Gr 6 - Gr 8 126,479 875 39 883 Gr 6 - Gr 8 120,277 950 39 914 Gr 9 - Gr 12 202,844 1,008 1,049 Gr 9 - Gr 12 177,130 1,008 1,228 Gr 9 - Gr 12 100,074 798 319 Gr 9 - Gr 12 231,914 1,008 660 Gr 9 - Gr 12 159,322 861 1,094 Gr 9 - Gr 12 192,511 1,008 995 Gr 9 - Gr 12 183,187 1,071 1,141 Gr 9 - Gr 12 202,844 1,008 1,063 Gr 9 - Gr 12 177,130 1,008 1,137 Gr 9 - Gr 12 100,074 798 295 Gr 9 - Gr 12 231,914 1,008 660 Gr 9 - Gr 12 159,322 861 1,042 Gr 9 - Gr 12 192,511 1,008 930 Gr 9 - Gr 12 183,187 1,071 1,046 Gr 9 - Gr 12 202,844 1,008 1,082 Gr 9 - Gr 12 177,130 1,008 1,186 Gr 9 - Gr 12 100,074 798 217 Gr 9 - Gr 12 231,914 1,008 630 Gr 9 - Gr 12 159,322 861 1,062 Gr 9 - Gr 12 192,511 1,008 854 Gr 9 - Gr 12 183,187 1,071 1,109 Gr 9 - Gr 12 202,844 1,008 1,097 Gr 9 - Gr 12 177,130 1,008 1,300 - 35 - Gr 9 - Gr 12 231,914 1,008 746 Gr 9 - Gr 12 159,322 861 1,087 Gr 9 - Gr 12 192,511 1,008 866 Gr 9 - Gr 12 183,187 1,071 1,094 Gr 9 - Gr 12 202,844 1,008 1,143 Gr 9 - Gr 12 177,130 1,008 1,256 - Gr 9 - Gr 12 231,914 1,008 743 Gr 9 - Gr 12 159,322 861 1,053 Gr 9 - Gr 12 192,511 1,008 852 Gr 9 - Gr 12 183,187 1,071 1,128 Gr 9 - Gr 12 202,844 1,225 39 1,118 Gr 9 - Gr 12 186,130 1,200 39 1,249 - 39 - Gr 9 - Gr 12 231,914 1,525 39 741 Gr 9 - Gr 12 159,322 950 39 1,024 Gr 9 - Gr 12 192,511 1,262 39 830 Gr 9 - Gr 12 183,187 1,138 39 1,137 - - K - Gr 8 K - Gr 9 K - Gr 10 K - Gr 10 - - 130,000 31 130,000 130,000 130,000 - - 1,127 1,127 1,127 1,127 39 - - 759 1,130 1,394 1,541 - - - K - Gr 8 - - - 60,000 - - - 900 - - - 640 126 38 38 BIBB COUNTY SCHOOL DISTRICT SPECIALTY SCHOOLS BARDEN ACADEMY OF EXCELLENCE Grade levels served Square feet Capacity Enrollment BLOOMFIELD ACADEMY OF EXCELLENCE Grade levels served Square feet Capacity Enrollment BUTLER Grade levels served Square feet Capacity Enrollment ELAM ALEXANDER Grade levels served Square feet Capacity Enrollment HUTCHINGS ACADEMY OF EXCELLENCE Grade levels served Square feet Capacity Enrollment NEEL ALTERNATIVE Grade levels served Square feet Capacity Enrollment NORTHWOODS ACADEMY Grade levels served Square feet Capacity Enrollment RENAISSANCE/TEEN PARENT CENTER Grade levels served Square feet Capacity Enrollment SCHOOL DATA 19 LAST TEN FISCAL YEARS FY 2009 FY 2010 FY 2011 FY 2012 - - Pre K 22,023 171 28 108 K - Gr 6 27,909 27 190 28 - 18 - Gr 6 - Gr 12 35,481 27 285 28 - 18 - Gr 6 - Gr 12 10 22,564 27 114 28 - 17 - - - 8 - - - K - Gr 6 27,909 190 - 18 - Gr 6 - Gr 8 9 35,481 285 - 18 PreK - K 8 39,398 210 159 - - - - K - Gr 6 27,909 190 - - - PreK 39,398 210 182 - - - - K - Gr 6 27,909 190 - 18 - - PreK - K 39,398 210 197 - 127 FY 2013 FY 2014 FY 2015 K - Gr 5 4,086 120 - Gr 6 - Gr 8 3,150 96 - - K - Gr 6 27,909 190 - 18 Gr 9 - Gr 12 4,226 144 - - PreK - K 39,398 210 - - K - Gr 5 4,086 120 - Gr 6 - Gr 8 3,150 96 - - K - Gr 6 27,909 190 - 18 Gr 9 - Gr 12 4,226 144 - - PreK - K 39,398 210 - - K - Gr 5 4,086 120 - Gr 6 - Gr 8 3,150 96 - - K - Gr 6 27,909 190 - 18 Gr 9 - Gr 12 4,226 144 - - PreK - K 39,398 210 - - FY 2016 - 36 - - 36 - - K - Gr 6 27,909 190 - 18 - 36 - - PreK - K 39,398 210 - - FY 2017 - - - K - Gr 6 27,909 190 - 18 - - PreK - K 39,398 210 - - FY 2018 - - - K - Gr 6 53,986 462 39 - 18 - 39 - - 39 - PreK - K 39,398 100 39 - - 39 - 128 BIBB COUNTY SCHOOL DISTRICT SCHOOL DATA 19 LAST TEN FISCAL YEARS R J WILLIAMS COMPLEX Grade levels served Square feet Capacity Enrollment SOAR ACADEMY Grade levels served Square feet Capacity Enrollment FY 2009 - - FY 2010 - - FY 2011 - - FY 2012 - - Sub Total 24,854 25,003 24,910 24,709 Students housed in Residential Treatment Facilities Grand Total 114 24,968 106 25,109 51 24,961 21 24,730 1 Footnote not used. 2 Footnote not used. 3 New addition of a field house to facility. 4 Footnote not used. 5 Bruce Elementary and Weir Elementary Schools began the process of merging during the 2003-2004 school year. During that school year, students in grades K-2 were housed at Weir and the students in grades 3-5 were housed in Bruce. During the 2004-2005 school year, all students were housed at the Weir facility while the Bruce facility was being completely rebuilt. For the 2005-2006 school year, Weir closed and the students moved into a newly constructed facility located on the Bruce Elementary School site. 6 Footnote not used. 7 Newly constructed Southwest High School opened for students for the 2009-2010 school year. The new facility was built on the same site and the old facility was demolished. 8 The Butler Early Childhood Center was closed at the end of the 2008-2009 school year. The early childhood program was moved to the newly constructed Northwoods Academy at the beginning of the 2009-2010 school year. In the 2012-2013 school year, Northwoods Academy was reclassified by the GA Department of Education as a program rather than a school and the Pre-K students were counted at their home. 129 FY 2013 - - 24,477 31 24,508 FY 2014 - - 24,131 49 24,180 FY 2015 - - 24,307 48 24,355 FY 2016 - - 24,413 44 24,457 FY 2017 Gr 9 - Gr 12 56,715 225 - 18 Gr 6 - Gr 12 100,074 798 - 18 23,926 62 23,988 FY 2018 Gr 9 - Gr 12 56,715 225 39 - 18 Gr 6 - Gr 12 100,074 798 39 - 18 24,074 26 24,100 130 BIBB COUNTY SCHOOL DISTRICT SCHOOL DATA 19 LAST TEN FISCAL YEARS 9 At the beginning of the 2009-2010 school year, students in grades 9-12 who were assigned to an alternative setting through the evidentiary hearing process were enrolled in the newly contracted Ombudsman program rather than being assigned to Neel Academy. Students in middle schools who were assigned to an alternative setting were still assigned to Neel Academy. At the beginning of the 2010-2011 school year, the Ombudsman program began serving middle and high school students and Neel Academy was closed. The Ombudsman program was discontinued at the end of the 2011-2012 year and the Bibb Academy of Excellence was established at the beginning of the 2012-2013 school year with three locations at Barden Elementary School, Bloomfield Middle School, and Hutchings Career Center. 10 The Renaissance Academy/Teen Parent Center closed at the end of the 2008-2009 school year. 11 Enrollment fluctuations caused by redistricting. 12 Footnote not used. 13 Footnote not used. 14 Additional classes added at magnet school. 15 The square footage for the adjoining Central Kitchen was inadvertently included in the square footage for the Hutchings Career Center. The square 16 Burke School was closed at the end of the 2008-2009 school year and the students were rezoned to Hartley and Ingram/Pye during the 2009-2010 school year. 17 For the 2003-2004 and the 2004-2005 school years only, separate FTE counts were reported for the Renaissance Academy and the Teen Parent Center. During the 2005-2006 school year, the District reverted back to its prior practice of reporting these students at their home schools. 18 Students are counted at their home schools. 19 Newly constructed Central High School opened for students for the 2009-2010 school year. The new facility was built on the same site and the old facility was demolished. 20 Footnote not used. 21 Hamilton School was closed at the end of FY 2007 and the students were rezoned to Hartley and Ingram/Pye. The Ingram/Pye students were housed at the former Hamilton School facility during the two years of reconstruction of the Ingram/Pye facility. The students moved into the new facility in the 200922 Footnote not used. 23 Footnote not used. 24 Footnote not used. 25 Footnote not used. 26 Footnote not used. 27 New software was used in the computation of the square footage of each of the District's facilities as a part of the development process for the new Local Facilities Plan (LFP). The new software eliminated square footage for areas such as overhangs and provided a much more comprehensive and accurate accounting for the square footage at each facility and resulted in fluctuations in square footage from FY 2008 to FY 2009 in some facilities. 28 Capacity for each facility is determined each year using a formula approved by the Board which factors in the number of permanent classrooms available at a school, the maximum class size requirements of the GA DOE and a utilization factor which takes into account the different class sizes for extra curricular activities and times when the classrooms are not being utilized. 29 Newly constructed Howard High School opened for students in grades 9-11 for the 2008-2009 school year and began serving students in grades 9-12 in the 2009-2010 school year. Students were redistricted from Central High School and Westside High School. 30 The District purchased a web-based software facility maintenance program in July 2011. As the floor plans were being transferred to the data base, it was discovered that a building which existed before the renovations in FY 2002 had been demolished, but the square footage was still being reported. 31 The Academy for Classical Education (ACE) charter school building is 200,000 square feet, but as of June 30, 2015 they only occupied 130,000 square feet of this space. 32 Burghard and Rice Elementary Schools were closed at the end of the FY 2015 school year. The students were consolidated and moved into the Southfield Elementary facility, which is the former Bloomfield Middle School building, at the beginning of the FY 2015-2016 school year. 33 Danforth and Jones Elementary Schools were closed at the end of the FY 2015 school year. The students were consolidated and moved into the newly constructed Martin Luther King Jr. (MLK) Elementary facility at the beginning of the FY 2015-2016 school year. 34 Bloomfield Middle School was closed at the end of the FY 2015 school year. The students were consolidated with the Ballard Hudson Middle School students and moved into the Ballard Hudson Middle School facility at the beginning of the FY 2015-2016 school year. 35 Hutchings College and Career Academy was closed at the end of the FY 2015 school year. The students were dispersed to their zoned high school. 36 Barden Academy of Excellence, Bloomfield Academy of Excellence and Hutchings Academy of Excellence were closed at the end of the FY 2015 school year with the opening of the new Bibb County Alternative School. The Bibb County Alternative School is located on the campus of the former Hutchings 37 Barden and Morgan Elementary Schools were closed at the end of the FY 2016 school year. The students were consolidated and moved into the newly constructed Veterans Elementary facility at the beginning of the FY 2016-2017 school year. This new facility is located on the old Morgan Elementary site. 38 Macon Charter Academy, the District's second charter school, was closed in August 2016. 39 School capacity figures have been updated to refelct the FTE Mid-Range calculated per GADOE regulation 160-5-4.16(a)4. Notes: All other enrollment fluctuations are due to the transient population in this community. Pre-Kindergarten classes are moved between sites based on the number of applications received. 131 IV. S I N G L E A U D I T S E C T I O N 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 To the Members of the Board of Education of the Bibb County School District Macon, Georgia We have audited, 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, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Bibb County School District as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Bibb County School District's basic financial statements and have issued our report thereon dated January 28, 2019. This report does not include the results of our testing of internal control over financial reporting or compliance and other matters that have been reported in the separately issued financial statements and reports of the discretely presented component unit, the Academy for Classical Education. Our report includes a reference to a change in accounting principle resulting from the implementation of Government Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Bibb County School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Bibb County School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the Bibb County 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 entity'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. 300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 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. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2018-001 that we consider to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Bibb County 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 determination of financial statement amounts. 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 The Bibb County School District's Response to Findings The Bibb County School District's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The Bibb County 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Macon, Georgia January 28, 2019 133 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Members of the Board of Education of the Bibb County School District Macon, Georgia Report on Compliance for Each Major Federal Program We have audited the Bibb County School District's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Bibb County School District's major federal programs for the year ended June 30, 2018. The Bibb County School District's major federal programs are identified in the summary of audit 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 Bibb County 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; 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) 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 Bibb County 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 Bibb County School District's compliance. 300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Opinion on Each Major Federal Program In our opinion, the Bibb County School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2018-002. Our opinion on each major federal program is not modified with respect to this matter. Bibb County School District's response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. Bibb County 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 Bibb County 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 Bibb County 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 Bibb County 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 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. 135 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 were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a certain deficiency in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as item 2018-002 that we consider to be a significant deficiency. Bibb County 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. Bibb County 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. Macon, Georgia January 28, 2019 136 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS JUNE 30, 2018 Federal Grantor/Pass-Through Grantor/Program Title U.S. DEPARTMENT OF AGRICULTURE: Passed through Georgia Department of Education: Child Nutrition Cluster USDA - Food Distribution School Breakfast Program National School Lunch Program School Snack Program Total Child Nutrition Cluster Fresh Fruit and Vegetable Program Total U. S. Department of Agriculture U.S. DEPARTMENT OF DEFENSE Direct Program: Junior R.O.T.C. Total U. S. Department of Defense U.S. DEPARTMENT OF EDUCATION: Direct Programs: GEAR UP Carol M. White Physical Education Program Grant Subtotal direct programs, Department of Education Passed through Georgia Department of Education: Title I Programs - Improving Academic Achievement Title I Programs - School Improvement Grant Total Title I, Part A Title I Programs - School Improvement Grant Title I Programs - Migrant Education Special Education Cluster Title VI-B Flowthrough Title VI-B PL 94-142 SED Centers IDEA-Capacity Building Grant High Cost Pool Title VI-B Preschool Incentive Total, Special Education Cluster Title II - Part A - Supporting Effective Instruction State Grants Title III - Part A (Continued) Federal CFDA Number 10.555 10.553 10.555 10.555 10.582 Unknown 84.334 84.215F 84.010 84.010 84.377 84.011 84.027 84.027 84.027 84.027 84.173 84.367 84.365 Contract or Project Number Total Expenditures N/A $ 1,084,167 N/A 4,281,884 N/A 10,678,324 N/A 124,053 16,168,428 N/A 341,392 16,509,820 06/07 360,987 360,987 P334A110258 S215F160333 1,845,132 653,829 2,498,961 551-100-30 551-200-576 607/691 127 39 184 712 625 37 569/143 565 11,910,137 803,495 12,713,632 $ 2,664,164 16,975 5,871,395 748,424 59,124 46,140 97,397 6,822,480 1,314,287 42,870 137 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS JUNE 30, 2018 Federal Grantor/Pass-Through Grantor/Program Title U.S. DEPARTMENT OF EDUCATION (CONTINUED): Title IV-B, 21st Century Community Learning Centers Vocational Education - Basic Grants to States Education of Homeless Children and Youth Title IV - Part A Student Support and Academic Enrichment Title I Programs, Part E - Striving Readers Cluster Striving Readers - Kindergarten - Grade 5 Striving Readers - Middle Schools Striving Readers - High Schools Striving Readers - Birth - Five years Total, Title I, Part E Cluster Total Passed through Georgia Department of Education Total U. S. Department of Education Total Expenditures of Federal Awards Federal CFDA Number 84.287 84.048 84.196 84.424 84.371 84.371 84.371 84.371 Contract or Project Number Total Expenditures 578 429/430 573-100-55 721 665 663 664 662 $ 579,635 329,253 54,623 228,036 6,853 3,038 2,917 2,812 15,620 24,781,575 27,280,536 $ 44,151,343 138 BIBB COUNTY SCHOOL DISTRICT NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 NOTE 1. NOTE 2. NOTE 3. NOTE 4. BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Bibb County School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. DE MINIMIS COST RATE The School District elected not to use the 10% de minimis cost rate for the year ended June 30, 2018. NON-CASH AWARDS The School District received non-cash awards under the National School Lunch Program, CFDA 10.555, in the amount of $1,084,167, for the year ended June 30, 2018. SUBRECIPIENTS The School District did not pass through any funds to subrecipients in the year ended June 30, 2018. 139 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 A. SUMMARY OF AUDIT RESULTS Financial Statements Type of auditor's report issued Internal control over financial reporting: Material weaknesses identified? Significant deficiencies identified not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weaknesses identified? Significant deficiencies identified not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with the Uniform Gudiance? (Continued) Unmodified X Yes No Yes X None Reported Yes X No Yes X No X Yes None Reported Unmodified X Yes No 140 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 A. SUMMARY OF AUDIT RESULTS (CONTINUED) Identification of major programs: 84.010 84.010 10.555 10.553 10.555 10.555 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? U.S. Department of Education Title I Cluster Title I Programs - Improving Academic Achievement Title I-A - School Improvement Grant U.S. Department of Agriculture School Nutrition Cluster National School Lunch Program School Breakfast Program USDA Food Distribution School Snack Program $1,324,540 Yes X No 141 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 B. FINDINGS: FINANCIAL STATEMENTS AUDIT 2018-001. Accounts Receivables and Revenues Criteria: Generally accepted accounting principles require accounts receivable and related revenues be recognized in the accounting period in which they are measurable and available to finance expenditures of the current period. Condition: At year-end, accounts receivable and related revenues were not properly recorded in the General Fund and the SPLOST Fund. Context: During our testing of accounts receivable and revenues, we noted errors in reconciling a listing of grant receipts with the general ledger. Additionally, the District did not record a receivable for amounts related to fiscal year 2018 that were not received until July 2018. Effect: Audit adjustments were required to reflect accounts receivable and related revenues due and payable to the District as of year-end. These adjustments were as follows: General Fund net effect to decrease intergovernmental revenue and receivables in the amount of $234,218 in order to reconcile the listing of grant receipts to the general ledger; and the net effect to increase intergovernmental revenue and receivables in the amount of $30,426, in order to properly record state revenue. SPLOST Fund net effect to increase intergovernmental receivable and related revenue in the amount of $2,745,394, in order to record the current year accrual of SPLOST revenue. Recommendation: We recommend internal controls over accounts receivable and related revenues be strengthened to ensure amounts due and payable to the District as of year-end are properly reported. Views of Responsible Officials and Planned Corrective Action: We concur. Additional controls will be implemented to ensure accounts receivable is properly reported.. 142 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 C. FINDINGS AND QUESTIONED COSTS: MAJOR FEDERAL AWARD PROGRAMS AUDIT 2018-002. Controls over Allowable Costs and Allowable Activities Child Nutrition Cluster, CFDA 10.553 and 10.555 Criteria: The OMB Compliance supplement requires that costs charged to federal programs are adequately documented and that payments are proper and are in line with the principles of 2 CFR part 200, subpart E. Condition: Improper costs were charged to the Child Nutrition Cluster grant. In addition, the District did not adequately document a federal expenditure charged to the Child Nutrition Cluster grant. Context: The District charged time loss expenditures to the Child Nutrition Cluster grant for non-Child Nutrition employees during the year ended June 30, 2018. In addition, one Child Nutrition Cluster invoice was paid prior to management's approval. Effect: The District's controls over its allowable costs/costs princples were insufficient as it relates to payroll expenditures. Recommendation: We recommend the District strengthen internal controls over its federal expenditures, to ensure the District only charges allowed costs to the grant and that costs are adequately documented. Views of Responsible Officials and Planned Corrective Action: We concur with the finding. Additional controls will be implemented to ensure only allowable costs/activities are charged to federal programs and that federal expenditures are adequately documented. 143 BIBB COUNTY SCHOOL DISTRICT SCHEDULE OF PRIOR YEAR FINDINGS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 2017-001. Compliance with Reporting of Financial Data Child Nutrition Cluster, CFDA 10.553 and 10.555 Criteria: The Georgia Department of Education requires local educational agencies receiving Child Nutrition Services funds to submit monthly financial data. Data must be submitted no later than the 15th calendar day of the month following the claim month. As established by the Uniform Guidance Reporting requirements, financial reports must be accurate and complete. Condition: The submissions of the monthly financial data reports were untimely and the reports were materially incorrect and incomplete. Auditee Response/Status: Resolved. 144 MANAGEMENT'S CORRECTIVE ACTION PLAN FOR THE FISCAL YEAR ENDED JUNE 30, 2018 2018-001. Accounts Receivables and Revenues Name of the Contact Person Responsible for Corrective Action Plan: Vicki Hulett, Executive Director of Accounting Corrective Action Plan: All grants and accounts receivable items will be reviewed at year end for accuracy. All deposits received in the two months after year end will be scrutinized for necessary recording of receivables and revenues for the previous year end. Checklists of items which are normal receivables at year end will be used to help with this task. Anticipated Completion Date: Fiscal year 2019 2018-002. Compliance and Controls over Allowable Costs and Allowable Activities Child Nutrition Cluster, CFDA 10.553 and 10.555 Name of the Contact Person Responsible for Corrective Action Plan: Timikel Sharpe, School Nutrition Director; Myra Abrams, School Nutrition Director HR Corrective Action Plan: All School Nutrition payrolls will be submitted to the School Nutrition Department to Myra Abrams, Director HR and Timikel Sharpe, Executive Director for review after payroll has been completed. School Nutrition will submit timesheets to payroll with proper documentation for payroll processing according to the payroll calendar. When a final payroll proof is run, the Central Office School Nutrition Accountant will review the payroll by using the employee rosters supplied by School Nutrition. Payroll has to meet payroll calendar pay dates, therefore the next School Nutrition review takes place after payroll has been posted but before School Nutrition reimburses the General Fund for the School Nutrition payroll. The Accounting Department sends the posted payroll to School Nutrition. Myra Abrams will review and analyze the reports for accuracy. Any questions, errors, or discrepancies will be discussed with the School Nutrition Director, noted and reported to Janeseia Roberts in the Accounting Department for correction and verification prior to approval being granted. Approval will be given in writing by Mrs. Abrams. School Nutrition will be given at least 24 hours to review and submit a response. The Central Office School Nutrition Accountant will make corrections by journal entry and send a copy of the correction to the School Nutrition office. Payment to the General Fund will take place after any necessary corrections have been completed. Anticipated Completion Date: Fiscal year 2019 145