Bibb County School District comprehensive annual financial report for the fiscal year ended June 30, 2019

BIBB COUNTY SCHOOL DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
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, 2019
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION Letter of Transmittal .................................................................................................................................. i viii GFOA Certificate of Achievement................................................................................................................... ix Board of Public Education for Bibb County Function and Composition .......................................... x xi Bibb County School District Superintendent and Administrative Staff ................................................. xii Organizational Chart ...................................................................................................................................... xiii
II. FINANCIAL SECTION Independent Auditor's Report.................................................................................................................... 1 3 Management's Discussion and Analysis ................................................................................................ 4 12 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ..................................................................................................................... 13 Statement of Activities ..............................................................................................................14 and 15 Fund Financial Statements: Balance Sheet Governmental Funds ................................................................................................ 16 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds .................................................................................................... 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities...................................... 18 Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund ................................................................... 19 Statement of Net Position Proprietary Funds.................................................................................. 20 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds........................................................................................................... 21 Statement of Cash Flows Proprietary Funds.......................................................................22 and 23 Statement of Fiduciary Net Position Fiduciary Funds .................................................................... 24 Statement of Changes in Fiduciary Net Position Fiduciary Funds ............................................... 25 Notes to Financial Statements ..................................................................................................... 26 67 Required Supplementary Information: Schedule of Proportionate Share of the Net Pension Liability Teachers' Retirement System of Georgia ...................................................................................... 68 Schedule of Contributions Teachers' Retirement System of Georgia .......................................... 69 Notes to Required Supplementary Information Teachers' Retirement System of Georgia ...................................................................................... 70 Schedule of Proportionate Share of the Net Pension Liability Public School Employees' Retirement System ............................................................................. 71

BIBB COUNTY SCHOOL DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
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II. FINANCIAL SECTION (CONTINUED) Required Supplementary Information (Continued) Notes to Required Supplementary Information Public School Employees' Retirement System ............................................................................. 72 Schedule of Proportionate Share of the Net Pension Liability Employees' Retirement System ...................................................................................................... 73 Schedule of Contributions Employees' Retirement System .......................................................... 74 Notes to Required Supplementary Information Employees' Retirement System........................ 75 Schedule of Proportionate Share of the Net OPEB Liability School OPEB Fund ........................................................................................................................... 76 Schedule of Contributions School OPEB Fund............................................................................... 77 Notes to Required Supplementary Information School OPEB Fund ........................................................................................................................... 78 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet Nonmajor Governmental Funds .......................................................... 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds .................................................................................. 80 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds 2011 Issue.................................................................................................... 81 Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds 2016 Issue.................................................................................................... 82 Combining Statement of Net Position Nonmajor Enterprise Funds ............................................. 83 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds ......................................................................... 84 Combining Statement of Cash Flows Nonmajor Enterprise Funds ..................................85 and 86 Combining Statement of Net Position Internal Service Funds ...................................................... 87 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds .................................................................................. 88 Combining Statement of Cash Flows Internal Service Funds ....................................................... 89 Combining Statement of Assets and Liabilities Agency Funds .................................................... 90 Combining Statement of Changes in Assets and Liabilities Agency Funds................................ 91
III. STATISTICAL SECTION Net Position by Activity Last Ten Fiscal Years....................................................................92 and 93 Changes in Net Position Last Ten Fiscal Years ..................................................................94 and 95 Fund Balances, Governmental Funds Last Ten Fiscal Years ............................................96 and 97

BIBB COUNTY SCHOOL DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
III. STATISTICAL SECTION (CONTINUED) Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years ...........................................................................................................98 and 99 Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years .......................................................................................................100 and 101 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ..............................102 and 103 Principal Property Taxpayers Current Year and Nine Years Ago................................................ 104 Property Tax Levies and Collections Last Ten Fiscal Years........................................................ 105 Ratios of Outstanding Debt by Type Last Ten Fiscal Years ........................................................ 106 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years .......................................... 107 Legal Debt Margin Last Ten Fiscal Years.........................................................................108 and 109 Direct and Overlapping Governmental Activities Debt.................................................................... 110 Demographic and Economic Statistics Last Ten Fiscal Years .................................................... 111 Principal Employers Current Year and Nine Years Ago ............................................................... 112 Operating Statistics Last Ten Fiscal Years.................................................................................... 113 District Employees Last Ten Fiscal Years .......................................................................114 and 115 Teacher Salaries Last Ten Fiscal Years ......................................................................................... 116 Free and Reduced Price Lunch Eligibility Last Ten Fiscal Years................................................ 117 School Data Last Ten Fiscal Years ....................................................................................... 118 133
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 ....................................................................................134 and 135 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance................................................................................................................................ 136 138 Schedule of Expenditures of Federal Awards ....................................................................139 and 140 Notes to Schedule of Expenditures of Federal Awards................................................................... 141 Schedule of Findings and Questioned Costs ......................................................................... 142 144 Schedule of Prior Year Findings ........................................................................................................ 145

I. INTRODUCTORY SECTION

BACK OF CLIENT'S CUSTOM TAB DO NOT PRINT

December 19, 2019
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, 2019.
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, 2019. 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 (the "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, excluding the state charter school, CIRRUS Academy. 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. .
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As of June 30, 2019, the school district's first locally approved charter school (Academy for Classical Education ACE) had 1,708 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. Effective July 1, 2019, ACE became a state approved charter school.

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 2018 was 23,877, a decrease of 233 from 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 3,455 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 postsecondary 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, 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.

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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 16th in the state with a population total of 153,095. According to the Georgia Department of Labor, Macon-Bibb County had a 2018 civilian workforce of 69,212 2 with a 4.5% unemployment rate, the same rate as 2017.2
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 Wal-Mart Super Stores Amazon Mercer University

6,000 1,200 1,125 1,000
950

Largest Public Employers4

Employers

# of Employees

Navicent Health Medical Center Bibb County School District 3 Macon-Bibb Government Middle Georgia State University United States Postal Service

5,000 3,455 2,200
680 600

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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.
In August 2018, after 11 years of doing business in Macon, Nichiha Corp. announced plans to expand its plant and add more than 70 jobs to the current 161. The Japan-based company will invest $120 million in the expansion. The 74 new jobs will include positions in management and operations. Nichiha specializes in fiber cement products made for interior and exterior uses and for commercial and residential applications. The finished product can be made to look like stone, brick or other composites.
In November 2018, Stevens Aerospace and Defense Systems announced plans to move its large-cabin business jet operation from the company headquarters facility in Greenville, North Carolina to Macon, GA. This move will create 150 new jobs in their Macon-Bibb 48,000 square-foot facility located at the Middle Georgia Regional Airport.
Embraer is the third largest aircraft manufacturer in the world and in 2018 brought more than 100 jobs to Macon. Embraer operates out of a 155,000 square-foot facility at the Middle Georgia Regional Airport. The company performs commercial jet aircraft maintenance services. Embraer signed a three-year lease with the option to renew for three additional years. The company, based in Brazil invested about $1.6 million into the facility and for operations.
In October 2019, Dean Baldwin Painting, a private company headquartered in Texas providing strip and paint services for military and commercial aircrafts, will invest $21,450,000 to build a new, four bay service hangar at the Middle Georgia Regional Airport, creating 115 new jobs in Macon-Bibb County. This new state-of-the-art strip and paint facility will be approximately 127,000 square feet in addition to office, warehouse, and aircraft ramp space.
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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 $3.15 billion to the Georgia economy in fiscal 2018. According to the fiscal 2018 statement, Robins had a total workforce of 23,266, which is made up of 14,284 appropriated fund civilians, 6,151 military members and 2,791 other employees. The report further states that Robins Air Force Base spent $1.45 billion in salaries. The largest portion of that payout money, $1.7 billion, was paid to civilians working on the base, while military members accounted for $363.3 million, and non-federal civilians and contract employees accounted for just above $15.4 million. Additionally the base awarded $6.8 billion in contracts. Of that amount, the base awarded $607 million to Georgia firms, with the lion's share - $247.9 million to firms in Houston County. The top five contractors in terms of contracts awarded were Boeing, Northrup Grumman, Lockheed Martin, General Atomics and Raytheon. 5
1U.S. Census Bureau 2GA Department of Labor 3District Records 4Macon Economic Development Commission 5Economic Impact Statement Robins Air Force Base
DISTRICT MAJOR INITIATIVES

Vision Statement Each student will demonstrate strength of character and will be college or career ready.

Mission Statement The Bibb County School District develops 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

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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.

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

On November 5, 2019, 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, 2021 December 31, 2025. Highlights of the projects include:
1 new elementary school Fine Arts Facility Security Improvements-District Wide Facility Renovations Technology Upgrades-District Wide Athletic Improvements-District Wide Energy Efficiency-District Wide Furniture-Media Centers-District Wide Land Acquisition Program Management 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 16.8%, 16.0% and 12.8%.

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FINANCIAL POLICIES AND LEGISLATION
Fund Balance Board policy establishes certain expectations related to fund balance. As of June 30, 2019, total fund balance in the General Fund was 10.6% 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 Fund are included in the annual appropriated budget. Capital Projects funds adopt project length 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.
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, 2018. This was the twentieth 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.
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We wish to express appreciation to Sharon Roberts, 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, Director and Audit Manager, Demetria Wright-Fluellyn 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.
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BIBB COUNTY SCHOOL DISTRICT
BOARD OF PUBLIC EDUCATION FOR BIBB COUNTY FUNCTION AND COMPOSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019 _____________________________________________________________________________
(ADD BOARD SEAL)

As of June 30, 2019, the members of the Board and year of expiration of their terms are as follows:

Name

District

Years in Office

Expiration of Current Term

Lester M. Miller, President

District 4

Dr. Thelma D. Dillard, Treasurer

District 2

Daryl J. Morton

At-large

Mrs. Susan K. Sipe

District 3

Robert M. Easter

District 6

Mrs. Ella M. Styles Carter

District 1

Dr. Sundra M. Woodford, Vice President District 5

Dr. Lisa W. Garrett

At-large

6 6 4 10 2 10 2


December 31, 2020 December 31, 2020 December 31, 2022 December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2020 December 31, 2022

Function and Composition
All matters relating to education and operations in the Bibb County School District (the "District") are governed and controlled by the Board of Public Education for Bibb County (the "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.

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BIBB COUNTY SCHOOL DISTRICT
BOARD OF PUBLIC EDUCATION FOR BIBB COUNTY FUNCTION AND COMPOSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019 _____________________________________________________________________________
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.
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Strength of Character and College or Career Ready

ADMINISTRATIVE STAFF as of December 2019

Superintendent's Senior Cabinet
Curtis L Jones Jr., Ed.D. Keith Simmons Jamie Cassady Ron Collier Randy Howard Mack Bullard 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
Jesse Davis 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 Director of Before and After School Programs

Central Services/Operations
Ed Aaron Sam Kitchens Sharon Roberts 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

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BCSD Organizational Chart SY 2019

Board of Education

Superintendent

Executive Assistant

Board Clerk

Asst. Supt.
Human Resources

Asst. Supt. Student Affairs

Asst. Supt. Teaching &
Learning

Chief of Staff

Chief Financial Officer

Asst. Supt.
District Effectiveness

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 Services

Legal Services

Internal Communications

Compensation

Social Workers

Pre-K

Technology/ REAA

Grants

Family Engagement

External Communications

Personnel

Truancy Services

Academic Interventions

Maintenance

Inventory

School Improvement

Community Partnerships

Worker's Compensation

GNETS

Professional Learning

Capital Improvements

Budget

Before & After School Programs

Talent Management

Behavior Specialists

Gifted/Advanced Academics

Safety & Risk Management

Procurement

CTAE

PEC

Response to Interventions

Athletics, Health & PE

Migrant

PBIS

ESOL

Campus Police

Nurses

Fine Arts/Magnet Programs

Custodial Operations

Alternative Education

Northwoods

Principal Supervisors
xiii

II. FINANCIAL SECTION

BACK OF CLIENT'S CUSTOM TAB DO NOT PRINT

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, 2019, 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, 2019, 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.
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 12), the schedules of proportionate share of the net pension liability, the schedules of pension contributions, the schedule of proportionate share of the net OPEB liability, and the schedule of OPEB contributions (on pages 68 through 78) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the 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.
2

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 December 19, 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 December 19, 2019
3

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, 2019. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal on pages i viii of this report.
FINANCIAL HIGHLIGHTS
Key financial highlights for FY2019 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 $174,477,927. This amount includes the negative unrestricted net position of $326,598,690. This amount 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 increased $21,769,903. This increase is primarily a result of an increase investment in capital assets.
At the close of the current fiscal year, the Bibb County School District's governmental funds reported combined fund balances of $48,432,812, a decrease of $19,372,345 in comparison with the prior year. Approximately 56.6% of this amount ($27,431,202) is available for spending at the government's discretion.
At the end of the current fiscal year, unassigned fund balance for the General Fund was $27,431,202 or approximately 10.6% of total General Fund expenditures.
The Bibb County School District's total long-term outstanding debt decreased $13,805,355. This decrease is primarily due to the decrease in 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).
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.
4

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019
The government-wide financial statements can be found on pages 13 15 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 finance-related 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 13 25 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 districtwide statements.
The basic proprietary fund financial statements can be found on pages 20 23 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 districtwide financial statements because it cannot use the assets to finance its operations.
The fiduciary fund financial statements can be found on pages 24 and 25 of this report.
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 26 67 of this report.
5

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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 $174,477,927 at the close of the most recent fiscal year.

BIBB COUNTY SCHOOL DISTRICT'S NET POSITION For the Fiscal Years Ended June 30, 2019 and June 30, 2018
(in thousands)

Assets: Current and other assets Capital assets
Total assets

Governmental Activities

FY2019

FY2018

Business-type Activities

FY2019

FY2018

$ 96,622 477,074 573,696

$ 113,184 447,999 561,183

$ 11,440 8,014
19,454

$ 12,629 8,283
20,912

Total Combined Activities

FY2019

FY2018

$ 108,062 485,088 593,150

$ 125,813 456,282 582,095

Total Change

$

%

$ (17,751) 28,806 11,055

-14.1% 6.3% 1.9%

Deferred Outflows: Pensions Other post-employment benefits Total deferred inflows

43,594 18,167 61,761

31,761 14,675 46,436

643 1,430 2,073

509 1,306 1,815

44,237 19,597 63,834

32,270 15,981 48,251

11,967 3,616
15,583

37.1% 17,287
32.3%

Liabilities: Long-term liabilities outstanding Net pension liability Other post-employment benefits Other liabilities
Total liabilities

4,985 191,308 165,795
39,636 401,724

5,212 188,413 179,182
36,791 409,598

2,824 13,055
910 16,789

3,022 15,944 1,201 20,167

4,985 194,132 178,850
40,546 418,513

5,212 191,435 195,126
37,992 429,765

(227) 2,697 (16,276) 2,554 (11,252)

-4.4% 1.4% 211,070 6.7% -2.6%

Deferred Inflows: Pensions Other post-employment benefits Total deferred inflows

16,802 43,517 60,319

20,194 25,121 45,315

248 3,427 3,675

323 2,235 2,558

17,050 46,944 63,994

20,517 27,356 47,873

(3,467) 19,588 16,121

-16.9% 29,591
33.7%

Net position: Net investment in capital assets Restricted for capital projects Unrestricted Total net position

475,094 17,969
(319,649) $ 173,414

445,487 32,944
(325,725) $ 152,706

8,014 -
(6,950) $ 1,064

8,283

-

(8,281)

$

2

483,108 17,969
(326,599) $ 174,478

453,770 32,944
(334,006) $ 152,708

29,338 (14,975)
7,407 $ 21,770

6.5% -45.5%
-2.2% 14.3%

The Bibb County School District's overall net position increased $21,769,903 million or 14.3% from the prior fiscal year. This increase is primarily due to the increase in investment in capital assets.
By far, the largest portion of the Bibb County School District's net position ($483,107,652) 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.
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 $194.1 million and Other Post-Employment Benefits liability of $178.8 million at June 30, 2019. An additional portion of the Bibb County School District's net position ($18.0 million) represents resources that are subject to external restrictions on how they may be used.

6

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

Governmental Activities. The Bibb County School District Governmental Activities overall net position increased from $152,706,110 to $173,414,447. This $20,708,337 or 13.6% increase is primarily due to the increase in investment in capital assets.

Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions
Total program revenues
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
Expenses: Instruction General administration Maintenance and operations Student transportation Interest on long-term debt School nutrition services Stadiums Wellness center Hutchings Academy Total expenses
Increase (decrease) in net position before transfers
Transfers Increase (decrease) in net position
Net position - beginning Net position - ending

BIBB COUNTY SCHOOL DISTRICT'S CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2019 and June 30, 2018 (in thousands)

Governmental Activities

FY2019

FY2018

Business-type Activities

FY2019

FY2018

Total Combined Activities

FY2019

FY2018

$ 86,399 157,428 499
244,326

$ 4,605 153,749 1,214
159,568

$ 958 16,861 -
17,819

$ 845 16,600 -
17,445

$ 87,357 174,289 499
262,145

$ 5,450 170,349 1,214
177,013

179 33,292
932
8,404 -
1,498 44,305 $ 288,631

83,045 31,468
1,062
7,881 -
949 124,405 $ 283,973

-
13 200 213 $ 18,032

-
6 139 145 $ 17,590

179 33,292
932
8,404 13
1,698 44,518 $ 306,663

83,045 31,468
1,062
7,881 6
1,088 124,550 $ 301,563

$ 228,658 6,988
20,441 11,800
68 -
$ 267,955

$ 222,758 7,573
19,637 12,851
84 -
$ 262,903

$

-

-

-

-

-

16,753

155

-

31

$ 16,939

$

-

-

-

-

-

19,149

225

25

33

$ 19,432

$ 228,658 6,988
20,441 11,800
68 16,753
155 -
31 $ 284,894

$ 222,758 7,573
19,637 12,851
84 19,149
225 25 33
$ 282,335

$ 20,676 32
20,708
152,706 $ 173,414

$ 21,070 (250)
20,820
131,886 $ 152,706

$ 1,093 (32)
1,061
2 $ 1,063

$ (1,842) 250
(1,592)

1,594

$

2

$ 21,769 -
21,769
152,708 $ 174,477

$ 19,228 -
19,228
133,480 $ 152,708

Total Change

$

%

$ 81,907 3,940 (715)

1502.9% 2.3%
100.0%

85,132

48.1%

(82,866) 1,824 (130)

-99.8% 5.8%
-12.2%

523 7
610 (80,032) $ 5,100

6.6% 116.7%
56.1% -64.3%
1.7%

$ 5,900 (585) 804
(1,051) (16)
(2,396) (70) (25) (2)
$ 2,559

2.6% -7.7% 4.1% -8.2% -19.0% -12.5% -31.1% -100.0%
0.9%

$ 2,541 -
2,541
19,228 $ 21,769

13.2% 0.0%
13.2%
14.4% 14.3%

Business-type Activities. For the Bibb County School District's business-type activities, overall net position increased from $1,914 to $1,063,480 in the current fiscal year. The increase in net position for business-type activities (food services, stadiums, Hutchings Academy and wellness center operations) of $1,061,566 from the prior fiscal year and is primarily due to a reduction in other post-employment benefit liabilities.
7

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019
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 ESPLOST 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 ESPLOST Projects Fund is used to account for the proceeds of a 1% Education 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, 2019, the Bibb County School District's governmental funds reported combined fund balances of $48,432,812, a decrease of $19,372,345 in comparison with the prior year. Approximately 56.6% of this amount ($27,431,202) 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 ($504,976, prepaid assets and inventory), 2) restricted for particular purposes ($17,968,965, capital projects), or 3) committed for particular purposes ($2,527,669).
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 $27,431,202 while total fund balance decreased to $27,936,178. 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 10.6% of total General Fund expenditures while total fund balance represents approximately 10.8% of that same amount.
The net change in the General Fund's total fund balance was a decrease of $4,357,425 from the prior fiscal year. Total operating expenditures exceeded revenues by $4,439,878. Transfers netted to $82,453; primarily used for stadium expenditures.
SPLOST (Special Purpose Local Option Sales Tax) Projects Fund. As of June 30, 2019, the SPLOST Projects Fund, a major fund, had an ending fund balance of $17,968,965, a decrease of $14,975,012 from the prior year. The decrease in fund balance was due to capital project expenditures exceeding SPLOST receipts.
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 ($6,520,829) and net investment of capital assets was $8,009,689 for a total net position of $1,488,860, an increase of $1,234,455 over the prior year. The increase is due to revenues exceeding operating expenses.
8

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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
$ 84,461,000 139,306,170 35,383,117

Actual Revenues
$ 86,369,553 137,182,988 28,921,589

$ Difference
$ 1,908,553 (2,123,182) (6,461,528)

% Difference
2.2% -1.5% -22.3%

Local revenue sources include ad valorem taxes, sales taxes, title taxes, other taxes, tuition income, investment income, transportation fees, rental income and other local sources. Tax collections including property, tag/title, real estate transfer, intangible, and pilot taxes exceeded their original budget by approximately $1.2 million. Investment income exceeded its budgeted amount by $0.3 million and other sources by $0.4 million. State sources include Quality Basic Education ("QBE") funding and other grants from the Georgia Department of Education and other state agencies. The decrease in state revenues over budget of $2,123,182 is primarily due to an overestimation of QBE funding combined with decreases in other state grants. The shortfall in the above federal revenue sources are 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 Student transportation

Estimated Expenditures
$ 226,659,494 7,153,480
20,478,459 9,502,448

Actual Expenditures
$ 221,006,335 6,653,126 19,388,136 10,366,463

$ Difference
$ 5,653,159 500,354
1,090,323 (864,015)

% Difference
2.6% 7.5% 5.6% -8.3%

The instruction shortfall of $5.7 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. Another component of the instruction shortfall is vacancies in the classroom at various points throughout the school year being filled by lower cost substitutes instead of teachers and/or paraprofessionals. The general administration shortfall of $0.5 million is primarily from system staffing vacancies. The shortfall of $1.1 million in the maintenance and operations expenditure projections were caused by efficiency of newer building construction and the implementation of energy conservation measures as well as personnel vacancies during various points throughout the year. Student transportation expenditures exceeded the budget by $0.8 million primarily due to increased salary and benefit costs of bus drivers.

9

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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, 2019, amounts to $485,087,499 (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 $28,805,386 or approximately 6.3%.
BIBB COUNTY SCHOOL DISTRICT'S CAPITAL ASSETS (Net of Accumulated Depreciation)
For the Fiscal Years Ended June 30, 2019 and June 30, 2018 (in thousands)

Governmental Activities

Business-type Activities

Total Combined Activities

Total Change

Land Construction in
progress Buildings Equipment Land improvements
Total Capital Assets

FY2019

FY2018

FY2019 FY2018

FY2019

FY2018

$ 13,745 $

13,690 $

- $

- $

13,745 $

13,690 $

$ 55

% 0.4%

36,194 396,687
25,047 5,401

12,552 390,704
25,299 5,754

100 5,060 2,854
-

100 5,184 2,999
-

36,294 401,747
27,901 5,401

12,652 395,888
28,298 5,754

23,642 5,859 (397) (353)

186.9% 1.5% -1.4% -6.1%

$ 477,074 $ 447,999 $ 8,014 $ 8,283 $ 485,088 $ 456,282 $ 28,806

6.3%

Major capital asset events (in millions) during the current fiscal year included the following:

Increase in buildings for renovations and construction Increase in construction in progress on SPLOST Projects Decrease in land improvements Decrease in capital equipment

$ 5.9 23.6 -0.4 -0.3

Net changes in Capital Assets

$ 28.8

Additional information on the Bibb County School District's capital assets can be found in Note #7 on pages 40 and 41 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 $377,967,315. This debt is comprised of note payable, net pension liability, net other post-employment benefits liability, claims payable, and compensated absences.

10

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

BIBB COUNTY SCHOOL DISTRICT'S OUTSTANDING DEBT For the Fiscal Years Ended June 30, 2019 and June 30, 2018

Combined Governmental and Business Type Activities

Total Change

Note Payable Net Pension Liability Net OPEB Liability Claims Payable Compensated Absences
Totals

FY2019
$ 1,979,847 194,132,581 178,849,276 1,346,942 1,658,669
$ 377,967,315

FY2018
$ 2,512,238 191,435,058 195,125,560 1,084,703 1,615,111
$ 391,772,670

$
$ (532,391) 2,697,523
(16,276,284) 262,239 43,558
$ (13,805,355)

%
-21.2% 1.4% -8.3%
24.2% 2.7%
-3.5%

During the current fiscal year, the Bibb County School District's total debt decreased by $13,805,355 or 3.5% primarily as a result of the decrease in the 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 $404,684,335.
Additional information on the Bibb County School District's long-term debt can be found in Note #9 on pages 42 44 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 FY2020 fiscal year budget.
In June 2019, the Board adopted the FY2020 General Fund operating budget which includes $225.8 million in operating revenues and transfers in and $218.4 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 FY2020, the Teacher Retirement System (TRS) increased its employer contribution from 20.9% to 21.14% of TRS eligible wages. The state also mandated a $3,000 raise for all certified employees and the Bibb County School Board members voted to give all eligible classified employees a 2% increase.
For FY2020, 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 in FY2019, thus fully funding the state's QBE funding formula. FY2020 likewise will have no austerity reductions.
11

BIBB COUNTY SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019
As the District anticipates the opening of more charter schools and a continued decrease in student enrollment, construction is underway for a new elementary facility (Rileydale Elementary School) which will facilitate the consolidation of two elementary schools (Riley Elementary and Brookdale Elementary) and will open in August 2020. These two schools are currently consolidated as of August 2019 in the old Brookdale Elementary School. This reduces the total number of elementary schools from 22 to 21 as of the opening of the August 2020 school year.
During FY2019, ACE charter school sought and was granted status as a Georgia State Charter School effective July 1, 2019, thereby ending its status as a Bibb County School District Charter School. For FY2020 Bibb County School District will see a decrease in the amount of QBE revenues received for Bibb County zoned students attending ACE as this funding will now go directly to ACE instead of coming to Bibb County School District. Expenditures will also be reduced for payments to charter schools. In FY2020 ACE will no longer be a component unit of the Bibb County School District.
On February 29, 2019, Bibb County School District entered into a facility use agreement with Foothills Education Center, Inc. for Foothills Education High School, a state charter school, to lease class and office space on a Bibb County School District campus. This state charter will begin classes at our location beginning January 2020. Negotiations are currently on going for an agreement to be signed between Foothills Education Center, Inc. and the Bibb County School District to convert this facility to a new state charter, Heartland Education, with Bibb County School District becoming the operational agent for this charter school. Heartland High School would begin July 2020. The later portion of FY2020 would be a planning year for Bibb and Heartland. This charter school will have budget implications as terms of the agreement become clearer.
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, Georgia 31201.
12

BASIC FINANCIAL STATEMENTS

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF NET POSITION JUNE 30, 2019

ASSETS
Cash Investments Receivables:
Interest Accounts Intergovernmental Internal balances Inventories Prepaid and other assets Lease receivable 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 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 General obligation bonds due within one year, net of
unamortized discount Capital leases, due in more than one year Capital leases, due in more than one year 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

$

11,583,210 $

48,326,445

5,022 2,245,567 32,341,194 1,311,157
504,976
304,517 49,939,160

427,134,670

573,695,918

2,764,021 $ 9,067,413
1,667 69,156 308,872 (1,311,157) 539,982
99,585
7,914,084
19,453,623

14,347,231 $ 57,393,858
6,689 2,314,723 32,650,066
539,982 504,976 304,517 50,038,745
435,048,754
593,149,541

3,394,815
180,627 620,498
28,328,596
32,524,536

43,594,113 18,167,368
61,761,481

642,901 1,430,494
2,073,395

44,237,014 19,597,862
63,834,876

4,801,818 2,408,848
7,210,666

11,434,327 2,110,057 -
26,055,976 35,484
764,748 582,194 548,469 1,431,378 797,983 860,686
-
191,308,247 165,794,643
401,724,192

36,134 99,585
733,885
40,438 -
2,824,334 13,054,633
16,789,009

11,470,461 2,209,642 -
26,789,861 75,922
764,748 582,194 548,469 1,431,378 797,983 860,686
-
194,132,581 178,849,276
418,513,201

84,062 -
27,760 1,507,823
385,000
34,528,854 108,415 196,102
7,548,075 7,781,001
52,167,092

16,801,571 43,517,189
60,318,760

247,995 3,426,534
3,674,529

17,049,566 46,943,723
63,993,289

225,361 1,495,126
1,720,487

475,093,983 17,968,965
(319,648,501)
$ 173,414,447 $

8,013,669 -
(6,950,189)
1,063,480 $

483,107,652 17,968,965
(326,598,690)
174,477,927 $

(3,772,179) (10,380,198)
-
(14,152,377)

The accompanying notes are an integral part of these financial statements.
13

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Program Revenues

Functions/Programs Governmental activities:
Instruction General administration Maintenance and operations Student transportation Interest on long-term debt
Total governmental activities
Business-type activities: School food services Wellness center Hutchings Academy Total business-type activities Total primary government
Component unit: Academy for Classical Education Total component unit

Expenses
$ 228,658,723 6,987,654
20,440,578 11,800,340
67,610 267,954,905

Charges for Services
$ 86,398,746 -
86,398,746

Operating Grants and Contributions
$ 144,230,362 4,359,809 6,589,166 2,248,237 -
157,427,574

Capital Grants and Contributions

$

109,670

-

-

388,880

-

498,550

16,752,713

889,145

16,861,484

154,610

29,737

-

31,169

38,980

-

16,938,492

957,862

16,861,484

$ 284,893,397

$ 87,356,608

$ 174,289,058

$

498,550

$ 17,314,961

$

455,708

$

1,597,818

$

-

$ 17,314,961

$

455,708

$

1,597,818

$

-

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 (deficit), beginning of year Net position (deficit), end of year

The accompanying notes are an integral part of these financial statements.

14

Governmental Activities

$

2,080,055

(2,627,845)

(13,851,412)

(9,163,223)

(67,610)

(23,630,035)

Net (Expenses) Revenues and Changes in Net Position

Business-type Activities

$

-

-

-

-

-

-

Total

$

2,080,055

(2,627,845)

(13,851,412)

(9,163,223)

(67,610)

(23,630,035)

Component Unit

Academy for Classical Education

$

-

-

-

-

-

-

997,916

997,916

-

-

(124,873)

(124,873)

-

-

7,811

7,811

-

-

880,854

880,854

-

(23,630,035)

880,854

(22,749,181)

-

-

-

-

(15,261,435)

-

-

-

(15,261,435)

179,547

-

179,547

-

33,292,045

-

33,292,045

-

932,224

-

932,224

-

8,403,645

-

8,403,645

12,815,899

1,498,448

200,236

1,698,684

-

-

12,939

12,939

-

32,463

(32,463)

-

-

44,338,372

180,712

44,519,084

12,815,899

20,708,337

1,061,566

21,769,903

(2,445,536)

152,706,110

1,914

152,708,024

(11,706,841)

$ 173,414,447

$

1,063,480

$ 174,477,927

$ (14,152,377)

15

BIBB COUNTY SCHOOL DISTRICT
BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2019

Cash Investments Receivables:
Interest Accounts Intergovernmental Due from other funds Prepaid and other assets

ASSETS

Total assets

General

SPLOST Projects

Nonmajor Governmental
Funds

Total Governmental
Funds

$ 5,201,501 $ 3,309,276 $ 1,254,458 $ 9,765,235

29,129,835

17,843,951

1,352,659

48,326,445

2,892 2,245,342 29,613,660 1,331,869
504,976

2,130 -
2,727,534 -

-

5,022

-

2,245,342

-

32,341,194

-

1,331,869

-

504,976

$ 68,030,075 $ 23,882,891 $ 2,607,117 $ 94,520,083

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES

LIABILITIES Accounts payable Retainage payable Due to other funds Unearned revenue - grants Accrued payroll and payroll withholdings
Total liabilities

$ 7,680,126 $ 3,726,561 $

-

2,110,057

-

75,161

35,484

-

26,053,829

2,147

33,769,439

5,913,926

27,640 $ 11,434,327

-

2,110,057

51,808

126,969

-

35,484

-

26,055,976

79,448

39,762,813

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

4,524,314

-

-

4,524,314

Unavailable revenue - grants

1,800,144

-

-

1,800,144

Total deferred inflows of resources

6,324,458

-

-

6,324,458

FUND BALANCES

Nonspendable Restricted Committed Unassigned
Total fund balances
Total liabilities, deferred inflows of resources and fund balances

504,976 -
27,431,202
27,936,178

17,968,965
-
17,968,965

2,527,669 -
2,527,669

$ 68,030,075 $ 23,882,891 $ 2,607,117

504,976 17,968,965
2,527,669 27,431,202
48,432,812

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. Capital lease receivable recorded in governmental activities are not financial resources and, therefore, are not reported in the funds.
Net position of governmental activities

477,073,830 6,324,458
(359,298,685)
577,515 304,517 $ 173,414,447

The accompanying notes are an integral part of these financial statements.
16

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019

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
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES) Proceeds from sale of assets Transfers in Transfers out Total other financing sources (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

$ 86,369,553 $ 33,292,045 $

137,182,988

-

28,921,589

-

970,130

497,740

357,703

-

132,197

-

253,934,160

33,789,785

1,154,841 $ 120,816,439

-

137,182,988

-

28,921,589

30,578

1,498,448

-

357,703

-

132,197

1,185,419

288,909,364

221,006,335 6,653,126
19,388,136 10,366,463
357,703 2,274
532,391 67,610
258,374,038

69,000 48,645,807
48,714,807

1,046,698 6,113
90,380 68,530
169,767
1,381,488

222,053,033 6,659,239
19,478,516 10,503,993
357,703 48,817,848
532,391 67,610
308,470,333

(4,439,878)

(14,925,022)

(196,069)

(19,560,969)

132,071 (49,618)
82,453

(49,990) (49,990)

(4,357,425)

(14,975,012)

32,293,603

32,943,977

$ 27,936,178 $ 17,968,965 $

156,161 -
156,161
(39,908)
2,567,577
2,527,669 $

156,161 132,071 (99,608) 188,624
(19,372,345)
67,805,157
48,432,812

The accompanying notes are an integral part of these financial statements.

17

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, 2019

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.

$

(19,372,345)

30,423,245 (1,044,189)
(236,869)

532,391 10,770,129

(364,025)

$

20,708,337

18

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, 2019

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

$ 84,461,000 138,768,421 31,936,222 650,000 50,000 255,865,643

$ 84,461,000 139,306,170 35,383,117 650,000 50,000 259,850,287

Actual
$ 86,369,553 137,182,988 28,921,589 970,130 357,703 132,197 253,934,160

Variance with Final Budget

$

1,908,553

(2,123,182)

(6,461,528)

320,130

357,703

82,197

(5,916,127)

223,168,753 7,216,859
20,330,999 9,499,477 20,000
600,000 68,109
260,904,197

226,659,494 7,153,480
20,478,459 9,502,448 20,000
600,000 68,109
264,481,990

221,006,335 6,653,126
19,388,136 10,366,463
357,703 2,274
532,391 67,610
258,374,038

5,653,159 500,354
1,090,323 (864,015) (357,703) 17,726
67,609 499
6,107,952

(5,038,554)

(4,631,703)

(4,439,878)

191,825

750,000 (1,050,000)
(300,000)

750,000 (1,050,000)
(300,000)

132,071 (49,618)
82,453

(5,338,554)

(4,931,703)

(4,357,425)

32,293,603

32,293,603

32,293,603

$ 26,955,049

$ 27,361,900

$ 27,936,178

$

(617,929) 1,000,382
382,453
574,278 -
574,278

The accompanying notes are an integral part of these financial statements.

19

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2019

CURRENT ASSETS Cash Investments Receivables:
Interest Accounts Intergovernmental Inventories

ASSETS

Total current assets

Business-type Activities - Enterprise Funds

School Food Service

Nonmajor Enterprise
Funds

Total Enterprise
Funds

Governmental Activities -
Internal Service Funds

$ 2,735,919 $ 9,037,686

28,102 $ 29,727

2,764,021 $ 9,067,413

1,817,975 -

1,667 69,156 308,872 539,982
12,693,282

-
57,829

1,667 69,156 308,872 539,982
12,751,111

225
-
1,818,200

NON-CURRENT ASSETS Construction in progress Buildings Furniture and equipment
Total depreciable assets Less accumulated depreciation
Total non-current assets
Total assets

99,585 9,806,223 9,357,979 19,164,202 (11,254,098) 8,009,689
20,702,971

15,129 15,129 (11,149) 3,980
61,809

99,585 9,806,223 9,373,108 19,179,331 (11,265,247) 8,013,669
20,764,780

-
1,818,200

DEFERRED OUTFLOWS OF RESOURCES Pensions Other post-employment benefits
Total deferred outflows of resources

614,256

28,645

642,901

-

1,405,070

25,424

1,430,494

-

2,019,326

54,069

2,073,395

-

LIABILITIES CURRENT LIABILITIES Accounts payable Due to other funds Accrued payroll and payroll withholdings Unearned revenue Retainage payable Accrued claims expense
Total current liabilities

36,134 1,204,900
728,747 40,388 99,585 -
2,109,754

5,138 50 -
5,188

36,134 1,204,900
733,885 40,438 99,585 -
2,114,942

164,748 -
600,000
764,748

NON-CURRENT LIABILITIES Accrued claims expense, net of current position Net pension liability Net other post-employment benefit liability
Total non-current liabilities
Total liabilities

2,698,493 12,822,611
15,521,104
17,630,858

125,841 232,022
357,863
363,051

2,824,334 13,054,633
15,878,967
17,993,909

582,194 -
582,194
1,346,942

DEFERRED INFLOWS OF RESOURCES Pensions Other post-employment benefits
Total deferred inflows of resources

236,945

11,050

247,995

-

3,365,634

60,900

3,426,534

-

3,602,579

71,950

3,674,529

-

NET POSITION (DEFICIT) Investment in capital assets Unrestricted
Total net position (deficit)

8,009,689 (6,520,829) $ 1,488,860 $

3,980 (323,103) (319,123)

8,013,669 (6,843,932) 1,169,737 $

471,258 471,258

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.
20

(106,257) $ 1,063,480

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019

OPERATING REVENUES Local sources Total operating revenues
OPERATING EXPENSES Food service operations Central support services Enterprise operations Maintenance and operations Depreciation Total operating expenses
Operating loss
NON-OPERATING REVENUES (EXPENSES) Intergovernmental revenues Interest earned Gain (loss) on the sale of capital assets Total non-operating revenues (expenses)
Income (loss) before transfers
Transfers in Transfers out
Change in net position
NET POSITION (DEFICIT), beginning of year
NET POSITION (DEFICIT), end of year
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
Change in net position of business-type activities

Business-type Activities - Enterprise Funds

School Food Service

Nonmajor Enterprise
Funds

Total Enterprise
Funds

Governmental Activities -
Internal Service Funds

$

889,145 $

889,145

68,717 $ 68,717

957,862 $ 957,862

2,261,137 2,261,137

16,172,182 -
566,438 16,738,620
(15,849,475)

184,332 1,447 185,779
(117,062)

16,172,182 -
184,332 -
567,885 16,924,399
(15,966,537)

68,629
2,570,626
2,639,255
(378,118)

16,861,484 200,236 22,210
17,083,930
1,234,455
1,234,455
254,405
$ 1,488,860 $

(9,271) (9,271)
(126,333)
49,618 (82,081) (158,796)
(160,327)
(319,123)

16,861,484 200,236 12,939
17,074,659
1,108,122
49,618 (82,081) 1,075,659
$

-
(378,118)
(378,118)
849,376
471,258

(14,093) $ 1,061,566

The accompanying notes are an integral part of these financial statements.

21

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019

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 (used in) operating activities
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Subsidy from federal and state grants Transfers from other funds Transfers to other funds
Net cash provided by (used in) 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
(Continued)

Business-type Activities - Enterprise Funds

School Food Service

Nonmajor Enterprise
Funds

Total Enterprise
Funds

Governmental Activities -
Internal Service Funds

$

886,339 $

-

(8,964,286)

(5,960,562)

(2,953,580)

-

(16,992,089)

68,717 -
(105,129) (52,082) -

$

955,056 $

-

(9,069,415)

(6,012,644)

(2,953,580)

-

2,262,055
(2,377,016)

(88,494)

(17,080,583)

(114,961)

16,922,570

-

16,922,570

-

-

49,618

49,618

-

-

(82,081)

(82,081)

-

16,922,570

(32,463)

16,890,107

-

(314,932)

-

(314,932)

-

(314,932)

-

(314,932)

-

198,569

-

198,569

-

29,139

-

29,139

-

227,708

-

227,708

-

22

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Net (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Classified as: Cash Investments
Reconciliation of operating loss to net cash used in operating activities Operating loss Adjustments to reconcile operating loss to net cash used in operating activities Depreciation (Increase) decrease in accounts receivable Decrease in due from other funds 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 accrued claims expense
Net cash used in operating activities

Business-type Activities - Enterprise Funds

School Food Service

Nonmajor Enterprise
Funds

Total Enterprise
Funds

Governmental Activities -
Internal Service Funds

$

(156,743) $

(120,957) $

(277,700) $

(114,961)

11,930,348

178,786

12,109,134

1,932,936

$ 11,773,605 $

57,829 $ 11,831,434 $ 1,817,975

$ 2,735,919 $ 9,037,686
$ 11,773,605 $

28,102 $ 2,764,021 $

29,727

9,067,413

57,829 $ 11,831,434 $

1,817,975 -
1,817,975

$ (15,849,475) $

(117,062) $ (15,966,537) $

(378,118)

566,438 (27,667)
4,247 1,982 44,476 (231,541) 880,699 (2,406,109) 24,861
-
$ (16,992,089) $

1,447 -
(7,743) (65,563) 100,427
-

567,885 (27,667)
4,247 1,982 44,476 (239,284) 815,136 (2,305,682) 24,861
-

(88,494) $ (17,080,583) $

918
48,908 213,331
(114,961)

The accompanying notes are an integral part of these financial statements.

23

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2019

Cash Investments Accounts receivable
Total assets
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

$

-

$

983,691

2,365

24,441

-

86

2,365

1,008,218

-

1,008,218

-

1,008,218

$

2,365

$

-

24

BIBB COUNTY SCHOOL DISTRICT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
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

$

53

53

53

2,312

$

2,365

25

BIBB COUNTY SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

26

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.
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.

27

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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.
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.

28

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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.
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.

29

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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.
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 the Official Code of Georgia Annotated ("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, 2019 was $478,652.
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
Land improvements Buildings Equipment

Years
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 13 Retirement Plans and Note 14 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 (the "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 $359,298,685 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

$ (1,979,847) (1,658,669)
(191,308,247) (165,794,643)
(16,801,571) (43,517,189) 43,594,113 18,167,368
$ (359,298,685)

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." The details of this $30,423,245 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

$

44,665,472

(14,242,227)

$

30,423,245

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)

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 $10,770,129 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 increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities

$

(43,558)

90,481

12,239,661

(1,516,455)

$

10,770,129

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.

37

NOTES TO FINANCIAL STATEMENTS

NOTE 3. NOTE 4.

LEGAL COMPLIANCE BUDGETS (CONTINUED)

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.

DEPOSITS AND INVESTMENTS

Credit Risk. As of June 30, 2019, the District's investments were all rated AAAf by Standard & Poor's.

As of June 30, 2019, the District had the following investments:

Investment Georgia Fund I, AAAf

Maturities 39-day weighted average

Fair Value $ 57,420,664

Investments are reported in the following activities: Governmental Business-type Fiduciary

$ 48,326,445 9,067,413 26,806
$ 57,420,664

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.

38

NOTES TO FINANCIAL STATEMENTS

NOTE 4. NOTE 5.

DEPOSITS AND INVESTMENTS (CONTINUED)

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, 2019, the District's bank balance of $17,322,068 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, 2019, the District was not exposed to custodial credit risk for investments.
RECEIVABLES

Intergovernmental receivables at June 30, 2019, 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

$ 35,310,220 $ 2,727,534 $

2,245,342

-

(5,696,560)

-

$ 31,859,002 $ 2,727,534 $

308,872 69,156
378,028

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 2018 were levied on August 14, 2018, and are due in two installments - the first payment was due October 15, 2018, and the final payment was due by November 15, 2018. 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, 2019.
39

NOTES TO FINANCIAL STATEMENTS

NOTE 6. PROPERTY TAXES (CONTINUED)

NOTE 7.

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.
CAPITAL ASSETS
A. Primary Government

Capital asset activity for the fiscal year ended June 30, 2019, is as follows:

Beginning Balance

Increases

Decreases

Transfers

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

$

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 $
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 $

190,345 $ 39,457,580 39,647,925
16,550 1,128,247 3,872,750 5,017,547
(440,699) (10,128,355)
(3,673,173) (14,242,227)
(9,224,680)
30,423,245 $
- $ -
314,932 314,932
(123,622) (444,263) (567,885)
(252,953)
(252,953) $

(135,355) $ (37,318)
(172,673)

- $ (15,778,263) (15,778,263)

(123,650) (2,032,495) (2,500,397) (4,656,542)

75,184 15,409,294
357,181 15,841,659

118,976 1,605,883 1,746,379 3,471,238

(54,125) (54,125)

(1,185,304)

15,787,534

(1,357,977) $

9,271 $

- $ -
(123,101) (241,662) (364,763)
123,101 234,733 357,834
(6,929)
(6,929) $

- $ -
(63,396) (63,396)
54,125 54,125
(9,271)
(9,271) $

Ending Balance
13,745,126 36,194,034 49,939,160
9,341,212 523,496,195
51,536,408 584,373,815
(3,940,459) (126,809,667)
(26,489,019) (157,239,145)
427,134,670
477,073,830
99,585 99,585
9,806,223 9,373,108 19,179,331
(4,745,952) (6,519,295) (11,265,247)
7,914,084
8,013,669

40

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

$ 12,178,395 489,097 487,672
1,087,063
$ 14,242,227

$

566,438

1,447

$

567,885

B. Discretely Presented Component Unit Academy for Classical Education

Beginning Balance

Increases

Decreases

Ending Balance

Capital assets, not being depreciated:

Land improvements

$

Construction in progress

Total

424,018 $ -
424,018

196,480 $ -
196,480

- $ -

620,498 -
620,498

Capital assets, being depreciated: Building improvements Buildings Equipment Total

2,695,445 27,826,203
1,529,890 32,051,538

62,661 -
286,671 349,332

-

2,758,106

-

27,826,203

-

1,816,561

-

32,400,870

Less accumulated depreciation for: Building improvements Buildings Equipment Total

(886,258) (1,464,706)
(445,285) (2,796,249)

(389,767) (695,655) (190,603) (1,276,025)

-

(1,276,025)

-

(2,160,361)

-

(635,888)

-

(4,072,274)

Total capital assets, being depreciated, net

29,255,289

(926,693)

-

28,328,596

Total capital assets, net

$ 29,679,307 $

(730,213) $

- $ 28,949,094

41

NOTES TO FINANCIAL STATEMENTS

NOTE 8.

FUND BALANCE CLASSIFICATION
The following is an analysis of fund balance as of June 30, 2019.

Nonspendable: Prepaids Inventory
Restricted for: Capital projects
Committed for: Student activities Capital projects
Assigned for: Unassigned

General

SPLOST Projects

$

386,739

$

-

118,237

-

-

17,968,965

-

-

-

-

27,431,202

-

$

27,936,178

$

17,968,965

Nonmajor Governmental
Funds

$

-

-

-

447,715 2,079,954

-

$

2,527,669

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.

42

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, 2019, are as follows:

Year Ending June 30,
2020 2021 2022 2023 Total

Principal

$

548,469

633,157

735,444

62,777

$

1,979,847

Interest

$

51,531 $

34,258

13,684

223

$

99,696 $

Total
600,000 667,415 749,128
63,000 2,079,543

Long-term liability activity for the year ended June 30, 2019, 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

$

2,512,238

188,413,081

179,182,006

1,084,703

1,615,111

$ 372,807,139

$

3,021,977

15,943,554

$

18,965,531

Additions

Reductions

Ending Balance

Due Within One Year

$

- $

(532,391) $

1,979,847 $

28,466,027

(25,570,861)

191,308,247

11,754,152

(25,141,515)

165,794,643

2,639,255

(2,377,016)

1,346,942

816,533

(772,975)

1,658,669

548,469 -
600,000 797,983

$

43,675,967 $ (54,394,758) $ 362,088,348 $

1,946,452

$

418,990 $

(616,633) $

2,824,334 $

-

925,519

(3,814,440)

13,054,633

-

$

1,344,509 $

(4,431,073) $

15,878,967 $

-

For governmental activities, compensated absences, net pension liability, and net OPEB liability are liquidated primarily by the General Fund.

43

NOTES TO FINANCIAL STATEMENTS

NOTE 9. LONG-TERM DEBT (CONTINUED)

B. Discretely Presented Component Unit Academy for Classical Education

Beginning Balance

Additions

Reductions

Ending Balance

Due Within One Year

Bonds payable

$

Less: unamortized discount

Capital lease

Net pension liability

Net OPEB liability

Long-term liabilities

$

34,990,000 $ (78,453) -
6,342,754 7,517,712 48,772,013 $

- $ 2,307 304,517 2,387,761 1,503,262 4,197,847 $

- $ (1,182,440) (1,239,973) (2,422,413) $

34,990,000 $ (76,146) 304,517
7,548,075 7,781,001 50,547,447 $

385,000 -
108,415 -
493,415

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 (3,385,810)
$ 5,125,674

Lease terms vary and extend through October 31, 2025. Rental revenues under these operating leases during the year ended June 30, 2019, were $487,598. Minimum future rentals to be received under operating leases are as follows:

Year Ending June 30, 2020 2021 2022 2023 2024 2025

$

467,528

602,694

457,493

457,493

457,493

204,970 $ 2,647,671

44

NOTES TO FINANCIAL STATEMENTS

NOTE 11. CAPITAL LEASE RECEIVABLE

During the fiscal year ended June 30, 2019, the District, as lessor, leased various equipment to the Academy of Classical Education. The lease payments qualify as a capital lease receivable for accounting purposes and, therefore, have been recorded at the present value of the minimum lease payments as of the date of inception. The interest rate on the lease is 5%. Total costs of assets leased under the capital lease agreement were $304,517. Annual debt service requirements to maturity for this lease is as follows:

Fiscal year ending June 30,

Principal

Interest

Total

2020 2021 2022 2023 2024 2025

$

108,415 $

40,195

42,205

44,315

46,531

22,856

$

304,517 $

1,585 $ 9,805 7,795 5,685 3,469 1,144 29,483 $

110,000 50,000 50,000 50,000 50,000 24,000
334,000

NOTE 12. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

The composition of interfund balances as of June 30, 2019, is as follows:

Due to/from other funds:

Receivable Fund
General Fund Total

SPLOST Projects
Fund

Payable Fund School Food Service

Nonmajor Governmental
Funds

$

75,161 $ 1,204,900 $

51,808 $

$

75,161 $ 1,204,900 $

51,808 $

Total 1,331,869 1,331,869

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.

45

NOTES TO FINANCIAL STATEMENTS

NOTE 12. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)

Interfund transfers:

Transfers In General Fund Nonmajor Enterprise Funds Total

General Fund

Transfers Out Nonmajor Enterprise Funds

$

- $

82,081

49,618

-

$

49,618 $

82,081

SPLOST Fund

49,990

-

$

49,990

Total

$

132,071

49,618

$

181,689

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) move unrestricted revenues collected in the General Fund and other funds to finance various programs accounted for in other funds, in accordance with budgetary authorizations.
NOTE 13. RETIREMENT PLANS
Teachers' Retirement System

Plan Description

All teachers of the District as defined in 47-3-60 of the O.C.G.A. and certain other support personnel as defined