Candler County Board of Education, Metter, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)

Collection:
Georgia Government Publications
Title:
Candler County Board of Education, Metter, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)
Creator:
Georgia. Department of Audits and Accounts
Publisher:
Atlanta, Ga. : Georgia. Department of Audits and Accounts
Date of Original:
2022-05-12
Subject:
Candler County Board of Education--Appropriations and expenditures--Periodicals
Education--Georgia--Candler County--Auditing--Periodicals
Education--Georgia--Candler County--Finance--Statistics--Periodicals
Location:
United States, Georgia, 32.75042, -83.50018
Medium:
state government records
official reports
audits
financial statements
financial records
Type:
Text
Format:
application/pdf
Description:
Annual financial report for the Candler County Board of Education.
Metadata URL:
http://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc2-b2021-belec-p-btext
Digital Object URL:
http://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc2-b2021-belec-p-btext
Language:
eng
Holding Institution:
University of Georgia. Map and Government Information Library
Rights:
Rights Statement information

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

Candler County Board of Education Table of Contents

Section I

Financial

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G

Statement of Fiduciary Net Position

Fiduciary Funds

7

H

Statement of Changes in Fiduciary Net Position

Fiduciary Funds

8

I Notes to the Basic Financial Statements

9

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

39

2 Schedule of Contributions Teachers Retirement System of Georgia

40

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

41

Candler County Board of Education Table of Contents Section I Schedules Required Supplementary Information

4 Schedule of Contributions Employees' Retirement System of Georgia

42

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

43

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

44

7 Schedule of Contributions School OPEB Fund

45

8 Notes to the Required Supplementary Information

46

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

48

Supplementary Information

10 Schedule of Expenditures of Federal Awards

50

11 Schedule of State Revenue

52

12 Schedule of Approved Local Option Sales Tax Projects

54

Section II

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

Section III

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

Findings and Questioned Costs
Schedule of Findings and Questioned Costs

Section I Financial

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare

the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 12, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
May 12, 2022

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CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
INTRODUCTION
The discussion and analysis of the Candler County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2021. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for fiscal year 2021 are as follows:
(1) In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, and Statement No. 90, Majority Equity Interests. Adoption of Statement No. 84 resulted in a restatement of prior year net position and fund balance, an increase of $59 thousand for both prior year net position and fund balance. See Note 14 for additional information.
(2) On the government-wide financial statements, the assets and deferred outflows of the School District exceeded liabilities and deferred inflows by $10.2 million.
(3) The School District had $27.5 million in expenses relating to governmental activities; only $18.6 million of these expenses are offset by program specific charges for services and grants and contributions. General revenues (primarily property and sales taxes) of $9.8 million, were adequate to provide for these programs.
(4) On the government-wide financial statements, the School District reported deferred inflows of resources of $4.1 million and deferred outflows of resources of $10.1 million related to defined benefit pension plans and OPEB plan.
(5) The general fund (the primary operating fund), ended the fiscal year with a fund balance of $8.9 million, an increase of $2.0 million from the prior fiscal year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report consists of several parts including management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and the fund financial statements. This discussion and analysis of the School District's financial statements provides an overview of its financial activities for the year. Comparative data is provided for fiscal year 2021 and fiscal year 2020.
The government-wide financial statements include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status.
i

CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
The fund financial statements focus on the individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The fiduciary funds statement provides information about the financial relationships in which the School District acts solely as an agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Candler County Board of Education, the general fund and debt service fund are the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
GOVERNMENT-WIDE STATEMENTS
The government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question about whether the School District is in a better financial position than last year? The Statement of Net Position and the Statement of Activities provide the basis for answering this question. These financial statements include all of the School District's assets, deferred outflows, liabilities and deferred inflows. They use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, implementation of new accounting pronouncements and other factors.
The Statement of Net Position and the Statement of Activities reflect the School District's governmental activities.
FUND FINANCIAL STATEMENTS
The School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds.
Governmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual basis of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled within the financial statements.
ii

CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 Fiduciary Funds - Custodial funds are used to report resources held by the School District in a purely custodial capacity. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. Implementation of GASB Statement No. 84, Fiduciary Activities, impacted these funds and was addressed by a restatement. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Current and other assets increased by $3.8 million primarily in the restricted cash and investment accounts due to the deposit of current year sales tax revenue and investment earnings as well as an increase in grants and contributions and miscellaneous revenues. Depreciable capital assets decreased by $1.2 million in the current year primarily due to the completion of construction projects in the prior year. Current year depreciation accounted for $1.5 million of that decrease, which was offset by $300 thousand in current year depreciable capital asset additions. In fiscal year 2021, the overall net position increased by $1.0 million. Assets increased by $2.7 million while liabilities increased by $6.4 million. As shown in Table 2, general and program revenues increased by $1.2 million and expenditures increased by $1.9 million during fiscal year 2021.
iii

CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Table 1, Statement of Net Position, provides the perspective of the School District as a whole.
Table 1 Net Position

Assets

Current and Other Assets

$

Capital Assets, Net

Total Assets

Deferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plans

Total Deferred Outflows of Resources

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

Total Liabilities

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

Total Deferred Inflows of Resources

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

Total Net Position

$

Fiscal Year 2021

Governmental Activities Fiscal Year 2020(1)

Net Change

24,698,356 $ 40,453,500
65,151,856

20,816,073 $ 3,882,283

41,626,919

(1,173,419)

62,442,992

2,708,864

6,083,483 3,985,602
10,069,085

5,122,245 1,136,666
6,258,911

961,238 2,848,936
3,810,174

3,436,059 17,625,000 20,987,481 18,808,003
60,856,543

3,222,729 17,625,000 18,131,343 15,455,540
54,434,612

213,330 -
2,856,138 3,352,463
6,421,931

286,833 3,848,749
4,135,582

987,697 4,016,699
5,004,396

(700,864) (167,950)
(868,814)

24,250,255 12,782,834 (26,804,273)

25,423,674 10,698,286 (26,859,065)

(1,173,419) 2,084,548
54,792

10,228,816 $

9,262,895 $

965,921

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

iv

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

Table 2 shows the change in net position for fiscal years ending June 30, 2021 and June 30, 2020.

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

Table 2 Change In Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020(1)

Net Change

$ 324,219 $ 338,046 $

17,166,174

16,623,222

1,107,238

1,033,002

(13,827) 542,952
74,236

Total Program Revenues

18,597,631

17,994,270

603,361

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

4,628,665 6,560
1,550,141 66,174
2,203,966 364,081
1,023,417

4,422,466 -
1,371,995 34,868
2,098,233 326,290
1,032,892

206,199 6,560
178,146 31,306
105,733 37,791 (9,475)

Total General Revenues

9,843,004

9,286,744

556,260

Total Revenues

28,440,635

27,281,014

1,159,621

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

16,442,277

15,206,452

1,235,825

799,417 873,440 406,925 990,924 1,657,967 433,675 1,479,494 1,259,178 144,604 127,080

641,025 745,332 406,697 799,810 1,573,869 395,315 1,387,899 1,210,758 103,769 120,551

158,392 128,108
228 191,114
84,098 38,360 91,595 48,420 40,835
6,529

422,071 95,585
1,385,584 1,015,200

293,397 89,084
1,595,571 1,015,200

128,674 6,501
(209,987) -

Total Expenses

27,533,421

25,584,729

1,948,692

Increase in Net Position

$ 907,214 $ 1,696,285 $ (789,071)

.

(1) Fiscal year 2020 balances do not reflect the effects of the restatement of net position.

See Note 14 in the Notes to the Basic Financial Statements for additional information.

v

CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
GOVERNMENTAL ACTIVITIES
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. It identifies the cost of these services supported by tax revenue and unrestricted State entitlements.

Table 3 Governmental Activities

Total Cost of Services Fiscal Year 2021

Net Cost of Services Fiscal Year 2021

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Operations of Non-Instructional Services

Enterprise Operations

Community Services

Food Services

Interest on Long-Term Debt

16,442,277 $
799,417 873,440 406,925 990,924 1,657,967 433,675 1,479,494 1,259,178 144,604 127,080
422,071 95,585
1,385,584 1,015,200

4,917,794
605,744 298,012 116,581 290,534 882,009
67,706 804,970 612,989
37,443 127,080
223,079 28,484
(216,258) 139,623

Total Expenses

$

27,533,421 $

8,935,790

Although program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For fiscal year 2021, 32.5% of expenses were supplemented by taxes and other general revenues.
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $28.5 million and total expenditures of $24.8 million. The excess of revenues over expenditures was due to a cognizant fiscal effort to keep expenses in line with state and federal funding, while maintaining an educational environment to meet the needs of our students. SPLOST revenues and the QSCB IRS Subsidy recorded in the debt service fund were used to make the required debt payments.

vi

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

GENERAL FUND BUDGETING HIGHLIGHTS
The School District's budget is prepared in accordance with Georgia law. The most significant budgeted fund is the general fund, which includes local, state and federal funds collected and disbursed for the purpose of operating the School District.
The School District's budget is based on its overall mission and incorporates site-based budgeting into the budget process to control total site budgets but provide flexibility for site management.
For the general fund, the actual revenues of $25.7 million exceeded the final budgeted amount of $22.1 million by $3.6 million. This difference between actual revenues and final budget revenues was due to several reasons. Property taxes were better than budgeted due to a constant millage rate, an increase in TAVT tax collections, and a successful effort to collect delinquent taxes by the tax commissioner. State funds were better than budgeted primarily due to an increase in the QBE funding formula on the Mid-Term Allotment. Charges for services and miscellaneous revenues were also higher than budgeted because the School District does not budget for the daycare or afterschool programs, nor does it budget for school activity accounts and other special revenue funds. In fiscal year 2021, there continued to be an increase in gate receipt collections due to football playoff games held at our local facility, a trend that cannot be forecasted from year to year.
The actual expenditures of $23.8 million were more than the final budgeted amount of $23.6 million by $141 thousand. This difference was primarily due to the School District not budgeting for school activity accounts nor the daycare, afterschool programs and various other special revenue funds.

CAPITAL ASSETS
At fiscal year ended June 30, 2021, the School District had $40.5 million invested in capital assets, net of accumulated depreciation, all in the governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation, as compared to the prior fiscal year. The School District's capital assets, net of accumulated depreciation, totaling $40.5 million are comprised of buildings and building improvements (90.4%), land and land improvements (6.6%), and equipment (3.0%). Additional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements.

Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

Net Change

Land

$

Buildings and Building Improvements

Equipment

Land Improvements

830,480 $

830,480 $

36,566,308

37,563,637

1,203,557

1,151,018

1,853,155

2,081,784

(997,329)
52,539 (228,629)

$ 40,453,500 $ 41,626,919 $ (1,173,419) .

vii

CANDLER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 LONG-TERM LIABILITIES The Candler County School District had long-term liabilities of $17.6 million related to General Government QSCB Series 2011 Bonds. The bonds are to be paid back by March 2026 with Special Purpose Local Option Sales Tax funds. The School District maintains an A1 underlying rating from Moody's Investors Service, which is the highest public rating that is GO-related. CURRENT ISSUES The School District is in very sound financial condition. Despite the pandemic, Candler County Board of Education's close monitoring of revenues and expenditures over several years has our fund balance sufficient enough to provide for current year shortfalls in state and federal funding. Although the State restored a portion of the original austerity cuts for fiscal year 2021, the School District still suffered some loss of state revenue due to the decrease in enrollment and austerity cuts related to the COVID-19 pandemic. The School District is utilizing federal Elementary and Secondary School Emergency Relief (ESSER) funding to supplement any decrease in state funding. The School District also plans to utilize ESSER funding to make renovations and provide for a safer, more sanitary environment for students and staff during the next fiscal year. Additionally, the funds are being used to provide resources and tools for any learning loss caused by the pandemic. The general fund has an unassigned fund balance of $7.8 million which is an increase of $1.5 million from the prior fiscal year. The School District will continue to be a good steward and look for ways to align resources and costs in a way to ensure the best opportunity for student success. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and creditors with a general overview of the School District`s finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, please contact Denise Strickland, CPA, Finance Director for the Candler County Board of Education, 210 S. College Street, Metter, GA 30439. You may also email your questions to Ms. Strickland at dstrickland@metter.org.
viii

Candler County Board of Education

CANDLER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Restricted Assets Cash held by Trustee Investments held by Trustee Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due in More Than One Year Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

9,486,371.97

124,172.63 587,699.99 1,673,988.45 559,793.69 376,485.82
45,382.34

998,098.91 10,846,362.12
830,480.00 39,623,020.00
65,151,855.92

6,083,483.00 3,985,602.00 10,069,085.00

439,103.67 2,662,214.39
334,741.16 20,987,481.00 18,808,003.00
17,625,000.00 60,856,543.22

286,833.00 3,848,749.00 4,135,582.00

24,250,254.80

718,528.12 12,064,306.23 (26,804,273.45)

$

10,228,815.70

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

- 1 -

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

EXHIBIT "B"

EXPENSES

PROGRAM REVENUES

OPERATING

CHARGES FOR SERVICES

GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

GOVERNMENTAL ACTIVITIES

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Operations of Non-Instructional Services

Enterprise Operations

Community Services

Food Services

Interest on Long-Term Debt

16,442,277.19 $
799,417.16 873,440.19 406,925.21 990,923.46 1,657,966.69 433,674.53 1,479,494.41 1,259,178.34 144,603.90 127,079.74
422,070.76 95,585.27
1,385,583.74 1,015,200.00

- $ 11,524,483.27 $

500.00 12,974.00 -

193,673.23 575,428.23 290,344.00 700,389.14 775,957.80 365,968.06 674,024.05 401,555.56 107,160.61
-

198,991.66 67,101.59 44,652.05 -

1,557,189.85 -

-

$

231,660.00 -

875,577.45

(4,917,793.92)
(605,743.93) (298,011.96)
(116,581.21) (290,534.32) (882,008.89)
(67,706.47) (804,970.36) (612,988.78)
(37,443.29) (127,079.74)
(223,079.10) (28,483.68) 216,258.16 (139,622.55)

Total Governmental Activities

$ 27,533,420.59 $

324,219.30 $ 17,166,173.80 $

1,107,237.45

(8,935,790.04)

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

4,628,664.80 6,560.30
1,550,140.84 66,174.24
2,203,966.00 364,080.53 1,023,417.56
9,843,004.27

Change in Net Position

907,214.23

Net Position - Beginning of Year (Restated)

9,321,601.47

Net Position - End of Year

$ 10,228,815.70

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

- 2 -

CANDLER COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2021

EXHIBIT "C"

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

GENERAL FUND

DEBT SERVICE
FUND

TOTAL

$

9,486,371.97 $

-

$

9,486,371.97

446,094.47 1,673,988.45
559,793.69 87,677.61 45,382.34

141,605.52 -

587,699.99 1,673,988.45
559,793.69 87,677.61 45,382.34

-

998,098.91

998,098.91

-

10,846,362.12

10,846,362.12

$ 12,299,308.53 $

11,986,066.55 $ 24,285,375.08

$

439,103.67 $

2,662,214.39

3,101,318.06

-

$

-

-

439,103.67 2,662,214.39 3,101,318.06

285,579.01

-

285,579.01

45,382.34 673,145.78 345,016.49 7,848,866.85 8,912,411.46

11,986,066.55
11,986,066.55

45,382.34 12,659,212.33
345,016.49 7,848,866.85 20,898,478.01

$ 12,299,308.53 $

11,986,066.55 $ 24,285,375.08

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

- 3 -

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

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability
Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Taxes that are not available to pay for current period expenditures are deferred in the funds.
Accrued interest revenue on repurchase agreement not earned in the current period and therefore not reported as a receivable on the fund level.
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Qualified School Construction Bonds payable Accrued interest payable
Qualified School Construction Bond interest subsidy that is not earned in the current period is not reported as a receivable on the fund level.
Net position of governmental activities (Exhibit "A")

$

20,898,478.01

$

830,480.00

47,752,277.00

4,632,654.00

3,724,722.00

(16,486,633.00)

40,453,500.00

$

(20,987,481.00)

(18,808,003.00)

(39,795,484.00)

$

5,796,650.00

136,853.00

5,933,503.00 285,579.01 124,172.63

$

(17,625,000.00)

(334,741.16)

(17,959,741.16)

288,808.21

$

10,228,815.70

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

- 4 -

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

EXHIBIT "E"

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

GENERAL FUND

DEBT SERVICE
FUND

TOTAL

$

4,733,323.45 $

66,174.24

15,140,457.96

4,437,122.74

324,219.30

10,988.78

1,023,417.56

25,735,704.03

-

$

1,550,140.84

-

-

-

338,292.28

874,964.92

2,763,398.04

4,733,323.45 1,616,315.08 15,140,457.96 4,437,122.74 324,219.30 349,281.06 1,898,382.48 28,499,102.07

14,417,121.90

-

14,417,121.90

766,240.86 801,910.26 306,952.00 770,575.20 1,532,308.02 398,462.28 1,434,681.60 1,292,700.83 138,413.61 125,604.55 422,070.76 92,474.78 1,283,915.34

7,537.50 -

766,240.86 801,910.26 306,952.00 770,575.20 1,532,308.02 405,999.78 1,434,681.60 1,292,700.83 138,413.61 125,604.55 422,070.76 92,474.78 1,283,915.34

23,783,431.99

1,015,200.00 1,022,737.50

1,015,200.00 24,806,169.49

1,952,272.04

1,740,660.54

3,692,932.58

6,960,139.42

10,245,406.01

17,205,545.43

$

8,912,411.46 $ 11,986,066.55 $ 20,898,478.01

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

- 5 -

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

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Increase in interest receivable on repurchase agreement
Qualified School Construction Bond interest subsidy that is not earned in the current period is not reported as revenue on the fund level.
Change in net position of governmental activities (Exhibit "B")

$

3,692,932.58

$

300,360.00

(1,473,779.00)

(1,173,419.00) (98,098.35)

$

(1,194,036.00)

(335,577.00)

(1,529,613.00)

14,799.47

612.53

$

907,214.23

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

- 6 -

CANDLER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2021

Exhibit "G"

ASSETS Cash and Cash Equivalents Investments
Total Assets
NET POSITION Restricted
Individuals, Organizations, and Other Governments

PRIVATE PURPOSE TRUSTS

CUSTODIAL FUNDS

$

860.07 $

93,921.32

$

94,781.39 $

402.18 -
402.18

$

94,781.39 $

402.18

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

- 7 -

CANDLER COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021

EXHIBIT "H"

ADDITIONS Contributions Donors Investment Earnings Interest Total Additions
DEDUCTIONS Scholarships
Change in Net Position
Net Position - Beginning (Restated)
Net Position - Ending

PRIVATE PURPOSE TRUSTS

CUSTODIAL FUNDS

$

10,000.00 $

39.08 10,039.08

24,000.00

(13,960.92)

108,742.31

$

94,781.39 $

3,295.00 -
3,295.00
3,000.00 295.00 107.18 402.18

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

- 8 -

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

EXHIBIT "I"

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

- 9 -

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

EXHIBIT "I"

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

- 10 -

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

EXHIBIT "I"

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

- 11 -

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

EXHIBIT "I"

Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
Investments
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Inventories
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.
Restricted Assets
Certain resources set aside for repayment of debt are classified as restricted assets on the Statement of Net Position because their use is limited by applicable debt statutes, e.g. Qualified School Construction Bond sinking funds.

- 12 -

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

EXHIBIT "I"

Capital Assets

On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.
Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements.
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.
Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land

Land Improvements

$

Buildings and Improvements

$

Equipment

$

Intangible Assets

Software

$

Easements

$

Land Use Rights

$

Patents, Trademarks and Copyrights $

.
Deferred Outflows/Inflows of Resources

All 5,000.00 5,000.00 5,000.00
150,000.00 100,000.00 100,000.00 100,000.00

N/A 15 years
10 to 50 years 5 to 15 years
Determined at purchase Determined at purchase Determined at purchase Determined at purchase

In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time.

Long-Term Liabilities and Bond Discounts/Premiums

In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.

- 13 -

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

EXHIBIT "I"

In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant to constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

- 14 -

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

EXHIBIT "I"

Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Property Taxes

The Candler County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on October 15, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Candler County Tax Commissioner bills and collects the property taxes for the School District, withholds 0.1% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $4,013,537.05.

The tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.00 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $713,226.10 during fiscal year ended June 30, 2021.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,550,140.84 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general and debt service funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, afterschool program, daycare program, and various other miscellaneous funds, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.

- 15 -

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

EXHIBIT "I"

The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS, CASH EQUIVALENTS AND INVESTMENTS
Collateralization of Deposits
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

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

EXHIBIT "I"

Categorization of Deposits

Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, the School District had deposits with a carrying amount of $9,487,604.22, and a bank balance of $9,573,626.50. The bank balances insured by Federal depository insurance were $500,000.00 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $76,222.60.
At June 30, 2021, $8,997,403.90 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.
Reconciliation of cash and cash equivalents balances to carrying value of deposits:

Cash and cash equivalents Statement of Net Position Cash and cash equivalents Restricted cash held by trustee Statement of Fiduciary Net Position Cash and cash equivalents

$ 9,486,371.97 998,098.91
1,262.25

Total cash and cash equivalents

10,485,733.13

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

30.00 998,098.91

Total carrying value of deposits - June 30, 2021

$ 9,487,604.22

- 17 -

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

EXHIBIT "I"

Categorization of Cash Equivalents

The School District reported cash equivalents of $998,098.91 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021 was 36 days.

Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

Categorization of Investments

At June 30, 2021, the School District had the following investments:

Investment Type

Cost-Based

Fair Value

Investment Maturity

Less Than 1

6 - 10

Year

Years

Debt Securities Repurchase Agreements
Mutual Funds Money Market Funds

$ 10,846,362.12 $

-

$

-

$ 10,846,362.12

-

93,921.32

93,921.32

-

Total Investments

$ 10,846,362.12 $ 93,921.32 $ 93,921.32 $ 10,846,362.12

Fair Value of Investments
The School District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets;
Level 2: Observable inputs other than quoted market prices; and,
Level 3: Unobservable inputs.
At June 30, the School District had the following investments by fair value level:
Mutual Funds money market funds of $93,921.32 are valued using observable inputs other than quoted market prices. (Level 2 inputs)

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

EXHIBIT "I"

Interest Rate Risk

Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk.
Custodial Credit Risk

Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk.
At June 30, 2021, $10,846,362.12 of the School District's applicable investments were held by the investment's counterparty, not in the School District's name.
Credit Quality Risk

Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed O.C.G.A. 36-83-4. The School District does not have a formal policy that would further limit its investment choices or one that addresses credit risk.
The investments subject to credit quality risk are reflected below:

Rated Debt Investments

Cost-Based

Fair Value

Quality Ratings

BBB

Unrated

Debt Securities

Repurchase Agreements

$

10,846,362.12 $

-

$ 10,846,362.12 $

-

Mutual Funds

Money Market Funds

-

93,921.32

-

93,921.32

Totals by Quality Ratings $ 10,846,362.12 $ 93,921.32 $ 10,846,362.12 $ 93,921.32

Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in repurchase agreements. This investment is 99.14% of the School District's total investments.
NOTE 5: RESTRICTED ASSETS
The restricted assets represent the cash balance and investment balance, totaling $998,098.91 and $10,846,362.12, respectively, for the QSCB Bond Sinking Fund.

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

EXHIBIT "I"

NOTE 6: CAPITAL ASSETS

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

Balances July 1, 2020

Increases

Decreases

Balances June 30, 2021

Governmental Activities Capital Assets,
Not Being Depreciated: Land

$

830,480.00 $

- $

-

$

830,480.00

Capital Assets, Being Depreciated Buildings and Improvements Equipment Land Improvements

47,742,257.00 4,384,514.00 3,724,722.00

10,020.00 290,340.00
-

42,200.00
-

47,752,277.00 4,632,654.00 3,724,722.00

Less Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements

10,178,620.00 3,233,496.00 1,642,938.00

1,007,349.00 237,801.00 228,629.00

42,200.00
-

11,185,969.00 3,429,097.00
1,871,567.00

Total Capital Assets, Being Depreciated, Net

40,796,439.00

(1,173,419.00)

-

39,623,020.00

Governmental Activities Capital Assets - Net

$ 41,626,919.00 $ (1,173,419.00) $

- $ 40,453,500.00

Current year depreciation expense by function is as follows:

Instruction

Support Services

Educational Media Services

$

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Food Services

73,688.95 132,640.11 58,951.16 29,475.58 221,066.85

$ 884,267.40
515,822.65 73,688.95

$ 1,473,779.00

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

EXHIBIT "I"

NOTE 7: LONG-TERM LIABILITIES

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

Balance July 1, 2020

Governmental Activities Balance
Additions Deductions June 30, 2021

Due Within One Year

Qualified School Construction Bonds $ 17,625,000.00 $

- $

- $ 17,625,000.00 $

-

.

Qualified School Construction Bonds (QSCB)

Section 1521 of the American Recovery and Reinvestment Act (ARRA) of 2009 provides for a source of capital at no or at nominal interest rates for costs incurred by School Districts in connection with the construction, rehabilitation or repair of a public-school facility or for the acquisition of land where a school will be built. Investors receive Federal income tax credits at prescribed tax credit rates in lieu of interest, which essentially allows School Districts to borrow without incurring interest costs.
When the stated interest rate on the QSCB results in interest payments that exceed the supplemental interest payments discussed in the preceding paragraph, the School District may apply for a direct cash subsidy payment from the U.S. Treasury which is intended to reduce the stated interest rate to a nominal percentage. To qualify for this subsidy the School District is required to periodically file appropriate documents with the Internal Revenue Service. These subsidy payments do not include the amount of any supplemental interest paid on a QSCB. The interest subsidy received by the School District in fiscal year 2021 was $874,964.92, which funded all but $140,235.08 of interest expense due on the QSCB.
The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2021. In the event the entity is unable to make the principal and interest payments using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.
Debt currently outstanding under Qualified School Construction Bonds is as follows:

Description

Interest Rate

Issue Date Maturity Date

Amount Issued

Amount Outstanding

General Government - QSCB Series 2011

5.76%

3/10/2011

3/1/2026 $ 17,625,000.00 $ 17,625,000.00

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

EXHIBIT "I"

The following is a schedule of total Qualified School Construction Bond payments:

Fiscal Year Ended June 30:

Principal

Interest

2022 2023 2024 2025 2026

$

-

$

-

-

-

17,625,000.00

1,015,200.00 1,015,200.00 1,015,200.00 1,015,200.00 1,015,200.00

Total Principal and Interest $ 17,625,000.00 $ 5,076,000.00

NOTE 8: RISK MANAGEMENT

Insurance

Commercial Insurance

The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
The School District has elected to self-insure for losses related to natural disasters. The School District has not experienced any losses related to this risk in the past three years.
Unemployment Compensation

The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020 $

-

2021 $

-

$

-

$

-

$

$ 15,306.54 $ 10,789.21 $

4,517.33

- 22 -

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

EXHIBIT "I"

Surety Bond

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

Position Covered

Amount

Superintendent Finance Director Curriculum Director Each Principal (4) Each School Bookkeeper (2)

$ 50,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00

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

Nonspendable Inventories
Restricted Continuation of Federal Programs Debt Service
Committed School Activity Accounts
Unassigned

$

45,382.34

$

673,145.78

11,986,066.55

12,659,212.33

345,016.49 7,848,866.85

Fund Balance, June 30, 2021

$ 20,898,478.01

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

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

EXHIBIT "I"

NOTE 10: SIGNIFICANT COMMITMENTS

Operating Leases
The School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $37,767.12 for governmental activities for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021:

Year Ending

Governmental Activities

2022 2023 2024 2025

$

33,437.58

24,527.04

14,292.64

1,181.02

Total

$

73,438.28

.

NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES

Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Litigation

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)

Georgia School Personnel Post-Employment Health Benefit Fund

Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.

- 24 -

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

EXHIBIT "I"

Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $461,094.00 for the year ended June 30, 2021. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2021, the School District reported a liability of $18,808,003.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.128053%, which was an increase of 0.002113% from its proportion measured as of June 30, 2019.

- 25 -

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

EXHIBIT "I"

For the year ended June 30, 2021, the School District recognized OPEB expense of $796,671.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and

actual experience

$

- $ 2,053,250.00

Changes of assumptions

3,110,426.00

1,673,508.00

Net difference between projected and

actual earnings on OPEB plan

investments

49,021.00

-

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

365,061.00

121,991.00

School District contributions

subsequent to the measurement date

461,094.00

-

Total

$ 3,985,602.00 $ 3,848,749.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2022 2023 2024 2025 2026 Thereafter

$ (324,245.00) $ (325,560.00) $ (232,252.00) $ 74,289.00 $ 355,506.00 $ 128,021.00

- 26 -

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

EXHIBIT "I"

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

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

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

Healthcare cost trend rate

Pre-Medicare Eligible

7.00%

Medicare Eligible

5.25%

Ultimate trend rate

Pre-Medicare Eligible

4.50%

Medicare Eligible

4.50%

Year of Ultimate trend rate

Pre-Medicare Eligible

2029

Medicare Eligible

2023

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:

For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan.

- 27 -

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

EXHIBIT "I"

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

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

Asset Class

Target allocation

Long-Term Expected Real Rate of Return*

Fixed Income Equities
Total

30.00% 70.00% 100.00%

0.50% 9.20%

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

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

EXHIBIT "I"

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

1% Decrease (1.22%)

Current Discount Rate (2.22%)

1% Increase (3.22%)

School District's proportionate share of the Net OPEB liability

$ 22,096,301.00 $

18,808,003.00 $ 16,178,284.00

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the collective net OPEB liability of the participating employers, as well as what the collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates:

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

School District's proportionate share of the Net OPEB liability

$ 15,659,553.00 $

18,808,003.00 $ 22,884,332.00

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

NOTE 13: RETIREMENT PLANS

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

Teachers Retirement System of Georgia (TRS)

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

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

EXHIBIT "I"

death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.83% of payroll was required from the School District and 0.23% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,146,948.00 and $26,962.90 from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

- 30 -

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

EXHIBIT "I"

Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate for the year ended June 30, 2021 was 24.66% of annual covered payroll for old plan members of which 19.91% was required from the School District and 4.75% was contributed on behalf of the School District by the state. Additionally, the School District's total required contribution rate was 24.66% for new plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $24,315.00 for the current fiscal year.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $38,963.00.

- 31 -

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

EXHIBIT "I"

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $20,987,481.00 for its proportionate share of the net pension liability for TRS ($20,822,634.00) and ERS ($164,847.00).
The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the net pension liability

$ 20,822,634.00

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

263,798.00

Total

$ 21,086,432.00

The net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 0.085959%, which was an increase of 0.002306% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.003911%, which was an increase of 0.000429% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $208,300.00.
The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.
For the year ended June 30, 2021, the School District recognized pension expense of $3,382,041.00 for TRS, $29,932.00 for ERS and $41,917.00 for PSERS and revenue of $48,228.00 for TRS and $41,917.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 32 -

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

EXHIBIT "I"

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

TRS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$ 906,832.00 $

-

$ 2,008.00 $

-

Changes of assumptions

2,144,755.00

-

-

-

Net difference between projected and

actual earnings on pension plan

501,517.00

-

2,328.00

-

Changes in proportion and differences

between School District contributions and

proportionate share of contributions

343,785.00

286,833.00

10,995.00

-

School District contributions subsequent

to the measurement date

2,146,948.00

-

24,315.00

-

Total

$ 6,043,837.00 $ 286,833.00 $ 39,646.00 $

-

The School District contributions subsequent to the measurement date for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2022 2023 2024 2025

$ 636,865.00 $ $ 1,165,564.00 $ $ 1,264,584.00 $ $ 543,043.00 $

5,874.00 4,719.00 2,702.00 2,036.00

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

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

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

Post-retirement benefit increases 1.50% semi-annually

- 33 -

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

EXHIBIT "I"

Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

Employees' Retirement System:

Inflation

2.75%

Salary increases

3.25% - 7.00%, including inflation

Investment rate of return

7.30%, net of pension plan investment expense, including inflation

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

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

Public School Employees Retirement System:

Inflation

2.75%

Salary increases

N/A

Investment rate of return

7.30%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually

- 34 -

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

EXHIBIT "I"

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.
The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

TRS Target allocation

ERS/PSERS Target
allocation

Long-term expected real rate of return*

Fixed Income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative
Total

30.00% 51.00%
1.50% 12.40%
5.10% -
100.00%

30.00% 46.20%
1.30% 12.40%
5.10% 5.00%
100.00%

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

* Rates shown are net of the 2.75% assumed rate of inflation with the exception of TRS, which assumed a rate of 2.50%
rate of inflation.
Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
- 35 -

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

EXHIBIT "I"

Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

Teachers Retirement System:

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

School District's proportionate share of the net pension liability

$ 33,019,727.00 $ 20,822,634.00 $ 10,824,515.00

Employees' Retirement System:

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

School District's proportionate share

of the net pension liability

$

231,911.00 $

164,847.00 $

107,616.00

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

NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE

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

Net Position, July 1, 2020 as previously reported Prior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification

$

9,262,894.76

58,706.71

Net Position, July 1, 2020, as restated

$

9,321,601.47

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

$

6,901,432.71

58,706.71

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

$

6,960,139.42

$

-

107.18

Fund Balance (Custodial Funds), July 1, 2020, as restated

$

107.18

.

- 36 -

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

EXHIBIT "I"

Of Funds Held for Others of $58,813.89 previously reported in Fiduciary Funds, $58,706.71 was reclassified to Net Position and Fund Balance (General Fund) and $107.18 was reclassified to Fund Balance (Custodial Funds)
NOTE 15: RELATED PARTY TRANSACTIONS
The School District made various purchases from Growers Supply, Inc. The company is locally coowned and operated by the Board Chairman. Current year payments to Growers Supply, Inc. totaled $1,372.36. The School District also made various purchases totaling $15,288.64 from TrapnellTomlinson Ace Hardware. This company is locally owned and operated by the family of the Special Education Administrative Assistant at Candler County Board of Education.
NOTE 16: SUBSEQUENT EVENTS
In the subsequent fiscal year, voters authorized the School District the continuation of a one-cent sales tax for retirement of previously incurred general obligation debt and to fund capital outlay projects for educational purposes. Voters also authorized the School District to issue general obligation bonds in the amount of $4,500,000.00. The proceeds from these bonds will be used to fund all or a portion of the capital outlay projects and to pay capitalized interest on such debt. The School District has not issued these bonds as of the report date.

- 37 -

(This page left intentionally blank)

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

SCHEDULE "1"

For the Year Ended
June 30

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

School District's proportionate share of the NPL

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

Total

School District's covered payroll

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

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

2021 2020 2019 2018 2017 2016 2015

0.085959% 0.083653% 0.083620% 0.085733% 0.089003% 0.090740% 0.093557%

$ 20,822,634.00 $ 17,987,657.00 $ 15,521,663.00 $ 15,933,742.00 $ 18,362,311.00 $ 13,814,264.00 $ 11,819,693.00

$ 263,798.00 $ 178,257.00 $ 170,215.00 $ 155,931.00 $ 170,207.00 $ 154,067.00 $ 138,718.00

$ 21,086,432.00 $ 18,165,914.00 $ 15,691,878.00 $ 16,089,673.00 $ 18,532,518.00 $ 13,968,331.00 $ 11,958,411.00

$ 11,230,238.73 $ 10,310,315.89 $ 10,066,833.33 $ 9,932,846.93 $ 9,853,285.62 $ 9,685,537.74 $ 9,656,444.95

185.42% 174.46% 154.19% 160.41% 186.36% 142.63% 122.40%

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

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

- 39 -

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

SCHEDULE "2"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

2014 (1)

$

2013 (1)

$

2012 (1)

$

2,146,948.00 $ 2,344,390.00 $
2,133,713.59 $ 1,674,347.00 $ 1,403,217.00 $ 1,393,144.94 $ 1,259,601.33 $
1,185,811.00 $ 1,124,570.63 $ 1,034,911.04 $

2,146,948.00 $ 2,344,390.00 $
2,133,713.59 $ 1,674,347.00 $ 1,403,217.00 $ 1,393,144.94 $ 1,259,601.33 $
1,185,811.00 $ 1,124,570.63 $ 1,034,911.04 $

-

$

11,402,636.84

-

$

11,230,238.73

-

$

10,310,315.89

-

$ 10,066,833.33

-

$

9,932,846.93

-

$

9,853,285.62

-

$

9,685,537.74

-

$

9,656,444.95

-

$

9,856,009.03

-

$ 10,067,228.02

18.83% 20.88% 20.69% 16.63%
14.13% 14.14% 13.00% 12.28% 11.41% 10.28%

(1) For years 2014 and earlier, the contribution amounts include payments made on-behalf of the School District employees by the Georgia Department of Education.

- 40 -

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

SCHEDULE "3"

For the Year Ended June 30
2021 2020 2019 2018 2017 2016

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

School District's proportionate share
of the NPL

School District's covered payroll

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

Plan fiduciary net position as a
percentage of total pension liability

0.003911% $ 0.003482% $ 0.003417% $ 0.003914% $ 0.003097% $ 0.001299% $

164,847.00 $ 143,686.00 $ 140,474.00 $ 158,961.00 $ 146,501.00 $ 52,628.00 $

98,600.04 87,782.90 87,148.62 96,468.00 72,000.00 29,700.00

167.19% 163.68% 161.19% 164.78% 203.47% 177.20%

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

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

- 41 -

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

SCHEDULE "4"

For the Year Ended June 30 (1)

Contractually required
contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021 2020 2019 2018 2017 2016 2015

$

24,315.00 $

$

24,315.00 $

$

21,752.62 $

$

21,622.00 $

$

23,818.00 $

$

17,798.40 $

$

6,522.10 $

24,315.00 $ 24,315.00 $ 21,752.62 $ 21,622.00 $ 23,818.00 $ 17,798.40 $
6,522.10 $

-

$

98,600.04

-

$

98,600.04

-

$

87,782.90

-

$

87,148.62

-

$

96,468.00

-

$

72,000.00

-

$

29,700.00

24.66% 24.66% 24.78% 24.81% 24.69% 24.72% 21.96%

(1) Candler County Board of Education did not make any contributions before fiscal year 2015 for the Employees' Retirement System due to no participation during or before this measurement period.

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

- 42 -

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

SCHEDULE "5"

For the Year Ended
June 30

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

School District's proportionate share of the
NPL

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

Total

School District's covered payroll

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

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

2021 2020 2019 2018 2017 2016 2015

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

-

$

208,300.00 $ 208,300.00 $

612,976.17

-

$

190,880.00 $ 190,880.00 $ 500,069.33

-

$

203,450.00 $ 203,450.00 $ 512,528.36

-

$

204,214.00 $ 204,214.00 $ 522,258.72

-

$

270,345.00 $ 270,345.00 $ 532,169.89

-

$

166,447.00 $ 166,447.00 $ 519,486.35

-

$

158,752.00 $ 158,752.00 $ 544,721.63

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

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

- 43 -

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

SCHEDULE "6"

For the Year Ended
June 30

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

School District's proportionate share of the NOL

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

Total

School District's covered-
employee payroll

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

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

2021 2020 2019 2018

0.128053% $ 18,808,003.00 $ 0.125940% $ 15,455,540.00 $ 0.125569% $ 15,959,434.00 $ 0.127062% $ 17,852,160.00 $

-

$ 18,808,003.00 $ 10,245,741.99

-

$ 15,455,540.00 $ 9,405,243.30

-

$ 15,959,434.00 $ 9,182,487.78

-

$ 17,852,160.00 $ 9,152,244.51

183.57% 164.33% 173.80% 195.06%

3.99% 4.63% 2.93% 1.61%

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

- 44 -

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

SCHEDULE "7"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2021

$

2020

$

2019

$

2018

$

2017

$

461,094.00 $ 433,045.00 $ 678,273.00 $ 650,812.00 $ 662,509.00 $

461,094.00 $ 433,045.00 $ 678,273.00 $ 650,812.00 $ 662,509.00 $

-

$ 10,400,237.73

-

$ 10,245,741.99

-

$ 9,405,243.30

-

$

9,182,487.78

-

$

9,152,244.51

4.43% 4.23% 7.21% 7.09% 7.24%

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

- 45 -

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

SCHEDULE "8"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Employees' Retirement System
Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two onetime 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.
Public School Employees Retirement System
Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.
- 46 -

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

SCHEDULE "8"

School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions : The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.

- 47 -

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

SCHEDULE "9"

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

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

$

3,450,000.00 $

3,450,000.00 $

25,000.00

25,000.00

13,351,013.00

13,437,284.00

4,224,089.84

4,639,224.84

76,556.00

76,556.00

7,480.00

7,480.00

505,828.00

505,828.00

21,639,966.84

22,141,372.84

14,816,521.00
897,941.00 667,056.00 488,013.00 925,055.00 884,339.00 372,889.00 1,233,676.00 1,004,638.00 98,500.00 146,047.00
1,507,558.84 23,042,233.84 (1,402,267.00)

14,460,435.00
740,260.00 843,481.00 493,086.00 897,499.00 1,485,280.00 390,337.00 1,278,957.00 1,284,504.00 144,514.00 104,096.00
1,519,730.84 23,642,179.84 (1,500,807.00)

(125,000.00) (125,000.00)

70,629.00 (195,629.00) (125,000.00)

(1,527,267.00)

(1,625,807.00)

6,901,432.71

6,901,432.71

8,585.49

(7,118.40)

$

5,382,751.20 $

5,268,507.31 $

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

4,733,323.45 $ 66,174.24
15,140,457.96 4,437,122.74
324,219.30 10,988.78
1,023,417.56 25,735,704.03

1,283,323.45 41,174.24
1,703,173.96 (202,102.10) 247,663.30
3,508.78 517,589.56 3,594,331.19

14,417,121.90
766,240.86 801,910.26 306,952.00 770,575.20 1,532,308.02 398,462.28 1,434,681.60 1,292,700.83 138,413.61 125,604.55 422,070.76 92,474.78 1,283,915.34 23,783,431.99 1,952,272.04

43,313.10
(25,980.86) 41,570.74
186,134.00 126,923.80 (47,028.02)
(8,125.28) (155,724.60)
(8,196.83) 6,100.39 (21,508.55) (422,070.76) (92,474.78) 235,815.50 (141,252.15) 3,453,079.04

-
1,952,272.04
6,960,139.42
-
8,912,411.46 $

(70,629.00) 195,629.00 125,000.00
3,578,079.04
58,706.71
7,118.40
3,643,904.15

- 48 -

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

SCHEDULE "9"

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

(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the following funds. The actual revenues and expenditures of these funds are as follows:

Revenues

Expenditures

Principal Accounts

$

Afterschool Program

Daycare Program

Various Other Funds

658,176.97 $ 26,142.63 64,000.79 50,986.90

605,867.08 26,142.63 64,000.79 49,537.22

$

799,307.29 $

745,547.72

The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 49 -

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

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program Child Nutrition Discretionary Grants Limited Availability Total Child Nutrition Cluster
Other Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Total U. S. Department of Agriculture
Education, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Achievement Program Rural Education Achievement Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.579

215GA324N1199 $ 215GA324N1199 215GA350N8103

402,036.74 781,926.41 1,403.01
1,185,366.16

10.558

205GA368N1099

11,287.04 1,196,653.20

84.425D 84.425D

S425D200012 S425D210012

755,220.70 287,922.00 1,043,142.70

84.027A 84.027A 84.173A

H027A190073 H027A200073 H173A200081

84.048A 84.011 84.011
84.358B 84.358B 84.367A 84.367A 84.010A 84.010A

V048A200010 S011A190011 S011A200011 S358B190010 S358B200010 S367A190001 S367A200001 S010A190010 S010A200010

97,344.00 405,613.13 14,063.90 517,021.03
27,566.70 20,198.52 55,983.81 12,074.00 41,078.35 3,889.88 93,598.97 92,100.07 921,762.36 1,268,252.66 2,828,416.39

93.575

2110GACCC5

10,145.00

- 50 -

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

SCHEDULE "10"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

72,228.32

$

4,107,442.91

Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Candler County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 4. Donated Personal Protective Equipment
In response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management and Homeland Security Agency (GEMA/HS). GEMA/HS, then, donated PPE with an estimated fair market value of $38,320.00 to the Candler County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

See notes to the basic financial statements.

- 51 -

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

SCHEDULE "11"

GOVERNMENTAL
FUND TYPE GENERAL FUND

$

458,208.84

666,995.00 47,675.00
1,766,158.00 116,777.00
820,622.00 91,544.00
1,540,762.00 1,354,409.00
386,134.00 2,139,330.00
395,028.00 222,740.00
113,536.00 93,561.00 256,350.00 79,515.00 47,313.00 1,200.00
449,849.00 601,279.00 568,871.00 (385,127.00) 223,004.00

275,239.00 154,440.00 45,000.00 2,203,966.00

37,245.00 1,602.00 10,081.00 86,271.00
77,220.00 26,962.90 94,248.00

33,486.22

38,963.00

$

15,140,457.96

- 52 -

(This page left intentionally blank)

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

SCHEDULE "12"

PROJECT
2018 ESPLOST
To be used for retirement of previously incurred general obligation debt in constructing the Pre-K-8 school facilities;
To pay the costs of acquiring, constructing, furnishing and equipping the following capital outlay projects at schools and educational facilities throughout Candler County:
(a) Renovation, improvements, and constructions of roads, streets, bridges and sidewalks including paving and other improvements to real property now owned or to be acquired by the School District;
(b) The acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment, administrative and instructional technology additions and improvements, including, but not limited to, technology wiring, energy management systems, heating and air conditioning systems, lighting and similar equipment; and
(c) Renovating, improving, constructing, and equipping new and existing School District and athletic facilities, including, but not limited to, softball fields, paving, parking lots, storage buildings, fencing, land improvements, and any other building and facilities useful or desirable in connection therewith.

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

8,500,000.00 $

8,300,000.00

1/31/2023

-

-

(4)

-

200,000.00

1/31/2023

-

-

(4)

$

8,500,000.00 $

8,500,000.00

- 54 -

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

SCHEDULE "12"

PROJECT
2018 ESPLOST
To be used for retirement of previously incurred general obligation debt in constructing the Pre-K-8 school facilities;
To pay the costs of acquiring, constructing, furnishing and equipping the following capital outlay projects at schools and educational facilities throughout Candler County:
(a) Renovation, improvements, and constructions of roads, streets, bridges and sidewalks including paving and other improvements to real property now owned or to be acquired by the School District;
(b) The acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment, administrative and instructional technology additions and improvements, including, but not limited to, technology wiring, energy management systems, heating and air conditioning systems, lighting and similar equipment; and
(c) Renovating, improving, constructing, and equipping new and existing School District and athletic facilities, including, but not limited to, softball fields, paving, parking lots, storage buildings, fencing, land improvements, and any other building and facilities useful or desirable in connection therewith.

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$ 1,015,200.00 $ 2,538,000.00 $

- $

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 1,015,200.00 $ 2,538,000.00 $

- $

-

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Candler County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt.
Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) These capital outlay projects are contingent upon SPLOST proceeds in excess of amounts required to satisfy previously incurred debt payments and are unfunded at June 30, 2021.

See notes to the basic financial statements.

- 55 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Dr. Fred J. Longgrear, Superintendent and Members of the Candler County Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Candler County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 12, 2022. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Compliance and Other Matters As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
May 12, 2022

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

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
May 12, 2022

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

CANDLER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

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

Unmodified
No None Reported
No

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

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

All major programs

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

Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

84.010 84.425

Title I Grants to Local Educational Agencies Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

No None Reported
Unmodified No
$750,000.00 No

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

Locations