Clayton County Board of Education, Jonesboro, Georgia, comprehensive annual financial report for the fiscal year ended June 30, 2018

Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
1058 Fifth Avenue Jonesboro, Georgia 30236

Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Prepared by: Division of Business Services
1058 Fifth Avenue Jonesboro, Georgia 30236

CLAYTON COUNTY BOARD OF EDUCATION

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018
_____________________________________________________________________________

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION

Letter of Transmittal .............................................................................................................................................. i v Clayton County Board of Education Function and Composition ......................................................................... vi Clayton County Board of Education Elected Officials
and Superintendent of Schools ........................................................................................................................ vii Executive Staff ......................................................................................................................................................... viii Organizational Chart.................................................................................................................................................. ix Certificate of Achievement for Excellence in Financial Reporting .........................................................................x

FINANCIAL SECTION

Independent Auditor's Report ............................................................................................................................. 1 3 Management's Discussion and Analysis ......................................................................................................... 4 14 Basic Financial Statements
Government-wide Financial Statements: Statement of Net Position.......................................................................................................................... 15 Statement of Activities................................................................................................................... 16 and 17
Fund Financial Statements: Balance Sheet Governmental Funds..................................................................................................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................................ 19 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ....................................................................................................... 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities......................................... 21 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget (Non-GAAP) and Actual ........................................................................... 22 Statement of Net Position Proprietary Funds ...................................................................................... 23 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds.............................................................................................................. 24 Statement of Cash Flows Proprietary Funds ........................................................................... 25 and 26 Statement of Fiduciary Assets and Liabilities Agency Fund.............................................................. 27
Notes to Financial Statements .................................................................................................................. 28 68

CLAYTON COUNTY BOARD OF EDUCATION

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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TABLE OF CONTENTS (CONTINUED)

Page

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Proportionate Share of the Net Pension Liability Teachers' Retirement System of Georgia ........................................................................................................ 69
Schedule of Contributions Teachers' Retirement System of Georgia ............................................................. 70 Notes to Required Supplementary Information
Teachers' Retirement System of Georgia ........................................................................................................ 71 Schedule of Proportionate Share of the Net Pension Liability
Public School Employees' Retirement System ............................................................................................... 72 Notes to Required Supplementary Information
Public School Employees' Retirement System ............................................................................................... 73 Schedule of Proportionate Share of the Net Pension Liability
Employees' Retirement System ........................................................................................................................ 74 Schedule of Contributions Employees' Retirement System ............................................................................. 75 Notes to Required Supplementary Information
Employees' Retirement System ........................................................................................................................ 76 Schedule of Proportionate Share of the Net OPEB Liability
School OPEB Fund............................................................................................................................................. 77 Schedule of Contributions School OPEB Fund .................................................................................................. 78 Notes to Required Supplementary Information
School OPEB Fund............................................................................................................................................. 79

COMBINING FUND SCHEDULES

Combining Balance Sheet Nonmajor Governmental Funds...................................................................... 80 82 Combining Statement of Revenues, Expenditures and Changes in Fund
Balances Nonmajor Governmental Funds............................................................................................ 83 85 Special Revenue Funds Schedule of Revenues, Expenditures
and Changes in Fund Balances Budget and Actual Nonmajor Governmental Funds................................................................................................................ 86 94 Statement of Changes in Assets and Liabilities Agency Fund ............................................................. 95 and 96

CLAYTON COUNTY BOARD OF EDUCATION

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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TABLE OF CONTENTS (CONTINUED)

Page

STATISTICAL SECTION

Financial Trends: Net Position by Component Last Ten Fiscal Years ..................................................................................... 97 Changes in Net Position Last Ten Fiscal Years ................................................................................. 98 101 Fund Balances, Governmental Funds Last Ten Fiscal Years................................................................... 102 Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years ................................ 103 and 104

Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ......................................................................................................................... 105 and 106 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ......................................................... 107 Principal Property Taxpayers Current Year and Nine Years Ago............................................................. 108 Property Tax Levies and Collections Last Ten Tax Years ........................................................................ 109 Schedule of Revenues by Source Governmental Funds Last Ten Fiscal Years ............................................................................................................... 110 and 111

Debt Capacity: Ratios of Outstanding Debt by Type Last Ten Fiscal Years ..................................................................... 112 Direct and Overlapping Governmental Activities Debt ................................................................................ 113 Legal Debt Margin Information Last Ten Fiscal Years ................................................................ 114 and 115

Demographic and Economic Information: Demographic and Economic Statistics Last Ten Fiscal Years................................................................. 116 Principal Employers Current Year and Nine Years Ago ............................................................................ 117 Student Ethnicity Statistics Last Ten Fiscal Years ...................................................................... 118 and 119

Operating Information: Student Enrollment Statistics Last Ten Years............................................................................................ 120 Teachers' Base Salaries Last Ten Fiscal Years ......................................................................................... 121 History of High School Graduates Last Ten School Years ....................................................................... 122 Ratio of Pupils to Professional Personnel Last Ten Fiscal Years............................................................ 123 Cost Per Pupil Enrolled Last Fiscal Ten Years........................................................................................... 124 Nutrition Services Facts and Figures Last Ten Fiscal Years................................................... 125 and 126 School Building Information Last Ten Fiscal Years ........................................................................ 127 132

CLAYTON COUNTY BOARD OF EDUCATION

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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TABLE OF CONTENTS (CONTINUED)

Page

SINGLE AUDIT SECTION

Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................................................... 133 and 134
Independent Auditor's Report on Compliance For Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance .................................................................................................................................. 135 137
Schedule of Expenditures of Federal Awards ........................................................................................... 138 140 Notes to Schedule of Expenditures of Federal Awards ...................................................................................... 141 Schedule of Findings and Questioned Costs ........................................................................................ 142 and 143 Schedule of Prior Year Findings ........................................................................................................................... 144

Introductory Section
Clayton County Public Schools

Clayton County Public Schools
Divi ion of Business Services
enue J n~bor, , Georgia 0236 (770) 473-2700
DR . MORCE J . B LE
or Sup rin tcndcnt cho Is
October 15, 2019
Honorable Members of the Clayton County Board of Education and Citizens of Clayton County , Georgia :
The Comprehensive Annual Financial Report (CAFR) of the Clayton County Board of Education (Board) for the fiscal year ended June 30, 2018 , is submitted herewith. This report was prepared by the Business Services Division . Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation , including all disclosures, rests with the management of the Board of Education .
We believe the data, as presented , is accurate in all material aspects. We believe that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Board of Education as measured overall and by the financial activity of its various funds. The data includes all disclosures and requ ired supplementary information necessary to enable the reader to gain the maximum understand ing of the Board's financia l activity.
Readers of this report are encouraged to consider the information presented here in conjunction with add itional information presented in Management's Discussion and Analysis beginning on page 4 of th is report.
The Board's History and Services
Clayton County, Georgia , was created by an act of the State Leg islature on November 30, 1858. It was named for the Honorable Augustin S. Clayton (1783-1839), a judge of the Western Circuit of Georgia, a member of the legislature and of Congress. The City of Jonesboro is the county seat and was orig inally called "Leaksville". The State of Georgia granted a charter for the Leaksville Academy on December 22 , 1823 and Mr. Allen D. Candler organized the Clayton High School around the year 1858.
Georgia had no regularly organized system of common schools supported by public taxation before the War Between the States, although unsuccessful efforts were made in 1845 and again in 1856 to inaugurate such a program . The first real school organization came about as a result of an act on October 13, 1870.
The Clayton County School System operated from 1870-1890 under the supervision of a County Commission of Education. Data indicates that the Clayton County School System as it is known today was formally established by an act of the State Legislature in Jonesboro on September 21 , 1891 , and a tax was levied on taxable property in the amount of 7 1h mills . A Board of Education composed of nine members was authorized and provision was made to receive a pro-rata share of county funds for schools.
Today the nine-member elected Board of Education has full authority to control and manage the schools with in Clayton County. Clayton County Public Schools is the fifth largest school system in the State of Georgia with approximately 55,000 students currently enrolled in 36 elementary schools , 14 middle schools, one K-8 school , 11 high schools, one alternative school program and one high school alternative program for the budget year of 2017 - 2018.
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The Board provides all basic services required by state law and policies of the State Board of Education and State Department of Education. These services include: preschool for three and fouryear old students with disabilities, regular preschool for four-year olds students, regular and special education instructional programs at the elementary (kindergarten through 5th grade), middle (6th through 8th grade), and secondary (9th through 12th grade) levels. Additional services include programs for Career Technical Education in partnersh ip with post-secondary institutions in the area as well as joint enrollment opportunities for high school students with Clayton State University and Atlanta Technical College.
Economic Condition and Outlook
Clayton County is part of the Metropolitan Atlanta Area, and is south of the City of Atlanta. HartsfieldJackson Atlanta International Airport is within the boundaries of Clayton County. It consistently ranks as the world's second largest cargo facility and the country's busiest airport. Hartsfield-Jackson Atlanta International Airport is the primary economic driver of the County and region. In 2012, the Airport opened the new Maynard H. Jackson International terminal expanding the economic impact to Clayton County. Five of the school system's largest taxpayers have businesses directly related to operations at the airport.
FY 2015 marked a turning point in the recovery of the local economy from the recession that continued during FY 2017. Property value is rebounding slowly with a slight increase in the residential base. The collection of County revenues has stabilized and Clayton County Public Schools has seen an increase in Special Purpose Local Option Sales Tax (SPLOST) collections. Although commercial values remained down , the overall tax base of the county improved by approximately 4.8% from FY 2017 to FY 2018. This resulted in an increase of $5.3 million in local tax revenues to the school system. Further, a reduction in the austerity cuts to the "Quality Basic Education" Act funding continued. Clayton County Public Schools continues to make difficult financial decisions in order to remain fiscally sound.
Long-Term Financial Planning
The school system prioritizes its capital improvements based upon the approved referendums adopted by the citizens of Clayton County. Capital needs are prioritized by student population and facility repair and maintenance needs. These projects are funded by the 2013 Special Purpose Local Option Sales Tax (SPLOST) and remaining projects from the 2009 SPLOST, in addition to state capital outlay funds from the State of Georgia Department of Education. Renovations, additions, and new construction are continuously underway as the school system works to ensure that its facilities provide a safe and welcoming environment.
On March 19th, 2019, Clayton County citizens voted YES! for SPLOST VI. The approved SPLOST will be for the term of years 2020 - 2024 for a total of $280 Million . SPLOST VI will be utilized for the new construction of facilities, major renovations and modifications to existing facilities as well as transportation and technology needs for the district. SP LOST VI revenues will begin accumulation on January 1st of 2020.
SPLOST VI will be used for the construction of four new schools, one stadium, one new bus facility, renovations of existing facilities as well as transportation and technology needs for all students.
The school system has financial policies that provide us with an infrastructure for our future financial management decisions. These policies cover topics including operating budget, reserve fund balances, accounting and financial reporting , and purchasing.
Major Initiatives
During FY 2017 the district purchased a new enterprise resource planning (ERP) system. Implementation will take place over FY 2018 and FY 2019. This system is expected to improve operational efficiencies in Finance, Human Resources, and Technology.
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Utilizing SPLOST funds, the Board of Education substantially completed construction of a new gymnasium at Riverdale High School and a new school for the Elite Scholars Academy. Construction of a new East Clayton Elementary also continued . Additional initiatives include; Lee Street Elementary renovation, Arnold Elementary Renovations, and HVAC replacement at six existing schools. In addition to its support of general technology hardware/software expenditures, SPLOST V is providing the financial support for the first phase of Extending Learning Beyond the Classroom.
Clayton County government implemented a multi-year Road Infrastructure Improvement Program which is helping our schools. The road program encompasses various safety projects including the installation of 96 miles of sidewalk, improving access and traffic congestion at schools. Clayton County is also installing school flashers for every school and adding reduced speed zone signs.
Mission Statement The mission of Clayton County Public Schools is to empower students to achieve academic and personal goals.
Vision Statement The vision of Clayton County Public Schools is to be a district of high performance preparing ALL students to live and compete successfully in a global society.
Core Belief Statements We believe children have priority for all of our resources. We believe education is the shared responsibility of the student, the parent/guardian , the school , and the community. We believe communication and understanding among all stakeholders of our diverse community are essential to achieving the goals of education . We believe that learning is a continuous process and most productive when the needs of each child are met through instruction provided by competent and caring teachers. We believe a learning environment where children experience security, care, dignity, and respect is essential.
Strategic Goals 1. To increase academic achievement for all students in Clayton County Public Schools as evidenced by state, national and international assessment results. 2. To provide and maintain a safe, orderly and secure learning environment. 3. To create an environment that promotes active engagement, accountability, and collaboration of all stakeholders to maximize student achievement. 4. To provide high quality support services delivered on time and within budget to promote student academic success in the Clayton County Public Schools. 5. To recruit, develop, and retain highly qualified and effective staff.
Accounting System
Internal Controls In developing and evaluating the Board of Education's accounting system , consideration is given to the adequacy of internal controls. Internal accounting controls are designed to provide assurance of the following within reasonable constraints:
the safeguarding of assets and gains and losses from unauthorized use and/or disposition
the reliability of financial records for preparing financial statements and maintaining accountability for assets
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Budgetary Controls An annual budget is prepared in accordance with state law. Budgetary control is maintained at the fund level by encumbrance accounting.
The budget process is comprised of five phases - planning, preparation , adoption, implementation and evaluation. These phases ensure adequate administration and control of all Board funds. To maintain compliance with Board budget policies and State of Georgia law, a budget development calendar is adopted by the Board of Education in October of each year. The calendar outlines the budget development process for the next fiscal year.
The budget process is inclusive of central level and school level staff as well as a citizen's budget committee. Work sessions with the Board and public hearings are held prior to the adoption of the budget in June of each year.
Single Audit
As a recipient of federal financial assistance, the Board is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to these programs. These internal controls are subject to periodic evaluation by the Board's management.
Independent Audit
The Clayton County Board of Education and the State of Georgia requ ire an annual audit of the school district's financial statements by independent certified public accountants. Mauldin and Jenkins is the current accounting firm under contract with the Board to perform this function. The Independent Auditor's Report on the Basic Financial Statements is included in the financial section of this report. The auditor's reports related specifically to the single audit are included in the Single Audit section.
Financial Reporting Awards
The Clayton County Public School System submitted its comprehensive annual financial report (CAFR) for review by the Association of School Business Officials (ASBO) for consideration in the Certificate of Excellence in Financial Reporting Program. With great pride, the Clayton County Public School System received the ASBO Certificate of Excellence every year from 2007-2011, and then again 2015 - 2017. The receipt of this award confirmed that the reports substantially conform to the principles and standards of financial reporting as recommended and adopted by the Association of School Business Officials International. The award was granted only after an extensive review of financial reports by an expert panel of certified public accountants and practicing school business officials.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Clayton County Public Schools for its comprehensive annual financial report for the fiscal year ended June 30, 2018. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
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Acknow ledgements We wish to express our appreciation to the Business Services Division staff members whose ded icated efforts have enabled this report to be prepared . Respectfully submitted, Morcease Beasley Superintendent
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CLAYTON COUNTY BOARD OF EDUCATION
FUNCTION AND COMPOSITION JUNE 30, 2018
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All matters relating to education and operation of the Clayton County Board of Education schools are governed and controlled by the Board of Education (the "School System"), as provided by Georgia Law.
The School System has the responsibility to maintain a reasonably uniform system of public schools providing quality education for all young people of Clayton County. With the advice of the Superintendent, it must determine the policies and prescribe the rules and regulations for the management of the school system.
The School System holds a work session and a regular public meeting once a month to conduct normal business. Additional called meetings are sometimes necessary for a specific purpose.
The School System is composed of nine members who are elected on a district basis. Each member resides within one of the nine voting districts.
The School System elects a Chairperson for a two-year term and a Vice Chairperson for a one-year term from its members.
As of January 1, 2018 the members of the School System and years of expiration of their terms are as follows:

TITLE Chairperson Vice Chairperson Board Member Board Member Board Member Board Member Board Member Board Member Board Member

NAME Dr. Pam Adamson Dr. Alieka Anderson Mr. Mark Christmas Ms. Jessie Goree Mr. Michael King Ms. Ophelia Burroughs Ms. Judy Johnson Ms. Mary Baker Mr. Benjamin Straker

TERM EXPIRES 12-31-2018 12-31-2018 12-31-2020 12-31-2020 12-31-2018 12-31-2020 12-31-2020 12-31-2020 12-31-2018

MISSION STATEMENT
The mission of School System is to be accountable to all stakeholders for providing a globally competitive education that empowers students to achieve academic and personal goals and to become college and career ready, productive, responsible citizens.

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Clayton County Board of Education Elected Officials and
Superintendent of Schools

Chairperson Dr. Pam Adamson

Mary Baker

Mark Christmas

Jessie Goree

Michael King

Ophelia Burroughs

Judy Johnson

Vice Chairperson Dr. Alieka Anderson

Benjamin Straker

Superintendent Dr. Morcease J. Beasley
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Clayton County Public Schools Executive Staff

Superintendent's Office Dr. Morcease J. Beasley

Superintendent

Division of Operations Dr. Anthony Smith Mr. Kemith Thompson Mr. Samuel Coger Ms. Audrey Hamilton Mr. Ronick Joseph Mr. Kevin May Mr. Harold Walker

Deputy Superintendent Executive Director of Operations Director of Maintenance Director of School Nutrition Director of Facilities Construction/SPLOST Director of Athletics Director of Transportation

Division of School Leadership and Improvement

Dr. Ralph Simpson

Deputy Superintendent

Dr. Keith Colbert

Assistant Superintendent Cluster B

Dr. Tim Guiney

Assistant Superintendent Cluster A

Dr. Douglas Hendrix

Assistant Superintendent Cluster C

Ms. Charmin Jackson

Assistant Superintendent Cluster D

Dr. Gloria Duncan

Director of Professional Learning

Dr. Ebony Lee

Director of Curriculum, Instruction & Assessment

Ms. Katrina Thompson

Director of Federal Programs

Dr. Monika Wiley

Director of Fine Arts

Division of School Support Dr. Sandra Nunez Dr. Angela Horrison-Collier Dr. Chantal Normil Ms. Trina Smith

Deputy Superintendent Director of School Support Director of ESOL/World Languages Director of Special Education

Division of Communications & Public Relations

Ms. Jada Dawkins

Chief of Communications/Public Relations

Division of Business Services Ms. Emma Benton Ms. Debra Brewer Mr. Alfred Brown

Chief Financial Officer Director of Purchasing Director of Finance

Division of Equity & Compliance Ms. Damaris Garrett

Director of Equity & Compliance

Division of Human Resources Dr. Jamie Wilson Ms. Quantrishia Haynes Ms. Valerie Henderson

Chief of Human Resources Director of Human Resources Director of Human Resources

Division of Safety & Security Mr. Thomas Trawick

Chief of Safety & Security

Division of Technology Mr. Rod Smith Mr. Howard Langford Ms. April Mayo Mr. Wes Watkins

Chief of Technology Director of Information Systems Director of Instructional Technology Director of Technical Operations

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Clayton County Public Schools
Organizational Chart
SY 2017-18

Clayton County Board of Education
Superintendent of Schools Dr. Morcease J. Beasley
Deputy Superintendent* 2nd In-Command
Dr. A. Smith

December 1, 2017
(*) Reflects Rotating Leadership Positions

Deputy Superintendent* School Leadership &
Improvement Dr. R. Simpson

Deputy
Superintendent* Student Support Svcs &
Federal Programs Dr. S. Nunez

Chief of Finance Mr. K. Thompson

Chief of Safety & Security
Mr. T. Trawick

Chief of
Human Resources Dr. J. Wilson

Chief of Engagement, Governmental Relations & Partnerships Mr. W. Spiva

Chief of Technology Mr. R. Smith

Chief of Communications, Public Relations,&
Marketing Ms. J Dawkins

Assistant Superintendent

Executive Director

Dr. D. Hendrix

Operations

Dr. K Colbert

Mr. K. Thompson

Director Curriculum &

Mr. T. Guiney Ms. C. Johnson

Director Maintenance

Director Sch Construction/
Splost

Director ESOL Dr. C. Normil

Director Purchasing Ms. D. Brewer

Director Business Svcs Mr. D. Smith

Instruction Dr. E. Lee
Academic Coordinators

Principals/ Programs
Director Prof Learning Dr. G. Duncan

Mr. S. Coger
Director Transportation Mr. H. Walker
Director Performing Arts
Dr. M. Wiley

Mr. R. Joseph
Director Athletics Mr. K. May

Director Special Education
Ms. T. Smith

Director

Coordinator

School Nutrition Athletics

Ms. A. Hamilton Ms. J. Jackson

Director Federal Programs Ms. K. Thompson
Director Student Services
Dr. A. Collier
Coordinator Guid/Counsel

Coordinator Position Ctrl Ms. L. Domzal

Math - Dr. T. Clarke ELA. - Ms. E. Gray Social Science - Ms. R Wallace Science - Ms. J. Greenwood CTAE - Dr. E. Chillis Health/PE - Mr. P. Scott Early Childhood - Ms. V. Bedford Gifted - Ms. K. Heath

Coordinator Prof Learning Ms. A. Tatum
Coordinator Assessment Dr. N. Jefferson

Coordinators
Instructional Implementation Dr. D. Graham Mr. W. Clayton Ms. V. Jacobs Ms. C. Thompson

Coordinator Transportation Ms. D. Brown
Coordinator Transportation
Ms. D. Hall

Coordinators School Nutrition
Ms. I. Farahdel Ms. T Lawrence Ms. Y. Alade

Special Education Coordinators Ms. T. Bowman Ms. E. Dixon Ms. S. Cook Ms. S. Bullock Mr. D. Smalls

Dr. A. Dunn
Coordinator Financial Ops Mr. A. Brown
Coordinator Payroll
Ms. Y. Barber

Adm Opns Commander Ms. D. Williams
Field Opns Commander Mr. D. Britt

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Director Equity/Compliance
Ms. D. Garrett
Coordinator Personnel Review Ms. T. Reese Mr. R. Iddins Ms. C. Starkey
Legal Compliance
Officer Ms. L. Lowe

Director Human Resources Mr. G. Curry Vacant
Coordinator Performance Management Ms. A. Albritten

Director Tech Opns Mr. W. Watkins

Director Instruct Tech Ms. A. Mayo

Director Info Systems Mr. H. Langford

Coordinator Instructional Tech
Mr. B. Harris Ms. S. Slay
Coordinator Governmental
Relations Vacant
Coordinator Family Engmt
Vacant Vacant

Coordinator Student Info Ms. M. Barkley
Coordinator Database Sys Ms. B. Brown
Coordinator Communications
Mr. C. White

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Financial Section
Clayton County Public Schools

INDEPENDENT AUDITOR'S REPORT
To the Superintendent and Members of the Clayton County Board of Education
Jonesboro, Georgia
Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Clayton County Board of Education (the "School System") as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School System's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the School System as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows, thereof, and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matters As discussed in Note 12, the School System implemented Governmental Accounting Standard Board ("GASB") Statement No 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, as of July 1, 2017. This standard significantly changed the accounting for the School System net other post-employment benefits ("OPEB") liability and the related disclosure. Our opinion is not modified with respect to this matter.
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis (on pages 4 through 14) and the schedules of the School System's proportionate share of the net pension liability and the schedules of the School System's contributions, the schedule of proportionate share of the net OPEB liability and the schedule of OPEB contributions on pages 69 79 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB 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 System's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards is presented for purposes of additional analysis and is also not a required part of the basic financial statements.
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The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards, (collectively "the supplementary information") are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2020, on our consideration of the School System'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 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 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 Clayton County Board of Education's internal control over financial reporting and compliance.
Macon, Georgia January 31, 2020
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Management's Discussion and Analysis
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2018
_____________________________________________________________________________
This section of Clayton County Board of Education's (the "School System") annual financial report presents its discussion and analysis of the School System's financial performance during the fiscal year ended June 30, 2018. The intent of this discussion and analysis is to examine the School System's financial performance as a whole. Readers should also review the financial statements and notes to the basic financial statements to enhance their understanding of the School System's financial condition.
The reporting model is a combination of both government-wide financial statements and fund financial statements. The basic financial statements contain three components:
1. Government-wide financial statements including the Statement of Net Position and the Statement of Activities for both Governmental and Business-Type activities which provide a broad, long-term view of the School System's finances.
2. Fund financial statements including the balance sheets that provide a greater level of detail and focus on how well the School System has performed in the short term in the most significant or major funds.
3. Notes to the financial statements.
This report presents the financial highlights for the year ended June 30, 2018, and other supplementary information.
As with other sections of this financial report, the information contained within this Management's Discussion and Analysis should be considered only as part of a greater whole. The reader of this analysis should take the time to read and evaluate all sections of the report, including the notes to the financial statements.
Financial Highlights
Key financial highlights for fiscal year 2018 are as follows:
Government-wide financial statements
The assets and deferred outflows of the School System exceeded its liabilities and deferred inflows at the fiscal year ended June 30, 2018 by $97.7 million.
Governmental Activities
The School System experienced an increase of $23.7 million in net capital assets. This is the amount by which capital outlays exceeded depreciation in the current period. The net position of the total governmental activities decreased $5.6 million.
The General Fund (the primary operating fund), presented on a current financial resources basis, ended the year with a fund balance of $23.1 million, a decrease of $18.9 million from June 30, 2017.
The Capital Projects Fund ended the year with a fund balance of $52.7 million, an increase of $1.4 million.
The School System decreased its outstanding long-term liabilities by $40.0 million primarily due to a reduction in net pension liability due in more than one year.
4

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________
Program revenues, which include operating grants, accounted for $328.8 million, or 59.0% of the $556.8 million total revenues for governmental activities. General revenues, primarily property taxes and sales taxes accounted for $228.1 million, or 41.0%.
The School System reported $562.4 million in expenses for the governmental activities. This amount was offset by the $328.8 million of program specific grants, charges for services or contributions indicated above. General revenues, primarily property taxes and sales taxes, were used to provide for the remaining expenses of these programs.
Business-type Activities
The net position of the School System's business-type activities increased $75.0 thousand. The School System has two business-type funds reported. The first is the school nutrition program and the second is the Performing Arts Center. Total expenses for school food service activities were $37.9 million, while expenses of the Performing Arts Center were $327 thousand. Program revenues, operating grants and contributions, and capital contributions for these business type activities totaled $38.3 million.
Overview of the Financial Statements
This annual report consists of three parts: management's discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the School System:
The first two statements are government-wide financial statements that provide both short-term and longterm information about the School System's overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the School System, reporting the School System's operations in more detail than the government-wide statements. The governmental funds statements tell how basic services such as instruction and instructional support services were financed in the short-term as well as what remains for future spending. Proprietary fund statements offer short and long-term financial information about the activities the School System operates like businesses, specifically the school nutrition program and the Performing Arts Center.
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 with a comparison of the School System's budget for the year.
5

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________
Figure A-1 shows how the various parts of this annual report are arranged and related to one another.
Figure A-1 Organization of Clayton County Board of Education's Annual Financial Report

Management's Discussion and Analysis
Government-wide Financial Statements
Summary

Basic Financial Statements
Fund Financial Statements

Required Supplementary Information
Notes to the Financial Statements
Detail

Figure A-2 summarizes the major features of the School System's financial statements, including the portion of the School System's activities they cover and the types of information they contain.

Figure A-2 Major Features of the Board of Education's Financial Statements

Scope
Required financial statements
Accounting Basis and measurement focus Types of asset/liability information
Type of inflow/outflow information

Government-wide Statements
Entire School System (except fiduciary funds)
- Statement of net position - Statement of activities

Governmental Funds
The activities of the School System that are not proprietary or fiduciary, such as instruction, school administration, and building maintenance - Balance sheet - Statement of revenues, expenditures, and changes in fund balance

Accrual accounting and economic resources focus All assets and liabilities, both financial and capital, short-term and long-term
All revenues and expenses during year, regardless of when cash is received or paid
6

Modified accrual accounting and current financial focus Generally assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets or longterm liabilities included Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and the related liability is due and payable

Proprietary Funds
Activities the School System operates similar to private business: food services
- Statement of net position - Statement of revenues, expenses, and changes in fund net position - Statement of cash flows Accrual accounting and economic resources focus All assets and liabilities, both financial and capital, and short-term and long-term
All revenues and expenses during the year, regardless of when cash is received or paid

MANAGEMENT'S DISCUSSION AND ANALYSIS
_____________________________________________________________________________
The remainder of this overview section of management's discussion and analysis highlights the structure and contents of each of the statements.
Government-wide Statements
The government-wide statements report information about the School System as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the School System's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.
The two government-wide statements report the School System's net position and how it has changed. Net position, the difference between the School System's assets and liabilities, is one way to measure the School System's financial health or position.
Over time, increases or decreases in the School System's net position are an indication of whether its financial health is improving or deteriorating, respectively.
To assess the overall health of the School System, additional non-financial factors, such as changes in the property tax base, community support for education and student achievement should be considered.
The government-wide financial statements of the School System are divided into two categories:
Governmental activities All of the School System's basic services are included here, such as instruction and instructional support, administration, student transportation and maintenance and operation of facilities.
Business type activities The School System operates a food service operation and charges fees to staff, students and visitors to help cover the cost of the food service operation. The School System also operates a performing arts center that is accounted for as a business-type activity.
Fund Financial Statements
The School System's fund financial statements, which begin on page 18, provide detailed information about the most significant funds, not the School System as a whole.
Governmental funds Most of the School System's activities are reported in governmental funds, which focus on the determination of financial position and changes in financial position, not on income determination. They are reported using an accounting method called modified accrual 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 System's operations and the services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the School System's programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements.
7

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________

Proprietary funds Services for which the School System charges a fee are generally reported in proprietary funds. Proprietary funds are reported in the same way as the government-wide statements. The School System's enterprise fund (one type of proprietary fund) is the same as its business-type activities but provides more detail and additional information, such as cash flows. The School System uses internal service funds (the other kind of proprietary fund) to report activities that provide supplies and services for its other programs and activities. As of June 30, 2011, the School System's only internal service fund for the employee dental benefit program was closed.

Financial Analysis of the School System as a Whole

Table A-1, below, provides a summary of the School System's net position for the year ended June 30, 2018 compared to June 30, 2017.
Table A-1 Condensed Summary of Net Position
(in millions of dollars)

Governmental

Activities

2018

2017

Business-type

Activities

2018

2017

Total 2018

2017

Percentage Change
2018-2017

Current and other Assets Net capital assets

$ 158.8 756.8
Total Assets 915.6

$ 162.7 732.9 895.6

$ 15.1 4.1
19.2

$ 14.3 4.4
18.7

$ 173.9 760.9 934.8

$ 177.0 737.3 914.3

-1.8% 3.2% 2.2%

Deferred outflows

111.5

110.3

3.0

1.0

114.5

111.3

2.9%

Current and other liabilities

73.4

62.5

2.7

Long-term liabilities

794.6

443.5

32.9

Total Liabilities 868.0

506.0

35.6

2.9

76.1

65.4

16.4%

4.0

827.5

447.5

84.9%

6.9

903.6

512.9

76.2%

Deferred inflows

45.1

8.6

2.9

0.1

48.0

8.7

451.7%

Net Position

Net investment in Capital

Assets

756.8

732.9

4.1

4.3

Restricted for Capital Projects

52.7

51.3

-

-

Unrestricted

(695.5)

(292.9)

(20.4)

8.4

Total net position $ 114.0 $ 491.3 $ (16.3) $ 12.7

760.9 52.7
(715.9) $ 97.7

737.2 51.3
(284.5) $ 504.0

3.2% 2.7% 151.6% -80.6%

Note: The amounts above do not include consideration of the prior period restatement for GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions.

8

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________
The School System's combined net position decreased by 80.6% to $97.8 million. The net position of the School System's business-type activities decreased $29 million or 228%. These decreases were due primarily to the implementation of GASB 75. The School System reported a restricted net position amount of $52.7 million. This is an increase of 2.7% from the restricted amount reported as of June 30, 2017. The change is due to a temporary increase in cash reserves as projects begin under the most recently authorized Special Purpose Local Option Sales Tax ("SPLOST"). The amount set aside as restricted in the governmental activities is related to net position required by a third-party or state law to be spent for a specific purpose. Table A-2 takes the information from the Statement of Activities and presents it in a format that shows total revenues first and then expenses and the resulting increase in net position. Table A-2 shows that revenues from governmental activities for 2018 were $556.8 million, while total expenses were $562.4 million. Governmental activities contributed $5.6 million negatively to the total net position, while business-type activities resulted in a $.1 million positive contribution. For governmental activities, program revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $22.9 million. This increase was primarily the result of an increase in state and federal grants received for instructional programs. Property taxes comprise the largest percentage of the general revenues for the School System with 20.7% of total revenues for governmental activities coming from this source. The increase of 10.8% from the previous year is due in part to a slight increase in the value of the tax digest. Sales tax revenues generated by the SPLOST increased $4.7 million to a total of $58.6 million. Interest and investment earnings remained minimal, reflecting the low interest being paid on account balances.
9

MANAGEMENT'S DISCUSSION AND ANALYSIS

_____________________________________________________________________________

Revenues: Program revenues:
Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Other taxes

Table A-2

Changes in Net Position from Operating Results

(in millions of dollars)

Governmental

Business-type

Activities

Activities

2018

2017

2018

2017

Total 2018

2017

Percentage Change
2018-2017

$ 15.2 312.9 0.7

$ 14.8 290.5 0.6

115.4 58.6 10.1

104.2 53.9 8.8

$ 0.4 $ 0.4

37.9

39.6

-

-

$ 15.6 350.8 0.7

$ 15.2 330.1 0.6

-

-

115.4

104.2

-

-

58.6

53.9

-

-

10.1

8.8

2.6% 6.3% 16.7%
10.7% 8.7% 14.8%

Non-program specific state and federal aid Interest and investment earnings Gain on Sale of Capital Assets Total Revenues

43.7 0.1 0.1
556.8

37.3 0.1 0.3
510.5

38.3

40.0

43.7 0.1 -
595.1

37.3 0.1 0.3
550.5

17.2% 0.0%
8.1%

Expenses: Instruction Pupil Services Instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services Other non-instructional services Community services Performing Arts Center Interest Food services
Total Expenses
Excess (deficiency) in net position

386.1 22.6 21.8 6.7 7.1 31.4 5.6 39.5 24.6 10.6 3.6 1.2 1.6 -
562.4

355.5 20.6 24.4 6.3 13.2 28.9 3.7 37.2 22.3 11.0 4.0 1.3 1.6 -
530.0

$ (5.6) $ (19.5)

0.3 37.9 38.2

0.3 38.4 38.7

$ 0.1 $ 1.3

386.1 22.6 21.8 6.7 7.1 31.4 5.6 39.5 24.6 10.6 3.6 1.2 1.6 0.3 37.9
600.6

355.5 20.6 24.4 6.3 13.2 28.9 3.7 37.2 22.3 11.0 4.0 1.3 1.6 0.3 38.4
568.7

$ (5.5) $ (18.2)

8.6% 9.7% -10.7% 6.3% -46.2% 8.7% 51.4% 6.2% 10.3% -3.6% -10.0% -7.7% 0.0% 0.0%
-1.3% 5.6%
-69.8%

Note: The amounts above do not include consideration of the prior period restatement for GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions.

10

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________

Table A-3 summarizes the cost of the School System's activities into eight functional categories Instruction; Pupil, Instructional and Media services; General and Business Administration; School Administration; Maintenance and operations; Pupil transportation; Central support and other support; and Community Services and non-instructional. The table also shows each activity's net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden placed on the School System's local taxpayers by each of these functions.

Table A-3 Net Cost of Governmental Activities
(in millions of dollars)

Total Cost

of Services

2018

2017

Percentage Change
2018-2017

Net Cost

of Services

2018

2017

Percentage Change
2018-2017

Instruction

$ 386.1

Pupil, Instructional and Media Services

51.1

General and Business Administration

12.7

School administration

31.4

Maintenance and operations

39.5

Student transportation

24.6

Central Support and other support

14.2

Community Services and non-instructional

2.8

Total Governmental Activities

$ 562.4

$ 355.5 51.3 16.9 28.9 37.2 22.3 15.0 2.9
$ 530.0

8.6% -0.4% -24.9% 8.7% 6.2% 10.3% -5.3% -3.4% 6.1%

$ 119.8 33.5 7.8 19.0 24.7 21.7 12.2 (5.0)
$ 233.7

$ 112.7 30.8 13.1 17.4 22.4 19.0 13.1 (4.5)
$ 224.0

6.3% 8.8% -40.5% 9.2% 10.3% 14.2% -6.9% 11.1% 4.3%

Less: Unrestricted federal and state aid: Total needs from local taxes and other revenues:

43.7

37.3

$ 190.0 $ 186.7

17.2% 1.8%

The total cost of governmental activities increased 6.1%, and the net cost of services increased 4.3% reflecting the increase in targeted initiatives to improve instructional achievement.
Business Type Activities
Revenues for the School System's business-type activities (school nutrition and performing arts center) were comprised of charges for services, federal and state reimbursements and investment earnings. (See Table A-2).
Business type revenues exceeded expenses during the year for an increase of $.1 million in net position. Charges for services represent $.4 million of revenue. This represents amounts paid by teachers and other
customers of the cafeteria operations and the performing arts center. Federal and state reimbursement for meals, including payments for free and reduced lunches, was $37.9
million.
The Statement of Revenues, Expenses and Changes in Fund Net Position for these proprietary funds will further detail the actual results of operations.

11

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________
Analysis of the School System's Funds At June 30, 2018, the School System's governmental funds reported a combined fund balance of $80.1 million. This is a decrease of $18.1 million. The fund balance of the General Fund was $23.1 million at June 30, 2018. The Capital Projects ending fund balance was $52.7 million while all other Governmental Funds had a total fund balance of $4.4 million at June 30, 2018. The increase in the Capital Projects Funds is the result of a temporary increase in cash reserves as projects begin under the most recently authorized SPLOST. General Fund Budgeting Highlights The School System's budget is prepared according to Georgia state law. The most significant budgeted fund is the General Operating Fund. In accordance with GAAP, the School System amended its General Fund to reflect funding changes. The total expenditures increased $3.0 million. This was due to focused attention to instruction and pupil services, increasing general administration to address achievement objectives, and targeted initiatives, offset by attrition, conservative spending and efficient use of resources. The total revenue had a positive variance of $14.1 million. There was $12.7 million in increase in local funds and a $1.4 million increase state funds.
12

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________

Capital Asset and Debt Administration

Capital Assets

At June 30, 2018, the School System had $760.9 million invested in a broad range of capital assets, including land, buildings and furniture and equipment for its governmental activities. The School System is currently funding a fiveyear capital improvement program with revenue from a one-cent local option sales tax that was approved by the citizens of Clayton County in November, 2013. The maximum amount of collections approved by this referendum was $280.3 million. The sales tax revenue, along with state capital outlay grants will fund the program through 2019.

Table A-4

Capital Assets (net of depreciation)

(in millions of dollars)

Governmental

Business-type

Activities

Activities

2018

2017

2018

2017

Total 2018

2017

Percentage Change
2018-2017

Land

$ 34.6 $ 33.6

-

-

34.6

33.6

Construction in progress

97.4

59.2

-

-

97.4

59.2

Buildings and improvements 609.7

626.1

3.1

3.4

612.8

629.5

Machinery and equipment

15.1

14.0

1.0

1.0

16.1

15.0

Total capital assets net of depreciation

$ 756.8

$ 732.9

$ 4.1 $ 4.4 $ 760.9 $ 737.3

3.0% 64.5% -2.7% 7.3%
3.2%

More detailed information about capital assets can be found in Note 7 of the Notes to the Basic Financial Statements.
Debt Administration
At June 30, 2018, the School System had no outstanding long-term bond debt. Because of the availability of the one cent sales tax for capital improvements since 1997, the School System has not had the need to issue any new debt and used proceeds from the sales tax to retire all of the previously existing long-term bond debt.

13

MANAGEMENT'S DISCUSSION AND ANALYSIS _____________________________________________________________________________
Economic Factors FY 2015 marked a turning point that will hopefully continue in the recovery of the local economy from the recession. Property value is rebounding slowly. Further, a reduction in the austerity cuts to the "Quality Basic Education" Act funding continued for FY 2018. The percentage of students that qualify for free or reduced priced lunches exceeds approximately 80% district-wide. As a result, all schools in the district are eligible to receive Title I federal funding under the No Child Left Behind Act for the Economically Disadvantaged.
Contacting the School System's Financial Management This financial report is designed to provide the School System's citizens, taxpayers, customers, and investors and creditors with a general overview of the School System's finances and to demonstrate the School System's accountability for the money it receives. If you have questions about this report or need additional financial information, please contact the Business Services Division, Clayton County Public Schools, 1058 Fifth Avenue, Jonesboro, Georgia 30236.
14

Basic Financial Statements
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF NET POSITION JUNE 30, 2018

ASSETS Cash and cash equivalents Investments Receivables:
Accounts Intergovernmental Taxes Internal balances Inventories Prepaid items Capital assets, nondepreciable Capital assets, depreciable (net of accumulated depreciation)
Total assets

Governmental Activities

Business-type Activities

Total

$ 93,497,563 $ 13,972,722 $ 107,470,285

1,405,718

-

1,405,718

99,913 50,721,435 13,209,717
(321,227) -
147,239 132,048,448 624,809,931
915,618,737

105,689
321,227 733,052
4,090,037
19,222,727

99,913 50,827,124 13,209,717
733,052 147,239 132,048,448 628,899,968
934,841,464

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

83,111,775 28,358,172
111,469,947

743,446 2,214,415
2,957,861

83,855,221 30,572,587
114,427,808

Accounts payable Contracts payable Retainage payable

LIABILITIES

Accrued payroll and payroll withholdings Unearned revenue Other current liabilities Claims payable due within one year Claims payable due in more than one year Capital leases due in more than one year Compensated absences due within one year Compensated absences due in more than one year Net pension liability, due in more than one year Net other post-employment benefit liability, due in more than one year

Total liabilities

3,045,259 7,674,976 2,498,306
60,192,960 1,435
11,448 2,899,939 1,042,502
1,673,150 2,609,000 413,591,838 372,752,236
867,993,049

72,857 -
2,514,860 92,097 53,132 48,522
3,700,100 29,107,242
35,588,810

3,118,116 7,674,976 2,498,306
62,707,820 93,532 11,448
2,899,939 1,042,502
1,726,282 2,657,522 417,291,938 401,859,478
903,581,859

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

9,197,503 35,892,682
45,090,185

82,162 2,802,765
2,884,927

9,279,665 38,695,447
47,975,112

NET POSITION Investment in capital assets Restricted for student programs Restricted for capital projects Unrestricted (deficit)
Total net position (deficit)

756,858,379 -
52,679,247 (695,532,176)
$ 114,005,450 $

4,090,037 -
(20,383,186)
(16,293,149)

760,948,416 -
52,679,247 (715,915,362)
$ 97,712,301

The accompanying notes are an integral part of these financial statements.
15

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Functions/Programs Governmental activities:
Instruction Pupil services Improvement of
instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services Other non-instructional services Community services
Total governmental activities

Expenses

Charges for Services

Program Revenues Operating Grants and
Contributions

Capital Grants and Contributions

$ 386,064,644 $ 22,609,005

7,492,405 -

$ 258,004,732 $ 7,175,354

712,532 -

21,769,582 6,688,537 7,102,414
31,429,970 5,646,571
39,565,111 24,613,821 10,572,138
3,591,846 1,206,941 1,599,636 562,460,216

122,842 -
46,059 6,000,758 1,560,438 15,222,502

4,046,906 6,250,261 3,248,943 12,413,896 1,776,952 14,849,005 2,873,043 1,834,161
121,145 253,064
312,847,462

712,532

Business-type activities: School food service Performing arts center Total business-type activities Total

37,943,474 327,201
38,270,675 $ 600,730,891 $

268,864 137,025 405,889 15,628,391

37,933,069 -
37,933,069 $ 350,780,531 $

712,532

General revenues: Property taxes Sales taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets
Transfers Total general revenues Change in net position
Net position (deficit), beginning of year, as restated Net position (deficit), end of year

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

16

Net (Expenses) Revenues and

Changes in Net Position

Governmental

Business-type

Activities

Activities

Total

$ (119,854,975) $ (15,433,651)

- $ (119,854,975)

-

(15,433,651)

(17,599,834) (438,276)
(3,853,471) (19,016,074)
(3,869,619) (24,716,106) (21,740,778)
(8,737,977) (3,424,642) 5,046,881
(39,198) (233,677,720)

-

(17,599,834)

-

(438,276)

-

(3,853,471)

-

(19,016,074)

-

(3,869,619)

-

(24,716,106)

-

(21,740,778)

-

(8,737,977)

-

(3,424,642)

-

5,046,881

-

(39,198)

-

(233,677,720)

(233,677,720)

258,459 (190,176)
68,283 68,283

258,459 (190,176)
68,283 (233,609,437)

115,417,127 58,626,357 10,134,638 43,722,231 100,189 56,818

6,870

115,417,127 58,626,357 10,134,638 43,722,231 100,189 63,688

228,057,360

6,870

228,064,230

(5,620,360)

75,153

(5,545,207)

119,625,810

(16,368,302)

103,257,508

$ 114,005,450 $ (16,293,149) $ 97,712,301

17

CLAYTON COUNTY BOARD OF EDUCATION
BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2018

ASSETS

General

Capital Projects

Nonmajor Governmental
Funds

Total Governmental
Funds

Cash Investments Receivables:
Accounts Taxes Intergovernmental Due from other funds Prepaid items

$ 33,079,698 $ 56,593,971 $

207,133

1,198,585

39,295 8,138,362 40,807,779 6,358,854
147,239

5,071,355
-

3,823,894 $ -
60,618 -
9,913,656 1,142,438
-

93,497,563 1,405,718
99,913 13,209,717 50,721,435
7,501,292 147,239

Total assets

$ 88,778,360 $ 62,863,911 $ 14,940,606 $ 166,582,877

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES

LIABILITIES Accounts payable Contracts payable Retainage payable Due to other funds Accrued payroll and payroll withholdings Unearned revenue Other current liabilities

$

1,093,238 $

-

-

1,463,665

57,918,008

-

-

- $ 7,674,976 2,498,306
4 11,378

1,952,021 $ -
6,358,850 2,274,952
1,435 70

3,045,259 7,674,976 2,498,306 7,822,519 60,192,960
1,435 11,448

Total liabilities

60,474,911

10,184,664

10,587,328

81,246,903

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

5,203,377

-

-

5,203,377

Total deferred inflows of resources

5,203,377

-

-

5,203,377

FUND BALANCES Fund balances:
Nonspendable - prepaid items Restricted for capital projects Restricted for student programs Committed for student programs Unassigned

147,239 -
22,952,833

52,679,247
-

4,353,278 -

147,239 52,679,247
4,353,278 22,952,833

Total fund balances

23,100,072

52,679,247

4,353,278

80,132,597

Total liabilities, deferred inflows of resources and fund balances

$ 88,778,360 $ 62,863,911 $ 14,940,606 $ 166,582,877

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

18

CLAYTON COUNTY BOARD OF EDUCATION
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2018

Amounts reported for governmental activities in the statement of net position are different because: Fund balances - total governmental funds Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities
The accompanying notes are an integral part of these financial statements.

$

80,132,597

756,858,379

5,203,377

(728,188,903) $ 114,005,450

19

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Interest income Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services On behalf payments Other non-instructional services Community service Capital outlay Total expenditures
Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES) Sale of capital assets Transfers in Transfers out Total other financing sources (uses)
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year

General

Capital Projects

Nonmajor Governmental
Funds

Total Governmental
Funds

$ 132,799,869 $ 311,283,092 669,212 10,395 444,762,568

58,626,357 $ 712,532 89,794
59,428,683

9,452,713 7,627,078 36,607,986
53,687,777

$ 200,878,939 319,622,702 37,277,198 100,189 557,879,028

307,589,560 16,377,166 18,381,103 6,560,431 5,483,419 29,465,154 3,741,693 38,651,167 22,605,065 9,908,575 3,469,960 339,383 -
462,572,676

58,025,878 58,025,878

41,708,046 5,833,734 2,993,105 1,330,987 1,068,744 38,831 112,008 706,299 1,600,553 -
55,392,307

349,297,606 22,210,900 21,374,208 6,560,431 6,814,406 30,533,898 3,741,693 38,651,167 22,643,896 9,908,575 3,581,968 1,045,682 1,600,553 58,025,878
575,990,861

(17,810,108)

1,402,805

(1,704,530)

(18,111,833)

56,818 -
(1,164,032) (1,107,214)
(18,917,322)
42,017,394
$ 23,100,072 $

-
1,402,805
51,276,442
52,679,247 $

1,164,032
1,164,032

56,818 1,164,032 (1,164,032)
56,818

(540,498)

(18,055,015)

4,893,776

98,187,612

4,353,278 $ 80,132,597

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

20

CLAYTON COUNTY BOARD OF EDUCATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Change in net position - governmental activities
The accompanying notes are an integral part of these financial statements.

$ (18,055,015)

23,905,717

(1,152,529)

(10,318,533)

$

(5,620,360)

21

CLAYTON COUNTY BOARD OF EDUCATION
GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (NON-GAAP) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Interest income Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services Other non-instructional services Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES) Sale of capital assets
Transfers out Total other financing sources (uses)
Net change in fund balances

Budget Original

Final

$ 119,100,365 $ 120,076,021 $

301,974,995

303,726,092

687,700

754,211

30,000

30,000

421,793,060

424,586,324

Actual

Variance With Final Budget

132,799,869 $ 305,170,269
669,212 10,395
438,649,745

12,723,848 1,444,177 (84,999) (19,605)
14,063,421

299,594,743 15,499,671 20,031,501 7,119,841 5,221,874 30,362,766 7,113,153 35,318,817 22,501,128 13,453,363 77,804 -
456,294,661

292,107,767 15,898,556 20,577,353 6,717,739 5,363,362 29,595,735 15,459,697 36,569,523 20,725,555 12,691,968 2,890,621 678,255
459,276,131

303,497,787 16,377,166 18,381,103 6,560,431 5,316,189 29,465,154 3,715,467 38,341,361 22,366,304 9,825,140 3,232,488 339,383
457,417,973

(11,390,020) (478,610)
2,196,250 157,308 47,173 130,581
11,744,230 (1,771,838) (1,640,749) 2,866,828
(341,867) 338,872 1,858,158

(34,501,601)

(34,689,807)

(18,768,228)

15,921,579

-

-

56,818

(230,266) (230,266)

(230,266) (230,266)

(1,164,032) (1,107,214)

$

(34,731,867) $

(34,920,073) $

(19,875,442) $

56,818
(933,766) (876,948)
15,044,631

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

22

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2018

CURRENT ASSETS Cash and cash equivalents Receivables:
Intergovernmental Inventories Due from other funds

ASSETS

Total current assets

CAPITAL ASSETS Buildings Furniture and equipment Intangibles
Total depreciable assets Less accumulated depreciation and amortization
Total capital assets

Total assets

DEFERRED OUTFLOWS OF RESOURCES Pensions Other post-employment benefits

Total deferred outflows of resources

LIABILITIES CURRENT LIABILITIES Accounts payable Accrued payroll and payroll withholdings Compensated absences Unearned revenue

Total current liabilities

NON-CURRENT LIABILITIES Compensated absences Net pension liability Net other post-employment benefit liability

Total non-current liabilities

Total liabilities

DEFERRED INFLOWS OF RESOURCES Pensions Other post-employment benefits

Total deferred inflows of resources

NET POSITION Investment in capital assets Unrestricted

Business-type Activities - Enterprise Funds

Nonmajor

School

Performing

Food

Arts

Service

Center

Totals

$ 13,972,722 $

- $ 13,972,722

105,689 733,052
98,070
14,909,533

223,157
223,157

105,689 733,052 321,227
15,132,690

5,365,614
53,643 5,419,257 (4,471,824)
947,433
15,856,966

7,308,375 6,167 -
7,314,542 (4,171,938) 3,142,604
3,365,761

7,308,375 5,371,781
53,643 12,733,799 (8,643,762)
4,090,037
19,222,727

743,446 2,214,415
2,957,861

-

743,446

-

2,214,415

-

2,957,861

71,679 2,514,860
53,132 92,097 2,731,768
48,522 3,700,100 29,107,242 32,855,864 35,587,632
82,162 2,802,765 2,884,927
947,433 (20,605,165)

1,178 -
1,178
1,178
-
3,142,604 221,979

72,857 2,514,860
53,132 92,097 2,732,946
48,522 3,700,100 29,107,242 32,855,864 35,588,810
82,162 2,802,765 2,884,927
4,090,037 (20,383,186)

Total net position (deficit)

$ (19,657,732) $

The accompanying notes are an integral part of these financial statements.
23

3,364,583 $ (16,293,149)

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Local sources Total operating revenues
OPERATING EXPENSES Food service operations Enterprise operation Maintenance and operations Depreciation Total operating expenses
Operating loss
NON-OPERATING REVENUES Intergovernmental revenues Gain on sale of capital assets Total non-operating revenues
Change in net position
NET POSITION (DEFICIT), beginning of year, as restated
NET POSITION (DEFICIT), end of year

Business-type Activities - Enterprise Funds

Nonmajor

School

Performing

Food

Arts

Service

Center

Totals

$

268,864 $

137,025 $

405,889

268,864

137,025

405,889

37,220,553 -
540,474 182,447 37,943,474
(37,674,610)

181,032
146,169 327,201
(190,176)

37,220,553 181,032 540,474 328,616
38,270,675
(37,864,786)

37,933,069 6,870
37,939,939
265,329
(19,923,061)
$ (19,657,732) $

-

37,933,069

-

6,870

-

37,939,939

(190,176)

75,153

3,554,759

(16,368,302)

3,364,583 $ (16,293,149)

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

24

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from local sources Payments to suppliers Payments to employees Payments on behalf of employees
Net cash used in operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Subsidy from federal and state grants
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Proceeds from disposition of capital assets
Net cash used in capital and related financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(Continued)

Business-type Activities - Enterprise Funds

Nonmajor

School

Performing

Food

Arts

Service

Center

Totals

$

185,563 $

(20,452,891)

(11,317,640)

(5,603,774)

(37,188,742)

180,566 $

366,129

(40,605)

(20,493,496)

(119,802)

(11,437,442)

(20,159)

(5,623,933)

-

(37,188,742)

38,327,223

-

38,327,223

38,327,223

-

38,327,223

(107,091) 6,870
(100,221) 1,038,260 12,934,462 $ 13,972,722 $

-

(107,091)

-

6,870

-

(100,221)

-

1,038,260

-

12,934,462

- $ 13,972,722

25

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Reconciliation of operating loss to net cash used in operating activities
Operating loss Adjustments to reconcile operating loss to net cash used in operating activities Depreciation Decrease in accounts receivable (Increase) decrease in due from other funds Increase in inventories Decrease in deferred outflows - pensions Increase in deferred outflows - OPEB Increase (decrease) in accounts payable Decrease in accrued payroll and other withholdings Decrease in compensated absences Increase in deferred inflows - pensions Increase in deferred inflows - OPEB Decrease in net pension liability Increase in net OPEB liability Decrease in unearned revenue
Net cash used in operating activities

Business-type Activities - Enterprise Funds

Nonmajor

School

Performing

Food

Arts

Service

Center

Totals

$ (37,674,610) $

(190,176) $ (37,864,786)

182,447 4,207
(79,862) (135,738) 242,890 (1,134,216) (155,046)
28,991 (30,379)
5,563 2,802,765 (240,687) (997,421)
(7,646)
$ (37,188,742) $

146,169 -
43,541 -
466

328,616 4,207
(36,321) (135,738) 242,890 (1,134,216) (154,580)

-

28,991

(30,379)

-

5,563

-

2,802,765

-

(240,687)

-

(997,421)

-

(7,646)

- $ (37,188,742)

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES
The School System received $2,605,839 in commodities from the United States Department of Agriculture during the fiscal year ended June 30, 2018.

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

26

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUND JUNE 30, 2018

ASSETS

Cash Total assets

Due to others Total liabilities

LIABILITIES

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

Agency Fund Student Activities

$

550,018

$

550,018

$

550,018

$

550,018

27

Notes to Financial Statements
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Clayton County Board of Education (the "School System") operates under a Board/Superintendent form of government. The nine-member Board is elected by the public and the Board appoints the superintendent. These nine elected members have decision making authority, the power to designate management, and the ability to significantly influence operations. The Board determines the millage rate at which school taxes are levied and may incur bonded indebtedness with voter approval.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the School System. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to those who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

28

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period. For this purpose, the School System considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for amounts related to reimbursement based grants, which are considered available when all eligibility criteria has been met. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
The fiduciary fund financial statements are reported using the accrual basis of accounting.
Property taxes, sales taxes, intergovernmental grants, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.
Revenue from grants and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted; matching requirements, in which the School System must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the School System on a reimbursement basis.
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education ("QBE") Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally, teachers are contracted for the school year (July 1 June 30) and paid over a 12-month contract period, generally, September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School System over the same 12-month period in which teachers are paid, funding the academic school year expenditures.

29

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year is accrued, as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board ("GASB") Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
The School System reports the following major governmental funds:
The General Fund is the School System's primary operating fund. It accounts for all financial resources of the School System, except those required to be accounted for in another fund.
The Capital Projects Fund accounts for the proceeds of a 1% Special Purpose Local Option Sales Tax ("SPLOST") as well as revenues from local and state sources to be used for land and building acquisitions and construction and renovations of new educational and administrative facilities.
The School System reports the following major proprietary fund:
The School Food Service Fund accounts for the monies and commodities received from the federal and state governments and the School Food Service's cafeteria sales for the purpose of maintaining the School System's breakfast, lunch, and snack programs.
Additionally, the School System reports the following fund types:
The Special Revenue Funds account for federal and state funded programs. These grants are awarded to the School System for the purpose of accomplishing specific educational tasks as defined in the grant agreements. These funds also contain several locally funded programs whose expenditures are limited to specific purposes. School Activity Funds are also reported as special revenue funds. The School Activity Funds are used to account for funds collected primarily through the fund raising efforts of the individual school. Each school's principal is responsible, under the authority of the Board, for collecting, controlling, disbursing, and accounting for his or her school's funds. All resources of the fund, including earnings on invested resources, may be used to support the schools' activities.
The Agency Fund is used to account for student club and class accounts.

30

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the School System's school food service program and the General Fund. Elimination of these charges would distort the direct costs reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges for services provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges for goods and services provided. Operating expenses of the enterprise funds include the cost of these goods and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the School System's policy to use restricted resources first, then unrestricted resources as they are needed.
D. Cash and Investments
The School System's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
E. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year as well as all other outstanding balances between funds are reported as "due to/from other funds". Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances".

31

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. On-Behalf Payments
The State of Georgia makes certain pension plan payments on behalf of the School System for its employees. The School System records these payments as both a revenue and expenditure in the General Fund. The total of the on-behalf payments for the fiscal year ended June 30, 2018, was $1,062,929.
G. Inventories and Prepaid Items
Inventories are stated at cost using the first-in, first-out method. Donated food commodities are recorded at fair value. The School System utilizes the consumption method to recognize inventory usage. Under the consumption method, inventories are recorded as expenses when used rather than when purchased.
Payments made to vendors for services that will benefit periods beyond year-end are recorded as prepaid items using the consumption method by recording an asset for the prepaid amount and reflecting expenditure/expense in the year in which services are consumed.
H. Non-Monetary Transactions
The School System received from the United States Department of Agriculture through the Georgia Department of Education approximately $2,605,839 in donated food commodities for its lunchroom programs. The federally assigned value of these commodities is reflected as revenue and an expense in the financial statements.
I. Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the School System as assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.

32

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. Capital Assets (Continued)

Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Asset
Improvements Buildings Machinery and equipment

Years
20 50 20 50 4 10

J. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Other than the pension and the Other Post-Employment Benefit related items discussed below, the School System did not have any items that qualified for reporting in this category for the year ended June 30, 2018.

In addition to liabilities, the statement of financial position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Other than the pension and Other Post-Employment Benefit related items discussed below, the School System has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available.

K. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia ("TRS"), the Public School Employees' Retirement System ("PSERS"), and the Employees' Retirement System ("ERS"), and additions to/deductions from each plan's fiduciary net position have been determined on the same basis as they are reported by each plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The School System also had deferred inflows and outflows related to the recording of changes in its net pension liability.

33

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Pensions (Continued)
Certain changes in the net pension liability are recognized as pension expense over time instead of all being recognized in the year of occurrence. Experience gains or losses result from periodic studies by the plan's actuary which adjust the net pension liability for actual experience for certain trend information that was previously assumed, for example the assumed dates of retirement of plan members. These experience gains or losses are recorded as deferred outflows of resources or deferred inflows of resources and are amortized into pension expense over the expected remaining service life of plan members. Changes in actuarial assumptions which adjust the net pension liability are also recorded as deferred outflows of resources or deferred inflows of resources and are amortized into pension expense over the expected remaining lives of plan members. The difference between projected investment return on pension investments and actual return on those investments is also deferred and amortized against pension expense over a five-year period. Additionally, any contributions made by the School System to the pension plan before year-end but subsequent to the measurement date of the School System's net pension liability are reported as deferred outflows of resources.
L. Other Post-Employment Benefits ("OPEB")
For purposes of measuring the net OPEB liability (asset), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees' Post-employment Benefit Fund ("School OPEB Fund") and additions to/deductions from the School OPEB Fund's fiduciary net position have been determined on the same basis as they are reported by the School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
M. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, governmental fund types report the face amount of debt issued as other financing sources.

34

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Compensated Absences
It is the School System's policy to permit employees to accumulate unused vacation and sick pay benefits. Accumulated unpaid sick leave benefits do not vest and, therefore, are not accrued in any fund, but are recognized as expenditures or expenses when incurred. Accumulated unpaid vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements.
O. Fund Equity
Fund equity at the governmental fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net position".
Fund Balance Generally, fund balance represents the difference between current assets and current liabilities. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the School System is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance terms are classified as follows:
Nonspendable: Fund balances that are not in spendable form (e.g., prepaid items) or are legally or contractually required to be maintained intact (e.g., permanent fund principal).
Restricted: Fund balances that can be spent only for the specific purposes stipulated by external parties, either constitutionally or through enabling legislation (e.g., grants or donations).
Committed: Fund balances that can be used only for the specific purposes determined by an approved resolution of the School System. Commitments may be changed or lifted only by referring to formal action that imposed the original constraint on the fund (e.g., the School System's commitment in connection with future construction projects).
Assigned: Fund balances intended to be used by the School System for specific purposes. Pursuant to the fund balance policy, intent can be expressed by the School System or by a designee to whom the School System delegates authority. In governmental funds other than the General Fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at minimum, intended to be used for the purpose of that fund.

35

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Fund Equity (Continued)
Unassigned: Fund balances are reported as unassigned as the residual amount when the balances do not meet any of the above criteria. The School System reports positive unassigned fund balance only in the General Fund. Negative unassigned fund balances may be reported in all funds.
The responsibility for designating funds to specific classifications is as follows:
Committed: The Clayton County Board of Education is the School System's highest level of decision-making 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.
Assigned: The School System has authorized the Superintendent and the Chief Financial Officer as officials authorized to assign fund balance to a specific purpose as approved by this fund balance policy.
It is the initial goal of the School System to achieve and maintain an unassigned fund balance in the General Fund at fiscal year-end of not less than 7.5 15% of prior year general fund budgeted expenditures and not to exceed 15% of the total budget of the subsequent fiscal year, net of any committed reserve balance for capital expenditures and assigned fund balances "to cover unanticipated deficiencies in revenue or unanticipated expenditures," in compliance with the Official Code of Georgia Annotated ("O.C.G.A.") 20-2-167(a) 5. If the total of the unassigned, assigned, and committed fund balances (net of the previous allowances) at fiscal year-end falls below this goal, the School District will take action to restore the unassigned fund balance to the minimum level within two fiscal years following the fiscal year in which the event occurred. The School System will develop a plan to replenish the affected fund balance(s) and include the plan in a five-year forecast presented to the School Board during the annual budget development process. Unbudgeted Activity funds will be excluded from the calculation.
1. This amount provides adequate funding to cover approximately two months of operating expenses.
2. This amount is intended to provide the liquidity necessary to accommodate the District's uneven cash flow, which is inherent in its periodic tax collection schedule.
3. This amount is intended to provide the liquidity necessary to respond to contingent liabilities.
4. This amount may provide additional resources for other funds.

36

NOTES TO FINANCIAL STATEMENTS

NOTE 1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Fund Equity (Continued)
When multiple categories of fund balance are available for expenditures (e.g., a project is being funded partly by a grant, funds set aside by the Clayton County Board of Education, and unassigned fund balance), the School System will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
P. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Q. Tax Abatement Agreements
During the year ended June 30, 2017, the Board of Education implemented GASB Statement No. 77, Tax Abatement Disclosures. This statement requires the School System to disclose information for any tax abatement agreements either entered into by the School System, or agreements entered into by other governments that reduce the School System's tax revenues. As of June 30, 2018, the School System did not have any such agreements, either entered into by the School System or by other governments that exceeded the quantitative threshold for disclosure.

37

NOTES TO FINANCIAL STATEMENTS

NOTE 2.

RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS

A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net position

The governmental fund balance sheet includes a reconciliation between fund balance total governmental funds and net position governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds." The details of this $728,188,903 difference are as follows:

Workers' compensation claims payable Compensated absences Net pension liability Net OPEB liability Pensions and OPEB - deferred inflows of resources Pensions and OPEB - deferred outflows of resources

$

(3,942,441)

(4,282,150)

(413,591,838)

(372,752,236)

(45,090,185)

111,469,947

Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities

$ (728,188,903)

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities

The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $23,905,717 difference are as follows:

Capital outlay Depreciation expense
Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities

$

43,043,539

(19,137,822)

$

23,905,717

38

NOTES TO FINANCIAL STATEMENTS

NOTE 2.

RECONCILIATION OF GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS (CONTINUED)

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities (Continued)

Another element of that reconciliation states that "some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this $10,318,533 difference are as follows:

Compensated absences Workers' compensation claims payable Change in net pension liability and deferred inflows and outflows related to
pension activity Change in net OPEB liability and deferred inflows and outflows related to
OPEB activity Net adjustment to decrease net change in fund balances -
governmental funds to arrive at change in net position governmental activities

$

(284,461)

(612,046)

(827,436)

(8,594,590)

$

(10,318,533)

NOTE 3.

STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgets. The School System adopts annual budgets for its general and special revenue funds, except that an annual budget is not adopted for the School Discretionary special revenue fund. The School System does not employ encumbrance accounting and, accordingly, all appropriations lapse at year-end. After the School System has tentatively adopted a budget, such budget is advertised at least one time in a local newspaper of general circulation. At the next regular meeting of the Board members after the advertisement, the budget is revised as necessary and adopted as the final budget. This final budget is then submitted to the Georgia Department of Education in accordance with provisions of the QBE.
The level of budgetary control (the level at which expenditures may not exceed appropriations) is at the fund level.
The Statement of Revenues and Expenditures Budget (Non-GAAP) to Actual presents actual and budget data for the General Fund. To facilitate comparison with the budget, adjustments have been made to actual revenues and expenditures to reflect actual amounts on the budget basis.

39

NOTES TO FINANCIAL STATEMENTS

NOTE 3.

STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)

The primary differences between the budget basis and the generally accepted accounting principles ("GAAP") in the United States of America are:

a. State QBE revenue is recorded when received (budget) rather than when susceptible to accrual (GAAP).

b. Salaries and employee benefits paid to teachers under contract are recorded when paid (budget) rather than when the liability is incurred (GAAP).

c. Payments made by the State of Georgia for School System employee benefits are recognized as revenues and expenditures under GAAP and are not recognized on the budget basis.

Adjustments necessary to convert the General Fund's net change in fund balance from the GAAP basis to the budgetary basis are as follows:

GAAP basis net change in fund balance
Adjustment for: State QBE revenue Salaries and employee benefits State paid employee benefit revenue State paid employee benefit expenditures
Budget basis net change in fund balance

$

(18,917,322)

(5,049,893) 4,091,773 (1,062,930) 1,062,930

$

(19,875,442)

NOTE 4.

DEPOSITS AND INVESTMENTS
Credit Risk. State statutes authorize the School System to invest in: obligations of the United States, the State of Georgia and other political subdivisions of the State of Georgia, and other states; prime bankers' acceptances; repurchase agreements; and the Georgia local government investment pool ("Georgia Fund 1").

40

NOTES TO FINANCIAL STATEMENTS

NOTE 4.

DEPOSITS AND INVESTMENTS (CONTINUED)

The local government investment pool, Georgia Fund 1, created by the O.C.G.A. 36-83-8, is a stable asset value investment pool, which follows Standard and Poor's criteria for AAAf rated money market funds and is regulated by the Georgia Office of the State Treasurer. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1 per share value). The asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participants' shares sold and redeemed based on $1 per share. The pool also adjusts the value of its investments to fair market value as of year-end and the School System's investment in the Georgia Fund 1 is reported at fair value. The School System considers amounts held in Georgia Fund 1 as cash equivalents for financial statement presentation. The School System does not have a policy for credit risk beyond the types of investments authorized by Georgia State law.

At June 30, 2018, the School System had the following investments:

Investment Georgia Fund 1

Maturities 10-day weighted average

Fair Value

$

1,405,718

Interest Rate Risk. The School System does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Fair Value Measurements. The School System categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The Georgia Fund 1 is an investment pool which does not meet the criteria of GASB Statement No. 79 and is thus valued at fair value in accordance with GASB Statement no. 31. As a result, the School System does not disclose investment in the Georgia Fund 1 with the fair value hierarchy.
Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. State statutes require all deposits and investments (other than federal and state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties, or municipalities. As of June 30, 2018, the School System's bank balance was fully collateralized.

41

NOTES TO FINANCIAL STATEMENTS

NOTE 5. RECEIVABLES

Receivables at June 30, 2018, for the School System's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

Intergovernmental Taxes Accounts

Nonmajor

School

Capital

Governmental

Food

General

Projects

Funds

Service

Total

$ 40,807,779 $

- $ 9,913,656 $

105,689 $ 50,827,124

13,341,739

5,071,355

-

-

18,413,094

39,295

-

60,618

-

99,913

54,188,813

5,071,355

9,974,274

105,689

69,340,131

Less allowance for uncollectible

(5,203,377)

Net total receivable $ 48,985,436 $

5,071,355 $

9,974,274 $

-

(5,203,377)

105,689 $ 64,136,754

NOTE 6.

Intergovernmental receivables consist of grant reimbursements due primarily from the Georgia Department of Education, sales taxes which are collected by the state on the School System's behalf, and property taxes collected by Clayton County Tax Commissioner on the School System's behalf.
PROPERTY TAXES
Clayton County bills and collects property taxes for the School System. Property taxes are levied (assessed) on all taxable real, public utility and personal property (including vehicles) located within the County as of January 1st of each year. State law limits the School System's tax levy for operations to 20 mills (one mill equals $1 per thousand dollars of assessed value). Assessed values for property tax purposes are determined by the Clayton County Board of Tax Assessors for all property except public utilities and motor vehicles. Assessed value is set at 40% of market value. The State of Georgia establishes values for public utilities and motor vehicles.
Real property taxes were levied on September 15, 2017 and were due November 15, 2017. Clayton County may place liens on property once the related tax payments become delinquent. The property tax receivable allowance is equal to 50% of outstanding property taxes at June 30, 2018, net of amounts collected within 60 days of year-end.
Vehicle personal property taxes are due upon each respective payor's date of birth on an annual basis.

42

NOTES TO FINANCIAL STATEMENTS

NOTE 7. CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2018, is as follows:

Beginning Balance

Governmental activities:

Capital assets,

not being depreciated:

Land

$

Construction in progress

Total

33,647,096 59,192,155 92,839,251

Capital assets, being depreciated: Buildings Improvements Machinery and equipment Total

826,151,435 4,831,696
48,412,914 879,396,045

Less accumulated depreciation for: Buildings Improvements Machinery and equipment Total

(201,937,395) (2,958,093)
(34,387,146) (239,282,634)

Increases

$

998,938

38,210,259

39,209,197

3,834,342 3,834,342

(16,228,373) (177,830)
(2,731,619) (19,137,822)

Decreases

$

-

-

-

(1,046,267) (1,046,267)

1,046,267 1,046,267

Transfers

$

-

-

-

-

-

Total capital assets, being

depreciated, net

640,113,411

(15,303,480)

-

-

Governmental activities

capital assets, net

$ 732,952,662 $ 23,905,717 $

- $

-

Business-type activities:

Capital assets,

being depreciated:

Buildings

$

7,308,375 $

- $

- $

-

Machinery and equipment

5,297,696

107,091

(33,006)

-

Intangibles

53,643

-

-

-

Total

12,659,714

107,091

(33,006)

-

Less accumulated

depreciation for:

Buildings

(4,019,601)

(146,169)

-

-

Machinery and equipment

(4,328,551)

(182,447)

33,006

-

Total

(8,348,152)

(328,616)

33,006

-

Total capital assets, being

depreciated, net

4,311,562

(221,525)

-

-

Business-type activities

capital assets, net

$

4,311,562 $

(221,525) $

- $

-

Ending Balance
$ 34,646,034 97,402,414
132,048,448
826,151,435 4,831,696
51,200,989 882,184,120
(218,165,768) (3,135,923)
(36,072,498) (257,374,189)
624,809,931
$ 756,858,379

$

7,308,375

5,371,781

53,643

12,733,799

(4,165,770) (4,477,992) (8,643,762)

4,090,037

$

4,090,037

43

NOTES TO FINANCIAL STATEMENTS

NOTE 7.

CAPITAL ASSETS (CONTINUED)

Depreciation expense was charged to functions/programs of the School System as follows:

Governmental activities: Instruction Pupil services Improvement of instructional services Educational - media services General administration School administration Business administration Maintenance and operations Student transportation Central support services Other non-instructional services
Total depreciation expense - governmental activities

$

16,424,917

3,880

54,656

851

145,340

243,052

3,114

273,862

1,695,432

131,460

161,258

$

19,137,822

Business-type activities: School food services Performing arts center
Total depreciation expense - business-type activities

$

182,447

146,169

$

328,616

NOTE 8.

SHORT-TERM DEBT

The School District issued a tax anticipation note in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections were received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. The maturity date of the loan was December 29, 2017. One draw totaling $25,000,000 was required to meet the cash flow needs of the School District. The note was repaid on December 29, 2017.

Beginning Balance

Additions

Reductions

Ending Balance

Tax anticipation note $

- $ 25,000,000 $ (25,000,000) $

-

44

NOTES TO FINANCIAL STATEMENTS

NOTE 9. LONG-TERM DEBT

Changes in long-term debt for the year ended June 30, 2018, are as follows:

Beginning Balance

Additions

Reductions

Ending Balance

Due Within One Year

Governmental activities:

Claims payable

$

3,330,395 $ 3,081,526 $ (2,469,480) $

3,942,441 $

Compensated absences

3,997,689

1,835,570

(1,551,109)

4,282,150

Net pension liability

440,479,769

70,515,723

(97,403,654)

413,591,838

Net OPEB liability

385,525,362

29,445,208

(42,218,334)

372,752,236

Governmental activities

Long-term liabilities

$ 833,333,215 $ 104,878,027 $ (143,642,577) $ 794,568,665 $

2,899,939 1,673,150
-
4,573,089

Business-type activities:

Compensated absences $

Net pension liability

Net OPEB liability

Business-type activities

Long-term liabilities

$

86,226 $ 3,940,787 30,104,662
34,131,675 $

73,762 $ 630,620 2,298,224
3,002,606 $

(58,334) $ (871,307) (3,295,644)

101,654 $ 3,700,100 29,107,242

(4,225,285) $ 32,908,996 $

53,132 -
53,132

The balance of claims payable, $3,942,441, is related to workers' compensation claims. For governmental activities, compensated absences, claims payable, net pension liability, and net OPEB liability are liquidated primarily by the General Fund. For business-type activities, compensated absences, net pension liability, and net OPEB liability are liquidated primarily by the School Food Service Fund.

NOTE 10. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

The composition of interfund balances as of June 30, 2018, is as follows:

Due to/from other funds: Due to

General

Due from Capital Projects Fund

Nonmajor Governmental
Funds

Total

General Fund

$

- $

School Food Service

98,070

Nonmajor governmental funds

1,142,438

Nonmajor enterprise funds

223,157

$ 1,463,665 $

4

6,358,850 $ 6,358,854

-

-

98,070

-

-

1,142,438

-

-

223,157

4

6,358,850 $ 7,822,519

45

NOTES TO FINANCIAL STATEMENTS

NOTE 10. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
These balances resulted from the time lag between the dates that: 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system, and 3) payments between funds are made.
Interfund transfers:

Transfers in
Nonmajor Governmental Funds

Transfers out General Fund $ 1,164,032

Transfers are used to: 1) move revenues from the fund that the statute or budget requires to collect them to the fund that the statute or budget requires to expend them, and 2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
NOTE 11. RETIREMENT PLANS
Teachers' Retirement System
Plan Description
All teachers of the School System as defined in 47-3-60 of the Official Code of Georgia Annotated ("O.C.G.A.") and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers' Retirement System of Georgia ("TRS"). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees ("TRS Board"). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. TRS issues a publicly available financial report that can be obtained at www.trsga.com/publications.

46

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Teachers' Retirement System (Continued)

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 ten years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.

Contributions

Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School System's contractually required contribution rate for the year ended June 30, 2018, was 16.81% of annual School System payroll. School System contributions to TRS were $46,354,010 for the year ended June 30, 2018.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2018, the School System reported a liability for its proportionate share of the net pension liability that reflected a reduction for support provided to the School System by the State of Georgia for certain public school support personnel. The amount recognized by the School System 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 System were as follows:
School System's proportionate share of the net pension liability $ 417,029,779

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

638,963 $ 417,668,742

47

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Teachers' Retirement System (Continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017, was determined using standard roll-forward techniques. The School System's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2017. At June 30 2017, the School System's proportion was 2.243868%, which was an increase of 0.091017% from its proportion measured as of June 30, 2016.

For the year ended June 30, 2018, the School System recognized pension expense of $47,264,571 and revenue of $35,388 for support provided by the State of Georgia for certain support personnel. At June 30, 2018, the School System reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual experience

Deferred Outflows of Resources $ 15,599,483

Deferred Inflows of Resources $ 1,573,827

Changes of assumptions

9,141,810

-

Net difference between projected and actual earnings on pension plan investments

-

2,869,862

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

12,696,890

4,816,445

School System contributions subsequent to the measurement date

46,354,010

-

Total

$ 83,792,193 $ 9,260,134

48

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Teachers' Retirement System (Continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

School System contributions, subsequent to the measurement date, of $46,354,010 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ending June 30, 2019 2020 2021 2022 2023

$ (1,165,563) 23,664,396 12,973,133 (7,854,603) 560,686

Actuarial Assumptions

The total pension liability as of June 30, 2017, was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return

2.75% 3.75 - 9.00% average, including inflation 7.50% net of pension plan investment
expense, including inflation

Post-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB, set forward one year for males for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB, set forward two year for males and four years for females, was used for death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Tables projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

49

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Teachers' Retirement System (Continued)

Actuarial Assumptions (Continued)

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

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities
Total

Target allocation
30.00 % 39.80
3.70 1.50 19.40 5.60
100.00 %

Long-term expected real rate of return*
(0.50) % 9.00
12.00 13.50
8.00 12.00

*Rates shown are net of the 2.75% assumed rate of inflation.

Discount Rate

The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

50

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)
Teachers' Retirement System (Continued)
Sensitivity of the School System's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the School System's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School System's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

School System's proportionate share of the net pension liability

1% Decrease (6.50%)

Current Discount Rate
(7.50%)

1% Increase (8.50%)

$ 684,394,796 $ 417,029,779 $ 196,781,098

Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS financial report which is publically available at www.trsga.com/publications.
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 TRS. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/ formspubs.
Benefits Provided
A member may retire and elect to receive normal monthly retirement benefits after completion of 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.

51

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Public School Employees' Retirement System (PSERS) (Continued)

Benefits Provided (Continued)

Upon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.

Contributions

The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. .47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees.

Pension Liabilities and Pension Expense

At June 30, 2018, the School System did not have a liability for a proportionate share of the net pension liability of PSERS because of the related State of Georgia support. The amount of the State's proportionate share of the net pension liability associated with the School System is as follows:

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

$ 5,379,011

52

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Public School Employees' Retirement System (PSERS) (Continued)

Pension Liabilities and Pension Expense (Continued)

The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017, was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School System was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017.

For the year ended June 30, 2018, the School System recognized pension expense of $1,084,081 and revenue of $1,084,081 for support provided by the State of Georgia.

Actuarial Assumptions

The total pension liability was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increase Investment rate of return

2.75% N/A 7.50%, net pension plan investment
expense, including inflation

Post-retirement rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB, set forward three years for males and two years for females, for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB, set forward five years for both males and females, was used for death and 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 health retirees and 9% 11% less than the expected under the selected table for disables retiree. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

53

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Public School Employees' Retirement System (PSERS) (Continued)

Actuarial Assumptions (Continued)

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

The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives

Target allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00

Long-term expected real rate of return*
(0.50) % 9.00
12.00 13.50
8.00 12.00 10.50

Total

100.00 %

*Rates shown are net of the 2.75% assumed rate of inflation.

Discount Rate

The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and non-employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

54

NOTES TO FINANCIAL STATEMENTS
NOTE 11. RETIREMENT PLANS (CONTINUED)
Employees' Retirement System ("ERS")
Plan Description
ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs.
Benefits Provided
The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan ("GSEPS"). Employees under the Old Plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are New Plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the Old Plan, the New Plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of ten 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 four consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, post-retirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
55

NOTES TO FINANCIAL STATEMENTS
NOTE 11. RETIREMENT PLANS (CONTINUED)
Employees' Retirement System ("ERS") (Continued) Contributions Member contributions under the Old Plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the Old Plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the Old Plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the New Plan and GSEPS are 1.25% of annual compensation. The School System's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2018, was 24.69% of annual covered payroll for Old and New Plan members and 21.69% for GSEPS members. The School System's contributions to ERS totaled $36,522 for the year ended June 30, 2018. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the School System reported a liability for its proportionate share of the net pension liability of ERS in the amount of $262,159. The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017, was determined using standard roll-forward techniques. The School System's proportion of the net pension liability was based on contributions to ERS during the fiscal year ended June 30, 2017. At June 30, 2017, the School System's proportion was 0.006455%, which was an increase of 0.000887% from its proportion measured as of June 30, 2016.
56

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Employees' Retirement System ("ERS") (Continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

For the year ended June 30, 2018, the School System recognized pension expense of $40,603. At June 30, 2018, the School System reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Difference between expected and actual experience

Deferred

Outflows of

Resources

$

2,873

Deferred

Inflows of

Resources

$

2

Changes of assumptions

597

-

Net difference between projected and actual earnings on pension plan investments

-

653

Changes in proportion and differences between Employer contributions and proportionate share of contributions

23,036

18,876

Employer contributions subsequent to the measurement date

36,522

-

Total

$

63,028 $

19,531

School System contributions subsequent to the measurement date of $36,522 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ending June 30, 2019 2020 2021 2022

$

(7,555)

19,020

2,943

(7,433)

57

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Employees' Retirement System ("ERS") (Continued)

Actuarial Assumptions

The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increase Investment rate of return

2.75% 3.25 - 7.00%, including inflation 7.50%, net of pension plan investment
expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB, set forward two years for males and females for service retirement and dependent beneficiaries. The RP-2000 Disables Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back seven years for males and set forward three years for females was used for death and 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 experience study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

58

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Employees' Retirement System ("ERS") (Continued)

Actuarial Assumptions (Continued)

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

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives

Target allocation
30.00 % 37.20
3.40 1.40 17.80 5.20 5.00

Total

100.00 %

*Rates shown are net of the 2.75% assumed rate of inflation.

Long-term expected real rate of return*
(0.05) % 9.00
12.00 13.50
8.00 12.00 10.50

Discount Rate

The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

59

NOTES TO FINANCIAL STATEMENTS

NOTE 11. RETIREMENT PLANS (CONTINUED)

Employees' Retirement System (ERS) (Continued)

Sensitivity of the School System's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the School System's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School System's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

Employer's proportionate share of the net pension liability

1% Decrease (6.50%)

Current Discount Rate
(7.50%)

1% Increase (8.50%)

$ 370,025 $

262,159 $ 170,147

Pension Plan Fiduciary Net Position

Detailed information about the pension plan's fiduciary net position is available in the separately issued ERS financial report which is publically available at www.ers.ga.gov/formspubs/formspubs.

Aggregate Amounts

Aggregated amounts for all pensions plans are as follows:

TRS

Net pension liability $ 417,029,779 $

Deferred outflows

83,792,193

Deferred inflows

9,260,134

Pension expense

47,264,571

ERS

PSERS

Total

262,159 $

- $ 417,291,938

63,028

-

83,855,221

19,531

-

9,279,665

40,603

1,084,081

48,389,255

60

NOTES TO FINANCIAL STATEMENTS
NOTE 12. OTHER POST-EMPLOYMENT BENEFITS
Plan Description
The School System participates in the State of Georgia School Employees' Post-employment Benefit Fund (the "School OPEB Fund") which is another post-employment benefit ("OPEB") plan administered by the State of Georgia Department of Community Health ("DCH"). Certified teachers and non-certified employees of the Board as defined in 20-2-875 of the O.C.G.A. are provided OPEB through the School OPEB Fund- a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund of the State of Georgia and administered by a Board of Community Health ("DCH Board"). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the DCH Board. The School OPEB Fund is included in the State of Georgia Comprehensive Annual Financial Report which is publicly available and can be obtained at https://sao.georgia.gov/comprehensive-annual-financialreports.
Benefits
The contribution requirements of plan members and participating employers are established and may be amended by the Board of the State of Georgia Department of Community Health. 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 of Community Health, the School OPEB Fund is substantially funded on a pay-as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions required and made to the School OPEB Fund from the School System were $15,357,241 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund.
61

NOTES TO FINANCIAL STATEMENTS

NOTE 12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

Effective July 1, 2017, the School System implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, which significantly changed the School System's accounting for OPEB amounts. The information disclosed in this note is presented in accordance with this new standard.

At June 30, 2018, the School System reported a liability of $401,859,478 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017, was determined using standard rollforward techniques. The School System's proportion of the net OPEB liability was actuarially determined based on employer contributions to the School OPEB Fund during the fiscal year ended June 30, 2017. At June 30, 2017, the School System's proportion was 2.860218%, which was an increase of 0.055751% from its proportion measured as of June 30, 2016.

For the year ended June 30, 2018, the School System recognized OPEB expense of $24,622,959. At June 30, 2018, the Board reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Changes of assumptions
Net difference between projected and actual earnings on OPEB plan investments Changes in proportion and differences between School System contributions and proportionate share of contributions School System contributions subsequent to the measurement date
Total

Deferred Outflows of
Resources

$

- $

Deferred Inflows of Resources
30,600,574

117,537

-

15,097,809

8,094,873

15,357,241 $ 30,572,587

$ 38,695,447

62

NOTES TO FINANCIAL STATEMENTS

NOTE 12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)

School System contributions subsequent to the measurement date of $15,357,241 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ending June 30,
2019 2020 2021 2022 2023 2024

School OPEB Plan

$

(4,214,795)

(4,214,795)

(4,214,795)

(4,214,795)

(4,244,180)

(2,376,741)

Actuarial assumptions

The total OPEB liability as of June 30, 2017, was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017:

Inflation rate Salary increases Long-term expected rate of return
Healthcare cost trend rate Ultimate trend rate Year of ultimate trend

2.75% TRS- 3.75%-9.00%, average, including inflation 3.88%, compunded annually, net of investment expense, and including inflation Pre-Medicare eligible - 7.75%, Medicare eligible 5.75% Pre-Medicare eligible - 5.00%, Medicare eligible 5.00% 2022

63

NOTES TO FINANCIAL STATEMENTS
NOTE 12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Actuarial assumptions (Continued)
Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:
For TRS Members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB, set forward one year for males, was used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB, set forward two years for males and four years for females, was used for death after disability retirement.
For PSERS Members: The RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB, set forward three years for males and two years for females, was used for the period after service retirement and for beneficiaries of deceased members. The RP2000 Disabled Mortality Table projected to 2025 with projection scale BB, set forward five years for both males and females, was used for the period after disability retirement.
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension system, which covered the five-year period ending June 30, 2014.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the School System and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
Additionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies, and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation.
64

NOTES TO FINANCIAL STATEMENTS

NOTE 12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Actuarial assumptions (Continued)

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

Asset class Local Government Investment Pool

Target allocation (%)
100.00 %

Long-term expected real rate of return (%)
3.88 %

Discount rate

The discount rate has changed since the prior measurement date from 3.07% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year taxexempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyer Index). The projection of cash flows used to determine the discount rate assumed that the current sharing of costs between the employer and the member will continue and that contributions from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the long-term expected rate of return on OPEB plan investments was applied to discount projected benefit payments until 2029. The discount rate of 3.58% was the single rate which, when applied to all projected benefit payments, resulted in the same present value of benefit payments when the above discussed calculations are combined. The calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability.

65

NOTES TO FINANCIAL STATEMENTS

NOTE 12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Sensitivity of the School System's proportionate share of the net OPEB liability to changes in the healthcare cost trend rate

The following presents the School System's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School System's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1-percentage-point higher (4.58%) than the current rate:

School System's proportionate share of the net OPEB liability

1% Decrease (2.58%)

Current Discount Rate
(3.58%)

1% Increase (4.58%)

$ 477,136,145 $ 401,859,478 $ 342,450,941

The following presents the School System's proportionate share of the net OPEB liability calculated using the healthcare cost trend rates of 5.00% to 7.75%, as well as what the Board's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (4.00% to 6.75%) or 1-percentage-point higher (6.00% to 8.75%) than the current rates:

School System's proportionate share of the net OPEB liability

1%

Current

Decrease

discount rate

(4.00% to 6.75%) (5.00 to 7.75%)

1% Increase (6.00 to 8.75%)

$ 333,095,724 $ 401,859,478 $ 491,389,780

NOTE 13. RISK MANAGEMENT
The School System is exposed to various risks of loss for claims associated with torts; theft of, damage to and destruction of assets; errors and omissions; natural disaster; Workers' Compensation; unemployment compensation; and dental benefits. The School System is self-insured for workers' compensation. The School System purchases commercial insurance for all other risks of loss. The School System has not experienced any significant reduction in insurance coverage from the previous years nor has it paid any settlements in excess of insurance coverage in the past three years.

66

NOTES TO FINANCIAL STATEMENTS

NOTE 13. RISK MANAGEMENT (CONTINUED)

Workers' Compensation

The School System is partially self-insured for Workers' Compensation claims of its employees. Claims exceeding $250,000, but less than $2,000,000 per occurrence are covered through a private insurance carrier. The School System is liable for any other claims filed. The School System has entered into a contract with a third party to administer the program. Activity is accounted for in the General Fund.

Changes in the balances of workers' compensation claims liabilities for the past two fiscal years for which the School System is self-insured are as follows:

Workers' Compensation

June 30, 2018

June 30, 2017

Unpaid claims, beginning of fiscal year Incurred claims (including IBNRs) Claim payments and changes in estimates Unpaid claims, end of fiscal year

$

3,330,395

$

2,658,555

3,081,526

3,105,352

(2,469,480)

(2,433,512)

$

3,942,441

$

3,330,395

NOTE 14. COMMITMENTS AND CONTINGENCIES
The School System is involved in a number of legal matters which either have or could result in litigation. Although the outcome of these lawsuits is not presently determinable, in the opinion of the School System's legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the School System.
The School System participates in numerous state and federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the School System has not complied with the rules and regulations governing grants, refunds of any money received may be required and the collectability of any related receivable at June 30, 2018, may be impaired. In the opinion of the School System, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingencies.
The School System is committed under outstanding construction contracts in the Capital Projects Fund in the amount of $63,141,857. Construction contracts include new school construction and expansion and renovation of existing facilities.

67

NOTES TO FINANCIAL STATEMENTS

NOTE 15. SUBSEQUENT EVENT
On July 16, 2018, the School System issued a tax anticipation note in advance of property tax collections with a financial institution in the amount of $40,000,000. Proceeds from this short-term loan was issued to provide cash for operations until property tax collections were received by the School District. The maturity date of the note was December 31, 2018, at which time the entire balance plus accrued interest was repaid.
Additionally, on September 26, 2019, the School System issued a tax anticipation note in advance of property tax collections with a financial institution in the amount of $30,000,000. Proceeds from this short-term loan was issued to provide cash for operations until property tax collections were received by the School District. The maturity date of the note was December 31, 2019, at which time the entire balance plus accrued interest was repaid.
NOTE 16. CHANGE IN ACCOUNTING PRINCIPLE
The District implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, through which accounting for OPEB plans and the related disclosure requirements were modified. A restatement to the July 1, 2017 beginning net position for the governmental and business-type activities, and the School Food Service Fund, was made to recognize this change in accounting principle. The resulting adjustments are as follows:

Net position, governmental activities, as previously reported Changes in accounting principles for the implementation of
GASB Statement No. 75 Net position, governmental activities,as restated

$ 491,317,966
371,692,156 $ 119,625,810

Net position, business -type activities, as previously reported Changes in accounting principles for the implementation of
GASB Statement No. 75 Net position, business-type activities, as restated

$ 12,656,162
29,024,464 $ (16,368,302)

Net position, School Food Service fund, as previously reported Changes in accounting principles for the implementation of
GASB Statement No. 75 Net position, School Food Service fund, as restated

$

9,101,403

29,024,464 $ (19,923,061)

68

Required Supplementary Information
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
TEACHERS' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30,

School System's proportion of the net pension liability

2018 2.243868%

2017 2.152851%

2016 2.197081%

2015 2.196357%

School System's proportionate share of the net pension liability

$ 417,029,779 $ 444,157,166 $ 334,483,765 $

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

638,963

920,560

683,558

Total

$ 417,668,742 $ 445,077,726 $ 335,167,323 $

School System's covered payroll

$ 257,711,710 $ 254,456,566 $ 235,884,198 $

277,480,737
572,053 278,052,790 224,071,946

School System's proportionate share of the net pension liability as a percentage of its covered payroll

161.82%

174.55%

141.80%

123.84%

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

79.33%

76.06%

81.44%

84.03%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

69

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
TEACHERS' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30,

Contractually required contribuitions

2018

2017

2016

$ 46,354,010 $ 36,775,461 $ 36,310,952 $

2015 31,018,772

Contributions in relation to the contractually required contribution
Contribution deficiency (excess)
School System's covered payroll
Contributions as a percentage of covered payroll

46,354,010

36,775,461

36,310,952

-

-

-

$ 275,752,588 $ 257,711,710 $ 254,456,566 $

31,018,772 -
235,884,198

16.81%

14.27%

14.27%

13.15%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

70

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
TEACHERS' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30, 2018
Changes of assumptions In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increases were adjusted to more closely reflect actual and anticipated experience. On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB, set forward one year for males.
71

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30,

School System's proportion of the net pension liability
School System's proportionate share of the net pension liability

2018 0.00% -

2017 0.00% -

2016 0.00% -

2015 0.00% -

State of Georgia's proportionate share of the net position liability associated with the School System
Total
School System's covered payroll
School System's proportionate share of the net pension liability as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the total pension liability

$ 5,379,011 $ 7,277,689 $ 4,487,155 $ 3,516,516 $ 5,379,011 $ 7,277,689 $ 4,487,155 $ 3,516,516 $ 23,425,764 $ 23,090,120 $ 21,459,053 $ 19,768,819

N/A 85.69%

N/A 81.00%

N/A 87.00%

N/A 88.29%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

72

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018
Changes of assumptions In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to the rates of mortality, retirement, and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB ,set forward three years for males and two years for females.
73

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30,

School System's proportion of the net pension liability

2018

2017

2016

2015

0.006455%

0.005568%

0.008875%

0.006853%

School System's proportionate share of the net pension liability

$ 262,159 $ 263,390 $ 359,562 $ 257,030

School System's covered payroll

$ 159,105 $ 129,462 $ 202,910 $ 154,312

School System's proportionate share of the net pension liability as a percentage of its covered payroll

164.77%

203.45%

177.20%

166.57%

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

76.33%

72.34%

76.20%

77.99%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

74

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30,

Contractually required contributions Contributions in relation to the contractually required contribution
Contribution deficiency (excess) School System's covered payroll

2018

2017

2016

2015

$

36,522 $

39,283 $

32,003 $

44,559

36,522

39,283

32,003

44,559

-

-

-

-

$ 147,922 $ 159,105 $ 129,462 $ 202,910

Contributions as a percentage of covered payroll

24.69%

24.69%

24.72%

21.96%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

75

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
EMPLOYEES' RETIREMENT SYSTEM FOR THE YEAR ENDED JUNE 30, 2018
Changes of assumptions On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to the rates of mortality, retirement, and withdrawal.
76

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30, 2018

School System's proportion of the net OPEB liability School System's proportion of the net OPEB liability School System's covered-employee payroll School System's proportionate share of the net OPEB liability as a
percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total OPEB liability

2018 2.860218% $ 401,859,478 $ 328,386,384
122.37% 1.61%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

77

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30,

Contractually required contribution

$

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

$

2018 15,357,241
15,357,241
-

2017

$

14,913,404

14,913,404

$

-

School System's covered-employee payroll Contributions as a percentage of covered-employee payroll

$ 333,958,749 4.60%

$ 328,386,384 4.54%

Note: Schedule is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.

78

CLAYTON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30, 2018
Changes of Benefit Terms In the June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. Changes of Assumptions In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. In the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. In the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed.
79

Combining Fund Schedules
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Adult Education Fund is used to account for federal grant funds passed through the Georgia Department of Technical and Adult Education for the purpose of providing a vocational curriculum program for adults.
The After School Program Fund is used to account for the after school program in place at all Clayton County elementary schools. Revenues consist of fees paid for the after school care of students.
The Athletics Fund is used to account for athletic events held on behalf of Clayton County's schools. Revenues consist primarily of ticket and concession sales.
The Lottery Fund is used to account for state grant funds flowing through the State of Georgia Department of Education for various programs as established by the state.
The South Metro Fund is used to account for the development center for children with physical and mental handicaps.
The Title I Fund is used to account for federal grant funds passed through the State of Georgia Department of Education to the School System to provide remedial education in the areas of reading and math and to provide a special education program for children who are physically handicapped.
The Title II Fund is used to account for federal grant funds passed through the State of Georgia Department of Education to the School System for the purpose of training teachers in math, science, foreign language, and computer science programs.
The Title III Fund is used to account for federal grant funds passed through the State of Georgia Department of Education to the School System for the purpose of providing assistance to limited English proficient children and youth in Clayton County schools in attaining English proficiency.
The All Other Special Revenue Funds is used to account for the activities of various other programs funded by local, state and federal funds.
The Title IV Fund is used to account for federal grant funds passed through the State of Georgia Department of Education to the School System for the purpose of improving student's academic achievement by increasing the capacity of states, local educational agencies, schools and local communities to: 1) provide all students with access to a well-rounded education; 2) improve school conditions for student learning; and 3) improve the use of technology in order to improve the academic achievement and digital literacy for all students.
The Title VI-B Preschool Fund is used to account for federal funds authorized by the Individuals with Disabilities Education Act that are passed through the State of Georgia Department of Education to the School System for the purpose of providing special education programs for children with disabilities ages three to five.

CLAYTON COUNTY BOARD OF EDUCATION
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (CONTINUED)
The Title VI-B Fund is used to account for federal funds in connection with the Individuals with Disabilities Education Act that are passed through the State of Georgia Department of Education to the School System for the purpose of providing special education programs for children in pre-kindergarten through 12th grade. The Vocational Programs Fund is used to account for federal grant funds passed through the State of Georgia Department of Education to the School System for the purpose of providing a vocational curriculum program. The School Discretionary Fund is used to account for the portion of the school activity resources used for general governmental expenditures.

CLAYTON COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018

ASSETS
Cash Receivables:
Accounts Intergovernmental Due from other funds Prepaid items
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll and payroll withholdings Other current liabilities Unearned revenue Due to other funds
Total liabilities
DEFERRED INFLOWS Unavailable revenue - charges for services
Total deferred inflows
FUND BALANCES
Restricted Committed for student programs Unassigned
Total fund balances
Total liabilities and fund balances
(Continued)

Special Revenue Funds

Adult Education

After School Program

Athletics

Lottery

$

- $

- $

17,170 $

-

176,349
1,423 -

570,161 -

50,000 -

473,376 -

$

177,772 $

570,161 $

67,170 $

473,376

$

2,590 $

13,273 -
161,909

177,772

-

5,306 $
-
5,306
-

405 $
70
58,444
58,919

18,714
454,662 -
473,376

-

-

-

-

-

-

-

564,855

-

-

-

564,855

$

177,772 $

570,161 $

-

-

8,251

-

-

-

8,251

-

67,170 $

473,376

80

Special Revenue Funds

South Metro

Title I

Title II

Title III

All Other Special Revenue

Title IV

$

- $

- $

- $

- $

- $

-

-

-

-

-

-

60,618

-

975,863

5,828,371

323,225

87,945

210,517

230,690

-

-

-

-

47,478

-

-

-

-

-

-

-

$

975,863 $ 5,828,371 $

323,225 $

87,945 $

318,613 $ 230,690

$

5,559 $ 1,518,889 $

35,996 $

13,068 $

30,455 $

5,884

534,191 -
436,113

577,141 -
3,732,341

105,591 -
181,638

39,824 -
35,053

26,748 -
1,435 240,681

224,806

975,863

5,828,371

323,225

87,945

299,319

230,690

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

19,294

-

-

-

-

-

-

-

-

-

-

-

19,294

-

$

975,863 $ 5,828,371 $

323,225 $

87,945 $

318,613 $

230,690

81

CLAYTON COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018

ASSETS

Special Revenue Funds

Title VI-B Preschool

Title VI-B

Vocational Programs

School Discretionary

Total Nonmajor Governmental
Funds

Cash Receivables:
Accounts Intergovernmental Due from other funds Prepaid items

$

- $

- $

- $ 3,806,724 $ 3,823,894

77,920
-

1,981,410
-

21,366
-

-

60,618

-

9,913,656

-

1,142,438

-

-

Total assets

$ 77,920 $ 1,981,410 $ 21,366 $ 3,806,724 $ 14,940,606

LIABILITIES AND FUND BALANCES

LIABILITIES

Accounts payable

$

28,734 $ 233,924 $

6,651 $

45,846 $ 1,952,021

Accrued payroll and payroll withholdings Other current liabilities Unearned revenue Due to other funds

11,360 -
37,826

512,162 -
1,235,324

14,715

-

2,274,952

-

70

-

1,435

-

6,358,850

Total liabilities

77,920

1,981,410

21,366

45,846

10,587,328

DEFERRED INFLOWS

Unavailable revenue - charges for services

-

-

-

-

-

Total deferred inflows

-

-

-

-

-

FUND BALANCES

Restricted Committed for student programs Unassigned
Total fund balances

-

-

-

-

-

-

-

-

3,760,878

4,353,278

-

-

-

-

-

-

-

-

3,760,878

4,353,278

Total liabilities and fund balances

$

77,920 $ 1,981,410 $

21,366 $ 3,806,724 $ 14,940,606

82

CLAYTON COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in
Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year
(Continued)

Special Revenue Funds

Adult Education

After School Program

Athletics

Lottery

$

30,256 $ 1,683,279 $

270,628 $

-

311,295

-

-

2,359,244

512,654

-

-

-

854,205

1,683,279

270,628

2,359,244

647,909 -
217,000 -
864,909

122,843 1,600,553 1,723,396

453,235 453,235

2,964,229 -
232,567 -
3,196,796

(10,704)

(40,117)

(182,607)

(837,552)

10,704 10,704
-

(40,117)

185,000 185,000
2,393

837,552 837,552
-

-

604,972

5,858

-

$

- $

564,855 $

8,251 $

-

83

Special Revenue Funds

South Metro

Title I

Title II

Title III

All Other Special Revenue

Title IV

$

- $

- $

- $

- $

6,400 $

-

3,779,594

-

-

-

1,176,945

-

609,377

22,784,666

1,494,378

667,334

656,613

382,816

4,388,971

22,784,666

1,494,378

667,334

1,839,958

382,816

2,753,454 522,412 10,374 33,987
1,068,744 -
4,388,971

16,952,851 3,249,575 1,305,143 1,203,871 27,987 45,239 -
22,784,666

1,088,403 -
312,846 93,129 -
1,494,378

409,415 12,523
178,627 -
66,769 -
667,334

1,176,945 224,210 303,910 10,844 253,064 -
1,968,973

371,227 -
11,589 -
382,816

-

-

-

-

(129,015)

-

-

-

-

-

130,776

-

-

-

-

-

130,776

-

-

-

-

-

1,761

-

-

-

-

-

17,533

-

$

- $

- $

- $

- $

19,294 $

-

84

CLAYTON COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in
Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year

Special Revenue Funds

Title VI-B Preschool

Title VI-B

Vocational Programs

School Discretionary

Total Nonmajor Governmental
Funds

$

- $

- $

- $ 7,462,150 $ 9,452,713

-

-

-

-

7,627,078

352,197

8,570,114

577,837

-

36,607,986

352,197

8,570,114

577,837

7,462,150

53,687,777

221,023 131,174
352,197

6,578,068 1,693,840
298,206 -
8,570,114

577,837 -
577,837

7,966,685 -
7,966,685

41,708,046 5,833,734 2,993,105 1,330,987 1,068,744 38,831 112,008 706,299 1,600,553
55,392,307

-

-

-

(504,535)

(1,704,530)

-

-

-

-

1,164,032

-

-

-

-

1,164,032

-

-

-

(504,535)

(540,498)

-

-

-

4,265,413

4,893,776

$

- $

- $

- $ 3,760,878 $ 4,353,278

85

CLAYTON COUNTY BOARD OF EDUCATION
SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year
(Continued)

Final Budget

Adult Education Actual

Variance With Final Budget

$

52,832 $

30,256 $

(22,576)

356,124

311,295

(44,829)

566,993

512,654

(54,339)

975,949

854,205

(121,744)

695,265 -
280,684 -
975,949

647,909 -
217,000 -
864,909

47,356 -
63,684 -
111,040

-

(10,704)

(10,704)

-

10,704

10,704

-

10,704

10,704

-

-

-

-

-

-

$

- $

- $

-

86

Final Budget

After School Program

Variance With

Actual

Final Budget

$ 1,366,995 $ 1,683,279 $

-

-

-

-

1,366,995

1,683,279

316,284 -
316,284

Final Budget

$

292,761

-

-

292,761

Athletics

Actual

$

270,628

-

-

270,628

Variance With Final Budget

$

(22,133)

-

-

(22,133)

125,708 1,000 1,240,287 1,366,995

122,843 1,600,553 1,723,396

2,865 1,000 (360,266) (356,401)

523,027 523,027

453,235 453,235

69,792 69,792

-

(40,117)

(40,117)

(230,266)

(182,607)

47,659

-

-

-

-

-

(40,117)

604,972

604,972

$

604,972 $

564,855 $

-
(40,117)
(40,117) $

230,266 230,266
-
5,858 5,858 $

185,000 185,000
2,393
5,858 8,251 $

(45,266) (45,266)
2,393
2,393

87

CLAYTON COUNTY BOARD OF EDUCATION
SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year
(Continued)

Final Budget

$

-

2,227,019

-

2,227,019

Lottery

Actual

$

-

2,359,244

-

2,359,244

Variance With Final Budget

$

-

132,225

-

132,225

1,964,969 -
262,050 -
2,227,019

2,964,229 -
232,567 -
3,196,796

(999,260) -
29,483 -
(969,777)

-

(837,552)

(837,552)

-

837,552

837,552

-

837,552

837,552

-

-

-

-

-

-

$

- $

- $

-

88

Final Budget

$

-

3,779,700

1,147,524

4,927,224

South Metro

Actual

$

-

3,779,594

609,377

4,388,971

Variance With Final Budget

$

-

(106)

(538,147)

(538,253)

Final Budget

$

-

-

33,996,766

33,996,766

Title I

Actual

$

-

-

22,784,666

22,784,666

Variance With Final Budget

$

-

-

(11,212,100)

(11,212,100)

3,297,913 660,571 25,000 33,987 909,753 -
4,927,224

2,753,454 522,412 10,374 33,987
1,068,744 -
4,388,971

544,459 138,159
14,626 -
(158,991) -
538,253

25,113,570 4,267,724 2,565,719 1,736,055 313,698 -
33,996,766

16,952,851 3,249,575 1,305,143 1,203,871 27,987 45,239 -
22,784,666

8,160,719 1,018,149 1,260,576
532,184 -
285,711 (45,239)
11,212,100

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

- $

- $

-

$

- $

- $

-

89

CLAYTON COUNTY BOARD OF EDUCATION
SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services Educational media services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year
(Continued)

Final Budget

$

-

-

2,461,822

2,461,822

Title II

Actual

$

-

-

1,494,378

1,494,378

Variance With Final Budget

$

-

-

(967,444)

(967,444)

2,013,338 -
311,646 -
136,838 -
2,461,822

1,088,403 -
312,846 -
93,129 -
1,494,378

924,935 -
(1,200) -
43,709 -
967,444

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

- $

- $

-

90

Final Budget

$

-

-

958,510

958,510

Title III

Actual

$

-

-

667,334

667,334

Variance With Final Budget

$

-

-

(291,176)

(291,176)

Final Budget

All Other Special Revenue

Variance With

Actual

Final Budget

$

17,373 $

6,400 $

1,475,367

1,176,945

968,010

656,613

2,460,750

1,839,958

(10,973) (298,422) (311,397) (620,792)

458,529 156,340 342,441
1,200 958,510

409,415 12,523
178,627 -
66,769 -
667,334

49,114 143,817 163,814
1,200 (66,769) 291,176

1,176,945 445,465 552,997 15,582 10,844 258,917 -
2,460,750

1,176,945 224,210 303,910 10,844 253,064 -
1,968,973

221,255 249,087
15,582
5,853 491,777

-

-

-

-

(129,015)

(129,015)

-

-

-

-

-

-

-

130,776

-

130,776

130,776 130,776

-

-

-

-

1,761

1,761

-

-

-

17,533

17,533

-

$

- $

- $

-

$

17,533 $

19,294 $

1,761

91

CLAYTON COUNTY BOARD OF EDUCATION
SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year
(Continued)

Final Budget

Title VI-B Preschool

Variance With

Actual

Final Budget

$

- $

- $

-

-

-

-

519,158

352,197

(166,961)

519,158

352,197

(166,961)

320,151 180,030
18,977 -
519,158

221,023 131,174
352,197

99,128 48,856 18,977
166,961

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

- $

- $

-

92

Final Budget

Title VI-B Actual

Variance With Final Budget

$

- $

-

15,545,716

15,545,716

- $

-

-

-

8,570,114

(6,975,602)

8,570,114

(6,975,602)

Final Budget

Vocational Programs

Variance With

Actual

Final Budget

$

- $

- $

-

-

577,991

577,837

577,991

577,837

(154) (154)

10,826,448

6,578,068

4,248,380

577,991

577,837

154

3,547,166

1,693,840

1,853,326

-

-

-

1,026,834

298,206

728,628

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

145,268

-

145,268

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

15,545,716

8,570,114

6,975,602

577,991

577,837

154

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

- $

- $

-

$

- $

- $

-

93

CLAYTON COUNTY BOARD OF EDUCATION
SPECIAL REVENUE FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

REVENUES Local sources State sources Federal sources Interest earned on investments Total revenues
EXPENDITURES Current: Instruction Pupil services Improvement of instructional services General administration School administration Student transportation Other support services Other non-instructional services Community service Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES Transfers in Total other financing sources
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year

Final Budget

Title IV Actual

Variance With Final Budget

$

- $

- $

-

-

-

-

547,932

382,816

(165,116)

-

-

-

547,932

382,816

(165,116)

483,018 35,000 29,914 -
547,932

371,227 -
11,589 -
382,816

111,791 35,000 18,325 -
165,116

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

- $

- $

-

94

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

STUDENT ACTIVITY FUND
ASSETS Cash and investments
LIABILITIES Due to student organizations
Elementary Schools: Anderson Arnold Brown Callaway Church Street East Clayton Edmonds Fountain Harper Hawthorne Haynie Huie Jackson Kemp Kemp Primary Kilpatrick King Lake City Lake Ridge Lee Street Marshall McGarrah Morrow Mt. Zion Mt. Zion Primary Northcutt Oliver Pointe South Riverdale River's Edge Smith Suder Swint Tara Unidos West Clayton White Academy Total Elementary Schools
(Continued)

Balance July 1, 2017

Increases

Decreases

Balance June 30, 2018

$

475,165 $

2,302,736 $

2,227,883 $

550,018

$

1,543

4,877

1,326

864

3,040

1,715

927

2,065

4,443

343

4,361

1,500

9,695

3,220

4,133

1,570

570

7,851

344

693

2,267

1,892

4,142

3,274

3,504

2,600

1,480

1,606

1,506 1,823

12,362

330

1,527

592

2,262

581

10,852

107,680

3,780 17,567 31,338
4,256 15,315
1,765 1,650 2,810 6,660 8,261 4,219 4,158 29,725 20,014 12,369 8,369 3,147 4,710 8,123 10,542 6,551 11,637 8,338 9,653 5,587 7,573 33,491 3,026 6,318 12,550
13,314 10,651
3,714 2,550 3,744 2,110 64,519 404,104

5,194 17,568 29,857
3,569 14,864
1,418 1,563 1,947 9,086 6,899 2,273 4,279 30,536 17,374 13,618 8,946 2,599 4,070 7,953 9,056 6,029 8,199 5,762 7,170 8,010 6,915 34,386 2,372 3,801 13,009
16,444 10,289
3,645 1,627 3,503 1,898 68,985 394,713

129 4,876 2,807 1,551 3,491 2,062 1,014 2,928 2,017 1,705 6,307 1,379 8,884 5,860 2,884
993 1,118 8,491
514 2,179 2,789 5,330 6,718 5,757 1,081 3,258
585 2,260 4,023 1,364
9,232 692
1,596 1,515 2,503
793 6,386 117,071

95

CLAYTON COUNTY BOARD OF EDUCATION
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Balance July 1, 2017

Increases

Decreases

Balance June 30, 2018

LIABILITIES (CONTINUED)

Due to student organizations (Continued) Middle Schools:
Adamson Babb Elite Scholars Forest Park Jonesboro Kendrick Lovejoy Morrow Mundy's Mill North Clayton Pointe South Rex Mill Riverdale Roberts Sequoyah
Total Middle Schools

$

4,321 $

31,754 $

28,616 $

7,459

6,402

32,536

30,859

8,079

1,604

59,141

56,129

4,616

3,026

12,527

13,618

1,935

4,231

12,913

14,016

3,128

17,954

66,993

72,535

12,412

974

21,106

16,693

5,387

4,270

41,238

34,954

10,554

4,347

31,105

22,161

13,291

6,364

27,437

20,737

13,064

3,277

24,471

24,668

3,080

14,060

66,264

63,094

17,230

2,061

21,158

19,384

3,835

26,020

80,411

71,958

34,473

2,495

15,687

15,355

2,827

101,406

544,741

504,777

141,370

High Schools and Special Purpose Programs:

Drew

$

Forest Park

Jonesboro

Lovejoy

Morrow

Mt. Zion

Mundy's Mill

North Clayton

Riverdale

Perry Center

Stilwell

Flint River

South Metro

Total High Schools and Special Purpose

Programs

Total due to student organizations

Total Liabilities

$

44,554 $ 20,082 15,268 28,216 40,998
9,719 39,286 13,862 18,284
558 34,590
246 416
266,079 475,165 475,165 $

145,402 $ 80,594 96,486
138,958 178,082 173,643 138,333
85,354 96,025 12,701 208,146
167 -
1,353,891 2,302,736 2,302,736 $

151,335 $ 85,842 96,661
120,686 169,044 168,892 153,647
80,748 91,288 12,159 197,678
413 -
1,328,393 2,227,883 2,227,883 $

38,621 14,834 15,093 46,488 50,036 14,470 23,972 18,468 23,021
1,100 45,058
416
291,577 550,018 550,018

-
96

Statistical Section
Clayton County Public Schools

STATISTICAL SECTION

This part of the Clayton County Board of Education's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the School System's overall financial health.

Contents

Page

Financial Trends .................................................................................................................................... 97 104 These schedules contain trend information to help the reader understand how the School System's financial performance and well-being have changed over time.

Revenue Capacity................................................................................................................................ 105 111 These schedules contain information to help the reader assess the School System's most significant local revenue sources.

Debt Capacity....................................................................................................................................... 112 115 These schedules present information to help the reader assess the affordability of the School System's current levels of outstanding debt and the School System's ability to issue additional debt in the future.

Demographic and Economic Information ......................................................................................... 116 119 These schedules offer demographic and economic indicators to help the reader understand the environment within which the School System's financial activities take place.

Operating Information ......................................................................................................................... 120 132 These schedules contain service and infrastructure data to help the reader understand how the information in the School System's financial report relates to the services the School System provides and the activities it performs.

Financial Trends
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
NET POSITION BY COMPONENT LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)

Fiscal Year Ended
June 30,

Governmental Activities 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Business-type Activities 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total

Net Investment in Capital Assets
$ 454,722,369 509,655,295 514,975,636 556,244,430 629,552,909 692,592,355 697,860,759 701,460,032 732,952,662 755,859,441
6,745,609 6,323,409 5,847,343 5,345,034 4,971,075 4,664,135 4,343,550 4,536,768 4,311,562 4,090,037
461,467,978 515,978,704 520,822,979 561,589,464 634,523,984 697,256,490 702,204,309 705,996,800 737,264,224 759,949,478

Restricted

$

75,170,499

76,436,913

107,326,734

94,959,761

50,650,232

7,453,160

25,018,520

49,076,743

51,276,442

52,579,247

-

75,170,499 76,436,913 107,326,734 94,959,761 50,650,232
7,453,160 25,018,520 49,076,743 51,276,442 52,579,247

Unrestricted

Total Net Position

$

39,738,569 $

19,633,982

34,102,935

42,725,690

63,922,382

75,900,621

(260,473,696)

(239,778,071)

(292,911,138)

(695,434,921)

569,631,437 605,726,190 656,405,305 693,929,881 744,125,523 775,946,136 462,405,583 510,758,704 491,317,966 113,003,767

5,260,291 4,250,447 3,670,506 5,523,597 7,219,819 8,402,538 6,137,845 6,848,135 8,344,600 (20,383,186)

12,005,900 10,573,856
9,517,849 10,868,631 12,190,894 13,066,673 10,481,395 11,384,903 12,656,162 (16,293,149)

44,998,860 23,884,429 37,773,441 48,249,287 71,142,201 84,303,159 (254,335,851) (232,929,936) (284,566,538) (715,818,107)

581,637,337 616,300,046 665,923,154 704,798,512 756,316,417 789,012,809 472,886,978 522,143,607 503,974,128
96,710,618

97

CLAYTON COUNTY BOARD OF EDUCATION
CHANGES IN NET POSITION LAST TEN FISCAL YEARS

Expenses: Governmental activities
Instructional services Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operations Pupil transportation Support services - central Other support services Non-instructional services Community services Interest Total governmental activities expenses
Business-type activities School food service Performing arts center
Total business-type activities expenses Total primary government expenses
Program Revenues: Governmental activities
Charges for services: Instructional services Pupil services Instructional staff Maintenance and operations Student transportation Support services Other support services Non-instructional services Community services
Operating grants and contributions Instructional services Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operations Pupil transportation Support services-central Other support services Non-instructional services Community services
Capital grants and contributions Instructional services
Total governmental activities revenue

2009

Fiscal Year

2010

2011

2012

$ 326,173,396 $ 299,228,401 $ 289,659,696 $ 296,417,202

16,664,267

16,355,400

13,464,906

14,551,823

25,553,694

23,188,322

11,912,843

15,202,766

7,789,435

7,839,592

5,277,130

5,225,436

5,008,540

4,429,848

3,537,595

3,473,960

24,529,652

23,897,928

22,068,201

21,176,371

3,490,943

2,816,870

2,574,738

2,143,768

35,601,121

32,152,942

29,342,130

30,606,213

22,484,075

22,035,391

18,493,121

17,990,667

11,774,644

9,325,934

9,666,757

10,956,308

4,436,898

5,464,771

3,550,816

5,066,385

1,293,256

1,398,357

858,066

918,407

11,956,697

10,737,821

9,783,485

2,446,409

2,995

-

-

-

496,759,613

458,871,577

420,189,484

426,175,715

32,860,220

28,756,695

28,142,446

28,097,834

426,702

352,312

271,104

211,090

33,286,922

29,109,007

28,413,550

28,308,924

$ 530,046,535 $ 487,980,584 $ 448,603,034 $ 454,484,639

$

8,073,750 $

7,360,729 $

7,268,417 $

7,122,767

-

-

-

-

5,624

8,416

-

-

-

-

-

1,738,894

-

-

-

-

-

-

-

-

2,620

3,233

1,851

2,754

272,591

300,636

4,574,055

8,813,883

9,610,775

8,425,266

7,982,611

1,543,621

185,098,116 3,681,184
15,719,475 4,980,672 1,906,241 8,822,397 726,203
12,346,817 4,020,197 2,508,607 7,487 360,911 2,447,997

179,348,500 3,840,784
14,652,112 5,048,222 2,245,639 9,417,316 770,916
12,530,318 3,106,713 2,482,733 1,294,178 2,494,785

191,262,473 3,870,407 8,241,160 5,250,269 1,736,626
10,105,190 807,810
12,616,895 3,195,117 2,678,889 1,209,526 2,303,110

196,060,639 4,666,461
11,820,745 4,603,200 2,096,166 8,885,059 1,272,151
12,672,840 3,765,960 1,415,583 2,225,391 -

11,322,264 271,913,928

13,158,977 266,489,473

5,521,459 268,625,865

268,706,114

98

2013

2014

Fiscal Year

2015

2016

2017

2018

$ 274,436,343 $ 296,878,576 $ 297,202,738 $ 310,587,901

14,683,816

13,203,254

14,025,845

15,558,510

15,796,653

15,833,477

19,513,550

22,300,438

5,092,396

5,609,458

5,253,474

5,171,790

3,626,977

3,127,409

4,761,203

3,462,769

19,467,775

23,966,530

22,719,854

24,839,452

1,939,044

2,244,748

2,244,181

2,871,479

27,785,685

31,960,317

35,366,992

33,512,594

18,086,692

18,450,638

18,854,508

19,842,103

6,742,195

7,567,806

12,555,458

9,810,033

5,230,988

5,165,030

8,171,240

8,488,216

668,652

1,005,468

1,170,450

1,245,390

1,382,974

1,399,265

1,394,705

1,489,766

-

-

-

-

394,940,190

426,411,976

443,234,198

459,180,441

355,548,266 20,604,479 24,409,886 6,346,177 13,165,267 28,908,499 3,699,757 37,154,682 22,327,835 10,985,292 4,013,195 1,271,329 1,464,021 -
529,898,684

387,163,582 22,587,200 21,733,172 6,688,537 7,102,414 31,429,970 5,646,571 39,565,111 24,613,821 10,572,138 3,591,846 1,206,941 1,599,636 -
563,500,939

29,584,227

31,391,613

34,186,940

37,061,777

38,527,414

37,943,474

237,737

251,027

233,425

283,267

300,235

327,201

29,821,964

31,642,640

34,420,365

37,345,044

38,827,649

38,270,675

$ 424,762,154 $ 458,054,616 $ 477,654,563 $ 496,525,485 $ 568,726,333 $ 601,771,614

$

7,125,820 $

8,675,990 $ 11,145,814 $

9,198,993 $

7,733,558 $

7,492,405

-

-

-

-

-

-

-

15,965

107,079

108,663

117,332

122,842

358,066

-

-

-

-

-

201,163

-

-

-

-

-

-

-

-

-

-

-

1,937

962

464

122,775

14,752

46,059

4,898,162

4,377,974

5,236,965

5,267,124

5,460,542

6,000,758

1,474,558

-

-

1,496,162

1,495,173

1,560,438

185,064,312 4,343,577
10,439,188 5,506,974 2,066,794
10,430,332 1,519,304
13,334,558 3,753,867 1,525,281 2,326,854 -

193,902,391 4,314,813
10,308,672 5,499,235 1,846,936
10,363,344 1,328,582
13,867,390 3,368,761 2,130,997 2,741,154 191,480 -

216,285,212 4,049,300 7,123,749 5,754,998 2,012,643
10,839,835 1,409,139
14,055,728 2,927,363 1,497,517 3,111,032 280,159 -

229,547,372 3,217,692 7,503,015 5,885,334 2,016,183
11,535,468 1,427,157
14,396,610 2,907,375 1,526,221 3,096,099 288,172 -

234,520,895 6,574,739 8,043,825 5,794,772 2,396,324
11,500,620 1,418,482
14,766,148 3,357,748 1,477,935 362,279 297,719 -

258,128,411 7,090,802 4,041,956 6,250,261 3,248,943
12,413,896 1,776,952
14,849,005 2,872,953 1,839,114 121,145 253,064 -

228,785 254,599,532

6,887,679 269,822,325

3,302,610 289,139,607

2,589,251 302,129,666

560,363 305,893,206

712,532 328,821,536

99

CLAYTON COUNTY BOARD OF EDUCATION
CHANGES IN NET POSITION LAST TEN FISCAL YEARS

Business-type activities Charges for services School food service Performing Arts center Operating grants and contributions School food service
Total business-type activities program revenues Total primary government program revenues
Net (Expense) Revenue Governmental activities Business-type activities Total primary government net expense
General revenues and other changes in net assets Property taxes Sales taxes Other taxes Non-program specific state and federal aid Local school activity Interest and investment earnings Gain on sale of assets Transfers
Total government activities
Business-type activities: Interest and investment earnings Transfers Gain on sale of assets
Total business-type activities
Total primary government
Change in Net Position Governmental activities Business-type activities Total primary government

2009

Fiscal Year

2010

2011

2012

$

2,684,373 $

2,321,346 $

2,050,732 $

2,229,141

249,268

236,175

187,542

62,508

25,159,432

25,084,941

25,085,843

27,354,321

28,093,073

27,642,462

27,324,117

29,645,970

$ 300,007,001 $ 294,131,935 $ 295,949,982 $ 298,352,084

$ (224,845,685) $ (192,382,104) $ (151,563,619) $ (157,469,601)

(5,193,849)

(1,466,545)

(1,089,433)

1,337,046

$ (230,039,534) $ (193,848,649) $ (152,653,052) $ (156,132,555)

$ 161,522,560 $ 148,094,346 $ 131,696,730 $ 121,423,671

49,121,173

53,669,034

48,353,695

48,656,878

1,377,987

983,594

859,735

875,671

26,847,151

20,855,861

20,855,861

23,494,466

5,361,901

4,229,182

- *

-

1,790,719

396,312

412,878

473,966

14,390

268,841

85,136

69,525

137,274

(20,313)

(21,301)

-

246,173,155

228,476,857

202,242,734

194,994,177

69,790 (137,274)
(67,484)

14,188 20,313
34,501

12,125 21,301
33,426

13,736 -
13,736

$ 246,105,671 $ 228,511,358 $ 202,276,160 $ 195,007,913

$ 21,327,470 $ 36,094,753 $ 50,679,115 $ 37,524,576

(5,261,333)

(1,432,044)

(1,056,007)

1,350,782

$ 16,066,137 $ 34,662,709 $ 49,623,108 $ 38,875,358

* In fiscal year 2011, various revenues were reclassified from general revenues to program revenues - charges for services.

100

2013

2014

Fiscal Year

2015

2016

2017

2018

$

1,997,313 $

161,314

151,302 $ 94,780

577,970 $ 67,039

680,996 $ 100,931

262,146 $ 141,847

338,093 137,025

28,983,556

32,266,406

34,346,668

37,403,625

39,694,915

37,863,840

31,142,183

32,512,488

34,991,677

38,185,552

40,098,908

38,338,958

$ 285,741,715 $ 302,334,813 $ 324,131,284 $ 340,315,218 $ 345,992,114 $ 367,160,494

$ (140,340,658) $ (156,589,651) $ (154,094,591) $ (157,050,775) $ (224,005,478) $ (234,679,403)

1,320,219

869,848

571,312

840,508

1,271,259

68,283

$ (139,020,439) $ (155,719,803) $ (153,523,279) $ (156,210,267) $ (222,734,219) $ (234,611,120)

$ 109,928,475 $ 100,378,621 $ 104,814,477 $ 103,729,200 $ 104,169,552 $ 115,417,127

50,302,317

44,910,769

46,579,860

51,260,120

53,919,064

58,626,357

2,479,402

6,555,960

8,157,973

9,382,245

8,779,960

10,134,638

27,623,377

36,438,859

34,232,464

40,911,935

37,313,744

43,722,231

-

-

-

-

-

-

117,347

113,496

109,660

51,882

92,036

100,189

85,382

10,100

-

131,514

290,384

56,818

-

2,459

-

(63,000)

-

-

190,536,300

188,410,264

193,894,434

205,403,896

204,564,740

228,057,360

2,044 -
2,044

8,390 (2,459)
5,931

4,707 -
4,707

63,000
63,000

-

-

-

-

-

6,870

-

6,870

$ 190,538,344 $ 188,416,195 $ 193,899,141 $ 205,466,896 $ 204,564,740 $ 228,064,230

$ 50,195,642 $ 31,820,613 $ 39,799,843 $

1,322,263

875,779

576,019

$ 51,517,905 $ 32,696,392 $ 40,375,862 $

48,353,121 $ (19,440,738) $

903,508

1,271,259

49,256,629 $ (18,169,479) $

(6,622,043) 75,153
(6,546,890)

101

CLAYTON COUNTY BOARD OF EDUCATION
FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

Fiscal Year Ended June 30,
2009 2010

Reserved
-

General Fund

Unreserved

Unreserved

Designated

Undesignated

-

37,015,898

-

15,660,602

Total
37,015,898 15,660,602

2009 2010

Reserved
-

All Other Governmental Funds

Unreserved

Special Revenue

Capital Projects

4,944,145 5,432,560

75,170,499 76,436,913

Total
80,114,644 81,869,473

2011 2012 2013 2014 2015 2016 2017 2018

Nonspendable

$

41,250

35,000

90,964

100,168

108,564

105,904

141,640

147,239

General Fund

Restricted

Assigned

$

-

$

-

-

-

-

-

-

-

22,179,645

-

31,509,111

-

34,731,866

-

34,731,866

Unassigned
$ 28,247,867 38,327,401 56,429,149 74,311,992 56,002,569 51,546,900 7,143,888 (11,597,135)

2011 2012 2013 2014 2015 2016 2017 2018

Nonspendable

$

-

-

-

-

-

-

-

-

All Other Governmental Funds

Restricted

Assigned

$ 107,326,734 94,959,761 50,650,232 7,453,160 25,018,520 49,076,743 51,276,442 52,579,247

$

6,521,236

4,760,921

5,119,465

5,163,429

5,028,854

4,718,977

4,893,776

4,353,277

Unassigned

$

-

(42,851)

-

-

-

-

(84,642)

Note: In fiscal year 2011, the School System adopted GASB 54 which changed the classifications of fund balance.

102

CLAYTON COUNTY BOARD OF EDUCATION
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

Revenues: Local sources State sources Federal sources Interest earned on investments
Total revenues
Expenditures: Current: Instructional services Pupil services Improvement of instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services On-behalf payments Other non-instructional services Community service Capital outlay Debt service: Principal retirement Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses): Sale of capital assets Transfer in Transfers out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital expenditures

2009

Fiscal Year

2010

2011

2012

$ 236,158,812 239,563,950 39,790,750 1,790,719
517,304,231

$ 224,080,154 211,161,926 58,901,510 396,312
494,539,902

$ 202,005,781 225,951,240 42,691,134 412,878
471,061,033

$ 189,018,853 225,789,473 47,204,487 473,966
462,486,779

300,620,268 16,636,729 25,550,792 7,788,758 4,674,133 24,325,141 3,470,348 35,200,907 20,227,700 11,339,185 4,449,389 1,282,815 11,977,565 77,176,502
24,793 2,995
544,748,020
(27,443,789)

291,480,509 16,437,777 23,265,654 7,839,167 4,392,803 23,857,513 2,820,123 32,031,887 19,875,107 9,032,684 5,464,771 1,367,078 10,736,383 65,790,820
-
514,392,276
(19,852,374)

276,880,679 13,599,670 12,115,303 5,276,279 3,475,667 21,982,071 2,551,289 29,180,214 15,643,181 8,386,233 3,550,816 828,279 9,783,485 23,264,690
-
426,517,856
44,543,177

281,944,616 14,629,255 15,252,324 5,224,585 3,347,211 21,277,130 2,189,673 30,451,346 16,041,104 6,647,633 5,066,385 895,063 2,446,409 61,373,053
-
466,785,787
(4,299,008)

26,785 734,177 (680,067)
80,895
(27,362,894)

272,220 422,824 (443,137)
251,907
(19,600,467)

85,136 237,682 (258,983)
63,835
44,607,012

202,153 23,805 (23,805)
202,153
(4,096,855)

0.01%

0.01%

0.00%

0.00%

103

2013

2014

Fiscal Year

2015

2016

2017

2018

$ 175,498,829 233,999,813 33,006,129 117,347
442,622,118

$ 169,375,757 253,751,123 38,582,753 113,496
461,823,129

$ 176,820,222 269,909,227 36,702,290 109,660
483,541,399

$ 179,685,236 289,197,140 37,515,504 51,882
506,449,762

$ 181,704,442 291,193,370 36,433,283 92,036
509,423,131

$ 200,878,939 319,741,805 37,197,135 100,189
557,918,068

254,809,048 13,084,577 15,808,070 5,091,545 3,485,599 21,074,910 1,937,246 27,873,512 16,682,505 6,380,546 5,230,988 714,765 1,382,974 94,905,861
-
468,462,146
(25,840,028)

266,021,147 13,185,489 16,298,275 5,608,607 3,001,000 21,960,773 2,222,126 32,036,483 16,898,474 6,886,945 5,306,530 931,815 1,399,265 95,339,820
-
487,096,749
(25,273,620)

282,533,495 14,411,017 19,990,827 5,446,811 4,591,596 23,268,814 2,298,166 36,143,408 18,107,722 12,397,616 8,258,167 1,039,630 1,397,125 32,353,981
-
462,238,375
21,303,024

297,593,226 16,012,830 22,881,631 5,396,294 4,177,527 25,524,904 2,933,303 34,108,053 19,080,749 9,293,813 8,588,846 1,075,451 1,494,408 29,800,758
-
477,961,793
28,487,969

327,145,798 20,197,679 23,812,077 6,159,344 12,966,742 27,683,837 3,604,838 36,488,420 21,200,337 10,372,788 3,940,509 1,113,845 1,460,191 52,344,359
-
548,490,764
(39,067,633)

349,297,606 22,189,095 21,337,798 6,560,431 6,814,406 30,533,898 3,741,693 38,651,167 22,643,896 9,908,575 3,581,968 1,045,682 1,600,553 58,125,878
-
576,032,646
(18,114,578)

89,606 92,200 (92,200)
89,606
(25,750,422)

10,100 304,292 (301,833)
12,559
(25,261,061)

6,379 420,633 (420,633)
6,379
21,309,403

131,514 742,429 (742,429)
131,514
28,619,483

297,610 559,712 (559,712)
297,610
(38,770,023)

56,818 1,159,453 (1,159,453)
56,818
(18,057,760)

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

104

Revenue Capacity
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS
(UNAUDITED - IN THOUSANDS) MAINTENANCE AND OPERATIONS

Fiscal Year

Real & Personal

Property

Estimated

Assessed

Actual

Value

Value

Privately Owned

Public Utilities

Estimated

Assessed

Actual

Value

Value

Motor Vehicles

and Mobile Homes

Estimated

Assessed

Actual

Value

Value

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Note: Note:

$ 7,788,733 $ 19,471,832 $ 1,004,944 $ 2,512,359 $ 740,214 $ 1,850,534

7,549,508

18,873,770

1,007,183

2,517,958

621,749

1,554,373

6,533,685

16,334,212

907,396

2,268,490

621,749

1,554,374

6,126,861

15,317,153

856,786

2,141,965

433,061

1,082,651

5,642,283

14,105,706

872,445

2,181,112

455,950

1,139,876

5,584,027

13,960,067

785,766

1,964,415

494,307

1,235,769

5,660,994

14,152,484

742,662

1,856,656

444,260

1,110,651

5,995,707

14,989,267

800,435

2,001,087

285,638

714,096

6,136,277

15,340,693

668,023

1,670,056

213,851

534,628

6,447,694

16,119,234

722,279

1,805,698

158,451

396,128

Property Tax Division, Clayton County Tax Commission Tax rates are per $1,000 of assessed value.

Property in Clayton County is reassessed once every three years. The County assesses property at 40% of actual value for all types of property. Estimated Actual Taxable Value is calculated by dividing Total Taxable Assessed Value by this percentage.

105

Total School Board

Estimated

Assessed

Actual

Value

Value

Taxpayer Exemptions

Net Assessed
Value

Millage Rate

Total Tax Levy

Assessed Value as a Percentage of Actual
Value

$ 9,533,891 $ 23,834,725 $ 1,264,115 $ 8,269,776

9,178,440

22,946,101

1,145,096

8,033,344

8,062,830

20,157,076

1,022,513

7,040,317

7,416,708

18,541,769

1,038,686

6,378,022

6,970,678

17,426,694

1,167,967

5,802,711

6,864,100

17,160,251

1,124,912

5,739,188

6,847,916

17,119,791

1,144,443

5,703,473

7,081,780

17,704,450

1,139,208

5,942,572

7,018,151

17,545,377

1,242,150

5,776,001

7,328,424

18,321,060

1,272,098

6,056,326

0.0198 $ 164,039

0.0200

160,667

0.0200

140,806

0.0200

127,560

0.0200

116,054

0.0200

114,784

0.0198

112,952

0.0191

113,473

0.0191

110,293

0.0191

115,646

40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00%

106

CLAYTON COUNTY BOARD OF EDUCATION
DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)

Fiscal Year
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

District Direct Rates

School

Debt

M & O

Service

19.836

-

19.836

-

20.000

-

20.000

-

20.000

-

20.000

-

20.000

-

19.804

-

19.095

-

19.095

-

19.095

-

Total
19.836 19.836 20.000 20.000 20.000 20.000 20.000 19.804 19.095 19.095 19.095

State of
Georgia
0.250 0.250 0.250 0.250 0.250 0.200 0.150 0.100 0.050 0.050
-

Fiscal Year

Overlapping Rates (Continued )

City of Jonesboro

City of

Fire

Lake

M & O

District

City

2008 2009 2010 2011 2012 2013 2014 2015
2016
2017
2018

1.500 1.500 1.500 1.188
1.500
1.500
1.500

3.900 3.900
-
-
-
-

5.740 5.737 5.737 5.737 7.500 7.500 7.500 7.188
7.550
7.550
7.550

Source: Clayton County Tax Commissioner's Office

City of Lovejoy Fire District
3.900 3.900
-
-
-

Overlapping Rates

City of College
Park

City of Forest Park

City of Morrow

9.560 9.560 9.560 11.560 11.560 12.619 12.619 12.307 12.619
12.619
12.619

10.343 10.343 12.343 13.343 14.743 14.743 14.743 14.431 14.743
14.743
14.743

5.000 5.000 6.000 6.000 7.500 7.500 9.500 9.188 9.500
9.640
9.370

City of Riverdale
7.500 7.500 7.500 7.500 7.500 9.980 9.980 9.668 9.980 9.980 7.500

M & O

Clayton County Board of Commissioners Fire District

Total

8.535 8.962 11.436 11.327 15.813 14.912 14.661 14.869
15.862
16.596
16.596

3.900 3.900 4.400 4.400 4.400 5.000
5.000
5.000
5.000

8.535 8.962 15.336 15.227 20.213 19.312 19.061 19.869
20.862
21.596
21.596

107

CLAYTON COUNTY BOARD OF EDUCATION
PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO

Taxpayer

Calendar Year 2017

Taxable Assessed
Value

Rank

Percent of District's Total
Taxable Value (1)

Calendar Year 2008

Taxable Assessed
Value

Rank

Percent of District's Total
Taxable Value (1)

Delta Airlines *

$ 650,178,137

1

Georgia Power Company

176,978,982

2

8.87% $ 1,052,745,323

1

2.41%

114,577,982

3

11.04% 1.20%

Air Tran Airways

-

-

0.00%

156,916,487

2

1.65%

Clorox Company

38,481,428

8

0.53%

-

-

0.00%

AMB Partners

30,725,776

9

0.42%

53,260,900

6

0.56%

Atlanta Gas Light

40,162,506

7

0.55%

33,226,192

9

0.35%

BellSouth

73,187,850

4

1.00%

36,017,587

8

0.38%

Southwest Airlines City of Atlanta

65,502,844

6

205,607,466

2

0.89% 2.81%

-

-

92,557,359

4

0.00% 0.97%

Fedex Ground

-

-

0.00%

43,144,568

7

0.45%

Atlantic Southeast

-

-

0.00%

89,682,513

5

0.94%

Spirit Airlines

25,899,091 10

0.35%

-

-

0.00%

Southlake Mall American Airlines

-

-

76,825,552

5

0.00% 1.05%

29,352,522

10

-

-

0.31% 0.00%

$ 1,383,549,632

17.48% $ 1,701,481,433

17.85%

Source: Clayton County Tax Commissioner's Office

(1) District's total taxable value for 2017 (fiscal year 2018)

$ 7,328,424,037

(2) District's total taxable value for 2008 (fiscal year 2009)

$ 9,533,890,115

108

CLAYTON COUNTY BOARD OF EDUCATION
PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN TAX YEARS

Tax Year

Taxes Levied For The Tax Year

Collected within the

Fiscal Year of the Levy

Percentage

Amount

of Levy

Collections in Subsequent
Years

Total Collections to Date

Percentage

Amount

of Levy

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$ 161,586,307 164,039,251 161,250,712 140,806,351 127,560,448 116,054,221 114,783,760 112,951,579 113,473,403 110,292,740 115,645,547

$ 158,094,788 159,495,677 156,342,764 134,322,336 121,851,194 111,310,517 110,036,549 108,449,460 110,305,279 105,954,905 111,490,819

97.84% $ 3,070,185

97.23%

4,310,776

96.96%

4,639,719

95.40%

5,776,140

95.52%

4,946,998

95.91%

3,849,292

95.86%

2,036,119

96.01%

-

97.21%

-

96.07%

-

96.41%

6,546,866

$ 161,164,973 163,806,453 160,982,483 140,098,476 126,798,192 115,159,809 112,072,668 108,449,460 110,305,279 105,954,905 118,037,685

99.74% 99.86% 99.83% 99.50% 99.40% 99.23% 97.64% 96.01% 97.21% 96.07% 102.07%

Source: Note:

Clayton County Tax Commissioner's Office
This schedule recognizes collections on a calendar year (tax year) basis, whereas property tax collections reported in the basic financial statements are on a fiscal year basis.

109

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF REVENUES BY SOURCE GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

Revenues: Local sources State sources Federal sources Interest earned on investments On-behalf payments Other sources Total revenues

2009

2010

Fiscal Year 2011

2012

2013

$ 236,387,341 $ 224,080,154

264,830,746

211,161,926

37,089,659

58,901,510

$ 202,005,781 225,951,240 42,691,134

$ 189,018,853 225,789,473 47,204,487

$ 175,498,829 233,999,813 33,006,129

5,534,144 -
$ 543,841,890

396,312 -
$ 494,539,902

412,878 -
$ 471,061,033

473,966 -
$ 462,486,779

117,347 -
$ 442,622,118

Note: In fiscal year 2008, the School System began reporting On-behalf payments with state sources.

110

2014

2015

Fiscal Year 2016

2017

2018

$ 169,375,757 253,751,123 38,582,753

$ 175,498,829 233,999,813 33,006,129

$ 179,685,236 289,387,310 37,515,504

$ 181,704,442 291,193,370 36,433,283

$ 200,878,939 319,741,805 37,197,135

113,496 -
$ 461,823,129

117,347 -
$ 442,622,118

51,882 -
$ 506,639,932

92,036 -
$ 509,423,131

100,189 -
$ 557,918,068

111

Debt Capacity
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

Fiscal Year Ended
June 30, 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Capital Lease
-

General Obligation
Bonds -

Notes: *See Schedule of Demographic and Economic Statistics

Total Primary Government
-

Percentage of Personal
Income* 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Per Capita*
-

112

CLAYTON COUNTY BOARD OF EDUCATION
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2018

Direct Debt Clayton County Board of Education
Overlapping Debt Clayton County Landfill Authority
Total Direct and Overlapping Debt

Estimated Outstanding
Debt

Percentage Applicable to Clayton County Board of Education

Amount Applicable to Clayton County Board of Education

$

-

- $

-

39,435,000 7,180,000

$

46,615,000

100% 100%
$

39,435,000 7,180,000
46,615,000

Note:

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the School System. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses within the School System's boundaries. This process recognizes that, when considering the School System's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government.

The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county/authority's taxable assessed value that is within the School System's boundaries and dividing it by the county/authority's total taxable assessed value.

Source: Clayton County Board of Education and Clayton County Board of Commissioners

113

CLAYTON COUNTY BOARD OF EDUCATION
LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Debt limit Total net debt applicable to limit Legal debt margin
Total net debt applicable to the limit as a percentage of debt limit

2009 $ 1,633,421,200
$ 1,633,421,200
0.00%

2010 $ 1,531,715,300
$ 1,531,715,300
0.00%

Fiscal Year 2011
$ 1,410,570,600 -
$ 1,410,570,600
0.00%

2012 $ 1,396,006,700
$ 1,396,006,700
0.00%

2013 $ 697,067,800
$ 697,067,800
0.00%

114

2014 $ 686,097,000
$ 686,097,000

2015 $ 684,791,600
$ 684,791,600

Fiscal Year 2016
$ 708,178,000 -
$ 708,178,000

2017 $ 701,815,100
$ 701,815,100

2018 $ 732,842,404
$ 732,842,404

0.00%

0.00%

0.00%

0.00%

0.00%

Legal Debt Margin Calculation for Fiscal Year 2018 Assessed Value Debt Limit (10% of assessed value) Debt applicable to limit:
General obligation bonds Total net debt applicable to limit Legal debt margin

$ 7,328,424,040 732,842,404
$ 732,842,404

115

Demographic & Economic Information
Clayton County Public Schools

CLAYTON COUNTY BOARD OF EDUCATION
DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS

Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Population
275,580 277,463 279,580 267,180 269,610 272,600 270,640 274,070 280,830 285,030

Personal Income* (in thousands)
5,960,557 6,140,280 6,274,560 6,551,330 6,551,720 7,157,660 6,936,580 6,728,520 6,857,750 7,163,220

* Woods & Poole Economics Data Pamphlet ** Georgia Department of Labor/Clayton County Chamber of Commerce

Per Capita Personal Income
21,629 22,130 22,443 24,520 24,301 26,257 25,630 24,550 24,420 25,131

County Unemployment
Rate**
12.5% 12.3% 13.0% 11.5% 11.0%
9.4% 7.9% 6.6% 6.2% 5.0%

116

CLAYTON COUNTY BOARD OF EDUCATION
PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO

Taxpayer Clayton County School System Clayton County Board of Commissioners Gate Gourmet Inc. Southern Regional Medical Center FedEx Ground Fresh Express, Inc. FedEx Ground Walmart Super Center TOTO USA, Inc. Standard Parking Corporation R + L Carriers, Inc. Clayton State University Kroger
Totals

Number of Employees
7,000 2,550 1,200 1,100
800 800 700
675 562 530
15,917

2017
Rank 1 2 3 4 5 6 7 8 9 10 -

Percent of Total
County Employment

Number of Employees

4.26%

7,400

1.55%

2,640

0.73%

1,710

0.67%

1,200

0.49%

800

0.46%

900

0.49%

-

0.00%

825

0.41%

700

0.34%

-

0.32%

-

0.00%

675

0.00%

579

9.68%

17,429

2008
Rank 1 2 3 4 7 5 6 8 9 10

Percent of Total
County Employment
4.50% 1.61% 1.04% 0.73% 0.49% 0.55% 0.00% 0.50% 0.43% 0.00% 0.00% 0.41% 0.35% 10.61%

Source: 2017- Clayton County Office of Economic Development. 2008 - Clayton County Chamber of Commerce.

Note:

Total employment in Clayton County for 2017 was 176,470 and in 2008 was 149,841. (Woods & Poole Economic Data Pamphlet 2008 and 2017).

117

CLAYTON COUNTY BOARD OF EDUCATION
STUDENT ETHNICITY STATISTICS LAST TEN FISCAL YEARS

Gender

Race

Female

American Indian/Alaskan Native Asian, Pacific Islander Black, not of Hispanic origin Hispanic Multi-racial White, not of Hispanic origin
Sub Total

2009
18 1,030 17,387 3,582
904 1,043 23,964

2010
56 1,153 17,454 4,116
741 932 24,452

2011
47 1,159 17,667 4,399
744 844 24,860

2012
62 1,151 17,720 4,347
732 813 24,825

2013
43 1,162 17,876 4,616
740 792 25,229

Male

American Indian/Alaskan Native Asian, Pacific Islander Black, not of Hispanic origin Hispanic Multi-racial White, not of Hispanic origin
Sub Total System Total

30 1,147 18,514 3,736
938 1,179 25,544 49,508

55 1,213 18,411 4,256
767 1,050 25,752 50,204

56 1,228 18,708 4,545
702 919 26,158 51,018

65 1,222 18,548 4,524
686 895 25,940 50,765

58 1,242 18,768 4,868
678 914 26,528 51,757

Source:

Georgia Department of Education Website

118

2014
41 1,082 17,785 4,962
711 756 25,337

2015
46 1,101 18,150 5,225
757 727 26,006

2016
1,073 18,448
5,498 726 674
26,419

2017
43 1,022 18,614 5,661
706 638 26,684

2018
48 1,018 18,719 5,891
699 527 26,902

50 1,174 18,848 5,126
673 822 26,693 52,030

49 1,155 19,236 5,435
666 820 27,361 53,367

52 1,159 19,425 5,599
682 754 27,671 54,090

52 1,149 19,317 5,805
648 690 27,661 54,345

56 1,083 19,019 5,891
644 620 27,313 54,215

119

Operating Information
Clayton County Public Schools

Year Ended June 30,
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CLAYTON COUNTY BOARD OF EDUCATION
STUDENT ENROLLMENT STATISTICS LAST TEN YEARS

Average Daily
Membership
48,945 49,474 49,474 50,663 51,154 51,962 53,078 53,822 49,511 54,254

Average Daily
Attendance
46,478 47,111 47,917 48,500 48,899 49,416 50,358 50,995 49,416 51,274

Attendance Percentage
94.96% 95.22% 96.85% 95.73% 95.59% 95.10% 94.88% 94.75% 99.81% 94.51%

Official State October 1 Enrollment Count
49,508 50,204 50,366 51,018 51,757 52,296 53,367 54,136 54,345 54,530

120

Fiscal Year
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CLAYTON COUNTY BOARD OF EDUCATION
TEACHERS' BASE SALARIES LAST TEN FISCAL YEARS

Minimum Salary

$

39,809

$

40,624

$

40,624

$

39,555

$

39,555

$

39,555

$

39,555

$

40,742

$

40,962

$

43,517

$

44,387

Median Salary

$

59,635

$

61,527

$

61,452

$

59,908

$

59,908

$

59,908

$

59,908

$

61,705

$

62,039

$

66,408

$

67,736

Maximum Salary

$

79,461

$

82,430

$

82,280

$

80,261

$

80,261

$

80,261

$

80,261

$

82,669

$

83,116

$

89,299

$

91,085

Percent Change
6.29% 3.74% -0.18% -2.45% 0.00% 0.00% 0.00% 3.00% 0.54% 7.44% 2.00%

121

CLAYTON COUNTY BOARD OF EDUCATION
HISTORY OF HIGH SCHOOL GRADUATES LAST TEN SCHOOL YEARS

School Year

Drew High

Forest Park High

Jonesboro High

Lovejoy High

Morrow High

Mount Zion High

Mundy's Mill High

North Clayton
High

Riverdale High

Alternative Programs

Total

2009

-

230

271

361

316

238

355

215

294

234

2,514

2010

-

218

214

297

284

240

305

225

293

279

2,355

2011

34

264

229

365

332

352

375

216

309

34

2,510

2012

251

307

201

389

283

258

329

175

209

251

2,653

2013

275

230

254

335

276

253

300

125

188

168

2,404

2014

284

279

256

371

304

288

336

140

235

44

2,537

2015

250

292

279

398

369

244

382

151

242

100

2,707

2016

269

347

264

385

343

199

352

162

272

137

2,730

2017

271

329

267

378

383

259

335

170

283

160

2,835

2018

239

304

238

306

326

214

289

138

217

-

2,271

122

CLAYTON COUNTY BOARD OF EDUCATION
RATIO OF PUPILS TO PROFESSIONAL PERSONNEL LAST TEN FISCAL YEARS

Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Classroom Teachers (1)
3,819 3,576 3,412 3,127 3,011 3,045 3,096 3,135 3,282 2,841

Support Personnel (2)
3,482 3,159 2,917 2,816 2,703 2,641 3,080 3,101 3,114 3,042

Administrators (3) 215 219 209 199 199 218 239 241 244 255

Total Personnel
7,516 6,954 6,538 6,142 5,913 5,904 6,415 6,477 6,640 6,138

Average Daily
Enrollment 46,478 49,475 47,917 47,879 51,154 51,962 53,078 53,822 54,530 54,840

Ratio of Pupils to Classroom Teachers
12.2 13.8 14.0 15.3 17.0 17.1 17.1 17.2 16.6 19.3

Notes: (1) Classroom Teachers- All Teachers, certified and non-certified. (2) Support Personnel- Includes Media Specialist, Counselors, Clerical, Paraprofessionals, Custodians, Maintenance, Transportation, Nutritional Services and other Support Personnel. (3) Administrators - Includes the Superintendent, Asst. Superintendents, Principals, Asst. Principals, Directors, Coordinators and Instructional Supervisors.

123

Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CLAYTON COUNTY BOARD OF EDUCATION
COST PER PUPIL ENROLLED LAST TEN FISCAL YEARS

Expenditures
$ 496,759,613 458,871,577 420,189,484 426,175,715 394,426,873 425,016,774 409,173,771 428,809,990 478,353,853 462,514,460

Average Daily
Enrollment
46,478 47,111 47,917 50,663 51,154 51,962 50,358 50,995 54,530 54,840

Cost Per Pupil Enrolled

$

10,688

9,740

8,769

8,412

7,711

8,179

8,125

8,409

8,772

8,434

Percentage of
Change
9.03% -8.87% -9.97% -4.07% -8.34% 6.08% -0.66% 3.49% 4.32% -3.86%

124

CLAYTON COUNTY BOARD OF EDUCATION
NUTRITION SERVICES - FACTS AND FIGURES LAST TEN FISCAL YEARS

Number of schools participating in:
Lunch - regular schedule Lunch - year round Breakfast program
Student lunches served: Free Reduced Fully paid Total
Adult lunches served
Student breakfasts served: Free Reduced Fully paid Total
Number of serving days: Regular schedule Year-round schedule Weighted average
Average daily participation: Student lunch Adult lunch Student breakfast
October 1 pupil count (Kindergarten not included) Percentage of students daily eating school lunch
October 1 count of benefits Students on free lunch Student on reduced lunch
Percentage of students on: Free lunch Reduced lunch Total

2009

2010

Fiscal Year 2011

2012

2013

60

61

61

60

60

-

-

-

1

1

60

61

61

61

61

5,163,769 793,806
1,198,349 7,155,924
337,667

5,523,779 683,265
1,007,164 7,214,208
300,910

5,742,787 501,529 910,669
7,154,985
248,644

5,998,933 557,755 811,167
7,367,855
165,504

6,177,665 514,819 634,576
7,327,060
131,968

2,611,826 299,277 322,811
3,233,914

2,766,691 271,852 285,175
3,323,718

2,855,986 213,274 263,094
3,332,354

3,098,269 247,560 246,104
3,591,933

3,153,544 230,084 192,917
3,576,545

185 -
185.00

179 -
179.00

175 -
175.00

175 175 175.00

175 175 175.00

38,681 1,825
17,481

40,303 1,681
18,568

40,886 1,421
19,042

42,102 946
20,525

41,869 754
20,437

45,399

45,579

50,366

46,734

46,622

85.20%

88.42%

81.18%

90.09%

89.81%

32,807 5,459

37,773 3,746

38,395 3,896

38,911 3,691

40,087 3,660

72.26% 12.02% 84.29%

82.87% 8.22%
91.09%

76.23% 7.74%
83.97%

83.26% 7.90%
91.16%

85.98% 7.85%
93.83%

125

2014

2015

Fiscal Year 2016

2017

2018

60

60

1

-

61

61

61

61

63

-

1

1

62

62

63

7,169,629 -
337,191 7,506,820
129,971

7,475,564 -
352,431 7,827,995
134,748

7,899,049 -
39,743 7,938,792
135,865

7,970,433 -
40,049 8,010,482
136,390

7,482,638
35,208 7,517,846
116,190

3,862,794 -
183,478 4,046,272

4,150,647 -
195,883 4,346,530

4,446,771 -
22,345 4,469,116

4,487,951 -
22,550 4,510,501

4,363,959 -
20,546 4,384,505

175 175 175.00

175 -
175.00

176 -
176.00

175 -
172.18

194 174 193.69

42,896 743
23,122

44,731 770
24,837

45,090 3,754
25,503

44,486 4,219
25,156

43,120 599
25,277

46,992

48,344

48,809

49,782

54,962

91.28%

92.53%

92.38%

89.36%

78.45%

44,877 2,115

48,344 -

48,809 -

49,782 -

52,491 2,471

95.50% 4.50%
100.00%

100.00% 0.00%
100.00%

100.00% 0.00%
100.00%

100.00% 0.00%
100.00%

95.50% 4.50%
100.00%

126

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

School Elementary Anderson (1971)
Square feet Capacity Enrollment Arnold (1963) Square feet Capacity Enrollment Brown (1975) Square feet Capacity Enrollment Callaway (2002) Square feet Capacity Enrollment Church St (1966) Square feet Capacity Enrollment East Clayton (1958) Square feet Capacity Enrollment Edmonds (1957) Square feet Capacity Enrollment Fountain (1952) Square feet Capacity Enrollment Harper (2002) Square feet Capacity Enrollment

2009

2010

2011

2012

Fiscal Year

2013

2014

2015

2016

2017

2018

54,221 450 482

54,221 450 497

54,221 450 490

54,221 450 496

56,176 450 496

56,176 450 554

56,680 450 552

56,680 450 552

56,680 450 587

56,680 450 566

57,177 500 469

57,177 500 477

57,177 500 481

57,177 500 460

57,177 500 489

57,177 500 518

59,638 500 529

59,638 500 529

5,938 500 541

59,638 500 573

81,615 750 745

81,615 750 789

81,615 750 790

81,615 750 881

81,615 750 760

81,615 750 784

80,547 750 822

80,547 750 822

80,547 750 833

80,547 750 802

105,494 900 844

105,494 900 855

105,494 900 816

105,494 900 792

105,494 900 806

105,494 900 848

104,889 900 886

104,889 900 886

104,889 900 895

104,889 900 853

78,651 825 868

78,651 825 832

78,651 825 817

78,651 825 886

78,651 825 904

78,651 825 890

79,913 825 967

79,913 825 967

79,913 825 978

79,913 825 835

68,818 650 615

68,818 650 632

68,818 650 608

68,818 650 578

68,818 650 625

68,818 650 621

68,818 650 624

68,818 650 624

68,818 650 585

120,091 900 618

57,307 450 560

57,307 450 587

57,307 450 547

57,307 450 610

57,307 450 576

57,307 450 590

58,191 450 582

58,191 450 582

58,191 450 587

58,191 450 540

68,965 650 549

68,965 650 626

68,965 650 553

68,965 650 597

68,965 650 600

77,648 650 634

77,648 650 652

77,648 650 652

77,648 650 634

77,648 650 612

91,014 725 728

91,014 725 812

105,994 900 810

105,994 900 902

105,994 900 920

107,701 900 876

106,854 900 914

106,854 900 914

106,854 900 827

106,854 900 898

(Continued)

Note: "X" represents the year the building did not exist.

127

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

School (Continued) Hawthorne (1998)
Square feet Capacity Enrollment Haynie (1969) Square feet Capacity Enrollment Hendrix (1955) Square feet Capacity Enrollment Huie (1966) Square feet Capacity Enrollment Jackson (2003) Square feet Capacity Enrollment K. R Peace (2018) Square feet Capacity Enrollment Kemp (1981) Square feet Capacity Enrollment Kemp Primary (2004) Square feet Capacity Enrollment Kilpatrick (1973) Square feet Capacity Enrollment King (2003) Square feet Capacity Enrollment Lake City (1957) Square feet Capacity Enrollment Lake Ridge (1994) Square feet Capacity Enrollment

2009

2010

2011

2012

Fiscal Year

2013

2014

2015

2016

2017

2018

102,500 900 943

102,500 900 964

102,500 900 950

102,500 900 983

102,500 900 982

102,500 900 893

103,289 900 962

103,289 900 962

103,289 900 962

103,289 900 914

72,107 738 712

72,107 738 663

72,107 738 681

72,107 737 761

72,332 768 872

72,332 750 872

71,746 750 905

71,746 750 905

71,746 750 905

71,746 750 928

54,748

54,748

54,748

X

X

X

X

X

X

X

450

450

450

-

-

-

-

-

-

-

119

27

27

-

-

-

-

-

-

-

71,569 675 655

71,569 675 658

71,569 675 614

71,569 675 717

71,569 675 705

71,569 675 717

71,081 675 789

71,081 675 789

71,081 675 789

71,081 675 792

90,229 900 736

90,229 900 882

90,229 900 837

105,209 900 914

105,209 968
1,023

105,209 900 979

104,841 900
1,074

104,841 900
1,074

104,841 900
1,074

104,841 900 636

X

X

X

X

X

X

X

X

X

40,065

-

-

-

-

-

-

-

-

-

475

-

-

-

-

-

-

-

-

-

473

71,882 850 718

71,882 850 699

71,882 850 689

71,882 850 711

71,882 650 689

71,882 850 669

74,068 850 673

74,068 850 673

74,068 850 673

74,068 850 664

90,229 663 718

90,229 663 693

90,229 650 624

90,229 650 711

90,229 650 711

91,014 650 667

90,065 650 682

90,065 650 682

90,065 650 682

90,065 650 674

75,379 650 562

75,379 650 611

75,379 650 606

75,379 650 621

75,379 650 633

75,379 650 679

72,260 650 720

72,260 650 720

72,260 650 720

72,260 650 743

92,044 700 906

92,044 700 957

92,044 700 935

92,044 700 957

92,044 700
1,014

92,044 700
1,039

91,852 700
1,048

91,852 700
1,048

91,852 700
1,048

91,852 700 623

51,245 463 510

51,245 463 535

51,245 463 516

51,245 462 540

51,245 462 539

59,153 450 548

58,642 450 553

58,642 450 553

58,642 450 553

58,642 450 583

94,662 650 750

94,662 788 730

94,662 788 694

94,662 788 728

94,662 788 726

94,662 800 678

94,138 800 658

94,138 800 658

94,138 800 658

94,138 800 648

(Continued)

Note: "X" represents the year the building did not exist.

128

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

2009

2010

School (Continued)

Lee St (1960)

Square feet

54,220

54,220

Capacity

500

500

Enrollment

596

562

Marshall (2004)

Square feet

89,854

89,854

Capacity

725

725

Enrollment

826

828

McGarrah (1967)

Square feet

73,782

73,782

Capacity

750

750

Enrollment

621

641

Morrow (1952)

Square feet

54,382

54,382

Capacity

450

450

Enrollment

515

505

Mt Zion (1976)

Square feet

85,815

85,815

Capacity

700

700

Enrollment

550

575

Mt Zion Primary (2008)

Square feet

93,275

93,275

Capacity

750

750

Enrollment

548

660

Northcutt (1970)

Square feet

78,013

78,013

Capacity

750

750

Enrollment

658

699

Oliver (1976)

Square feet

67,194

67,194

Capacity

675

675

Enrollment

739

664

Pointe South (1981)

Square feet

57,441

57,441

Capacity

675

675

Enrollment

697

674

River's Edge (1994)

Square feet

100,300 100,300

Capacity

863

863

Enrollment

1,142

604

Riverdale (1954)

Square feet

65,084

65,084

Capacity

700

700

Enrollment

606

669

Riverdale (2013)

Square feet

X

X

Capacity

-

-

Enrollment

-

-

Smith (2000) Square feet

109,612 109,612

Capacity

900

900

Enrollment

938

871

Suder (1966)

Square feet

79,783

79,783

Capacity

775

765

Enrollment

683

665

(Continued)

Note: "X" represents the year the building did not exist.

2011
54,220 500 509
89,854 725 818
73,782 750 631
54,382 450 467
85,815 700 589
93,275 750 629
78,013 750 686
67,194 675 672
57,441 675 662
100,300 863 573
65,084 700 643
X -
109,612 900 851
79,783 765 640

2012

Fiscal Year

2013

2014

54,220 500 555

54,220 500 589

54,220 500 640

89,854 725 833

89,854 725 861

90,174 725 909

73,782 750 670

74,837 750 711

74,787 750 692

54,382 450 478

54,382 450 478

54,382 450 482

85,815 700 569

85,815 700 572

85,815 700 615

93,275 750 689

93,275 750 686

93,275 750 639

78,013 750 648

79,394 750 648

79,394 750 632

67,194 675 613

67,194 675 613

67,194 675 633

57,441 675 697

57,441 675 703

57,441 675 637

100,820 863 596

100,820 863 607

100,280 850 566

65,084

65,084

X

700

700

-

643

663

-

X -
109,612 900 930

X -
109,612 900 957

108,324 800 613
109,716 900 953

79,783 765 694

79,783 765 736

79,783 775 705

129

2015
54,101 500 677
90,174 725 917
74,729 750 713
61,950 450 533
76,503 700 646
93,205 750 641
77,030 750 633
75,187 675 642
57,441 675 726
101,094 850 634
X -
108,324 800 684
11,065 900 969
82,493 775 719

2016
54,101 500 677
90,174 725 917
74,729 750 713
61,950 450 533
76,503 700 646
93,205 750 641
77,030 750 663
75,187 675 642
57,441 675 726
101,094 850 634
X -
108,324 800 684
110,065 900 969
82,493 775 719

2017
54,101 500 684
90,174 725 -
74,729 750 -
61,950 450 564
76,503 700 718
93,205 750 647
77,030 750 625
75,187 675 615
57,441 675 680
101,094 850 637
X -
108,324 800 676
110,065 900 962
82,493 775 742

2018
54,101 500 620
90,174 725 870
74,729 750 690
61,950 450 545
76,503 700 624
93,205 750 654
77,030 750 625
75,187 675 670
57,441 675 636
101,094 850 681
X -
108,324 800 776
110,065 900 982
82,493 775 698

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

School (Continued) Elementary Swint (1968)
Square feet Capacity Enrollment Tara (1964) Square feet Capacity Enrollment Unidos Charter (Hendrix) Square feet Capacity Enrollment West Clayton (1964) Square feet Capacity Enrollment White Academy (2010) Square feet Capacity Enrollment
Middle Adamson (1977)
Square feet Capacity Enrollment Babb (1966) Square feet Capacity Enrollment Forest Park (1940) Square feet Capacity Enrollment Jonesboro (2004) Square feet Capacity Enrollment Kendrick (1996) Square feet Capacity Enrollment Lovejoy (1990) Square feet Capacity Enrollment Morrow #7 (2012) Square feet Capacity Enrollment
(Continued)

2009

2010

2011

2012

Fiscal Year

2013

2014

2015

2016

2017

2018

71,785 788 571

71,785 776 642

71,785 776 605

71,785 776 639

72,665 776 598

72,665 750 596

76,899 750 670

76,899 750 670

76,899 750 672

76,899 750 747

76,224 735 667

76,224 725 601

76,224 725 547

76,224 725 725

76,224 725 662

83,111 725 662

88,155 725 709

88,155 725 709

88,155 725 700

88,155 725 730

76,224 735 667

76,224 725 601

76,224 725 547

54,748 450 491

54,748 450 577

54,748 450 676

56,278 450 800

56,278 450 800

56,278 450 662

56,278 450 461

66,917 600 510

66,917 600 462

66,917 600 436

66,917 600 444

66,917 600 468

66,917 600 503

66,159 600 593

66,159 600 593

66,159 600 578

66,159 600 599

X 201,679 201,679 201,679 201,679 210,679 205,143 205,143 205,143 205,143

-

1,425

1,425

1,425

1,425

1,425

1,425

1,425

1,425

1,425

-

-

1,414

1,410

1,381

1,444

1,398

1,398

1,425

1,501

120,015 775 656

120,015 775 658

120,015 775 649

120,015 775 617

120,015 775 604

120,015 775 594

113,033 775 596

113,033 775 596

113,033 775 603

113,033 775 568

103,443 775 783

103,443 775 766

103,443 775 796

103,443 775 755

103,443 775 808

103,443 775 831

106,596 775 844

106,596 775 844

106,596 775 866

106,596 775
1,027

84,964 570 510

84,964 600 674

84,964 600 683

84,964 600 703

85,894 600 680

85,884 600 663

94,677 600 650

94,677 600 650

94,677 600 659

94,677 600 700

128,170 875 834

128,170 875 743

128,170 875 753

128,170 875 794

128,170 875 869

128,170 875 853

128,188 875 853

128,188 875 883

128,188 875 901

128,188 875
1,010

143,724 1,100 787

143,724 1,100 852

143,828 1,100 883

143,724 1,100 847

143,724 1,100 820

143,724 1,100 777

144,359 1,100 731

144,359 1,100 731

144,359 1,100 789

144,359 1,100 794

123,731 738
1,172

123,731 725 584

123,731 725 578

123,731 725 586

125,567 725 663

125,567 725 659

121,041 725 581

121,041 725 581

121,041 725 551

121,041 725 536

X 171,727 171,727 171,727 171,727 174,539 174,539 174,539 174,539 174,539

-

900

900

900

1,200

900

900

900

900

900

-

803

742

756

695

683

755

755

789

957

Note: "X" represents the year the building did not exist.

130

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

School (Continued) Middle Old Morrow - Elite (1967)
Square feet Capacity Enrollment Mundy's Mill (1973) Square feet Capacity Enrollment N. Clayton Middle (1969) Square feet Capacity Enrollment Pointe South (1978) Square feet Capacity Enrollment Rex Mill (2007) Square feet Capacity Enrollment Riverdale (1968) Square feet Capacity Enrollment Roberts (2000) Square feet Capacity Enrollment Sequoyah (2004) Square feet Capacity Enrollment

2009

2010

2011

2012

Fiscal Year

2013

2014

2015

2016

2017

2018

96,109

96,109

96,109

96,109

96,109

96,525

97,525

97,525

-

-

650

650

650

650

650

650

650

650

-

-

681

725

737

376

424

495

597

597

-

-

116,822 850 869

116,822 850 804

116,822 850 818

116,822 850 823

116,822 850 798

116,822 850 809

121,761 850 793

121,761 850 793

121,761 850 773

121,761 850 827

126,179 738 920

126,179 738 843

126,179 1,000 860

126,179 1,000 808

118,255 1,000 813

126,179 1,000 858

126,128 1,000 824

126,128 1,000 824

126,128 1,000 797

126,128 1,000 873

141,792 875 803

141,792 875 822

160,835 925 838

160,835 925 844

160,835 925 873

160,835 925 836

137,106 925 795

137,106 925 795

137,106 925 859

137,106 925 846

152,570 1,100 953

152,570 1,100 1,035

152,570 1,100 1,042

152,570 1,100 1,094

152,570 1,100 1,131

152,570 1,100 1,108

146,303 1,100 1,025

146,303 1,100 1,025

146,303 1,100 1,095

146,303 1,100 1,132

108,738 850 833

108,738 850 741

139,581 850 752

108,738 850 779

139,581 850 760

123,470 850 712

125,047 850 690

125,047 850 690

125,047 850 684

125,047 850 779

146,007 1,100 649

146,007 1,100 699

146,007 1,100 667

146,007 1,100 675

146,007 1,100 737

146,007 1,100 789

210,431 1,350 894

210,431 1,350 894

210,431 1,350 964

210,431 1,350 967

128,170 875 737

128,170 875 808

128,170 875 804

128,170 875 885

128,170 875 876

128,170 875 866

128,188 875 922

128,188 875 922

128,188 875 866

128,188 875 863

(Continued)

Note: "X" represents the year the building did not exist.

131

CLAYTON COUNTY BOARD OF EDUCATION
SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

2009

School (Continued)

High

Drew (2009)

Square feet

297,918

Capacity

1,850

Enrollment

-

Forest Park (1962)

Square feet

206,766

Capacity

1,550

Enrollment

1,518

Jonesboro (1963)

Square feet

208,036

Capacity

1,500

Enrollment

1,153

Lovejoy (1989)

Square feet

217,450

Capacity

1,625

Enrollment

1,662

Morrow (1970)

Square feet

183,836

Capacity

1,375

Enrollment

1,534

Mt. Zion (1990)

Square feet

216,241

Capacity

1,350

Enrollment

1,547

Mundy's Mill (2002)

Square feet

292,512

Capacity

1,850

Enrollment

1,659

N. Clayton (1967)

Square feet

194,138

Capacity

1,325

Enrollment

1,360

Perry Learning Center (1952)

Square feet

X

Capacity

-

Enrollment

-

Riverdale (1977)

Square feet

203,067

Capacity

1,325

Enrollment

1,532

M E Stilwell

Square feet

X

Capacity

-

Enrollment

-

Elite Scholars Academy (2017)

Square feet

X

Capacity

-

Enrollment

-

2010
297,918 1,850 1,132
206,766 1,550 1,626
208,036 1,500 1,212
231,852 1,850 1,815
183,836 1,375 1,722
231,952 1,575 1,563
292,512 1,850 1,629
194,138 1,325 1,068
X -
203,067 1,325 1,053
X -
X -

2011
297,918 1,850 1,182
227,356 1,550 1,643
208,036 1,725 1,235
231,852 1,850 1,894
183,836 1,375 1,819
231,952 1,575 1,580
292,512 1,850 1,719
194,138 1,325 1,118
X -
203,067 1,325 1,416
X -
X -

2012
297,918 1,850 1,594
227,356 1,550 1,651
227,131 1,725 1,311
231,852 1,850 1,978
183,836 1,375 1,762
231,952 1,575 1,570
292,512 1,850 1,706
211,657 1,325 899
X -
203,067 1,325 1,237
X -
X -

Fiscal Year

2013

2014

308,859 1,850 1,589

318,859 1,850 1,555

227,356 1,550 1,710

227,356 1,550 1,742

228,157 1,725 1,372

228,157 1,725 1,319

231,853 1,850 2,000

231,853 1,850 2,044

183,836 1,375 1,728

196,640 1,900 1,737

233,593 1,575 1,804

233,593 1,575 1,639

313,882 1,850 1,695

313,882 1,850 1,718

211,657 1,325 848

211,657 1,100 846

X

X

-

-

-

-

203,067 1,325 1,303

203,067 1,325 1,393

X

X

-

-

-

-

X

X

-

-

-

-

2015

2016

317,251 1,850 1,593

317,251 1,850 1,593

235,481 1,550 1,742

235,481 1,550 1,752

217,468 1,725 1,289

217,468 1,725 1,289

231,706 1,850 1,992

231,706 1,850 1,992

195,537 1,900 1,990

195,537 1,900 1,990

230,925 1,575 1,283

230,925 1,575 1,283

313,882 1,850 1,757

313,882 1,850 1,757

188,824 1,100 890

188,824 1,100 890

X

X

-

-

-

-

177,821 1,325 1,342

177,821 1,325 1,342

133,195 825 542

133,195 825 542

X

X

-

-

-

-

2017
317,251 1,850 1,620
235,481 1,550 1,834
217,468 1,725 1,376
231,706 1,850 1,913
195,537 1,900 2,051
230,925 1,575 1,376
313,882 1,850 1,750
188,824 1,100 876
X -
177,821 1,325 1,320
133,195 825 605
X -

2018
317,251 1,850 1,555
235,481 1,550 1,666
217,468 1,725 1,388
231,706 1,850 1,819
195,537 1,900 1,771
230,925 1,575 1,307
313,882 1,850 1,691
188,824 1,100 1,163
130,755 900 934
177,821 1,325 1,206
133,195 825 597
128,721 700 664

(Concluded)

Note: "X" represents the year the building did not exist.

132

Single Audit Section
Clayton County Public Schools

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Superintendent and Members of the Clayton County Board of Education
Jonesboro, Georgia
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Clayton County Board of Education as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise Clayton County Board of Education's basic financial statements and have issued our report thereon dated January 31, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Clayton County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Clayton County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of Clayton County Board of Education's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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.
300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Compliance and Other Matters As part of obtaining reasonable assurance about whether Clayton County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 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 Clayton County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Macon, Georgia January 31, 2020
134

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Superintendent and Members of the Clayton County Board of Education
Jonesboro, Georgia
Report on Compliance for Each Major Federal Program
We have audited Clayton County Board of Education's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Clayton County Board of Education's major federal programs for the year ended June 30, 2018. Clayton County Board of Education'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 the requirements of 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 Clayton County Board of Education'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 Clayton County Board of Education'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 Clayton County Board of Education's compliance.
300 MULBERRY STREET, SUITE 300 POST OFFICE BOX 1877 MACON, GEORGIA 31202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Opinion on Each Major Federal Program In our opinion, Clayton County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018.
Report on Internal Control Over Compliance Management of Clayton County Board of Education 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 Clayton County Board of Education'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 Clayton County Board of Education's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
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.
136

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Macon, Georgia January 31, 2020
137

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Federal Grantor/Pass-Through Grantor/Program Title
Passed through Georgia Department of Education: Child Nutrition Cluster School Breakfast Program National School Snack Program Total Child Nutrition Cluster
Passed through Georgia Department of Education Child Nutrition Discretionary Grants Limited Availability
Fresh Fruits and Vegetables
Total U.S. Department of Agriculture
U.S. DEPARTMENT OF EDUCATION Passed through Georgia Department of Technical and Adult Education:
Adult Education
Passed through Georgia Department of Education
Title I Programs - Improving Academic Achievement
Title IV-B, Special Education Cluster Title VI-B Flowthrough Title VI-B Preschool Total Title IV-B, Special Education Cluster
Title II - Supporting Effective Instruction
Title III - Limited English Proficient
(Continued)
N/A - Not available/applicable

Federal CFDA Number

Pass-Through Entity ID Number

Total Expenditures

10.553 10.555
10.579 10.582

18185GA324N1099 18185GA324N1100

$

9,126,844

27,848,315

36,975,159

16163GA350N8103 16145GA324L1603

35,000 253,064 37,263,223

84.002
84.010 84.027 84.173 84.367 84.365

N/A
S010A170010 H027A170073 H173A170081 S367A170001 S365A170010

512,654
22,784,666
9,179,490 352,197
9,531,687 1,494,378
667,334

138

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Federal Grantor/Pass-Through Grantor/Program Title
U.S. DEPARTMENT OF EDUCATION (CONTINUED) Passed through Georgia Department of Education (Continued): Title IV - Student Support and Academic Enrichment
Engaging Minds
Education for Homeless Children and Youth
Vocational Education - Basic Grants to States Program Improvement
Subtotal - Passed through Georgia Department of Education
Passed through Georgia State University Research Foundation
Collaboration and Resources for Encouraging and Supporting Transformations in Education
Passed through Georgia Institute of Technology Gear Up Georgia

Federal CFDA Number
84.424 84.351C 84.196 84.048
84.336 84.334S

Total U.S. Department of Education
U.S. DEPARTMENT OF DEFENSE Direct Award: ROTC
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Georgia Department of Early Care and Learning Child Care and Development Block Grant Total Child Care and Development Fund Cluster
Total U.S. Department of Health and Human Services
(Continued)
N/A - Not available/applicable

12.unknown 93.575

Pass-Through Entity ID Number

Total Expenditures

S424A170011 N/A
S196170011
V048A170010

$

382,816

106,072

59,277

577,837

35,604,067

N/A

59,519

N/A

127,263

36,303,503

N/A

655,696

N/A

36,120

36,120

36,120

139

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Federal Grantor/Pass-Through Grantor/Program Title
U.S. DEPARTMENT OF TRANSPORTATION Passed through Georgia Governor's Office of Highway Safety Students Against Destructive Decisions
Total Expenditures of Federal Awards

Federal CFDA Number

Pass-Through Entity ID Number

Total Expenditures

20.601

2012-000-00422

19,877

$ 74,278,419

140

CLAYTON COUNTY BOARD OF EDUCATION
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

NOTE 1.
NOTE 2. NOTE 3.

BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Clayton County Board of Education (the "School System") and is presented on the accrual basis of accounting.
The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements.
DE MINIMIS COST RATE
The School System elected not to use the ten percent de minimis cost rate for the year ended June 30, 2018.
SUBRECIPIENTS
The School System did not pass through any grant funds to subrecipients for the year ended June 30, 2018.

141

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

SECTION I SUMMARY OF AUDIT RESULTS

Financial Statements Type of auditor's report issued

Unmodified

Internal control over financial reporting: Material weaknesses identified?

Yes X No

Significant deficiencies identified not considered to be material weaknesses?

Yes X None Reported

Noncompliance material to financial statements noted?

Yes X No

Federal Awards Internal Control over major programs: Material weaknesses identified?

Yes X No

Significant deficiencies identified not considered to be material weaknesses?

Yes X None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance

Yes X No

Identification of major program:

CFDA Number

Name of Federal Program or Cluster: U.S. Department of Education

84.010

Title I - Improving Academic Achievement

84.027 84.173

Title IV-B Special Education Cluster Flowthrough Preschool

142

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2018

SECTION I (CONTINUED) SUMMARY OF AUDIT RESULTS

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

$2,228,353

Auditee qualified as low-risk auditee?

Yes X No

None reported.

SECTION II FINANCIAL STATEMENT FINDINGS

SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None reported.

143

CLAYTON COUNTY BOARD OF EDUCATION
SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED JUNE 30, 2018
2017-001. Retainage Payable Criteria: Generally accepted accounting principles require reporting of all current liabilities whose liquidation is expected to require the use of current assets when the goods have been received or services have been performed. Condition: The School System did not properly address the above criteria as of June 30, 2017, as it relates to retainage payable in the Capital Projects Fund. Auditee response/status: Resolved
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CLAYTON COUNTY BOARD OF EDUCATION
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