Coffee County Board of Education, Douglas, Georgia, annual financial report for the fiscal year ended June 30, 2030 (including independent auditor's reports)

COFFEE COUNTY BOARD OF EDUCATION
DOUGLAS, GEORGIA
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020
(Including Independent Auditor's Reports)

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

i

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET POSITION

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

3

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

4

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

5

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

6

G

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

7

H NOTES TO THE BASIC FINANCIAL STATEMENTS

8

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

TEACHERS RETIREMENT SYSTEM OF GEORGIA

35

2 SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

36

3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

37

4 SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 38

5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

39

6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY

SCHOOL OPEB FUND

40

7 SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

41

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I
FINANCIAL
SCHEDULES
REQUIRED SUPPLEMENTARY INFORMATION
8 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY (ASSET) SEAD OPEB
9 SCHEDULE OF CONTRIBUTIONS SEAD OPEB 10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND
SUPPLEMENTARY INFORMATION
12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 13 SCHEDULE OF STATE REVENUE 14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
42 43 44 45
46 47 49

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Coffee County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Coffee County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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 policies 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.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

January 22, 2021

Greg S. Griffin State Auditor

INTRODUCTION

COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020

The discussion and analysis of the Coffee County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2020. Comparative data is provided for the fiscal year 2020 and fiscal year 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS

Key financial highlights for 2020 are as follows:

In fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. The School District delayed the adoption of GASB Statements No. 84 and No. 90.

The total assets and deferred outflows of the School District increased by $15.6 million which was primarily due to an increase in deferred outflows of resources related to defined benefit pension plans of $6.5 million, $4.5 million in capital assets and $1.7 million in cash.
Total liabilities and deferred inflows of resources increased for the year by $7.1 million. The increase is primarily due to an increase in liabilities related to defined benefit pension plans.

The combination of the increase in total assets and deferred outflows of resources of $15.6 million and the increase in total liabilities and deferred inflows of resources of $7.1 million yields an increase in net position of $8.5 million. Significant changes include an increase of $3.5 million in the net investment in capital assets and a $1.8 million reduction of the deficit reported for the unreserved portion of net position.
At June 30, 2020, the School District's general fund reported a balance of $21.0 million, an increase of $4.3 million from the last fiscal year. Of this total, $19.2 million represents unassigned fund balance.
OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the School District's basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the School District's finances in a manner similar to a private-sector business. The Statement of Net Position presents information on all the School District's assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference reported as net position. Over time,
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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating. It is important to note that this statement consolidates the School District's current financial resources (short-term) with capital assets and longterm liabilities.
The Statement of Activities presents information showing how the School District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g. uncollected taxes, etc.)
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been separated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into two categories: governmental funds and fiduciary funds.
Governmental Funds
Most of the School District's activities are reported in governmental funds focusing on how money flows in and out of those funds and the balances left at year-end available for spending in future periods. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or less financial resources that can be spent in the near future to finance educational programs.
Fiduciary Funds
The School District is the trustee, or fiduciary, for assets that belong to others such as club and class funds and payroll withholding funds. The School District is responsible for ensuring assets reported in these funds are used only for their intended purposes and by those to whom assets belong.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2020, School District liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $8.0 million, primarily due to net pension and OPEB liabilities.
The largest portion of the School District's net position $85.7 million reflects its investments in capital assets (e.g. buildings, land, land improvements, equipment) less any related debt used to acquire those assets that remain outstanding. The School District uses the capital assets to provide services to our students, faculty, and community; consequently, these assets are not available for future spending.
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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020

The following table details the major categories of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position with a comparison to the prior fiscal year.

Table 1 Net Position

Assets Current and Other Assets Capital Assets, Net

Governmental Activities

Fiscal

Fiscal

Year 2020

Year 2019

$ 48,114,540.02 $ 91,625,288.17

44,614,024.13 87,100,029.74

Total Assets

139,739,828.19

131,714,053.87

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

20,114,596.00 3,668,587.00

13,623,997.00 2,587,181.00

Total Deferred Outflows of Resources

23,783,183.00

16,211,178.00

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

11,181,144.34 11,535,642.10 71,968,118.00 57,108,429.00

9,852,069.75 14,787,811.26 62,254,113.00 59,333,931.00

Total Liabilities

151,793,333.44

146,227,925.01

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

3,605,474.00 16,100,448.00

4,699,938.00 13,465,859.00

Total Deferred Inflows of Resources

19,705,922.00

18,165,797.00

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

85,711,642.73 9,677,568.82
(103,365,455.80)

82,171,277.79 6,567,612.99
(105,207,380.92)

Total Net Position

$

(7,976,244.25) $ (16,468,490.14)

Total net position increased by $8.5 million. Net investment in capital assets increased by $3.5 million primarily due to the ongoing construction of the Coffee County High School Performing Arts Center, the renovation and modification of Coffee County High School and the repayment of general obligation bond debt. Other significant changes include a $3.0 million increase in the amount reserved for capital projects.
Changes in Net Position from Operating Results

Net position increased $8.5 million from operating results in the fiscal year ended June 30, 2020 compared to an increase of $9.5 million in the prior fiscal year.

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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Key elements of this increase are as follows on the next table:
Table 2 Change in Net Position

Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions
Total Program Revenues
General Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects For Debt Services Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Total Revenues
Program Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt
Total Expenses
Increase in Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2020

2019

$

691,903.91 $

856,465.68

61,133,158.63

57,037,350.79

2,413,279.59

907,963.41

64,238,342.13

58,801,779.88

15,986,451.04 32,294.59

14,958,848.97 31,498.39

3,679,745.50 3,114,000.00
229,393.55
9,551,176.00 244,126.33
1,572,286.20
34,409,473.21
98,647,815.34

3,126,750.00 2,863,476.85
177,761.47
7,529,249.00 111,287.14
2,127,771.87
30,926,643.69
89,728,423.57

55,936,507.48

48,125,830.75

4,989,220.90 4,113,736.25 1,523,946.78
923,978.62 4,320,577.25
763,052.56 5,851,319.28 5,222,675.52
406,715.68 324,104.08

5,105,544.17 3,870,337.15 1,379,476.62
871,592.33 3,661,553.78
791,043.74 5,037,633.53 4,481,294.21
325,036.80 313,076.33

5,671,490.98 108,244.07

5,575,509.60 646,546.71

90,155,569.45

80,184,475.72

$

8,492,245.89 $

9,543,947.85

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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Governmental Activities The School District is heavily dependent upon operating grants and property taxes to support governmental activities. Instruction comprises 62.1%, Support Services 31.5%, Food Services 6.3%, and Interest 0.1% of governmental program expenses. Financial Analysis of the School District's Funds General Fund Budgetary Highlights The School District's budget is prepared in accordance with Georgia law and is based on accounting for certain transactions on the modified accrual basis of accounting. The School District uses sitebased budgeting and the budgeting system is designed to tightly control site budgets but provide flexibility for site management. The most significant budgeted fund was the general fund. As originally adopted, general fund revenues were projected to be $85.7 million with appropriated expenditures totaling $85.4 million, increases of $5.0 million and $4.3 million, respectively, over the 2019 final budget. Increases were related to state and federal grants. As fiscal year 2020 progressed, the final amended general fund budget increased $1.8 million for revenues, an increase of 2.1% from the original budget for the year. The final budget for fiscal year 2020 included appropriated expenditures of $86.9 million, which was an increase of $5.8 million from the 2019 final budget appropriated expenditures. General Fund Operations The general fund finished fiscal year 2020 with a fund balance of $21.0 million, an increase of $4.3 million from fiscal year 2019. Actual revenues were above budget projections by $1.8 million, primarily for local revenues, including property taxes, charges for services and miscellaneous revenues. Actual expenditures were $2.0 million less than budgeted. Following state "austerity reductions" for fifteen consecutive years, the state funding formula was restored in 2019. Local revenue sources represented 20.3% of total general fund revenues for the year, down slightly from the prior year. At year end, total expenditures were under budget by $2.0 million. Expenditures for direct classroom instruction (e.g. teacher salaries and benefits, textbooks, software, classroom supplies, etc.) accounted for 60.7% of total general fund expenditures, up slightly from the prior fiscal year.
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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020

The following table details the major components of revenues and expenditures by function for fiscal year 2020 as well as a comparison of changes compared to the previous fiscal year.

Table 3 General Fund Revenue and Expenditure Comparison

Revenues State Federal Local

Amount
$ 59,003,149.58 12,161,016.78 18,070,102.63

General Fund Total

Increase (Decrease) over Fiscal Year 2019

66.12% $ 13.63% 20.25%

5,591,713.68 689,261.89 20,342.45

Total Revenue

$ 89,234,268.99

100.00% $

6,301,318.02

EXPENDITURES
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Centtral Support Services Other Support Services Operations of Non-instructional Services Food Services

$ 51,499,311.42
4,838,774.15 4,015,724.05 1,481,146.82
890,045.52 4,221,894.61
743,412.17 6,109,429.71 4,732,599.11
398,913.39 319,355.36
5,645,800.97

60.66% $
5.70% 4.73% 1.74% 1.05% 4.97% 0.88% 7.20% 5.57% 0.47% 0.38%
6.65%

3,048,678.67
(437,991.63) (57,836.10) 33,433.86 (10,746.04) 329,595.83 93,753.98
1,042,569.46 291,786.24 55,422.59 2,999.03
39,213.03

Total Expenditures
Capital Projects Fund Operations

$ 84,896,407.28

100.00% $

4,430,878.92

The capital projects fund is used to account for school construction and the purchase of large capital assets. Projects completed in fiscal year 2020 include the HVAC renovations at Coffee High. The construction of the Performing Arts Center at Coffee High School, which began in 2017, continued in 2020. Interior renovations and modifications at Coffee County High School began in 2020. Projects were funded through a combination of state and local funds and proceeds from the sale of general obligations bonds.
Debt Service Fund Operations
The debt service fund is used to accumulate resources for the retirement of long-term debt represented by the general obligation bonds outstanding. Debt service payments totaling $3.4 million in principal and interest on the 2015 general obligation bond issue and interest on the 2019 general obligation bond issue were made during the year.

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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Capital Assets and Debt Administration
Capital Assets
The School District's investment in capital assets for its governmental activities as of June 30, 2020, totaled $91.6 million, net of accumulated depreciation. The investment in capital assets includes land, land improvements, buildings, vehicles, and equipment used in providing services to our students and community. The notes to the basic financial statements provide additional information on the School District's capital assets including a detailed breakdown of the types of capital assets included in the computation of depreciation charges. As of June 30, 2020, 35.2% of the cost basis of depreciable assets had been taken as a depreciation charge since the various assets were placed in service.
A summary of capital assets follows:

Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal

Fiscal

Year 2020

Year 2019

Land Construction In Progress Building and Improvements Equipment Land Improvements

$

1,634,367.31 $

15,801,677.35

64,405,800.35

4,289,275.20

5,494,167.96

1,634,367.31 10,247,766.86 65,217,816.58
4,288,626.37 5,711,452.62

Total
Debt

$

91,625,288.17 $

87,100,029.74

At June 30, 2020, the Board had $10.7 million in bonds outstanding with $3.0 million due within one year.
Table 5 Debt at June 30

Governmental Activities

Fiscal

Fiscal

Year 2020

Year 2019

General Obligation Bonds Bond Premiums Amortized
Total

$ 10,670,000.00 $ 13,560,000.00

865,642.10

1,227,811.26

$ 11,535,642.10 $ 14,787,811.26

Debt Administration

The debt related to the 2015 and 2019 bond issues resulted in an outstanding balance of $11.5 million at June 30, 2020. Additional information regarding the School District's long-term debt can be found in the notes to the basic financial statements.

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Current Issues

COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020

The Coffee County School District is a low income, rural county school district. The area of the County is 575 miles square. A large number of students are economically disadvantaged. The School District is located in an area where agriculture is the primary industry. Despite limited financial resources, system and school personnel manage to maximize the funds in order to benefit all students. The School District has extensive plans to use its supplemental resources to support class size reduction, recruitment, retention, professional development of highly qualified staff and safety in our schools. The School District obtained charter system status in 2015, which provided additional funds of $0.8 million in fiscal year 2020, as well as allowing the School District flexibility and broad waivers from the state's Title 20 requirements.

The School District, although rural, offers students a variety of instructional programs and extracurricular opportunities.

Coffee County's estimated population in 2019 was 43,273, which is a 2.2% increase since 2010. There were approximately 51.4% males and 48.6% females making up the population with those being composed of 28.8% black, 57.3% white and 12.1% Hispanic. The estimated median household income in 2018 was $38,266.00 and the per capita income was $19,709.00. Georgia's median income in 2018 was $55,679.00. The percentage of residents living in poverty is 23.9%. The median house or condo value was $92,600.00 in Coffee County and the state's median was $166,800.00. The median gross rent was $602.00.

For residents 25 years and older (2018): 77.4% have completed high school or higher; 13.2% have a bachelor's degree or higher.

Coffee County compared to Georgia state average: (1) median household income below state average, (2) median house value below state average, (3) black race population percentage below state average, (4) Hispanic race population percentage above the state average, and (5) persons living at or below the Federal Poverty Level is significantly above the state average.

The Coffee County School District has faced severe financial challenges in recent years but has remained relatively stable and financially sound. The financial challenges have included rising costs in employee benefits, the continued state formula allotment reductions, and no significant growth in student population.

The School District's millage rate levied for tax year 2019 was 16.032, a decrease of 0.004 mills from tax year 2018. Total ad valorem taxes recognized in fiscal year 2020 was $15,986,451.04 as compared to $14,958,848.97 in 2019.

In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time.
Outlook for the Future

The School District enjoys a strong financial position in light of current economic conditions affecting local revenues as well as the effect of state revenue pressures through austerity reductions to the QBE funding formula and new programmatic requirements. The State's reduction of austerity in 2018 is a positive sign of revenue collections at the state level. The state funding formula was restored in 2019.

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COFFEE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The Coffee County School District recognizes its responsibility to the taxpayers in overseeing the spending of Federal, State and Local funds. The School District is striving to maintain sound fiscal management while emphasizing student achievement. The Coffee County School District is committed to creating, building and sustaining a culturally and economically sensitive environment that provides equal access to a high standard of educational success for all students. Requests for Information This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to: Tracy Youghn, Finance Director Coffee County Board of Education 1311 South Peterson Avenue Douglas, GA 31533 Alternatively, requests may be sent to the following e-mail address: tracy.youghn@coffee.k12.ga.us.
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COFFEE COUNTY BOARD OF EDUCATION

COFFEE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020
ASSETS
Cash and Cash Equivalents Investments Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Prepaid Items Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Other Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

36,189,959.10

5,580.62

816.81 3,528,585.19 6,966,531.63 1,025,699.38
56,659.47 193,247.43 134,984.39
12,476.00 17,436,044.66 74,189,243.51

139,739,828.19

20,114,596.00 3,668,587.00
23,783,183.00

30,260.00 8,798,195.02
191,791.67 1,259,008.44
901,889.21 71,968,118.00 57,108,429.00
3,397,169.17 8,138,472.93
151,793,333.44

3,605,474.00 16,100,448.00
19,705,922.00

85,711,642.73
1,311,623.65 3,073,358.33 5,280,110.84
12,476.00 (103,365,455.80)

$

(7,976,244.25)

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

- 1 -

COFFEE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2020

EXHIBIT "B"

GOVERNMENTAL ACTIVITIES
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short -Term and Long-Term Debt
Total Governmental Activities
General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$ 55,936,507.48 $ 484,223.41 $ 43,765,779.92 $ 2,195,969.98 $ (9,490,534.17)

4,989,220.90 4,113,736.25 1,523,946.78
923,978.62 4,320,577.25
763,052.56 5,851,319.28 5,222,675.52
406,715.68 324,104.08

3,300.00 -

991,068.46 1,867,558.67 1,083,355.00 1,637,470.72 2,252,663.00
6,570.35 2,267,195.51 1,242,619.10
2,738.04 248,243.08

11,826.06 13,770.19 17,781.12 77,216.00 -

(3,998,152.44) (2,246,177.58)
(428,765.72) 727,262.29 (2,067,914.25) (756,482.21) (3,563,042.65) (3,902,840.42) (403,977.64) (75,861.00)

5,671,490.98 108,244.07

204,380.50 -

5,767,896.78 -

96,716.24 -

397,502.54 (108,244.07)

$ 90,155,569.45 $ 691,903.91 $ 61,133,158.63 $ 2,413,279.59

(25,917,227.32)

15,986,451.04 32,294.59
3,114,000.00 3,679,745.50
229,393.55 9,551,176.00
244,126.33 1,572,286.20
34,409,473.21
8,492,245.89
(16,468,490.14)

Net Position - End of Year

$ (7,976,244.25)

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

- 2 -

COFFEE COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2020

EXHIBIT "C"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable, Net
Interest Taxes State Government Federal Government Other Inventories Prepaid Items

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 22,058,944.19 $ 14,128,596.61 $

5,580.62

-

609.48 2,478,790.79 5,877,665.17 1,025,699.38
56,659.47 193,247.43 134,984.39

207.33 1,049,794.40 1,088,866.46
-

2,418.30 $ -
-

36,189,959.10 5,580.62
816.81 3,528,585.19 6,966,531.63 1,025,699.38
56,659.47 193,247.43 134,984.39

Total Assets
LIABILITIES
Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes Unavailable Revenue - GSFIC
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable Restricted Assigned Unassigned
Total Fund Balances

$ 31,832,180.92 $ 16,267,464.80 $

2,418.30 $ 48,102,064.02

$

- $

30,260.00 $

8,798,195.02

-

-

1,259,008.44

-

901,889.21

8,798,195.02

2,191,157.65

- $ -
-

30,260.00 8,798,195.02 1,259,008.44
901,889.21
10,989,352.67

1,990,042.71 -
1,990,042.71

493,136.89 906,536.46
1,399,673.35

-

1,990,042.71

-

493,136.89

-

906,536.46

-

3,389,716.06

328,231.82 1,118,376.22
435,862.08 19,161,473.07
21,043,943.19

8,176,319.11 4,500,314.69
-
12,676,633.80

2,418.30
-
2,418.30

328,231.82 9,297,113.63 4,936,176.77 19,161,473.07
33,722,995.29

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

$ 31,832,180.92 $ 16,267,464.80 $

2,418.30 $ 48,102,064.02

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

- 3 -

COFFEE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2020

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.
Land Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Net pension liability Net OPEB asset Net OPEB liability
Deferred outflows and inflows of resources related to pensions/ OPEB are applicable to future periods and, therefore, are not reported in the funds.
Related to pensions Related to OPEB
Taxes that are not available to pay for current period expenditures are deferred in the funds.
Property tax Sales tax
Georgia State Financing and Investment Commission (GSFIC) grants that are not available to pay current period expenditures are deferred in the funds.
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds.
Bonds payable Accrued interest payable Unamortized bond premiums

$

33,722,995.29

$

1,634,367.31

15,801,677.35

89,909,784.61

14,753,157.78

9,771,761.35

(40,245,460.23)

91,625,288.17

$ (71,968,118.00) 12,476.00
(57,108,429.00)

(129,064,071.00)

$ 16,509,122.00 (12,431,861.00)

4,077,261.00

$

1,990,042.71

493,136.89

2,483,179.60 906,536.46

$ (10,670,000.00) (191,791.67) (865,642.10)

(11,727,433.77)

Net position of governmental activities (Exhibit "A")

$

(7,976,244.25)

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

- 4 -

COFFEE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020

EXHIBIT "E"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 15,455,385.18 $ 229,393.55
59,003,149.58 12,161,016.78
691,903.91 93,614.79
1,599,805.20
89,234,268.99

- $ 3,186,608.61 1,042,008.13
148,456.98 -
4,377,073.72

- $ 3,114,000.00
2,054.56 -

15,455,385.18 6,530,002.16
60,045,157.71 12,161,016.78
691,903.91 244,126.33 1,599,805.20

3,116,054.56

96,727,397.27

51,499,311.42
4,838,774.15 4,015,724.05 1,481,146.82
890,045.52 4,221,894.61
743,412.17 6,109,429.71 4,732,599.11
398,913.39 319,355.36 5,645,800.97
-
-
84,896,407.28
4,337,861.71
16,706,081.48

1,165,145.73
53,640.00 -
11,125.00 105,755.60 453,099.21
6,475,113.72
-
8,263,879.26
(3,886,805.54)
16,563,439.34

-
-
2,890,000.00 473,411.25
3,363,411.25
(247,356.69)
249,774.99

52,664,457.15
4,892,414.15 4,015,724.05 1,481,146.82
890,045.52 4,221,894.61
754,537.17 6,215,185.31 5,185,698.32
398,913.39 319,355.36 5,645,800.97 6,475,113.72
2,890,000.00 473,411.25
96,523,697.79
203,699.48
33,519,295.81

Fund Balances - Ending

$ 21,043,943.19 $ 12,676,633.80 $

2,418.30 $ 33,722,995.29

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

- 5 -

COFFEE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense.

Capital outlay

$

Depreciation expense

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.

Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Georgia State Financing and Investment Commission (GSFIC) grants reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities.

Bond principal retirements

$

Amortization of bond premium

District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities.

Pension expense

$

OPEB expense

Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.

Net decrease in accrued interest

$
7,283,650.90 (2,752,809.29)
2,890,000.00 362,169.16
(2,128,942.00) 674,029.00

203,699.48
4,530,841.61 (5,583.18)
1,056,497.34 906,536.46
3,252,169.16
(1,454,913.00) 2,998.02

Change in net position of governmental activities (Exhibit "B")

$

8,492,245.89

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

- 6 -

ASSETS Cash and Cash Equivalents Investments
Total Assets LIABILITIES Funds Held for Others

COFFEE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2020

EXHIBIT "G"

AGENCY FUNDS

$

314,007.31

26,188.79

340,196.10

$

340,196.10

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

- 7 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Coffee County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
GOVERNMENT-WIDE STATEMENTS:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
- 8 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS:
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest.
The School District reports the following fiduciary fund type:
Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and no not involve measurement of results of operations.
BASIS OF ACCOUNTING
The basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-

- 9 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
INVESTMENTS
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
RECEIVABLES
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INVENTORIES
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue

- 10 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

PREPAID ITEMS

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

CAPITAL ASSETS

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

Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities' column in the government-wide financial statements.

Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.

Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land

Any Amount

Land Improvements

$

50,000.00

Buildings and Improvements $

50,000.00

Equipment

$

25,000.00

Intangible Assets

$ 10,000.00 - 150,000.00

N/A 20 to 80 years Up to 80 years
5 to 50 years 10 to 15 years

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

LONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.

- 11 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

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

- 12 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
USE OF ESTIMATES
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
PROPERTY TAXES
The Coffee County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on September 1, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 1, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Coffee County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $13,390,621.06.
The tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.032 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,032,469.53 during fiscal year ended June 30, 2020.
SALES TAXES
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $6,300,608.61 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

The Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $150,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS, CASH EQUIVALENTS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, School District had deposits with a carrying amount of $33,193,624.25, which includes $31,769.41 in Certificates of Deposits that are reported as Investments. The School District

- 14 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

has a bank balance of $34,776,889.35. The bank balances insured by Federal depository insurance were $925,145.45 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $72,764.68.

At June 30, 2020, $33,778,979.22 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).

The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.

In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

Reconciliation of cash and cash equivalents balances to carrying value of deposits:

Cash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position

$ 36,189,959.10 314,007.31

Total cash and cash equivalents

36,503,966.41

Add: Deposits with original maturity of three months or more reported as investments

31,769.41

Less: Investments with maturities less than 3 months reported as cash and cash equivalents
Money Market Fund

3,342,111.57

Total carrying value of deposits - June 30, 2020

$ 33,193,624.25

CATEGORIZATION OF INVESTMENTS

At June 30, 2020, the carrying value of the School District's total investments was $3,342,111.57. The School District's investments as of June 30, 2020 are presented below. All investments are presented by investment type.

At June 30, 2020, the School District had the following investments:

Investment Type

Fair Value

Mutual Fund Money Market Fund Federated Treasury Obligations Fund

$ 3,342,111.57

- 15 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

The Federated Treasury Obligations Fund, formerly referred to as a treasury obligations fund, administered by the Federal Investors, Incorporated, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The Federated Treasury Obligations Funds invests primarily in a portfolio of short-term U.S. Treasury and government agency securities, including repurchase agreements.
The Federated Government Obligations fund is registered with the SEC as an investment company and operated in a matter consistent with the SEC's Rule 2a-7 of the Investment Company act of 1940. The investment is valued at the fund's share price, $1.00 per share. The fund is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity for Federated Government Obligations Fund on June 30, 2020, was 44 days.
Fair Value of Investments
The School District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs.

At June 30, 2020 the School District had the following investments by fair value level:

Investments in the Federated Treasury Obligations Fund of $3,342,111.57 are valued using quoted market prices. (level 1 inputs)

NOTE 5: CAPITAL ASSETS

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

Balances July 1, 2019

Increases

Decreases

Transfers

Balances June 30, 2020

Governmental Activities Capital Assets, Not Being Depreciated:
Land Construction in Progress

$ 1,634,367.31 $

- $

10,247,766.86

6,391,017.76

- $

- $ 1,634,367.31

-

(837,107.27) 15,801,677.35

Total Capital Assets Not Being Depreciated

11,882,134.17

6,391,017.76

-

(837,107.27) 17,436,044.66

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

89,070,551.38 14,463,447.69
9,687,831.35

2,125.96 806,577.18
83,930.00

516,867.09
-

837,107.27 -

89,909,784.61 14,753,157.78
9,771,761.35

23,852,734.80 10,174,821.32
3,976,378.73

1,651,249.46 800,345.17 301,214.66

511,283.91
-

-

25,503,984.26

-

10,463,882.58

-

4,277,593.39

Total Capital Assets, Being Depreciated, Net

75,217,895.57 (1,860,176.15)

5,583.18

837,107.27 74,189,243.51

Governmental Activities Capital Assets - Net $ 87,100,029.74 $ 4,530,841.61 $ 5,583.18 $

- $ 91,625,288.17

- 16 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Current year depreciation expense by function is as follows:

Instruction Support Services
Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services

$

11,784.36

13,721.65

17,718.44

424,981.21

$ 2,188,228.34
468,205.66 96,375.29
$ 2,752,809.29

NOTE 6: LONG-TERM LIABILITIES

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

Balance July 1, 2019

Additions

Governmental Activities

Balance

Deductions

June 30, 2020

Due Within One Year

General Obligation (G.O.) Bonds Unamortized Bond Premiums

$ 13,560,000.00 $ 1,227,811.26

- $ 2,890,000.00 $ 10,670,000.00 $ 3,035,000.00

-

362,169.16

865,642.10

362,169.17

$ 14,787,811.26 $

- $ 3,252,169.16 $ 11,535,642.10 $ 3,397,169.17

GENERAL OBLIGATION DEBT OUTSTANDING

The School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.

The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2020. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.

Of the total amounts originally authorized, $12,365,000.00 remains unissued. General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2015 General Government - Series 2019

3% - 5% 3% - 5%

6/11/2015 4/8/2019

8/1/2020 $ 13,830,000.00 $ 3,035,000.00

8/1/2025

7,635,000.00

7,635,000.00

$ 21,465,000.00 $ 10,670,000.00

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

The following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable:

Fiscal Year Ended June 30:
2021 2022 2023 2024 2025 2026
Total Principal and Interest

General Obligation Debt

Principal

Interest

$ 3,035,000.00 $ 1,290,000.00 1,490,000.00 1,550,000.00 1,625,000.00 1,680,000.00

384,425.00 289,200.00 240,050.00 171,500.00 108,375.00
42,000.00

$ 10,670,000.00 $ 1,235,550.00

Unamortized Bond Premium

$

362,169.17

123,299.52

123,299.52

123,299.52

123,299.52

10,274.85

$

865,642.10

NOTE 7: RISK MANAGEMENT
INSURANCE
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as describe below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years.
Georgia School Boards Association Risk Management Fund
The School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund . The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage.
WORKERS' COMPENSATION
Georgia Education Workers' Compensation Trust
The School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium.

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

UNEMPLOYMENT COMPENSATION

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District had no unemployment claims in the last two fiscal years.

SURETY BOND

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

Position Covered

Amount

Superintendent

$ 100,000.00

NOTE 8: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2020:

Nonspendable Inventories Prepaid Assets
Restricted Continuation of Federal Programs Capital Projects Debt Service
Assigned Local Capital Outlay Projects School Activity Accounts
Unassigned

$ 193,247.43 134,984.39 $

328,231.82

$ 1,118,376.22 4,913,587.41 3,265,150.00

9,297,113.63

$ 4,500,314.69 435,862.08

4,936,176.77 19,161,473.07

Fund Balance, June 30, 2020

$ 33,722,995.29

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

NOTE 9: SIGNIFICANT COMMITMENTS

COMMITMENTS UNDER CONSTRUCTION CONTRACTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2020:

Project

Unearned Executed Contracts (1)

Payments through June 30, 2020 (2)

CHS Performing Arts Center

$

CHS Renovation and Modification

167,431.38 $ 11,289,690.92

1,856,158.38

3,899,071.26

$ 2,023,589.76 $ 15,188,762.18

(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end.

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

NOTE 10: SIGNIFICANT CONTINGENT LIABILITIES
FEDERAL GRANTS
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
LITIGATION
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,560,642.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2020, the School District reported a liability of $57,108,429.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.465350%, which was a decrease of 0.001490% from its proportion measured as of June 30, 2018.

- 20 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

For the year ended June 30, 2020, the School District recognized OPEB expense of $890,691.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources

OPEB Deferred Inflows of Resources

Differences between expected and actual

experience

$

- $ 6,212,803.00

Changes of assumptions

1,983,264.00

8,050,485.00

Net difference between projected and actual

earnings on OPEB plan investments

124,365.00

-

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

-

1,834,961.00

School District contributions subsequent to

the measurement date

1,560,642.00

-

Total

$ 3,668,271.00 $ 16,098,249.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2021 2022 2023 2024 2025 2026

$ (3,195,704.00) $ (3,195,704.00) $ (3,200,485.00) $ (2,714,740.00) $ (1,393,345.00) $ (290,642.00)

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Actuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 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, 2019:

OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

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

Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible

7.250% 5.375%

Ultimate trend rate Pre-Medicare Eligible Medicare Eligible

4.75% 4.75%

Year of Ultimate trend rate

Pre-Medicare Eligible

2028

Medicare Eligible

2022

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 1 year for males) is 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) is 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 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement.

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

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. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class

Target allocation

Long-Term Expected Real Rate of Return*

Fixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives

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

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

Total

100.00%

*Net of Inflation

Discount Rate: The discount rate has changed since the prior measurement date from 3.87% 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 tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. 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 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate:

School District's proportionate share of the Net OPEB Liability

1% Decrease (2.58%)

Current Discount Rate (3.58%)

1% Increase (4.58%)

$ 66,378,844.00 $

57,108,429.00 $ 49,567,362.00

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COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District'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 or 1percentage-point higher than the current healthcare cost trend rates:

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

School District's proportionate share of the Net OPEB Liability

$ 48,107,801.00 $

57,108,429.00 $ 68,539,910.00

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports.
POSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS (SEAD OPEB)
Plan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.
Benefits Provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.
Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2020, the School District reported an asset of $12,476.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2019. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2018. An expected total OPEB asset as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.004412%, which was an increase of 0.000434% from its proportion measured as of June 30, 2018.

- 24 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

For the year ended June 30, 2020, the School District recognized a credit to OPEB expense of $4,078.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

SEAD-OPEB

Deferred

Deferred

Outflows of Inflows of

Resources Resources

Differences between expected and actual experience

$ 63.00 $

-

Changes of assumptions

253.00

-

Net difference between projected and actual earnings on OPEB plan investments

-

1,146.00

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

-

1,053.00

Total

$ 316.00 $ 2,199.00

There were no employer contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

SEAD-OPEB

2021 2022 2023 2024

$

(1,077.00)

$

(754.00)

$

(109.00)

$

57.00

Actuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions, applied to all periods included in the measurement:

SEAD OPEB:

Inflation

2.75%

Salary increases:

ERS

3.25% 7.00%

GJRS

4.50%

LRS

N/A

Investment rate of return

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

Healthcare cost trend rate

N/A

- 25 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Postretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the longterm assumed rate of return.
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 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 asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative

SEAD - OPEB Target
allocation
30.00% 46.20%
1.30% 12.40%
5.10% 5.00%

Long-term expected real rate of return*
(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00%

Total

100.00%

* Rates shown are net of inflation

Discount Rate: The discount rate used to measure the total OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and 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 OPEB 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 OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

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

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

Net OPEB Asset

$

(6,904.00) $

(12,476.00) $

(17,055.00)

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publicly available at www.ers.ga.gov/financials.

- 26 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

NOTE 12: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 21.02% of payroll was required from the School District and 0.12% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $9,142,554.00 and $42,066.73 from the School District and the State, respectively.
EMPLOYEES' RETIREMENT SYSTEM
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.

- 27 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $14,681.00 for the current fiscal year.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.25, 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.

- 28 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $113,854.00.

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

At June 30, 2020, the School District reported a liability of $71,968,118.00 for its proportionate share of the net pension liability for TRS ($71,876,014.00) and ERS ($92,104.00).

The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the net pension liability

$ 71,876,014.00

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

325,981.00

Total

$ 72,201,995.00

The net pension liability for TRS and ERS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2019.
At June 30, 2019, the School District's TRS proportion was 0.334265%, which was a decrease of 0.000639% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.002232%, which was an increase of 0.000073% from its proportion measured as of June 30, 2018.
At June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $639,448.00.
The PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019.
For the year ended June 30, 2020, the School District recognized pension expense of $11,162,192.00 for TRS, $40,999.00 for ERS and $197,198.00 for PSERS and revenue of ($83,893.00) for TRS and $197,198.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 29 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$ 4,051,298.00 $

21,309.00 $

3,067.00 $

-

Changes of assumptions

6,897,441.00

-

1,621.00

-

Net difference between projected and actual earnings on pension plan investments

-

1,711,587.00

-

2,867.00

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

-

1,869,711.00

3,934.00

-

School District contributions subsequent

to the measurement date

9,142,554.00

-

14,681.00

-

Total

$ 20,091,293.00 $ 3,602,607.00 $

23,303.00 $

2,867.00

The School District contributions subsequent to the measurement date for TRS and for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2021 2022 2023 2024

$ 2,979,176.00 $ 7,620.00 $ 14,412.00 $ (1,680.00) $ 2,030,917.00 $ (565.00) $ 2,321,627.00 $ 380.00

Actuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System:
Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

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

Post-retirement benefit increases 1.50% semi-annually

Post-retirement mortality rates 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 requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries'
- 30 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the longterm assumed rate of return.

Employees' Retirement System:

Inflation

2.75%

Salary increases

3.25% 7.00%, including inflation

Investment rate of return

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

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment of return.
Public School Employees Retirement System:

Inflation

2.75%

Salary increases Investment rate of return

N/A
7.30%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.

- 31 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

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

Asset class

TRS Target allocation

ERS/PSERS Target
allocation

Long-term expected real rate of return*

Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative

30.00% 51.00%
1.50% 12.40%
5.10% -

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

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

Total

100.00%

100.00%

* Rates shown are net of assumed rate of inflation.

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

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

Teachers Retirement System:
School District's proportionate share of the net pension liability

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

$ 116,675,807.00 $

71,876,014.00 $ 35,034,666.00

Employees' Retirement System:
School District's proportionate share of the net pension liability

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

$

130,888.00 $

92,104.00 $

59,041.00

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

- 32 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "H"

NOTE 13: TAX ABATEMENTS
Coffee County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Coffee County.
For the fiscal year ended June 30, 2020, Coffee County abated property taxes due to the School District that were levied on September 1, 2019 and due on December 1, 2019 totaling $911,979.00. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10.00% percent of the total amount abated:
A 100 percent property tax abatement to an agricultural processing facility employing residents. The abatement amounted to $167,077.00.
A 100 percent property tax abatement to an industrial manufacturer employing residents. The abatement amounted to $168,075.00.
A 100 percent property tax abatement to a local food processing facility employing residents. The abatement amounted to $190,344.00.
A 100 percent property tax abatement to a custom extrusion and fabrication manufacturer employing residents. The abatement amounted to $108,752.00.
A 100 percent property tax abatement to a commercial retail operation employing residents. The abatement amounted to $118,505.00.

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COFFEE 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

SCHEDULE "1"

Year Ended
2020 2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the net pension liability

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

0.334265% $ 0.334904% $ 0.340335% $ 0.350860% $ 0.361893% $ 0.365466% $

71,876,014.00 $ 62,165,356.00 $ 63,252,308.00 $ 72,386,330.00 $ 55,094,616.00 $ 46,171,809.00 $

325,981.00 $ 180,053.00 $ 653,459.00 $ 1,020,002.00 $ 811,287.00 $ 710,013.00 $

Total
72,201,995.00 62,345,409.00 63,905,767.00 73,406,332.00 55,905,903.00 46,881,822.00

School District's covered payroll
$ 40,979,065.21 $ 39,999,968.01 $ 39,493,702.03 $ 39,019,388.95 $ 38,790,342.98 $ 37,871,642.41

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

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

175.40% 155.41% 160.16% 185.51% 142.03% 121.92%

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

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

- 35 -

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

SCHEDULE "2"

Year Ended
2020 2019 2018 2017 2016 2015

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

9,142,554.00 $

9,142,554.00 $

-

$

8,525,058.00 $

8,525,058.00 $

-

$

6,699,741.41 $

6,699,741.41 $

-

$

5,577,099.70 $

5,577,099.70 $

-

$

5,489,883.15 $

5,489,883.15 $

-

$

5,026,728.83 $

5,026,728.83 $

-

School District's covered payroll

Contribution as a percentage of covered
payroll

$ 43,496,053.19 $ 40,979,065.21 $ 39,999,968.01 $ 39,493,702.03 $ 39,019,388.95 $ 38,790,342.98

21.02% 20.80% 16.75% 14.12% 14.07% 12.96%

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

- 36 -

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

SCHEDULE "3"

Year Ended
2020 2019 2018

School District's proportion of the net
pension liability

School District's proportionate share of the net pension
liability

0.002232% $ 0.002159% $ 0.001923% $

92,104.00 88,757.00 78,099.00

School District's covered payroll

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

$

56,273.08

$

55,066.22

$

47,173.61

163.67% 161.18% 165.56%

Plan fiduciary net position as a
percentage of total pension liability
76.74% 76.68% 76.33%

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

- 37 -

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

SCHEDULE "4"

Year Ended
2020 2019 2018

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

$

14,681.00 $

14,681.00 $

-

$

13,944.00 $

13,944.00 $

-

$

13,662.00 $

13,662.00 $

-

School District's covered payroll

$

59,534.36

$

56,273.08

$

55,066.22

Contribution as a percentage of covered
payroll
24.66% 24.78% 24.81%

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

- 38 -

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

SCHEDULE "5"

Year Ended
2020 2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the net pension liability

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

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

-

$

-

$

-

$

-

$

-

$

-

$

639,448.00 $ 605,831.00 $ 563,632.00 $ 751,559.00 $ 495,876.00 $ 380,407.00 $

Total
639,448.00 605,831.00 563,632.00 751,559.00 495,876.00 380,407.00

School District's covered payroll

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

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

$ 1,724,926.42 $ 1,658,671.84 $ 1,690,377.24 $ 1,679,850.90 $ 1,585,954.70 $ 1,552,869.81

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

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

- 39 -

COFFEE 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

SCHEDULE "6"

Year Ended
2020 2019 2018

School District's proportion of the net OPEB liability

School District's proportionate share of the net OPEB liability

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

0.465350% $ 57,108,429.00 $

-

0.466840% $ 59,333,931.00 $

-

0.474174% $ 66,621,256.00 $

-

Total
$ 57,108,429.00 $ 59,333,931.00 $ 66,621,256.00

School District's covered-employee
payroll

School District'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

$ 36,758,418.52 $ 36,291,944.19 $ 35,831,772.94

155.36% 163.49% 185.93%

4.63% 2.93% 1.61%

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

- 40 -

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

SCHEDULE "7"

Year Ended
2020 2019 2018 2017

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's coveredemployee payroll

$

1,560,642.00 $

$

2,506,231.00 $

$

2,419,588.00 $

$

2,472,377.00 $

1,560,642.00 $ 2,506,231.00 $ 2,419,588.00 $ 2,472,377.00 $

-

$

38,887,857.66

-

$

36,758,418.52

-

$

36,291,944.19

-

$

35,831,772.94

Contribution as a percentage of covered-
employee payroll
4.01% 6.82% 6.67% 6.90%

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

- 41 -

COFFEE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY (ASSET)
SEAD-OPEB FOR THE YEAR ENDED JUNE 30

SCHEDULE "8"

Year Ended

School District's proportion of the net OPEB liability (asset)

School District's proportionate share of the net OPEB liability
(asset)

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

2020 2019 2018

0.004412% $ 0.003978% $ 0.003239% $

(12,476.00) $ (10,766.00) $
(8,418.00) $

-

$

-

$

-

$

Total
(12,476.00) (10,766.00)
(8,418.00)

School District's covered-employee
payroll

$

56,273.08

$

55,066.22

$

47,173.61

School District'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

(22.17)% (19.55)% (17.84)%

129.73% 129.46% 130.17%

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

- 42 -

COFFEE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SEAD-OPEB
FOR THE YEAR ENDED JUNE 30

SCHEDULE "9"

Year Ended
2020 2019 2018

Contractually required contribution

$

-

$

-

$

-

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

$

-

$

-

School District's coveredemployee payroll

$

59,534.36

$

56,273.08

$

55,066.22

Contribution as a percentage of covered-
employee payroll
0.00% 0.00% 0.00%

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

- 43 -

COFFEE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2020

SCHEDULE "10"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
Employees' Retirement System
Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
Public School Employees Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The discount rate was updated from 3.07% as of June 30,2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019.
SEAD-OPEB Employer
Changes of assumptions: On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.

- 44 -

COFFEE COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2020

SCHEDULE "11"

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

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$ 13,834,000.00 $ 13,834,000.00 $ 15,455,385.18 $

1,621,385.18

140,000.00

140,000.00

229,393.55

89,393.55

58,505,620.91

59,181,289.91

59,003,149.58

(178,140.33)

12,361,631.21

13,507,825.21

12,161,016.78

(1,346,808.43)

322,998.75

322,998.75

691,903.91

368,905.16

3,000.00

3,000.00

93,614.79

90,614.79

492,550.00

492,550.00

1,599,805.20

1,107,255.20

85,659,800.87

87,481,663.87

89,234,268.99

1,752,605.12

51,037,226.83
5,097,722.00 4,246,489.08 1,565,562.00 1,032,133.00 4,216,827.00
689,830.00 6,509,439.00 4,667,600.00
381,465.00 329,540.00 5,592,484.96
85,366,318.87
293,482.00

51,832,234.83
5,262,689.00 4,387,346.08 1,565,562.00 1,045,601.00 4,216,827.00
689,830.00 6,869,439.00 4,723,426.00
381,465.00 336,087.00 5,592,484.96
86,902,991.87
578,672.00

51,499,311.42
4,838,774.15 4,015,724.05 1,481,146.82
890,045.52 4,221,894.61
743,412.17 6,109,429.71 4,732,599.11
398,913.39 319,355.36 5,645,800.97
84,896,407.28
4,337,861.71

332,923.41
423,914.85 371,622.03
84,415.18 155,555.48
(5,067.61) (53,582.17) 760,009.29
(9,173.11) (17,448.39) 16,731.64 (53,316.01)
2,006,584.59
3,759,189.71

660,000.00 (585,000.00)
75,000.00 368,482.00 16,633,944.71
-

660,000.00 (585,000.00)
75,000.00 653,672.00 16,633,944.71 (12,682.92)

4,337,861.71 16,706,081.48 -

(660,000.00) 585,000.00 (75,000.00) 3,684,189.71
72,136.77 12,682.92

Fund Balances - Ending

$ 17,002,426.71 $ 17,274,933.79 $ 21,043,943.19 $

3,769,009.40

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $1,241,329.90 and $1,167,739.29, respectively.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 45 -

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2020

SCHEDULE "12"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster Other Programs
Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers
Total Other Programs
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555
10.560

205GA324N1099 $ 205GA324N1100

1,593,152.83 4,045,370.91
5,638,523.74

195GA904N2533

7,665.13 5,646,188.87

84.027 84.027 84.173

H027A180073 H027A190073 H173A180081

84.048 84.365 84.365 84.011 84.011 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287

V048A180010 S365A180010 S365A190010 S011A180011 S011A190011 S365B190010 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 S287C180010 S287C190010

12.UNKNOWN

279,994.00 1,338,346.55
83,427.00
1,701,767.55
100,341.00 22,430.00 29,966.80 32,892.91
220,379.79 126,828.31
48,737.62 191,508.24
31,702.05 331,269.53 530,305.91 2,790,462.17
56,711.69 267,254.48
4,780,790.50
6,482,558.05
76,554.70

Total Expenditures of Federal Awards

$

12,205,301.62

Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Coffee County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

See notes to the basic financial statements.

- 46 -

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020

SCHEDULE "13"

AGENCY/FUNDING
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Computer Science Capacity Grant (SC4GA) Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Security Grant Teachers Retirement Vocational Education Vocational Supervisors
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Governor's Office of Student Achievement Community Partnership Grant
Office of the State Treasurer Public School Employees Retirement
Contract Human Resources, Georgia Department of Family Connections

GOVERNMENTAL FUND TYPE

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$ 2,109,511.45 $

- $ 2,109,511.45

2,470,267.00

-

1,418,254.00

-

5,013,046.00

-

3,576,325.00

-

2,505,608.00

-

2,223,968.00

-

5,776,664.00

-

4,210,131.00

-

1,494,304.00

-

5,494,062.00

-

1,293,145.00

-

832,175.00

-

383,498.00

-

1,249,646.00

-

989,748.00

-

305,018.00

-

171,135.00

-

3,607.00

-

1,411,253.00

-

2,056,887.00

-

2,034,144.00

-

(683,446.00)

-

796,950.00

-

918,801.00

-

163,992.00

-

9,551,176.00

-

5,187.54

-

130,788.00

-

5,479.00

-

20,695.64

-

201,614.00

-

77,216.00

-

360,000.00

-

42,066.73

-

172,247.00

-

28,280.00

-

-

1,042,008.13

25,852.22

-

113,854.00

-

2,470,267.00 1,418,254.00 5,013,046.00 3,576,325.00 2,505,608.00 2,223,968.00 5,776,664.00 4,210,131.00 1,494,304.00 5,494,062.00 1,293,145.00
832,175.00 383,498.00 1,249,646.00 989,748.00 305,018.00 171,135.00
3,607.00
1,411,253.00 2,056,887.00 2,034,144.00 (683,446.00)
796,950.00
918,801.00 163,992.00 9,551,176.00
5,187.54 130,788.00
5,479.00 20,695.64 201,614.00 77,216.00 360,000.00 42,066.73 172,247.00 28,280.00
1,042,008.13
25,852.22
113,854.00

50,000.00

-

50,000.00

See notes to the basic financial statements.

$ 59,003,149.58 $ 1,042,008.13 $ 60,045,157.71 - 47 -

(This page left intentionally blank)

PROJECT
2013 Approved Local Option Sales Tax Projects
(i) Acquisition, construction, equipping and furnishing of one or more new schools and other new school buildings and facilities;
(ii) adding to, renovating, improving and equipping existing school buildings and facilities, including classrooms and athletic facilities;
(iii) acquiring technology equipment, safety and security equipment and other school equipment;
(iv) acquiring school buses and other vehicles;
(v) acquiring textbooks and band instruments;
(vi) acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal
Subtotal 2013 Projects
2018 Approved Local Option Sales Tax Projects
(i) Constructing, equipping and furnishing of one or more new facilities, including a ROTC/multipurpose facility at Coffee High School;
(ii) Acquiring and installing system-wide security improvements;
(iii) Acquiring textbooks (including e-books);
(iv) Acquiring, improving and installing techology upgrades (both hardware and software);
(v) Acquiring, installing and improving camera systems;
(vi) Acquiring school buses and other vehicles and school equipment;
(vii) Adding to, renovating, modifying, improving, and equipping interior and exterior of existing school buildings and athletic facilities, including completion of the performing arts center;
(viii) Acquiring band instruments and equipment; and
(ix) Acquiring any capital property necessary or desirable for the foregoing and related purposes, both real and personal.
Subtotal 2018 Projects

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2020

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3) (4)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

$ 20,150,000.00 $ 21,458,001.78 $ 1,997,829.74 $ 19,460,172.04 $

- $

-

8,100,000.00

8,100,000.00

74,375.60

2,149,955.08

-

-

1,350,000.00

1,350,000.00

-

1,326,692.43

-

-

1,150,000.00

1,357,733.00

-

1,357,732.24

-

-

2,750,000.00

2,750,000.00

-

1,643,256.19

-

-

500,000.00

500,000.00

-

-

-

-

34,000,000.00 35,515,734.78 2,072,205.34 25,937,807.98

-

-

1,000,000.00

1,000,000.00

-

-

-

-

1,500,000.00

1,500,000.00

23,200.00

-

-

-

2,950,000.00

2,950,000.00

122,208.35

-

-

-

2,715,000.00

2,715,000.00

920,773.10

158,635.60

-

-

1,500,000.00

1,500,000.00

-

-

-

-

2,645,000.00

2,645,000.00

420,933.90

-

-

-

20,490,000.00 20,490,000.00 4,659,142.30

-

-

-

200,000.00

200,000.00

-

-

-

-

2,000,000.00

2,000,000.00

-

-

-

-

35,000,000.00 35,000,000.00 6,146,257.65

158,635.60

-

-

SCHEDULE "14"
ESTIMATED COMPLETION
DATE
12/31/2020 12/31/2020 12/31/2020 12/31/2020 12/31/2020 12/31/2020
6/30/2024 6/30/2024 6/30/2024 6/30/2024 6/30/2024 6/30/2024
6/30/2024 6/30/2024 6/30/2024

Total

$ 69,000,000.00 $ 70,515,734.78 $ 8,218,462.99 $ 26,096,443.58 $

- $

-

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of Coffee County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows:

Prior Years

$ 1,794,209.72

Current Year

473,411.25

Total

$ 2,267,620.97

See notes to the basic financial statements.

- 49 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Coffee County Board of Education
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, each major fund, and the aggregate remaining fund information of the Coffee County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated January 22, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or 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.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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 the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,

January 22, 2021

Greg S. Griffin State Auditor

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Coffee County Board of Education
Report on Compliance for Each Major Federal Program
We have audited the Coffee County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on its major federal program for the year ended June 30, 2020. The School District's major federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal program.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the School District's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the School District's compliance.

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2020.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,

January 22, 2021

Greg S. Griffin State Auditor

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

COFFEE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

SECTION IV FINDINGS AND QUESTIONED COSTS

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities; All Major Funds

Unmodified

Internal control over financial reporting: Material weakness identified? Significant deficiency identified?

No None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

Internal Control over major programs: Material weakness identified? Significant deficiency identified?

No None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

No

Identification of major programs:

CFDA Number

Name of Federal Program or Cluster

84.010

Title I Grants to Local Educational Agencies

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

$750,000.00

Auditee qualified as low-risk auditee?

Yes

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.