Columbia County Board of Education, Evans, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)

COLUMBIA COUNTY BOARD OF EDUCATION EVANS, GEORGIA
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED
June 30, 2015 (Including Independent Auditors' Reports)

COLUMBIA COUNTY BOARD OF EDUCATION TABLE OF CONTENTS
Page SECTION I
FINANCIAL
INDEPENDENT AUDITORS' REPORT ................................................................................... i - iii

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................iv - xiv

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS A STATEMENT OF NET POSITION ......................................................................................1

B STATEMENT OF ACTIVITIES....................................................................................... 2-3

FUND FINANCIAL STATEMENTS C BALANCE SHEET
GOVERNMENTAL FUNDS ............................................................................................4

D RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION.......................................................5

E STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS ............................................................................................6

F RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES .......................................................7

G STATEMENT OF NET POSITION PROPRIETARY FUNDS ..................................................................................................8

H STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS ..................................................................................................9

I

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS ................................................................................................10

J

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS .....................................................................................................11

K NOTES TO THE BASIC FINANCIAL STATEMENTS................................................12-37

COLUMBIA COUNTY BOARD OF EDUCATION TABLE OF CONTENTS
SCHEDULES
REQUIRED SUPPLEMENTARY INFORMATION
1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND ............................................................................................................ 39
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS .....................................40-41 3 SCHEDULE OF STATE REVENUE..................................................................................42 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS..................43-44 5 ALLOTMENTS AND EXPENDITURES
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM ............................................................................................................... 45
SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
INDEPENDENT AUDITORS' 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 .........................................47-48
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 ..........................................................................................................49-50
SECTION III
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS......................................................................................51
SECTION IV
FINDINGS AND QUESTIONED COSTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS...........................................................53

SECTION I FINANCIAL

INDEPENDENT AUDITORS' REPORT
To the Superintendent and Members of the Columbia County Board of Education Evans, Georgia
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 Columbia County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Board'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.
Auditors' 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 auditors' 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 auditors consider 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 governmental activities, each major fund, and the aggregate remaining fund information of the Columbia County Board of Education, as of June 30, 2015, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle As discussed in Note 2 to the financial statements, in 2015 the Board adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of GASB No. 68. Our opinion is not modified with respect to this matter.
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages iv through xiv and page 39 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, which 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 Columbia County Board of Education's basic financial statements. The schedules 3 through 5 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements.
The schedules 3 through 5 and the schedule of expenditures of federal awards are the responsibility of management and were derived from, and relate directly to, the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, schedules 3 through 5, and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.
ii

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2015 on our consideration of the Columbia County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Columbia County Board of Education's internal control over financial reporting and compliance. SEROTTA MADDOCKS EVANS & CO., CPA'S Augusta, Georgia December 7, 2015
iii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
The discussion and analysis of Columbia County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2015. 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 notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance.
Financial Highlights
Key financial highlights for 2014-15 are as follows:
The Columbia County voters passed the fifth one percent (ESPLOST) sales tax for educational purposes for another five years (July, 2017 June, 2022) on March 17, 2015. The voters also approved the issuance of $55 million general obligation bonds which were issued on November 17, 2015. The $55 million bond debt will be repaid with the revenue from ESPLOST.
The School District has an aggressive building program using ESPLOST revenue, bond proceeds, and state funds to construct new schools or to replace existing schools in order to accommodate the growth in the county. Some of the projects completed or under construction are: o Elementary school/replacement opened fall 2015 o Elementary school/new opens 2016 o Middle school/replacement opens fall 2017 o Elementary school/replacement opens fall 2017 o Elementary school/replacement opens fall 2018
Net position increased $23.5 million, which represents a 24% increase from 2014. The total increase was due to governmental activities since the board has no business-type activities.
General revenues accounted for $103.1 million in revenue or 44% of all revenues. Program specific revenues in the form of charges for services, grants, and contributions accounted for $133.2 million or 56% of total revenues of $236.3 million.
The District had $212.8 million in expenses related to governmental activities; only $133.2 million of these expenses were offset by program specific charges, grants, or contributions. General revenue (primarily property and sales taxes) of $103.1 million was adequate to provide for these programs.
Among major funds, the general fund had $213.1 million in revenues and $209.3 million in expenditures. The general fund balance increased from $39.9 million to $43.7 million. The Board reserved $9.6 million for future years to offset short-falls in state revenue.
The beginning net position at June 30, 2014 was $278,210,763 and was restated for the net pension liability of $179,531,710 at June 30, 2014. The restated net positon at June 30, 2014 is $98,679,053.
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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Overview of the Financial Statements

This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Columbia County School District as a financial whole, an entire operating entity.

Table 1 summarizes the major features of the District's financial statements, including the portion of the district's activities they cover and the types of information they contain.

Table 1 Major Features of the District-Wide and Fund Financial Statements

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

Major Features of the District-Wide and Fund Financial Statements

District-wide

Fund Financial Statements

Statements

Government Funds

Proprietary Funds

Fiduciary Funds

Entire district (except The activities of the

Activities the district Instances in which the district

fiduciary funds)

district that are not

operates similar to

admin-isters resources on

proprietary or fiduciary, private businesses:

behalf of someone else, such as

such as special

food services and

scholar-ship programs and

education and building adult education

student activities monies

maintenance

Statement of net

Balance sheet

Statement of net

Statement of fiduciary net

position

Statement of

position

position

Statement of activities revenues,

Statement of cash Statement of changes in

expenditures, and

flows

fiduciary net position

changes in fund

balances

Accrual accounting and Modified accrual

Accrual accounting

Accrual accounting and

economic resources

accounting and current and economic

economic resources focus

focus

financial focus

resources focus

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

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

All assets and liabilities, both financial and capital, and short-term and long-term
All revenues and expenses during the year, regardless of when cash is received or paid

All assets and liabilities, both short-term and long-term; funds do not currently contain capital assets, although they can
All additions and deductions during the year, regardless of when cash is received or paid

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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
District Wide Statements
The Statement of Net Position and Statement of Activities provide information about the District as a whole using accounting methods similar to industry. The increases and decreases in the District's net position are an indicator of whether the School District's financial position is improving or deteriorating. There are many factors that can affect the overall financial condition of the School District such as District's property tax base, state and federal funding, and the condition of buildings and equipment.
The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities.
Fund Financial Statements
Fund financial reports provide detailed information about the School District's major funds. Funds are accounting devices the district uses to keep track of general operations, federal and state grants, building programs, debt payments, and worker's compensation claims.
Governmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and balances left at year-end available for spending in the future periods. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. The School District's major governmental funds are the general fund, capital projects fund, and debt service fund.
Proprietary Funds: Services for which the District charges a fee are generally reported in proprietary funds. Proprietary funds are reported in the same way as the district-wide statements. The District's enterprise funds (one type of proprietary fund) are the same as its business-type activities but provide more detail and additional information, such as cash flows. The District uses internal service funds (the other kind of proprietary fund) to report activities that provide supplies and services for other programs and activities. The District's only internal fund is the worker's compensation fund.
Fiduciary Funds: The District is the trustee, or fiduciary, for assets that belong to others, such as the scholarship fund and some of the student activity funds. The student activity funds are local school accounts the principal uses to collect funds for fieldtrips, school fundraisers, athletic events, and school clubs. The school clubs and fieldtrips are considered to be agency funds. The District excludes these activities from the district-wide statements because it cannot use these assets to finance its operations.
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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

The School District as a Whole

The perspective of the Statement of Net Position is of the School District as a whole. Table 2 provides a summary of the School District's net position for 2014 compared to 2015.

Table 2 Net Position

Assets Current and Other Assets Capital Assets, Net

Governmental Activities

Fiscal Year 2014

Fiscal Year 2015

(Restated)

$ 71,105,781 269,601,501

$ 68,728,744 261,403,856

Total Assets

340,707,282

330,132,600

Deferred Outflows of Resources

15,331,084

13,775,727

Liabilities Current and Other Liabilities Long-Term Liabilities

20,858,455 163,181,628

18,646,598 226,582,676

Total Liabilities

184,040,083

245,229,274

Deferred Inflows of Resources

49,819,227

-

Net Assets Net Investment in Capital Assets Restricted Unrestricted

245,860,762 7,295,106
(130,976,812)

228,648,855 11,529,237
(141,499,039)

Total Net Position

$ 122,179,056

$ 98,679,053

Total assets of governmental activities increased by $10,574,682 as cash and cash equivalents increased by $1,145,945, investments increased by $2,173,004, receivables decreased by $906,088, and capital assets increased by $8,197,645. The deferred outflows and inflows increased from the prior year due to the adoption of GASB Statement No. 68 and No. 71 for pensions. The long-term liabilities decreased by $61,189,191. The pension liability decrease of $54,388,491 made up the majority of the decrease in long-term liability. Unrestricted net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements, of the School District increased by $10,522,227.

Table 3 shows the changes in net position for fiscal year 2014 compared to 2015.

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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Table 3 Change in Net Position

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

Governmental Activities

Fiscal Year 2015

Fiscal Year 2014

$

10,754,869 $

10,013,184

117,845,641

107,662,066

4,634,933

3,979,693

Total Program Revenues

133,235,443

121,654,943

General Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted
to Specific Programs Investment Earnings Miscellaneous Total General Revenues

79,712,613 21,871,534
656,896 130,744 697,162 103,068,949

76,288,356 20,514,918
497,821 123,007 967,082 98,391,184

Total Revenues

236,304,392

220,046,127

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

139,966,910
4,146,159 6,448,050 4,211,471
949,135 13,803,306 1,345,260 15,394,675 10,704,475 1,117,283
4,393
3,855,692 10,374,168
483,412 212,804,389

139,135,580
4,193,516 4,988,552 4,328,420 1,038,875 13,836,016 1,651,583 14,443,658 10,497,828
893,294 5,156
3,671,953 10,197,022
742,087 209,623,540

Increase in Net Assets

23,500,003

10,422,587

Net Position - Beginning of Year-as previously reported Restated - See Note 2
Net Position - Beginning of Year-restated Net Position - End of Year

98,679,053

267,788,176

-

(179,531,710)

98,679,053

88,256,466

$

122,179,056 $

98,679,053

% Change
7.41% 9.46% 16.46% 9.52%
4.49% 6.61%
31.95% 6.29% -27.91% 4.75%
7.39%
0.60%
-1.13% 29.26% -2.70% -8.64% -0.24% -18.55% 6.58% 1.97% 25.07% -14.80%
5.00% 1.74% -34.86% 1.52% 125.47%
-63.15% -100.00%
23.81%

viii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Governmental Activities
Instruction comprises 66% of governmental program expenses. Support service expenses make up 27% of the expenses. Interest expense was .28%. Interest expense was attributable to the outstanding bonds for capital projects.
The state's QBE funding does not provide an adequate level of funding to provide basic education services and to adequately maintain facilities. The school system levies a millage rate of 18.59 to provide the additional local funding along with a 1% (ESPLOST) sales tax.
The Statement of Activities shows the cost of program services and the changes for services and grants offsetting those services. Table 4 shows, for governmental activities, the total cost of services and the net cost of services. It identifies the cost of these services supported by tax revenue and unrestricted State entitlements.

Table 4 Governmental Activities

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

Total Cost of Services

Fiscal Year 2015 $ 139,966,910

Fiscal Year 2014 $ 139,135,580

4,146,159 6,448,050 4,211,471
949,135 13,803,306 1,345,260 15,394,675 10,704,475 1,117,283
4,393

4,193,516 4,988,552 4,328,420 1,038,875 13,836,016 1,651,583 14,443,658 10,497,828
893,294 5,156

3,855,692 10,374,168
483,412

3,671,953 10,197,022
742,087

$ 212,804,389 $ 209,623,540

Net Cost of Services

Fiscal Year 2015 $ 49,267,646

Fiscal Year 2014 $ 58,022,703

3,218,206 4,426,471
837,536 (2,078,195) 7,732,891 1,345,260 7,815,651 7,409,163 1,115,932
(12,520)

3,262,404 3,043,654 1,044,374 (1,837,047) 7,809,810 1,651,583 7,054,155 7,946,188
891,190 (12,495)

(2,392,479) 399,972 483,412

(2,132,710) 482,701 742,087

$ 79,568,946 $ 87,968,597

Instructional expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil.
Pupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process.

ix

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Improvement of instruction are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational media is directing, managing, and operating educational media centers. General administration establishes and administers policy for operating the local school system. School administration includes principals, assistant principals, and clerical staff who administer the school operations. Business administration includes the financial and warehouse operations of the school district. Maintenance and operation of plant activities involve keeping the school grounds, buildings, and equipment in an effective working condition. Student transportation includes activities involved with the conveyance of students to and from school, as well as to and from school activities, as provided by state law. Central support includes personnel services, strategic planning, and public relations activities. Other support services include all other support services. Community services are student activity accounts used to collect money from students for various fundraisers for the school. The proceeds are spent on media center materials, instructional supplies, and other needed school supplies. Food services prepares and serves breakfast, lunch, and snacks to the students of the school system. Interest involves the transactions associated with the payment of interest related to the school system's outstanding bonds. Although program revenues make up a majority of the revenue, the School District is still dependent upon tax revenues for governmental activities. Over 47.0 % of instructional activities are supported through taxes and other general revenues, which decreased from the prior year by 11.1%; for all other governmental activities general revenue support is 29.4 %, which is an increase of 1%.
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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
The School District's Funds
The School District's governmental funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $236,369,068 and expenditures of $236,597,395. The net change in fund balance for the year was significant in the general fund and the capital projects funds, which had an increase of $3,784,959 and a decrease of $4,012,798, respectively.
The general fund operations increase was due to the increase of $10.2 million in state funds from fiscal year 2014 to fiscal year 2015. This increase was due to two factors: student growth and the reduction of the austerity cuts from prior years. Also, the taxes increased by $3.4 million from fiscal year 2014 to fiscal year 2015, which is attributed to the growth in the tax digest.
The School District is continuing to build new schools or replacement schools due to the increase in student enrollment within the School District. Therefore, the capital projects fund fluctuates depending on the current building projects. In the fall of 2015 a replacement/new elementary school opened and a new elementary school will open in the fall of 2016.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the general fund. The general fund consists of the general operations, special revenue grants, and school nutrition program.
During 2015 the Board amended its general fund budget numerous times, which resulted in increasing the revenue budget by $5,682,906 and increasing the expenditure budget by $1,813,857. The revenue budget increased due to additional funds received from the state and federal government, along with an increase in property taxes. The expenditure budget increase was due mainly to changes with state and federal grants. The original revenue and expenditure budgets only reflect the anticipated funding for federal and state grants and are amended to reflect the final award. The School District uses site-based budgeting and the budgeting systems are designed to tightly control total site budgets but to provide flexibility for site management.
The majority of the variances between the final budget and actual revenue in 2015 are due to the student activity funds of $6.5 million that are not budgeted; increase of local taxes of $650,000; and increase of $1.7 million in various state and federal funds. The variances between the final budgeted expenditures and actual are due to over estimates in various areas; and the School District does not currently budget for the $6.2 million in student activity funds. Approximately $2.4 million of the School District budget was not spent due to conservative budgeting.
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COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Capital Assets

At the end of the fiscal year 2015, the School District had $269,601,501 invested in land, construction in progress, buildings, equipment, and buses.

Table 5 shows fiscal 2014 balances compared to 2015.

Table 5 Capital Assets (Net of Depreciation)

Fiscal Year 2015

Fiscal Year 2014

Land Construction in Progress Buildings and Building Improvements Equipment Land Improvements

$ 11,055,972 20,803,070
219,908,949 15,726,041 2,107,469

$ 11,055,972 13,389,935
219,471,209 15,128,367 2,358,373

Total

$ 269,601,501

$ 261,403,856

Overall capital assets increased $8,197,645 from fiscal year 2014 to fiscal year 2015. Increases in capital assets (buildings and building improvements, equipment, and land improvements) were offset by depreciation expense for the year.

The increase in construction in progress is due to construction of one elementary school which opened in August 2015. Buildings and improvements increased due to new lighting and HVAC system for one high school.

xii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Debt

At June 30, 2015 the School District had $22.5 million in general obligation bonds outstanding with $8.7 million due within one year.

On March 18, 1997 the voters of Columbia County approved the first one percent sales tax for educational purposes for five years (July, 1997 - June, 2002); the second on March 20, 2001 for five years (July, 2002 - June, 2007); the third on March 15, 2005 for five years (July, 2007 - June, 2012); the fourth on July 20, 2010 for an additional five years (July, 2012 - June 2017); and the fifth on March 17, 2015 for five years (July 2017 - June 2022). The voters also approved in the March, 2015 election for the school district to sell up to $55 million in short-term bonds which will be paid with the sales tax. The School District sold the full $55 million in bonds in November 17, 2015 to start various new construction and renovations. The School Board no longer levies a debt millage; instead the proceeds from the sales tax is used to pay the debt. Table 6 summarizes general operation bonds and compensated absences outstanding.

Table 6 Outstanding Debt and Compensated Absences at June 30

Fiscal Year 2015

Fiscal Year 2014

Compensated Absences Unamortized Premium on Bonds General Obligation Bonds

$ 519,157 1,228,525
22,515,000

$ 517,451 1,842,788
30,915,000

Total

$ 24,262,682

$ 33,275,239

Current Financial Issues and Concerns
The Columbia County School District is financially stable. The School District's current millage rate is 18.59 mills for fiscal year 2015. Currently one mill produces approximately $4.1 million in tax revenue. The gross tax digest has grown at 8.9% over the last five years and the average collection rate has been 98% over those same years. In March 2013 the state of Georgia inactivated HB 386 which changed the fee structure for taxes on motor vehicles. New cars purchased will no longer be reflected on the tax digest; but will pay a onetime title ad valorem tax at the time of purchase. This new tax is intended to offset the revenue from the annual ad valorem tax. Based on the historical data, it appears the title ad valorem tax has offset the revenue for the last two years.
The School District continues to grow with an average increase of 432 students per year over the last five years. The School District plans to construct additional schools in the next several years to accommodate the growth and replace aging schools. The School District plans to fund the additional capital outlays with the one percent local sales tax revenue, general obligation bonds, and state capital outlay grants.
xiii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015
The Quality Basic Education Act (QBE) was enacted into law by the 1985 session of the Georgia General Assembly. The Act set out the provisions for educational funding for grades kindergarten through twelve in the State of Georgia. The funding is based on student counts with the expectation that local school districts fund part of the cost with local tax monies. The School District received approximately 48% of the revenues budgeted for the General Fund from QBE. The School District received $8.1 million more in funding for 2015. The increase in QBE funding was due to continued growth in student enrollment and lower austerity reductions of $4.4 million. As a result of the increased funding, the School District increased staff by 98 certified positions to accommodate the growth and to reduce class size. The District was also able to give each employee a one-time pay increase of 1% of the employee's annual salary for 2015. This was the first pay increase for employees in five years.
The District's 2016 general fund budget includes $214.1 million in total revenue and $217.8 million in expenditures, resulting in a budgeted $3.7 million decrease to general fund balance at June 30, 2016. The School District budgets contingency positions in the budget to fund under projected enrollment for 2016. At the end of October 2016 the School District anticipates 13 of the contingency positions will not be hired and estimates the budgeted expenditures will be less than budgeted by $1.5 million. The School District also budgeted an additional 99 certified staff and 90 support staff to accommodate the continual student enrollment and to reduce class size. The School District was also able to provide a 3% pay increase for teachers and a 2% increase for all other employees with the increase in state revenue. The School District was able to prepare a 2016 budget with reserves from fund balance and still maintain a 15% reserve of budgeted expenditures.
In fiscal year 2015, the School District adopted Governmental Account Standards Board (GASB) Statement No. 68, as amended in November 2013 by GASB Statement No. 71, which requires the District to record a liability and expense on its financial statements in an amount equal to its proportionate share of the net pension liability and expense for Teacher's Retirement System (TRS). At June 30, 2015, the District reported a liability of $138,918,946 for its proportionate share of the net pension liability for TRS. The District's proportionate share of the net pension liability associated with the District was 1.099592% at June 30, 2014.
Contacting the Board's Financial Management
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. If you have questions about this report or need additional financial information contact Pat Sullivan, Chief Financial Officer at Columbia County Board of Education, 4781 Hereford Farm Road, Evans, Georgia 30809 or email at psullivan@ccboe.net.
xiv

BASIC FINANCIAL STATEMENTS

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015
ASSETS

GOVERNMENTAL ACTIVITIES

Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Prepaid Items Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation
Total Assets

$

16,095,760

35,202,566

2,770,767 15,570,989
1,214,047 1,921
71,515 178,216

11,055,972 20,803,070
2,852,343 305,587,415
51,280,425 (121,977,724) 340,707,282

Deferred Outflows of Resources

Proportionate Share of Collective Deferred Outflows Related to Net Pension Liability

15,331,084

LIABILITIES

Accounts Payable Contracts Payable Claims Payable Salaries Payable Accrued Interest Retainages Payable Long-Term Liabilities
Due Within One Year Bonds Payable Unamortized Premium
Due In More Than One Year Bonds Payable Unamortized Premium Compensated Absences Net Pension Liability Total Liabilities

773,718 1,967,696
805,678 16,737,350
234,875 339,138
8,715,000 614,263
13,800,000 614,262 519,157
138,918,946 184,040,083

Deferred Inflows of Resources

Proportionate Share of Collective Deferred Inflows Related to Net Pension Liability

49,819,227

NET POSITION

Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Unrestricted
Total Net Position
The notes to the basic financial statements are an integral part of this statement. - 1 -

245,860,762

1,105,826

4,549,875

1,639,405

(130,976,812)

$

122,179,056

EXHIBIT "A"

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015

GOVERNMENTAL ACTIVITIES
Instructional Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Operation Interest on Short-Term and Long-Term Debt
Total Governmental Activities
General Revenues Taxes Property Taxes For Maintenance and Operations For Ad Valorem Title Tax Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Special Programs Investment Earnings Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year Restated (Note 2)
Net Position - End of Year

EXPENSES
$ 139,966,910
4,146,159 6,448,050 4,211,471
949,135 13,803,306 1,345,260 15,394,675 10,704,475 1,117,283
4,393
3,855,692 10,374,168
483,412
$ 212,804,389

CHARGES FOR SERVICES

$

230,353

-

6,248,171 4,276,345
-

$

10,754,869

The notes to the basic financial statements are an integral part of this statement. - 2 -

OPERATIONS GRANTS AND CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

REVENUES AND CHANGES IN
NET POSITION

$

86,912,960 $

3,555,951

$

(49,267,646)

927,953 2,021,579 3,181,759 3,027,330 5,916,674
7,579,024 2,677,552
1,351 16,913

192,176 153,741 617,760 -

(3,218,206) (4,426,471)
(837,536) 2,078,195 (7,732,891) (1,345,260) (7,815,651) (7,409,163) (1,115,932)
12,520

5,582,546
-

115,305
-

2,392,479 (399,972) (483,412)

$

117,845,641 $

4,634,933

(79,568,946)

74,763,206 4,949,407

9,571,250 9,821,393 1,855,167
623,724 656,896 130,744 697,162

103,068,949

23,500,003

98,679,053

$

122,179,056

- 3 -

EXHIBIT "B"

COLUMBIA COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERMENTAL FUNDS JUNE 30, 2015

EXHIBIT "C"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 14,845,776 $ 13,503 $

- $ 14,859,279

28,635,292

6,535,626

31,648 35,202,566

1,101,202 14,796,868
1,214,047 1,921
293,474 71,515
178,216

1,669,565 774,121 -

-

2,770,767

- 15,570,989

-

1,214,047

-

1,921

-

293,474

-

71,515

-

178,216

Total Assets

$ 61,138,311 $ 8,992,815 $ 31,648 $ 70,162,774

LIABILITIES AND FUND BALANCES

LIABILITIES

Accounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable

$ 731,943 $

-$

16,737,350

-

-

293,474

-

1,967,696

-

339,138

- $ 731,943

- 16,737,350

-

293,474

-

1,967,696

-

339,138

Total Liabilities

17,469,293

2,600,308

- 20,069,601

FUND BALANCES

Nonspendable Restricted Assigned Unassigned

249,731 927,610 12,757,373 29,734,304

6,392,507
-

31,648
-

249,731 7,351,765 12,757,373 29,734,304

Total Fund Balances

43,669,018

6,392,507

31,648 50,093,173

Total Liabilities and Fund Balances

$ 61,138,311 $ 8,992,815 $ 31,648 $ 70,162,774

The notes to the basic financial statements are an integral part of this statement. - 4 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "D"

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

JUNE 30, 2015

Total Fund Balances - Governmental funds (Exhibit "C")

$ 50,093,173

Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital Assets used in Governmental Activities are not current financial resources and therefore are not reported as assets in governmental funds. These assets consist of:

Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation
Total Capital Assets

$ 11,055,972 20,803,070 2,852,343
305,587,415 51,280,425
(121,977,724)

269,601,501

Some liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds.

Net Pension Liability

(138,918,946)

Deferred Outflows and Inflows of Resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds.

(34,488,143)

An Internal Service Fund is used by the School District's management to account for the worker's compensation risk financing related activities. The assets and liabilities of the Internal Service Fund are reported in governmental activities.
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds.
Long-Term Liabilities at year-end consist of:
Accrued Interest Unamortized Premiums on Issuance of Bonds Bonds Payable Compensated Absences
Total Long-Term Liabilities

389,028

(234,875) (1,228,525) (22,515,000)
(519,157)

(24,497,557)

Net Position of Governmental Activities (Exhibit "A")

$ 122,179,056

The notes to the basic financial statements are an integral part of this statement. - 5 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "E"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERMENTAL FUNDS

YEAR ENDED JUNE 30, 2015

REVENUES

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

Property Taxes Local Taxes Sales Tax State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous

$ 79,712,613 $ 2,478,891
106,369,119 12,924,833 10,754,869 115,412 736,853

-$ 9,821,393 3,843,518 11,500 28,712

9,571,250 105 -

$ 79,712,613 2,478,891
19,392,643 110,212,637
12,924,833 10,754,869
127,017 765,565

Total Revenues

213,092,590

13,705,123

9,571,355 236,369,068

EXPENDITURES

Current Instructional 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 Enterprise Operations Food Services Operation
Capital Outlay Debt Service
Principal Interest

136,576,775
4,292,824 6,658,768 4,301,773
842,106 14,174,186
1,346,162 15,515,847 10,512,741
1,126,490 3,802,371 10,157,588
-

2,083,154
3,111 15,410 33,454
5,000 53,952 38,037
4,000 844,568
-
40,761 14,596,474
-

-
593 -
8,400,000 1,171,250

138,659,929
4,295,935 6,674,178 4,335,227
847,106 14,228,138
1,384,792 15,519,847 11,357,309
1,126,490 3,802,371 10,198,349 14,596,474
8,400,000 1,171,250

Total Expenditures

209,307,631

17,717,921

9,571,843 236,597,395

Net Change in Fund Balances

3,784,959

(4,012,798)

(488)

(228,327)

Fund Balances - Beginning

39,884,059

10,405,305

32,136

50,321,500

Fund Balances - Ending

$ 43,669,018 $ 6,392,507 $

31,648 $ 50,093,173

The notes to the basic financial statements are an integral part of this statement. - 6 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "F"

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

JUNE 30, 2015

Total Net Change in Fund Balances - Governmental funds (Exhibit "E")

$ (228,327)

Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:

Capital Outlay Depreciation Expense
Excess of Capital Outlay over Depreciation Expense

$ 19,802,863 (11,536,815)

8,266,048

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

(68,403)

Governmental funds report pension contributions as expenditures. However, in the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as pension expense.

District Pension Contributions Cost of Benefits Earned Net of Employee Contributions
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of:

15,331,084 (9,206,463)

6,124,621

Bond Principal Retirements

8,400,000

Interest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid.

73,575

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. These activities consist of:

Amortization of Bond Premium Increase in Compensated Absences
Total Additional Expenditures

614,263 (1,706)

612,557

An Internal Service Fund is used by the School District's management to account for the worker's compensation risk financing related activities. The net revenue of the Internal Service Fund is reported with governmental activities.
Change in Net Position of Governmental Activities (Exhibit "B")

319,932 $ 23,500,003

The notes to the basic financial statements are an integral part of this statement. - 7 -

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015

EXHIBIT "G"

ASSETS

INTERNAL SERVICE FUND

Current Assets Cash and Cash Equivalents

$ 1,236,481

Total Assets

$ 1,236,481

Current Liabilities Accounts Payable Claims Payable
Total Liabilities

LIABILITIES

$

41,775

805,678

847,453

Unrestricted

NET POSITION

389,028

Total Liabilities and Net Position

$ 1,236,481

The notes to the basic financial statements are an integral part of this statement. - 8 -

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "H"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

JUNE 30, 2015

OPERATING REVENUES

INTERNAL SERVICE FUND

Charges for Services

$

970,100

OPERATING EXPENSES

Contractual Services Insurance Claims and Expenses

129,631 524,264

Total Operating Expenses

653,895

Operating Income

316,205

NONOPERATING REVENUES

Interest and Investment Revenue

3,727

Changes in Net Position

319,932

Total Net Position - Beginning

69,096

Total Net Position - Ending

$

389,028

The notes to the basic financial statements are an integral part of this statement. - 9 -

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS JUNE 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Charges for Services Cash Paid for Excess Worker's Compensation Insurance Cash Paid for Other Purchased Services Cash Paid for Worker's Compensation Claims
Net Cash Provided by Operating Activities

EXHIBIT "I"

INTERNAL SERVICE FUND

$

970,100

(83,318)

(36,388)

(677,156)

173,238

CASH FLOWS FROM INVESTING ACTIVITIES Interest and Dividends Net Increase in Cash and Cash Equivalents
Balances - Beginning of Year Balances - End of Year

3,727 176,965 1,059,516 $ 1,236,481

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income Accounts and Other Payables
Net Cash Provided By Operating Activities

$

316,205

(142,967)

$

173,238

The notes to the basic financial statements are an integral part of this statement. - 10 -

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2015

Cash and Cash Equivalents

ASSETS

EXHIBIT "J"
AGENCY FUNDS $ 1,683,769

Funds Held for Others

LIABILITIES

$ 1,683,769

The notes to the basic financial statements are an integral part of this statement. - 11 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Columbia County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board 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
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Columbia County Board of Education.
District-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 Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental, proprietary, and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.

- 12 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund.
District-wide 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 to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or from ancillary activities. Enterprise fund operating revenues are related to charges for worker's compensation risk financing related activities. The primary non-operating revenues are interest and investment revenues.
Principal operating expenses are the costs of providing goods or services and include contractual services and insurance claims and expenses.
The School District reports the following major proprietary fund:
Internal Service Fund - the fund used to account for the School District's workers' compensation risk financing related activities.
The School District reports the following fiduciary fund type:
Agency funds account for assets held by the School District as an agent for various funds, governments or individuals.
BASIS OF ACCOUNTING
The basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, with the exception of the School District's proportionate share of the Net Pension Liability. These collective amounts have been allocated by the pension plan based on actual contributions made to the plan during the measurement period to actuarially determine the proportionate share to each participating employer.

- 13 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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 thirty 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 longterm debt, claims and judgments, and compensated absences, 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 and acquisitions under capital leases 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.
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). The School District's teachers are contracted for the school year (July 1 - June 30) and paid over a twelve-month contract period, August 1 through July 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue consistent with symmetrical recognition.

- 14 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

RESTATEMENT OF PRIOR YEAR NET POSITION

For the fiscal year 2015, the School District made several prior period adjustments due to the adoption of GASB Statement No. 68 and GASB Statement No. 71, as described in "New Accounting Pronouncements" below, which require the restatement of the June 30, 2014, net position in Governmental Activities. The result is a decrease in Net Position at July 1, 2014 of $179,531,710. This change is in accordance with general accepted accounting principles.

Net Position, July 1, 2014, as previously reported

$ 278,210,763

Prior Period adjustment Implementation of GASB No. 68:

Net TRS Pension Liability (June 30, 2014)

(193,307,437)

Deferred Outflows School District TRS Contributions made during fiscal year 2014

13,775,727

Net Position, July 1, 2014, as restated

$ 98,679,053

NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year 2015, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement requires a restatement to beginning net position. The adoption of this statement has a significant impact on the School District's financial statements.
In fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The School District did not have any activities of this type during the fiscal year and the adoption of this statement does not have a significant impact on the School District's financial statements.
In fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions.

- 15 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits 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 Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations or insured chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS 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. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.

- 16 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

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.

PROPERTY TAXES

The Columbia County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on July 22, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on November 15, 2014 (lien date). Taxes collected within the current fiscal year or within 30 days after year-end on the 2014 tax digest are reported as revenue in the governmental funds for fiscal year 2015. The Columbia County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.25% 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, 2015, for maintenance and operations amounted to $74,763,206.

Tax millage rates levied for the 2014 tax year (calendar year) for the Columbia County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18.59 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $4,949,407 during fiscal year ended June 30, 2015.

SALES TAXES

Education Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $19,392,643 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.

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 (first-in, first out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2015, are recorded as prepaid items.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District.

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

Capitalization Policy

Estimated Useful Life

Land Buildings and Land Improvements Intangible Assets Buildings Computers, Televisions, Laser Disk Players
Digital Cameras and Video Cameras Monitors, Printers, Scanners and Bank Equipment All Other Equipment

$ 1,000 $ 1,000 $ 750,000 $ 1,000

All

$

100

$ 1,000

N/A 10-20 years
5-50 years 50 years
5-8 years 5-15 years 5-15 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized.

Amortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 5 to 50 years.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of net position and/or the balance sheet 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. Under the full accrual method of accounting, the School District has reported the contributions to the cost sharing benefit pension plan subsequent to the measurement date and prior to the fiscal year end as deferred outflows of resources. The school District has also reported the actuarial changes in the School District's proportionate share of the governmental non-employer cost sharing benefit pension plan, as discussed in Note 15 Retirement Plans.
In addition to liabilities, the statement of net position and/or the balance sheet 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. Under the full accrual method of accounting the School District has reported the actuarial changes in the School District's proportionate share of the governmental non-employer cost sharing benefit pension plan, as discussed in Note 15: Retirement Plans. This item is reported only in the District-wide Statement of Net Position.
COMPENSATED ABSENCES
Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.
Vacation leave of 9-18 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over the next fiscal year, providing such vacation leave does not exceed 25 days.

GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

In the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position.

PENSIONS

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia (TRS) and the Public School Employees Retirement System (PSERS), additions to/deductions from TRS and PSERS fiduciary net position have been determined on the same basis as they are reported by TRS and PSERS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. See Note 15: Retirement Plans.

NET POSITION

The School District's net position in the District-wide Statements are classified as follows:

Net Investment in capital assets - This represents the School District's total investment in capital assets, net of 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.

Restricted net position - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties.

Unrestricted net position - Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of Investment of Capital Assets and Restricted net position.

The District-wide Statement of Net Position includes a deficit unrestricted net position at June 30, 2015. The balance of the unrestricted net position is as follows:

Unrestricted Net Unfunded Proportionate Share of the TRS Pension Liability

$ (173,407,089)

Remaining Unrestricted

42,430,277

Net Position, Unrestricted, June 30, 2015

$ (130,976,812)

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

FUND BALANCES
The School District's fund balances are classified as follows:
Nonspendable - Amounts 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 - Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Committed - Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. 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 - Amounts that are 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 of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

Unassigned - The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund.

Fund Balances of the Governmental Funds at June 30, 2015, are as follows:

Nonspendable Inventories Prepaid Assets
Restricted Capital Projects Debt Service Continuation of Federal Programs
Assigned Anticipated Revenue Shortfall School Activity Accounts
Unassigned

$ 178,216 71,515
1,639,405 4,784,750
927,610
9,616,913 3,140,460

$ 249,731
7,351,765 12,757,373 29,734,304

Fund Balance, June 30, 2015

$ 50,093,173

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

It is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 15% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance.
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.
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.
Note 3: BUGETARY 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, capital projects, and worker's compensation fund. 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 accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and function 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 revision 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 once in the 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 Official Code of Georgia Annotated section 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.
The Superintendent is authorized by the Board to approve adjustments of no more than 5 percent 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 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any funds within the school budget that are unencumbered (anticipated balance) may be expended by the Superintendent in an emergency situation.
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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

See Schedule 1 - General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual for a detail of any over/under expenditures during the fiscal year under review.
Note 4: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS
Official Code of Georgia Annotated (OCGA) Section 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 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 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 percent of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

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. At June 30, 2015, the carrying amount of deposits was $17,779,529 and bank balances were $18,089,116. The bank balances insured by Federal depository insurance were $1,130,764. The amounts exposed to custodial credit risk are classified into three categories as follows:
Category 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent but not in the School District's name.

The School District's deposits by custodial credit risk category at June 30, 2015, are as follows:

Custodial Credit Risk Category

Bank Balance

1

$

-

2

1,033,687

3

15,924,665

Total

$ 16,958,352

CATEGORIZATION OF INVESTMENTS
At June 30, 2015, the carrying value of the School District's total investments was $35,202,566, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1 (local government investment pool) administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http:/www.audits.ga.gov/SGD/cafr.html.
The Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAA rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2015, was 56 days.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Note 5: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their federally assigned value. See Note 2 - Inventories

Note 6: CAPITAL ASSETS

The following is a summary of changes in the Capital Assets during the fiscal year:

Balances July 1, 2014

Increases

Decreases

Governmental Activities

Capital Assets, Not Being Depreciated:

Land

$ 11,055,972 $

-$

-

Construction in Progress

13,389,935

13,364,388

(5,951,253)

Balances June 30, 2015
$ 11,055,972 20,803,070

Total Capital Assets Not Being Depreciated

24,445,907

13,364,388

(5,951,253)

31,859,042

Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements

298,026,630 49,279,259 2,850,890

7,560,785 4,827,490
1,453

(2,826,324)
-

305,587,415 51,280,425 2,852,343

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements

78,555,421 34,150,892
492,517

7,123,045 4,161,413
252,357

(2,757,921)
-

85,678,466 35,554,384
744,874

Total Capital Assets, Being Depreciated, Net Governmental Activity Capital Assets - Net

236,957,949

852,913

(68,403) 237,742,459

$ 261,403,856 $ 14,217,301 $ (6,019,656) $ 269,601,501

Current year depreciation expense by function is as follows: Instruction
Support Services Pupil Services Improvements 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
Community Services Food Services
- 25 -

$ 9,438,728

$ 5,749

83,520

45,299

127,063

122,494

32,886

378,946

941,747

7,784

5,607

1,751,095

57,259

289,733

$ 11,536,815

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Note 7: INTERFUND ASSETS AND LIABILITIES

Due to and due from other funds are recorded for interfund receivables and payables which arise From interfund transactions. Interfund balances at June 30, 2015, consisted of the following:

Due From Other Funds

Due To Other Funds

General Fund Capital Projects Fund

$ 293,474 -

$

-

293,474

$ 293,474

$ 293,474

Note 8: RISK MANAGEMENT

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; acts of God and unemployment compensation.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage.

The School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to the General Fund to cover actual claims and to build a level of retained earnings. A premium is charged by the Internal Service Fund to the Food and Nutrition Program to cover actual claims. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $500,000 loss per occurrence, up to the statutory limit.
Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

Beginning Of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2015

$ 958,571 $ 371,371 $ 524,264 $ 805,678

2014

$ 899,370 $ 853,469 $ 794,268 $ 958,571

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

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 as claims are paid. The claims are immaterial to the financial statements.

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

Position Covered Superintendent All employees

Amount

$

50,000

$

100,000

Note 9: LONG-TERM DEBT

COMPENSATED ABSENCES

Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

GENERAL OBLIGATION DEBT OUTSTANDING

General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 2011

3.0% - 5.0%

$ 22,515,000 $ 22,515,000

The school district passed another EPLOST on July 20, 2010 which gave the board authorization to issue $45,000,000 in general obligation debt for capital outlay purposes. In June 2011 the board issued $35,000,000 in general obligation bonds for building projects.

The changes in Long-Term Debt during the fiscal year ended June 30, 2015, were as follows:

Balance

Balance

Due Within

July 1, 2014 Additions Deductions June 30, 2015 One Year

G.O. Bonds Compensated Absences (1) Bond Premium Amortized

$ 30,915,000 517,451
1,842,788

$

-

492,385 -

$ 8,400,000 490,679 614,263

$ 22,515,000 519,157
1,228,525

$ 8,715,000 -
614,263

$ 33,275,239 $ 492,385 $ 9,504,942 $ 24,262,682 $ 9,329,263

(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

At June 30, 2015, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30, 2016 2017 2018

General Obligation Debt

Principal

Interest

$ 8,715,000 9,100,000 4,700,000

$ 853,200 470,375 82,175

Unamortized Bond Premium
$ 614,263 614,263 -

Total Principal and Interest

$ 22,515,000

$ 1,405,750

$ 1,228,526

The school district passed another EPLOST on March 17, 2015 which gave the board authorization to issue $55,000,000 in general obligation debt for capital outlay purposes.

Note10: ON-BEHALF PAYMENTS

The School District has recognized revenues and costs in the amount of $13,573,980 for health insurance paid on the School District's behalf by the following State Agency.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certified Personnel In the amount of $13,573,980

Funds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3 - Schedule of State Revenue.

Note 11: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2015 together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

Other Projects Elementary School

$ 2,580,774 14,513,239
$ 17,094,013

$

-

7,400,176

$ 7,400,176

The amounts described in this note are not reflected in the basic financial statements.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Note 12: SIGNIFICANT CONTINGENT LIABILITIES
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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
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 be material to the basic financial statements.
Note 13: SUBSEQUENT EVENTS
The school district passed the fifth EPLOST on March 17, 2015 which gave the board authorization to issue $55,000,000 in general obligation debt for capital outlay purposes. The School Board issued the $55,000,000 bonds on November 17, 2015. The bond proceeds will be used to start construction on two elementary schools, one middle school, and athletic improvements. The bonds will be repaid with the ESPLOST proceeds.
Note 14: POST-EMPLOYMENT BENEFITS
GEORGIA SCHOOL PERSONNEL EMPLOYEES POST-EMPLOYMENT HEALTH BNENEFIT FUND
Plan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPED Fund) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPED Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
Funding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater
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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy.

Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis , is projected to cover normal cost each year and amortized any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2015:

For certificated teachers, librarians and regional educational service agencies and certain other eligible participants:

July 1, 2014 - June 30, 2015

$945 per member per month

For non-certificated school personnel:

July 1, 2014 - June 30, 2015

$596.20 per member per month

No additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to refund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation.

The School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and preceding three fiscal years were as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2015 2014 2013

100% 100% 100%

$ 20,407,204 $ 19,872,588 $ 18,016,836

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Note 15: RETIREMENT PLANS

Columbia County Board of Education participates in various retirement plans administered by the State of Georgia. The major retirement system in which the School District participates is the Teachers Retirement System of Georgia. This system issues separate publicly available financial reports that include the applicable financial statements and required supplementary information. The report may be obtained from the respective administrative offices.

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

Plan Description: All teachers of the District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multipleemployer 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 audit 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., contributions requirement 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 cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2015. The school district's contractually required contribution rate for the year ended June 30, 2015 was 13.57% of annual school district payroll.

Employer contributions for the current fiscal year and the preceding three years are as follows:

Fiscal Year 2015 2014 2013

Percentage Contributed
100% 100% 100%

Required Contribution $ 15,331,084 $ 13,918,478 $ 12,795,590

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS)
Plan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs.
Benefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of 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 $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2015, the School District reported a liability of $138,918,946 for its proportionate share of the net pension liability for TRS $12,633,681,000. The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public 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:

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

School District's proportionate share of the net pension liability

$ 138,918,946

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

255,453

Total

$ 139,174,399

The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contribution to TRS during the fiscal year ended June 30, 2014.

At June 30, 2014, the School District's TRS proportionate share of the Net Pension Liability associated with the District was 1.099592%, which was a decrease .009784% from its proportion measured as of June 30, 2013.

At June 30, 2015, the School District did not have 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 $1,707,337.

The PSERS net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 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, 2014.

For the year ended June 30, 2015, the School District recognized pension expense of $9,206,463 for TRS.

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

At June 30, 2015, the School District reported deferred outflows or resource and deferred inflows of resources related to pension from the following sources:

TRS

Deferred Outflow Deferred Inflows

of Resources

of Resources

Differences between expected and actual experience $

-

$

-

Changes of assumptions

-

-

Net difference between projected and actual earnings on pension plan investments

-

48,430,089

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

-

1,389,138

School District contributions subsequent to the

measurement date

15,331,084

-

Total

$ 15,331,084

$ 49,819,227

Columbia Board of Education contributions subsequent to the measurement date of June 30, 2014 for TRS 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, 2016. 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

2016 2017 2018 2019 2020 Thereafter

$ (12,423,233) (12,423,233) (12,423,233) (12,423,233) (126,284) -

- 34 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Actuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System

Inflation Salary increases Investment rate of return

3.00% 3.75 - 7.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females. Set back two years for males and set back three years for females.

The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004 - June 30, 2009.

Public School Employee's Retirement System

Inflation Salary increases Investment rate of return

3.00% N/A 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement.

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

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COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

Asset Class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total

Target allocation
30.00% 39.70%
3.70% 1.60% 18.90% 6.10%
100.00%

Long-term expected real
rate of return*
3.00% 6.50% 10.00% 13.00% 6.50% 11.00%

* Rates shown are net of the 3.00% assumed rate of inflation

Discount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS 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 Columbia Board of Education'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 7.50%, 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-percent-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

Teachers Retirement System:

1% Decrease (6.50%)

Current discount rate
(7.50%)

1% Increase (8.50%)

School District's proportionate share of net pension liability

$ 256,008,978

$ 138,918,946

$ 42,497,735

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

- 36 -

COLUMBIA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2015

EXHIBIT "K"

DEFINED CONTRIBUTION PLAN

In September 1, 2000, Columbia County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group.

The Board selected VALIC as the provider of this plan. The Board contributes a matching contribution for each PSERS employee who participates in the plan. The matching contribution is a dollar for dollar match up to 3% of the employees pay.

The employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment.

Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Columbia County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the Board.

Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Amount Contributed

2015 2014 2013

$ 144,307 $ 149,024 $ 155,739

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COLUMBIA COUNTY BOARD OF EDUCATION

SCHEDULE "1"

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL

YEAR ENDED JUNE 30, 2015

REVENUES

NONAPPROPRIATED

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

Property Taxes Local Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous

$ 78,200,000 $ 79,845,000 $ 79,712,613 $ (132,387)

1,825,000

1,825,000

2,478,891

653,891

101,850,436 104,909,519

106,369,119

1,459,600

11,654,550 12,633,373

12,924,833

291,460

4,631,900

4,631,900

10,754,869

6,122,969

101,050

101,050

115,412

14,362

355,000

355,000

736,853

381,853

Total Revenues

198,617,936 204,300,842

213,092,590

8,791,748

EXPENDITURES

Current Instructional Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation

138,411,692 137,830,418

4,190,147 5,523,242 4,061,352
884,717 12,732,729
1,442,627 15,229,772 10,197,778
1,131,504 37,651

4,150,994 6,900,764 4,061,352
934,607 12,733,729
1,442,627 15,529,772 10,895,904
1,137,304 39,597

9,898,101

9,898,101

136,576,775
4,292,824 6,658,768 4,301,773
842,106 14,174,186
1,346,162 15,515,847 10,512,741
1,126,490 -
3,802,371 10,157,588

1,253,643
(141,830) 241,996 (240,421)
92,501 (1,440,457)
96,465 13,925 383,163 10,814 39,597 (3,802,371) (259,487)

Total Expenditures

203,741,312 205,555,169

209,307,631

(3,752,462)

Net Change in Fund Balances

(5,123,376) (1,254,327)

3,784,959

5,039,286

Fund Balances - Beginning

39,884,059 39,884,059

39,884,059

-

Fund Balances - Ending

$ 34,760,683 $ 38,629,732 $ 43,669,018 $ 5,039,286

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

(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $6,517,821 and $6,218,122,
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.

- 39 -

FUNDING AGENCY PROGRAM/GRANT

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2015

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

SCHEDULE "2"
EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program

* 10.553 * 10.555

N/A

(2)

N/A

$

9,878,417 (1), (4)

Total U. S. Department of Agriculture

9,878,417

Education, U. S. Department of Impact Aid Cluster Direct Impact Aid

84.041

N/A

(3)

Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth

84.196

N/A

32,625

Special Education Cluster Pass-Through From Georgia Department of Education Grants to States Preschool Grants
Total Special Education Cluster
Title I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies
Other Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants
Total Other Programs
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program
Total U.S. Department of Defense
Total Federal Financial Assistance
N/A = Not Available

84.027

N/A

84.173

N/A

84.010

N/A

84.395

N/A

84.048

N/A

84.365

N/A

84.367

N/A

3,680,743 84,771
3,765,514
2,160,063
34,121 141,772 86,123 445,096 707,112 6,665,314

278,972 58,237 337,209
$ 16,880,940

See notes to the basic financial statements.

- 40 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2015

SCHEDULE "2"

Notes to the Schedule of Expenditures of Federal Awards (1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $570,269.

(2) Expenditures for the funds earned on the School Breakfast Program ($798,893) were not maintained separately and are included in the 2015 National School Lunch Program.
(3) Funds earned on the Impact Aid program, in the amount of $618,935, do not require reporting of expenditures.
(4) During the year ended June 30, 2015, program income and federal funds related to the Child Nutation Cluster were comingled and are included in the accompanying schedule of federal awards.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School District did not provide Federal Assistance to any Sub recipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Columbia County Board of Education and 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.

- 41 -

AGENCY/FUNDING

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2015

SCHEDULE "3"

GOVERNMENTAL FUND TYPES CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

GRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program

$

936,912

$

-

$

936,912

Education, Georgia Department of Quality Basic Education (1) 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 Category I Category II Category III Category IV Category V 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 Indirect Cost Central Administration School Administration Facility Maintenance and Operations
Categorical Grants Pupil transportation Regular Nursing Services Vocational Supervisors
Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs
Bus Bonds Preschool Handicapped Program Science and Math Supplement Technology Bond Grant Teacher of the Year

6,991,297 1,380,612 17,262,300 3,715,353 7,981,471 2,372,595 15,078,951 13,920,480 3,229,055
369,203 470,172 6,513,639 2,257,304 749,664 8,187,612 1,796,074 1,071,219 418,235 2,655,172 813,188 448,344
8,357 2,316,715 4,936,212 6,321,203
1,604,945 465,430 26,136
279,171 128,764 (9,789,712)
617,760 455,298 167,358 173,655
1,014

-

6,991,297

-

1,380,612

-

17,262,300

-

3,715,353

-

7,981,471

-

2,372,595

-

15,078,951

-

13,920,480

-

3,229,055

-

369,203

-

470,172

-

6,513,639

-

2,257,304

-

749,664

-

8,187,612

-

1,796,074

-

1,071,219

-

418,235

-

2,655,172

-

813,188

-

448,344

-

8,357

-

2,316,715

-

4,936,212

-

6,321,203

-

1,604,945

-

465,430

-

26,136

-

279,171

-

128,764

-

(9,789,712)

-

617,760

-

455,298

-

167,358

-

173,655

-

1,014

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

-

3,843,518

3,843,518

Office of Treasury and Fiscal Services Flood Funds

37,961

-

37,961

$ 106,369,119

$ 3,843,518

$ 110,212,637

(1) Payments to the Gerogia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $13,753,980 was included as part of the Quality Basic Education revenue allotments.

See notes to the basic financial statements.

- 42 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2015

SCHEDULE "4a"

Revenues Sales Tax 2012-2017 Proceeds 2011 Bond Proceeds State Proceeds Local Proceeds Interest Total Revenues

ORIGINAL BUDGET
(as of 06-30-2011)

CURRENT BUDGET
(as of 06-30-2015)

SPLOST 2012-2017

BONDS

SALES TAX PROCEEDS

Current Year

Prior Year

Current Year

Prior Year

STATE AND LOCAL

FUNDING

Current Year

Prior Year

TOTAL

PERCENTAGE COMPLETION

ESTIMATED COMPLETION
DATE

$ 108,600,000 $

96,500,000 $

38,196,026

38,196,026

11,000,000

15,141,387

5,000,000

5,000,000

600,000

200,000

163,396,026

155,037,413

-$

- $ 19,392,643 $ 37,403,051 $

-$

- $ 56,795,694

59%

- 38,196,068

-

-

-

-

38,196,068

100%

-

-

-

-

3,843,518

3,897,693

7,741,211

51%

-

-

-

-

28,712

-

28,712

1%

-

61,860

11,500

26,710

-

-

100,070

50%

- 38,257,928

19,404,143 37,429,761

3,872,230

3,897,693

102,861,755

Expenditures Debt Payments Audit Fees Capital Projects Other Capital Outlays (equipment, buses, computers, etc.) Total Expenditures
Proceeds for Current and Future Projects

44,432,733 25,000
70,800,000 41,250,000
156,507,733

44,432,733 25,000
74,617,532 35,710,173
154,785,438

$

6,888,293 $

251,975 $

-

1,164,333

-

-

- 29,414,763

-

7,678,779

- 38,257,875

9,571,250 5,000
13,512,988 3,883,941
26,973,179

9,776,400 5,000
14,272,729 6,868,064
30,922,193

-

-

20,511,983

46%

-

-

10,000

40%

-

-

57,200,480

77%

-

-

18,430,784

52%

-

-

96,153,247

-$

53 $ (7,569,036) $ 6,507,568 $ 3,872,230 $ 3,897,693 $ 6,708,508

10/1/2017 6/30/2017 Various Various

The voters of Columbia County approved the imposition of a 1% sales tax (ESPLOST) for 2012-2017 to fund the above project's and retire debt. The amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
The School District's original cost estimate as specified in the resolution for the 2012-2017 ESPLOST was (1) for the cost of acquiring, constructing, and equipping six new elementary schools, two new middle schools, and one new alternative school, acquiring land for future schools, instructional and administrative technology improvements for existing schools, and school buses, adding to, renovating, repairing, improving, and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefore, both real and personal, all at a maximum cost of $127,100,000, and (2) the cost of retiring a portion of the District's General Obligation Refunding Bonds, Series 2009, by paying or making provision for the payment of the principal of and interest on such bonds coming due on April 1, 2013, in the maximum amount of $2,900,000. The resolution calling the election and the notice of the election also authorized the issuance of $45,000,000 in aggregate principal amount of general obligation debt of the District in conjunction with the reimposition of the Sales Tax for the purpose set forth in clause (1) above, to pay capitalized interest incident thereto, and to pay expenses incident to accomplishing the foregoing. At this time $35,000,000 in bonds have been issued and spent. The future projects and debt payments will be funded with sales taxes and state funds.

See notes to the basic financial statements.

- 43 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2015

SCHEDULE "4b"

Revenues Sales Tax 2017-2022 Proceeds 2015 Bond Proceeds State Proceeds Local Proceeds Interest Total Revenues

ORIGINAL BUDGET
(as of 06-30-2015)

(2)

STATE AND

CURRENT BUDGET
(as of 06-30-2015)

SPLOST 2012-2017

BONDS

SALES TAX PROCEEDS

Current Year Prior Year Current Year Prior Year

LOCAL FUNDING Current Year Prior Year

TOTAL

PERCENTAGE COMPLETION

ESTIMATED COMPLETION
DATE

$ 108,000,000 $ 108,000,000 $

63,026,800

63,026,800

18,000,000

18,000,000

-

-

200,000

200,000

189,226,800

189,226,800

-$

-$

-

-

-

-

-

-

-

-

-

-

-$

-$

-

-

-

-

-

-

-

-

-

-

-$

-$

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Expenditures Debt Payments Audit and Election Fees Capital Projects Other Capital Outlays (equipment, buses, computers, etc.) Total Expenditures
Proceeds for Current and Future Projects

68,530,400 70,000
80,000,000 40,500,000
189,100,400

68,530,400 70,000
80,000,000 40,500,000
189,100,400

38,037 147,922 130,033
315,992

$

126,400 $

126,400 $ (315,992) $

-
-
-$

-

-

-

-

-

-

-

-

-

-

-$

-$

-

-

-

-

-

38,037

54%

-

-

147,922

0%

-

-

130,033

0%

-

-

315,992

-$

- $ (315,992)

Various Various

The voters of Columbia County approved the imposition of a 1% sales tax (ESPLOST) for 2017-2022 to fund the above project's and retire debt. The amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
(2) The School District's original cost estimate as specified in the resolution for the 2017-2022 ESPLOST was (1) to acquire, construct, and equip five new elementary schools, two new middle schools, and one new athletic complex at an existing high school, and certain new athletic facilities at other existing high schools; acquire land for future schools, instructional and administrative technology improvements for existing schools, and school buses; adding to, renovating, repairing, improving, and equipping existing school buildings, existing athletic facilities, and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefore, both real and personal, (2) to the extent funds are available, the cost of acquiring, constructing, and equipping one new high school and acquiring any necessary property therefor, both real and personal; to pay capitalized interest thereto; and to pay expenses incident to accomplishing the foregoing; the maximum cost of the projects described in clauses (1) and (2) above to be $140,000,000. The taxpayers also approved the sale of $55,000,000 in bonds in order to advance fund the projects. The School District sold the bonds for $55 million on November 17, 2015. The principal and interest on the $55 million will be paid with SPLOST proceeds.

See notes to the basic financial statements.

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COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM JUNE 30, 2015

SCHEDULE "5"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Funds

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 Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

8,370,904.00 1,620,966
20,591,421 4,369,841 9,597,365 2,724,493
18,066,506 16,885,472
3,773,257
436,168 557,421 7,749,735 2,643,426 907,498 9,656,160 2,026,874 1,287,418 495,585

$ 9,872,975.56 439,365
23,982,793 2,126,179
13,270,075 1,305,719
21,945,641 23,803,776
2,692,067
643,604 594,111 10,081,601 2,492,567 107,922 7,116,182 927,852 1,562,574 509,410

$ 161,479.47 8,399
392,045 26,882
227,556 10,434
1,288,223 748,510 137,467
7,952 4,926 442,831 31,274 20,770 156,788 5,075 13,823 5,188

$ 10,034,455.03 447,763
24,374,837 2,153,061
13,497,631 1,316,152
23,233,864 24,552,286
2,829,535
651,556 599,037 10,524,432 2,523,841 128,692 7,272,970 932,928 1,576,397 514,598

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

111,760,510

123,474,414

3,689,622

127,164,036

Media Center Program Staff and Professional Development

3,170,594 547,577

3,728,391 98,292

220,364 373,816

3,948,755 472,108
4,420,864

TOTAL QBE FORMULA FUNDS

$

115,478,681 $ 127,301,097 $ 4,283,802 $ 131,584,899

(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction of $10,459,910. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees.

See notes to the basic financial statements.

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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
To the Superintendent and Members of the Columbia County Board of Education Evans, Georgia
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Columbia County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Columbia County Board of Education's basic financial statements, and have issued our report thereon dated December 7, 2015.
Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Columbia County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Columbia County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Columbia County Board of Education's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Columbia County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
SEROTTA MADDOCKS EVANS & CO., CPA'S Augusta, Georgia December 7, 2015
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
To the Superintendent and Members of the Columbia County Board of Education Evans, Georgia
Report on Compliance for Each Major Federal Program We have audited Columbia County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Columbia County Board of Education's major federal programs for the year ended June 30, 2015. Columbia County Board of Education's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.
Auditors' Responsibility Our responsibility is to express an opinion on compliance for each of Columbia County Board of Education's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Columbia County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Columbia County Board of Education's compliance.
Opinion on Each Major Federal Program In our opinion, the Columbia County Board of Education's, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015.

Report on Internal Control over Compliance Management of Columbia County Board of Education, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Columbia County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A133, 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 Columbia County Board of Education's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
SEROTTA MADDOCKS EVANS & CO., CPA'S
Augusta, Georgia December 7, 2015
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SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

COLUMBIA COUNTY BOARD OF EDUCATION SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2015 Prior Year Findings and Questioned Costs - Financial Statement Audit No matters were reported. Prior Year Findings and Questioned Costs - Major Federal Award Programs Audit No matters were reported.
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SECTION IV FINDINGS AND QUESTIONED COSTS

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2015
A. Summary of Auditors' Results 1. The auditors' report expresses an unmodified opinion on the financial statements of the Columbia County Board of Education. 2. No instances of noncompliance material to the financial statements of the Columbia County Board of Education, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. 3. No significant deficiencies were disclosed during the audit of internal control over the major federal award program. 4. The auditors' report on compliance for the major federal award programs for Columbia County Board of Education expresses an unmodified opinion on all major federal programs. 5. There were no audit findings that are required to be reported in accordance with Section 510(a) of the OMB Circular A-133 reported in this Schedule. 6. The programs tested as major programs included: Child Nutrition Cluster: School Breakfast Program (CFDA No. 10.553) National School Lunch Program (CFDA No. 10.555) 7. The threshold used for distinguishing between Type A and Type B programs was $506,428. 8. The Columbia County Board of Education qualified as a low-risk auditee.
B. Findings - Financial Statement Audit NONE
C. Findings and Questioned Costs - Major Federal Award Programs Audit NONE
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