Columbia County Board of Education, Evans, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)

COLUMBIA COUNTY BOARD OF EDUCATION EVANS, GEORGIA
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED
June 30, 2019 (Including Independent Auditors' Reports)

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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

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

B STATEMENT OF ACTIVITIES ..............................................................................................2

FUND FINANCIAL STATEMENTS C BALANCE SHEET
GOVERNMENTAL FUNDS................................................................................................3

D RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION.........................................................4

E STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS................................................................................................5

F RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES .........................................................6

G STATEMENT OF NET POSITION PROPRIETARY FUNDS......................................................................................................7

H STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS......................................................................................................8

I

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS......................................................................................................9

J STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS .........................................................................................................10

K NOTES TO THE BASIC FINANCIAL STATEMENTS..................................................11-38

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 PROPORTIONATE SHARE OF THE NET PENSION LIABILITY........40 3 SCHEDULE OF CONTRIBUTIONS (PENSIONS) ..............................................................41 4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ..............42 5 SCHEDULE OF CONTRIBUTIONS (OPEB) .......................................................................43 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION................................44
SUPPLEMENTARY INFORMATION
7 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS .......................................45-46 8 SCHEDULE OF STATE REVENUE .....................................................................................47 9 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ..................48-49
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 ...........................................50-51
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE .......................................................................................................52-53
SECTION III
PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS .........................................................................................54
SECTION IV
FINDINGS AND QUESTIONED COSTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS .............................................................55

SECTION I FINANCIAL

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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, 2019, 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, 2019, 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.
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, proportionate share of net pension liability, contributions (pensions), proportionate share of net OPEB liability and contributions (OPEB) on pages iv through xiv and pages 39 through 44 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. Schedules 8 and 9 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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
Schedules 8 and 9 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 8 and 9, 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 November 7, 2019 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., CPAs Augusta, Georgia November 7, 2019
iii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
The discussion and analysis of Columbia County Board of Education's (School District) financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the 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 2018-19 are as follows:
The Columbia County voters passed the sixth one-percent sales tax for educational purposes (ESPLOST) for another five years (July 2022 - June 2027) on March 22, 2019. The voters also approved the issuance of $160 million general obligation bonds. The school district anticipates part of the bonds will be issued in 2020 but the remaining issuance of bonds will depend on future growth of the county.
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. The Superintendent has not finalized the future building program needs with the school board, but below are projected future projects:
o Elementary school/replacement o High school facility (alternative/vocational) o Additions to middle schools o Renovations to two high schools o Renovation of transportation, facilities, warehouse and technology complex
Net position increased $27.5 million, which was due to increase in state funding along with the growth in the digest. The total increase was due to governmental activities since the board has no business-type activities.
General revenues accounted for $126.3 million in revenue or 42% of all revenues. Program specific revenues in the form of charges for services, grants, and contributions accounted for $173.4 million or 58% of total revenues of $299.7 million.
The School District had $272.2 million in expenses related to governmental activities; only $173.4 million of these expenses were offset by program specific charges, grants, or contributions. General revenue (primarily property and sales taxes) of $126.3 million was adequate to provide for these programs.
Among major funds, the general fund had $270.5 million in revenues and $265 million in expenditures. The general fund balance decreased from $50.7 million to $50.1 million. The Board reserved $4.8 million for future years to offset short-falls in state revenue and moved $6.1 million to the building program to build a new transportation/facilities/warehouse/ building.
iv

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

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 Government-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 Government-Wide and Fund Financial Statements

Government-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

administers resources on behalf

proprietary or fiduciary, private businesses:

of someone else, such as

such as special

food services and

scholarship 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

Statement of changes in

expenditures, and

revenues, expenses fiduciary net position

changes in fund

and changes in net

balances

position

Statement of cash

flows

Accrual accounting and Modified accrual

Accrual accounting

economic resources

accounting and current and economic

Accrual accounting and 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

v

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Government-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 the 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 School District charges a fee are generally reported in proprietary funds. Proprietary funds are reported in the same way as the government-wide statements. The School 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 School 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 School District's only internal fund is the worker's compensation fund.
Fiduciary Funds: The School 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 School District excludes these activities from the district-wide statements because it cannot use these assets to finance its operations.
vi

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

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 2019 compared to 2018.

Table 2 Net Position

Governmental Activities

Assets Current and Other Assets Capital Assets, Net

Fiscal Year 2019
$ 97,622,613 349,804,973

Fiscal Year 2018
$ 93,003,080 338,875,906

Total Assets

447,427,586

431,878,986

Deferred Outflows of Resources

61,720,738

49,078,715

Liabilities Current and Other Liabilities Long-Term Liabilities

36,889,732 417,469,540

28,642,505 446,678,771

Total Liabilities

454,359,272

475,321,276

Deferred Inflows of Resources

38,125,804

16,507,402

Net Assets Net Investment in Capital Assets Restricted Unrestricted

294,301,904 25,062,246 (302,700,902)

277,442,288 20,907,670 (309,220,935)

Total Net Position

$ 16,663,248

$ (10,870,977)

Total assets of governmental activities increased by $15,548,600 as cash decreased by $2,950,449, cash equivalents increased by $6,228,813, receivables increased by $1,386,353, and capital assets increased by $10,929,067. The deferred outflows increased by $12,642,023 and inflows increased by $21,618,402 from the prior year due to GASB No. 75 requiring the recognizing OPEB (retiree health insurance benefits). The long-term liabilities decreased by $29,209,231. This was due to the decrease in the OPEB liability of $16,288,651 and the reduction of bond debt of $13,150,000. 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 $6,520,033.

vii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Table 3 shows the changes in net position for fiscal year 2019 compared to 2018.

R e ve nue s P ro gra m R e ve nue s : C ha rge s fo r S e rvic e s O pe ra ting G ra nts a nd C o ntributio ns C a pita l G ra nts a nd C o ntributio ns
To ta l P ro gra m R e ve nue s
Gene ra l R e ve nue s : T a xe s P ro pe rty T a xe s S a le s T a xe s G ra nts a nd C o ntributio ns no t R e s tric te d
to S pe c ific P ro gra m s Inve s tm e nt E a rnings M is c e lla ne o us Lo s s o n D e pre c ia tio na ble A s s e ts To ta l G e ne ra l R e ve nue s
To tal Revenues
P ro gra m Expe ns e s Ins truc tio n S uppo rt S e rvic e s P upil S e rvic e s Im pro ve m e nt o f Ins truc tio na l S e rvic e s E duc a tio na l M e dia S e rvic e s G e ne ra l A dm inis tra tio n S c ho o l A dm inis tra tio n B us ine s s A dm inis tra tio n M a inte na nc e a nd O p e ra tio n o f P la nt S tude nt T ra ns po rta tio n S e rvic e s C e ntra l S uppo rt S e rvic e s O the r S uppo rt S e rvic e s O pe ra tio ns o f N o n-Ins truc tio na l S e rvic e s E nte rpris e O pe ra tio ns F o o d S e rvic e s Inte re s t o n D e bt a nd B o nd Is s ua nc e F e e s T o ta l E xpe ns e s
Inc re a s e in N e t A s s e ts
N e t P o s itio n - B e ginning o f Ye a r R e s ta te d (N o te 13)
N e t P o s itio n - End o f Ye a r

T a ble 3

C ha nge in N e t P o s itio n

G o ve rnm e nta l A c tivitie s

F is c a l Ye a r 2019

F is c a l Ye a r 2018

$

12 ,6 5 6 ,2 4 8

$

11,5 9 4 ,2 7 6

15 4 ,0 8 6 ,8 4 8

14 5 ,7 0 4 ,5 3 8

6 ,6 6 7 ,17 5

3 ,4 9 0 ,8 8 4

17 3 ,4 10 ,2 7 1

16 0 ,7 8 9 ,6 9 8

9 4 ,18 0 ,6 8 8 2 5 ,5 16 ,9 7 5
4 ,3 19 ,14 2 1,7 6 5 ,7 8 0
5 3 4 ,0 4 9
12 6 ,3 16 ,6 3 4 2 9 9 ,7 2 6 ,9 0 5

8 9 ,7 2 0 ,2 0 5 2 4 ,19 7 ,6 6 1
2 ,3 6 4 ,0 11 1,0 2 1,9 7 2 7 7 8 ,4 0 2
118 ,0 8 2 ,2 5 1 2 7 8 ,8 7 1,9 4 9

17 9 ,2 15 ,6 2 3

6 ,2 5 5 ,9 0 8 9 ,3 3 2 ,17 7 4 ,5 0 0 ,9 7 2
9 2 2 ,5 8 0 17 ,6 4 3 ,4 4 7
1,7 9 7 ,2 0 7 2 0 ,2 9 2 ,10 1 13 ,7 5 9 ,0 19 1,4 3 3 ,2 3 4
5 ,4 17

4 ,10 6 ,5 6 4 12 ,10 1,5 6 8
8 2 6 ,8 6 3 2 7 2 ,19 2 ,6 8 0

2 7 ,5 3 4 ,2 2 5

(10 ,8 7 0 ,9 7 7 )

$

16 ,6 6 3 ,2 4 8

$

viii

18 0 ,7 2 0 ,7 10
5 ,8 7 9 ,3 4 6 9 ,10 8 ,7 7 7 4 ,6 4 5 ,2 10
9 4 2 ,0 2 0 17 ,5 4 8 ,0 2 1 1,6 7 7 ,6 5 5 18 ,0 6 1,2 6 7 13 ,6 5 6 ,6 0 8
1,5 2 1,2 3 9 (222)
4 ,2 0 0 ,6 0 5 12 ,115 ,9 7 4
9 4 7 ,13 7 2 7 1,0 2 4 ,3 4 7
7 ,8 4 7 ,6 0 2 (18 ,7 18 ,5 7 9 ) (10 ,8 7 0 ,9 7 7 )

% Change
9 .16 % 5 .7 5 % 9 0 .9 9 % 7 .8 5 %
4 .9 7 % 5 .4 5 %
8 2 .7 0 % 7 2 .7 8 % -3 1.3 9 %
6 .9 7 % 7 .4 8 %
-0 .8 3 %
6 .4 0 % 2 .4 5 % -3 .11% -2 .0 6 % 0 .5 4 % 7 .13 % 12 .3 5 % 0 .7 5 % -5 .7 9 % -2 5 4 0 .0 9 %
-2 .2 4 % -0 .12 % -12 .7 0 % 0 .4 3 % 2 5 0 .8 6 %
-2 5 3 .2 8 %

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Governmental Activities

Instruction comprises 66% of governmental program expenses. Support service expenses make up 28% of the expenses. Interest expense was .30%. 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 District levies a millage rate of 18.30 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

Net Cost of Services

Fiscal Year 2019 $ 179,215,623

Fiscal Year 2018 $ 180,720,710

Fiscal Year 2019 Fiscal Year 2018 $ 54,457,996 $ 66,913,334

6,255,908 9,332,177 4,500,972
922,580 17,643,447 1,797,207 20,292,101 13,759,019 1,433,234
5,417

5,879,346 9,108,777 4,645,210
942,020 17,548,021 1,677,655 18,061,267 13,656,608 1,521,239
(222)

4,707,022 8,034,938
585,389 (2,630,625) 10,700,343 1,790,955 11,713,975 10,153,507 1,433,228
1,271

4,675,486 6,871,618 1,014,726 (2,920,043) 10,968,995 1,671,356 9,821,533 10,408,555 1,519,928
(3,222)

4,106,564 12,101,568
826,863

4,200,605 12,115,974
947,137

(2,810,266) (182,187) 826,863

(2,296,843) 642,089 947,137

$ 272,192,680 $ 271,024,347 $ 98,782,409 $ 110,234,649

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, 2019
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 District. 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 District. Interest involves the transactions associated with the payment of interest related to the School District'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 43.11% of instructional activities are supported through taxes and other general revenues, which decreased from the prior year by 13.56%; for all other governmental activities, general revenue support is 35.90%, which is a decrease of 1.39%.
x

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
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 $299,768,516 and expenditures of $297,135,485. The net change in fund balance for the year was significant in the general fund and the capital projects funds, which had a decrease of $588,886 and an increase of $3,222,061, respectively. The changes in these two funds are the result of a transfer of $6,111,316 from general fund to capital projects fund for a new complex for facilities, transportation and technology department.
The general fund operations increase was due to the increase of $10.3 million in state funds from fiscal year 2018 to fiscal year 2019. This increase was due to three factors: student growth, the State Equalization Funding Grant and the funding for teacher's retirement plan. Also, the taxes increased by $4.1 million from fiscal year 2018 to fiscal year 2019, which is attributed to the growth in the tax digest. This increase in revenue allowed the school district to give all auxiliary employees a 3% raise in 2019 along with funding the additional employer cost for the teacher retirement system (TRS).
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 2019, a replacement/new-elementary school opened along with athletic improvements at all the high schools.
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 2019, the Board amended its general fund budget numerous times, which resulted in increasing the revenue budget by $6,210,700 and increasing the expenditure budget by $1,329,603. The original budget was based on 2.5% increase in the tax digest but was adjusted for the final digest, which was a 4.34% increase for an increase of $2.1 million in tax revenue. The revenue budget also increased due to additional funds received from the state and federal government. 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 2019 are due to the student activity funds of $5.9 million that are not budgeted; increase in participation of school nutrition program of $267,000; and increase of $1.5 million in miscellaneous, interest, and charges for services. 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 $5.7 million in student activity funds. Approximately $4.2 million of the School District budget was not spent due to conservative budgeting and teaching positions budgeted for growth but not needed.
xi

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Capital Assets

At the end of the fiscal year 2019, the School District had $349,804,973 invested in land, construction in progress, buildings, equipment, and buses.

Table 5 shows fiscal 2019 balances compared to 2018.

Table 5 Capital Assets (Net of Depreciation)

Fiscal Year 2019

Fiscal Year 2018

Land Construction in Progress
Buildings and Building Improvements Equipment Land Improvements

$ 11,510,054 22,511,987
280,166,248 24,564,839 11,051,845

$ 11,510,054 22,716,182
277,619,285 23,893,481 3,136,904

Total

$ 349,804,973

$ 338,875,906

Overall capital assets increased $10,929,067 from fiscal year 2018 to fiscal year 2019. Increases in capital assets (buildings and building improvements, equipment, and land improvements) were offset by depreciation expense for the year.

The increase in land improvements is due to athletic renovations/improvements at all five high schools. Buildings and building improvements increased due to HVAC improvements at various schools.

Debt

At June 30, 2019, the School District had $48.6 million in general obligation bonds outstanding with $13.1 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 (July, 2002 - June, 2007); the third on March 15, 2005 (July, 2007 - June, 2012); the fourth on July 20, 2010 (July, 2012 - June 2017); the fifth on March 17, 2015 (July 2017 June 2022); and the sixth on March 22, 2019 (July 2022 - June 2027). The voters also approved in the March 22, 2019 election for the school district to sell up to $160 million in bonds which can be repaid with either the sales tax proceeds, a debt service millage or a combination of the two. The School District anticipates part of the bonds will be sold in 2020 and repaid with 2022-2027 ESPLOST proceeds. The school district will determine later if the remaining bonds will be sold depending on future growth within the county. The School Board no longer levies a debt millage; instead, the proceeds from the sales tax is used to pay the debt.

xii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019

Table 6 summarizes general operation bonds and compensated absences outstanding.

Table 6 Outstanding Debt and Compensated Absences at June 30

Fiscal Year 2019

Fiscal Year 2018

Compensated Absences Unamortized Premium on Bonds General Obligation Bonds

$ 628,037 2,964,044 48,665,000

$ 561,562 4,633,606 55,000,000

Total

$ 52,257,081

$ 60,195,168

Current Financial Issues

The Columbia County School District is financially stable. The School District's current millage rate is 18.30 mills for fiscal year 2019. Currently one mill produces approximately $5 million in tax revenue. The gross tax digest has grown at 18.07% over the last five years and the average collection rate remains between 95-98% over those same years. In March 2013, the state of Georgia inactivated HB 386 that 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 five years.

The School District continues to grow with an average increase of 537 students per year over the last four 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.

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 51% of the revenues budgeted for the General Fund from QBE. The School District received $9.7 million more in funding for 2019. The increase in QBE funding was due to continued growth in student enrollment; increase in Equalization Grant; and a 24.33% increase of employer contributions to the Teacher Retirement System. The increased funding allowed the school district to increased staff by 33 certified positions and 44 support staff positions to accommodate the growth and to continue with lower class sizes. Of the 44 support staff positions, 23 where safety officers which provided a safety officer at each school.

xiii

COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 The District's 2020 general fund budget includes $278.4 million in total revenue and $283.8 million in expenditures, resulting in a budgeted $5.4 million decrease to general fund balance at June 30, 2020. The School District historically budgets conservatively with actual year-end excess/deficits within $3-5 million above the original budgeted anticipated fund balance. The School District also budgeted an additional 71 certified staff and 18 support staff to accommodate the continual growth in the district. The School District was also able to provide a 2% pay increase for non-certified employees and a $3,000 increase for certified employees. The School District was able to prepare a 2020 budget with reserves from fund balance and still maintain a 15% reserve of budgeted expenditures. 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

(This page intentionally left blank)

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019

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

ASSETS

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

5,443,302

65,910,079

3,136,864 21,648,532 1,246,187
13,908 61,611 162,130

11,510,054 22,511,987 13,074,138 395,134,362 66,786,476 (159,212,044)

Total Assets

$

447,427,586

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

$

9,506,719

52,214,019

Total Deferred Outflows of Resources

$

61,720,738

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 OPEB Liability Net Pension Liability

LIABILITIES

$

761,624

2,547,818

367,577

16,793,067

564,716

1,326,250

13,150,000 1,378,680
35,515,000 1,585,364
628,037 164,831,629 214,909,510

Total Liabilities

$

454,359,272

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

$

31,672,542

6,445,262

8,000

Total Deferred Outflows of Resources

$

38,125,804

Net Investment in Capital Assets Restricted for Continuation of Federal Programs Debt Service Capital Projects Unrestricted

NET POSITION

$

294,301,904

826,641 7,059,716 17,175,889 (302,700,902)

Total Net Position

$

The notes to the basic financial statements are an integral part of this statement. - 1 -

16,663,248

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2019

EXHIBIT "B"

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 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
Net Position - End of Year

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES OPERATIONS GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$ 179,215,623 $
6,255,908 9,332,177 4,500,972
922,580 17,643,447
1,797,207 20,292,101 13,759,019
1,433,234 5,417
4,106,564 12,101,568
826,863
$ 272,192,680 $

76,423 $
-
6,916,830 5,662,995
-
12,656,248 $

119,391,439 $
1,548,886 1,297,239 3,620,456 3,553,205 6,707,003
6,252 8,372,340 3,142,192
6 4,146
6,443,684
-
154,086,848 $

5,289,765 $
295,127 236,101 205,786 463,320 -
177,076
-
6,667,175

(54,457,996)
(4,707,022) (8,034,938)
(585,389) 2,630,625 (10,700,343) (1,790,955) (11,713,975) (10,153,507) (1,433,228)
(1,271)
2,810,266 182,187 (826,863)
(98,782,409)

86,540,255 7,640,433

8,910,612 13,748,640
2,045,828 811,895
4,319,142 1,765,780
534,049

126,316,634

27,534,225

(10,870,977)

$

16,663,248

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

COLUMBIA COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERMENTAL FUNDS JUNE 30, 2019

EXHIBIT "C"

ASSETS

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

Cash Cash Equivalents Receivables, Net
Taxes State Government Federal Government Other Prepaid Items Inventories

$ 5,061,752 $

5,966 $

- $ 5,067,718

39,633,922 24,714,852

29,337

64,378,111

1,154,234 20,271,645
1,246,187 13,908 61,611
162,130

1,982,630 1,376,887
-

-

3,136,864

-

21,648,532

-

1,246,187

-

13,908

-

61,611

-

162,130

Total Assets

$ 67,605,389 $ 28,080,335 $ 29,337 $ 95,715,061

LIABILITIES AND FUND BALANCES

LIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deffered Revenue

$ 723,839 $

-$

16,793,067

-

-

2,547,818

-

1,326,250

8,000

- $ 723,839

-

16,793,067

-

2,547,818

-

1,326,250

-

8,000

Total Liabilities

17,524,906

3,874,068

-

21,398,974

FUND BALANCES Nonspendable Restricted Assigned Unassigned

223,741 664,511 10,064,948 39,127,283

24,206,267
-

29,337
-

223,741 24,900,115 10,064,948 39,127,283

Total Fund Balances

50,080,483 24,206,267

29,337

74,316,087

Total Liabilities and Fund Balances

$ 67,605,389 $ 28,080,335 $ 29,337 $ 95,715,061

The notes to the basic financial statements are an integral part of this statement. - 3 -

COLUMBIA COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2019

EXHIBIT "D"

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

$ 74,316,087

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

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

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

$ 11,510,054 22,511,987 13,074,138
395,134,362 66,786,476
(159,212,044)

349,804,973

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

Net OPEB Liability Net Pension Liability

(164,831,629) (214,909,510)

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

Related to OPEB Related to Pensions

(22,165,823) 45,768,757

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 and governmental activities.

1,502,190

Long-term liabilities, and related accrued interest, 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

(564,716) (2,964,044) (48,665,000)
(628,037)

(52,821,797)

Net Position of Governmental Activities (Exhibit "A")

$ 16,663,248

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

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES GOVERNMENTAL FUNDS JUNE 30, 2019

EXHIBIT "E"

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

$ 94,180,688 $

-$

2,857,723

-

-

13,748,640

144,164,324

5,902,534

14,910,772

95,535

12,656,248

-

1,096,306

634,424

610,048

-

8,910,612 662 -

$ 94,180,688 2,857,723
22,659,252 150,066,858
15,006,307 12,656,248
1,731,392 610,048

Total Revenues

270,476,109

20,381,133

8,911,274 299,768,516

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 Capital Outlay Debt Service Principal Interest

172,938,364
6,429,629 9,623,569 4,607,476
884,044 18,051,958 1,859,893 20,379,875 12,780,144 1,457,640
2,733 4,101,215 11,837,139
-
-

1,611,223
5,174
5,600
139,606 1,366,567 20,142,218
-

-
806 -
6,335,000 2,575,612

174,549,587
6,429,629 9,628,743 4,607,476
889,644 18,051,958
1,860,699 20,519,481 14,146,711
1,457,640 2,733
4,101,215 11,837,139 20,142,218
6,335,000 2,575,612

Total Expenditures

264,953,679

23,270,388

8,911,418 297,135,485

OTHER FINANCING SOURCES (USES)

Transfers In Transfers Out

(6,111,316)

6,111,316 -

-

6,111,316

-

(6,111,316)

Total Other Financing Sources (Uses)

(6,111,316)

6,111,316

-

-

Net Change in Fund Balances

(588,886)

3,222,061

(144)

2,633,031

Fund Balances - Beginning

50,669,369

20,984,206

29,481

71,683,056

Fund Balances - Ending

$ 50,080,483 $ 24,206,267 $

29,337 $ 74,316,087

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

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, 2019

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

$ 2,633,031

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

$ 26,478,163 (15,473,098)

11,005,065

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

(75,999)

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

OPEB expense Pension expenses

(206,174) 5,984,822

5,778,648

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items:

Bond Principal Retirements Change in Accrued Interest Payable Amortization of Bond Premium

6,335,000 79,187
1,669,562

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:

Increase in Compensated Absences

(66,475)

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.

176,206

Change in Net Position of Governmental Activities (Exhibit "B")

$ 27,534,225

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

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2019
ASSETS

EXHIBIT "G"
INTERNAL SERVICE FUND

Current Assets Cash Cash Equivalents

$

375,584

1,531,968

Total Assets

$ 1,907,552

Current Liabilities Accounts Payable Claims Payable
Total Liabilities

LIABILITIES

$

37,785

367,577

405,362

NET POSITION Unrestricted
Total Liabilities and Net Position

1,502,190 $ 1,907,552

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

COLUMBIA COUNTY BOARD OF EDUCATION

EXHIBIT "H"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

JUNE 30, 2019

OPERATING REVENUES

INTERNAL SERVICE FUND

Charges for Services

$

924,146

OPERATING EXPENSES

Contractual Services Insurance Claims and Expenses

175,193 607,135

Total Operating Expenses

782,328

Operating Income

141,818

NONOPERATING REVENUES

Interest and Investment Revenue

34,388

Changes in Net Position

176,206

Total Net Position - Beginning

1,325,984

Total Net Position - Ending

$ 1,502,190

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

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS JUNE 30, 2019
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

$

924,146

(100,581)

(65,189)

(708,825)

49,551

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

34,388 83,939 1,823,613 $ 1,907,552

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Changes in Assets and Liabilities Accounts and Other Payables
Net Cash Provided By Operating Activities

$

141,818

(92,267)

$

49,551

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

Cash

COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION FIDUCIARY FUNDS JUNE 30, 2019
ASSETS

EXHIBIT "J"
AGENCY FUNDS $ 1,802,921

LIABILITIES Funds Held for Others

$ 1,802,921

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

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

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
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements: The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
- 11 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
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.
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.
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 expenditures 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.
- 12 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

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 government-wide governmental, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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.

- 13 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

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 District 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 District 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 District recognizes the same QBE as a receivable and revenue consistent with symmetrical recognition.
NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement.
In fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated 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
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
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COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

The School District can invest in the following:
Obligations issued by the State of Georgia or by other states Obligations issued by the United States government Obligations fully insured or guaranteed by the United States government or a
United States government agency Obligations of any corporation of the United States government, Prime banker's acceptances Repurchase agreements Obligations of other political subdivisions of the State of Georgia
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
RECEIVABLES
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Due to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year.
PROPERTY TAXES
The Columbia County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on August 7, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on November 15, 2018 (lien date). Taxes collected within the current fiscal year or within 30 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. 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, 2019, for maintenance and operations amounted to $86,540,255.

- 15 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Tax millage rates levied for the 2018 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

18.30 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $7,640,433 during fiscal year ended June 30, 2019.

SALES TAXES

Education Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $22,659,252 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.

PREPAID ITEMS

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

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the government fund financial statements at the time of purchase (including ancillary charges). On the government-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.

- 16 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Capitalization thresholds and estimated useful lives of capital assets reported in the government-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.

DEFERRED OUTFLOWS/INFLOWS OF RESOURCES

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

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

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. Upon terminating employment, the School District pays for all unused vacation benefits not to exceed the 25 days. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements.
- 17 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

LONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the government-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method for the 2015 bonds. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental 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 pension plans 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.
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
FUND BALANCES
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

- 18 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used for specific purposes pursuant constraints 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 consists of resources 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 consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.
Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
Fund Balances of the Governmental Funds at June 30, 2019, are as follows:

Nonspendable Inventories Prepaid Assets
Restricted Capital Projects Debt Service Continuation of Federal Programs
Assigned Anticipated Revenue Shortfall School Activity Accounts
Unassigned
Fund Balance, June 30, 2019

$ 162,130 61,611
16,611,173 7,624,431
664,511
6,650,287 3,414,661

$ 223,741
24,900,115
10,064,948 39,127,283 $ 74,316,087

- 19 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

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 funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity 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 on 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.
- 20 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

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, CASH EQUIVALENTS 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.

- 21 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

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. The school district does not have a policy for custodial credit risk. At June 30, 2019, the carrying amount of deposits was $7,246,223 and bank balances were $10,145,032. The bank balances insured by Federal depository insurance were $1,144,344. 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, 2019, are as follows:

Custodial Credit Risk Category

Bank Balance

1

$

-

2

-

3

9,000,689

Total

$ 9,000,689

CATEGORIZATION OF CASH EQUIVALENTS

The School District reported investments of $65,910,079 in Georgia Fund 1, a local government investment pool, which is administered by the State of Georgia, Office of the State Treasurer and 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, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days.

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
- 22 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Note 6: CAPITAL ASSETS

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

Governmental Activities Capital Assets, Not Being Depreciated: Land Construction in Progress
Total Capital Assets Not Being Depreciated
Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements
Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements
Total Capital Assets, Being Depreciated, Net Governmental Activity Capital Assets - Net

Balances July 1, 2018

Increas es

Decreas es

Balances June 30, 2019

$ 11,510,054 $

-$

- $ 11,510,054

22,716,182

19,975,924

(20,180,119)

22,511,987

34,226,236

19,975,924

(20,180,119)

34,022,041

383,448,594 63,216,838 4,609,829

11,748,533 6,469,519 8,464,309

(62,765) (2,899,881)
-

395,134,362 66,786,476 13,074,138

105,829,309 39,323,357 1,472,925

9,195,291 5,728,440
549,367

(56,484) (2,830,161)
-

114,968,116 42,221,636 2,022,292

304,649,670

11,209,263

(76,001) 315,782,932

$ 338,875,906 $ 31,185,187 $ (20,256,120) $ 349,804,973

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

$ 12,897,271

$ 8,484 49,019 46,794 39,478 161,699 30,260 382,907
1,483,884 7,266 2,688

2,212,479 28,125 335,223
$ 15,473,098

- 23 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Note 7: INTERFUND TRANSFERS
The board approved a transfer from general fund to the capital projects fund in the amount of $6,111,316. The transfer of funds is designated for a future complex for facilities, transportation and the technology department.

Note 8: RISK MANAGEMENT

INSURANCE

Georgia School Boards Association Risk and Insurance Management System

The School District participates in the Georgia School Boards Association Risk and Insurance Management System (the 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.

Worker's Compensation

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

2019 2018

$ 469,267 $ 487,299

$ 505,445 $ 515,739

$ 607,135 $ 533,771

$ 367,577 $ 469,267

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COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Unemployment Compensation
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures as claims are paid. The claims are immaterial to the financial statements.

Surety Bond

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 LIABILITIES

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

The School District's bonded debt consists of various issues of general obligation bonds that are noncallable with interest and principal payments due semiannually on October 1 and April 1. Bond proceeds are used to construct and equip new school facilities, technology improvements, school buses, and renovating and repairing current facilities. The School District repays general obligation bonds with the Education Special Purpose Local Option Sales Tax (ESPLOST).

The District passed the fifth ESPLOST on March 17, 2015 which gave the Board authorization to issue $55,000,000 in general obligation bonds on November 17, 2015. The District passed the sixth ESPLOST) on March 22, 2019 which gave the Board authorization to issue general obligation bonds up to $160,000,000. The school district anticipates a portion of the bonds will be sold in 2020.

General Obligation Bonds currently outstanding are as follows:

Purpose

Maturity Date Interest Rates

Amount

General Government - Series 2015 October 2022

2.25% - 5.0%

$ 48,665,000 $ 48,665,000

- 25 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

The changes in Long-Term Liabilities during the fiscal year ended June 30, 2019, were as follows:

Balance July 1, 2018

G.O. Bonds

$ 55,000,000

(1)
Compensated Absences

561,562

Unamoritized Bond Premium 4,633,606

$ 60,195,168

Additions 616,939
$ 616,939

Balance

Due Within

Deductions June 30, 2019 One Year

$ 6,335,000 550,464
1,669,562

$ 48,665,000 628,037
2,964,044

$ 13,150,000 -
1,378,680

$ 8,555,026 $ 52,257,081 $ 14,528,680

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

At June 30, 2019, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30,

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2020 2021 2022 2023

$ 13,150,000 13,715,000 14,375,000 7,425,000

$ 2,111,438 1,479,413 824,812 152,281

$ 1,378,680 975,024 610,340 -

Total Principal and Interest

$ 48,665,000 $ 4,567,944

$ 2,964,044

Note 10: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2019 together with funding available:

Project

Unearned Executed Contracts (1)

Payments Through June 30, 2019 (2)

Funding Available From State

New Schools School Additions/Other

$ 3,108,391 $ 16,735,630 $ 741,508

3,054,404

5,431,293

-

$ 6,162,795 $ 22,166,923 $ 741,508

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

- 26 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Note 11: 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. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
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 12: OTHER POST-EMPLOYMENT BENEFITS
GEORGIA SCHOOL PERSONNEL EMPLOYEES POST-EMPLOYMENT HEALTH BNENEFIT FUND
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a pay-as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $7,179,442 for the year ended June 30, 2019. Active Employees are not required to contribute to the School OPEB Fund.

- 27 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

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

At June 30, 2019, the School District reported a liability of $164,831,629 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2017. An expected total OPEB liability as of June 30, 2018 was determined using standard rollforward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2018. At June 30, 2018, the School District proportion was 1.296897%, which was an increase of .007781% from its proportion measured as of June 30, 2017.

For the year ended June 30, 2019, the School District recognized OPEB expense of $206,174. At June 30, 2019, the School District reported deferred outflows or resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred Outflow Deferred Inflows

of Resources

of Resources

Differences between expected and actual experience $

-

$ 3,749,271

Changes of assumptions

-

27,923,271

Net difference between projected and actual

earnings on OPEB plan investments

223,016

-

Changes in proportion and differences between

School District contributions and proportionate

share of contributions

2,081,139

-

School District contributions subsequent to the

measurement date

7,202,564

-

Total

$ 9,506,719

$ 31,672,542

- 28 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OBEP expense as follows:

Year Ended June 30,

OPEB

2020 2021 2022 2023 2024 Thereafter

$ (5,687,975) (5,687,975) (5,687,975) (5,701,299) (4,753,730) (1,849,433)

Actuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018:

OPEB: Inflation

2.75%

Salary increases

3.25% - 9.00%, average, including inflation

Long-term expected rate of return

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

Healthcare cost trend rate

Pre-Medicare Eligible Medicare Eligible

7.50% 5.50%

Ultimate trnd rate

Pre-Medicare Eligible Medicare Eligible

4.75% 4.75%

Year of Ultimate trned rate

Pre-Medicare Eligible Medicare Eligible

2028 2022

- 29 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:
For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement.
For PSERS members: The RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
The long-term expected rate of return on OPEB plan investments was determined using a longnormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund update their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

- 30 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Asset Class

OPEB Target allocation

Long-Term Expected Real

Fixed Income Domestic Stocks - Large Cap Domestic Stocks - Mid Cap Domestic Stocks - Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives
Total

30.00% 37.20%
3.40% 1.40% 17.80% 5.20% 5.00%
100.00%

-0.05% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50%

Discount rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentagepoint lower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate:

1% Decrease (2.58%)

Current discount rate
(3.87%)

1% Increase (4.87%)

Net OPEB Liability (asset)

$192,471,659

$164,831,629

$142,542,835

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

- 31 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

1% Decrease

Current discount rate

1% Increase

School District's proportionate share of the Net OPEB Liability

$138,575,277

$164,831,629

$198,386,279

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports.

Note 13: 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.
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., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

- 32 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Employees were required to contribute 6% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual school district payroll, of which 99.88% of payroll was required from the School District and .12% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $29,813,149 and $36,630 from the School District and State, respectively.
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 $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $649,020.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2019, the School District reported a liability of $214,909,510 for its proportionate share of the net pension liability for TRS $18,562,142,000. 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.
- 33 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School district were as follows:

School District's proportionate share of the net pension liability

$ 214,909,510

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

466,838

Total

$ 215,376,348

The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 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, 2018.

At June 30, 2018, the School District's TRS proportionate share of the Net Pension Liability associated with the District was 1.157784%, which was an increase .009738% from its proportion measured as of June 30, 2017.

At June 30, 2019, 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 $2,803,100.

The PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 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, 2018.

For the year ended June 30, 2019, the School District recognized pension expense of $23,892,464 for TRS.

- 34 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

At June 30, 2019, 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
Changes in proportion and differences between School District contributions and proportionate share of contributions
School District contributions subsequent to the measurement date
Total

$ 14,227,313 3,242,907 -
4,944,125 29,799,674 $ 52,214,019

$

442,933

-

5,876,043

126,286
$ 6,445,262

The School District contributions subsequent to the measurement date 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, 2020. 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

2020 2021 2022 2023 2024 Thereafter

$ 12,939,109 7,376,446 (4,858,379) 275,060 236,847 -

Actuarial assumptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System

Inflation Salary increases Investment rate of return

2.75% 3.25 - 9.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation

- 35 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

Post-retirement mortality rates were based on the RP-2000 White collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009 - June 30, 2014.

Public School Employee's Retirement System

Inflation Salary increases Investment rate of return

2.75% N/A 7.30%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July1, 2009 - June 30, 2014.

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:

- 36 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

EXHIBIT "K"

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

TRS Target allocation
30.00% 39.80%
3.70% 1.50% 19.40% 5.60%
100.00%

PSERS Target allocation
30.00% 37.20%
3.40% 1.40% 17.80% 5.20% 5.00%
100.00%

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

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

Discount rate: The discount rate used to measure the total TRS pension liability was 7.50% and PSERS was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS 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% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percent-point lower (6.50% and 6.30%) or 1-percentagepoint higher (8.50% and 8.30%) 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

$358,745,509

$ 214,909,510

$ 96,381,327

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.

- 37 -

COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2019

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 School District selected VALIC as the provider of this plan. The School District 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 School District.

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

Fiscal Year

Amount Contributed

2019 2018 2017

$ 201,317 $ 156,452 $ 151,248

- 38 -

COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL JUNE 30, 2019

SCHEDULE "1"

REVENUES

NONAPPROPRIATED BUDGETS ORIGINAL (1) FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

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

$ 92,200,000 $ 94,325,000 $ 94,180,688 $ (144,312)

2,900,000

2,900,000

2,857,723

(42,277)

140,744,145 144,050,203

144,164,324

114,121

14,199,890

14,979,532

14,910,772

(68,760)

5,495,000

5,495,000

12,656,248

7,161,248

701,400

701,400

1,096,306

394,906

365,000

365,000

610,048

245,048

Total Revenue

256,605,435 262,816,135

270,476,109

7,659,974

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

173,514,562
5,989,137 11,499,006
4,360,481 1,017,650 16,207,429 1,985,188 20,998,688 13,055,141 1,524,981
23,000 -
11,820,636

174,664,757
6,431,512 10,722,714
4,360,481 1,076,824 16,207,429 1,985,188 20,998,688 13,507,570 1,524,981
24,722 -
11,820,636

172,938,364
6,429,629 9,623,569 4,607,476
884,044 18,051,958
1,859,893 20,379,875 12,780,144
1,457,640 2,733
4,101,215 11,837,139

1,726,393
1,883 1,099,145 (246,995)
192,780 (1,844,529)
125,295 618,813 727,426
67,341 21,989 (4,101,215) (16,503)

Total Expenditures

261,995,899 263,325,502

264,953,679

(1,628,177)

OTHER FINANCING SOURCES (USES)

Transfers Out

-

(6,111,316)

(6,111,316)

-

Total Other Financing Sources (Uses)

-

(6,111,316)

(6,111,316)

-

Net Change in Fund Balances

(5,390,464)

(6,620,683)

(588,886)

6,031,797

Fund Balances - Beginning

50,669,369

50,669,369

50,669,369

-

Fund Balances - Ending

$ 45,278,905 $ 44,048,686 $ 50,080,483 $ 6,031,797

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 $5,910,464 and $5,682,001, respectively. The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.
The notes to the basic financial statements are an integral part of this statement. - 39 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
JUNE 30, 2019

SCHEDULE "2"

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Year Ended

School District's proportion of the net pension liability

School District's proportionate share of the net
pension liability

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

Total

School District's coveredemployee payroll

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

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

2019 2018 2017 2016 2015

1.16% $ 214,909,510 $ 1.15% 213,367,885 1.13% 234,981,385 1.10% 168,215,230 1.09% 138,918,946

466,838 429,135 421,494 297,477 255,453

$ 215,376,348 213,797,020 235,402,879 168,512,707 139,174,399

$ 138,023,235 132,274,114 125,291,451 116,831,384 112,501,771

155.71% 161.31% 187.55% 143.98% 123.48%

80.27% 79.33% 76.06% 81.44% 84.03%

PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

Year Ended

School District's proportion of the net pension liability

School District's proportionate share of the net
pension liability

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

Total

School District's coveredemployee payroll (1)

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

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

2019 2018 2017 2016 2015

0.00% $ 0.00% 0.00% 0.00% 0.00%

-$ -

2,803,100 2,544,512 3,281,989 2,025,115 1,707,337

$ 2,803,100 2,544,512 3,281,989 2,025,115 1,707,337

$ 13,379,944 12,867,775 12,376,598 11,732,049 11,300,930

0.00% 0.00% 0.00% 0.00% 0.00%

85.26% 85.69% 81.00% 87.00% 88.29%

(1) The retirement benefit is calculated at a rate of $14.75 per month multiplied by the number of years of creditable service.
The notes to the basic financial statements are an integral part of this statement. - 40 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF CONTRIBUTIONS (PENSIONS)
JUNE 30, 2019

SCHEDULE "3"

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Year Ended

Contractually required
contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2019 $ 23,150,710 $ 23,180,940 $

2018 18,875,516

18,811,042

2017 17,879,090

17,827,961

2016 15,363,327

15,331,084

2015 13,815,217

13,918,478

(30,230) 64,474 51,129 32,243 (103,261)

$ 138,023,235 132,274,114 125,291,451 116,831,384 112,501,771

16.77% 14.27% 14.27% 13.15% 12.28%

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

Year Ended

Contractually required
contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2019 $ 2018 2017 2016 2015

-$ -

-$ -

- $ 13,379,944

-

12,867,775

-

12,376,598

-

11,732,049

-

11,300,930

0.00% 0.00% 0.00% 0.00% 0.00%

The notes to the basic financial statements are an integral part of this statement. - 41 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
JUNE 30, 2019

SCHEDULE "4"

Year Ended

School District's proportion of the net
OBEP liability

School District's proportionate share of the net OPEB liability

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

Total

School District's coveredemployee payroll

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

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

2019 2018

1.30% $ 164,831,629 $ 1.29% 181,120,280

- $ 164,831,629 $ 151,393,796

N/A

-

181,120,280

143,615,483

N/A

2.93% 1.61%

The notes to the basic financial statements are an integral part of this statement. - 42 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF CONTRIBUTIONS (OPEB) JUNE 30, 2019

SCHEDULE "5"

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Year Ended

Contractually required
contribution

Contributions in relation to the contractually
required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2019 $ 7,179,442 $ 6,721,692 $

2018

6,744,814

6,721,551

457,750 $ 151,393,796

23,263

143,615,483

4.44% 4.68%

The notes to the basic financial statements are an integral part of this statement. - 43 -

COLUMBIA COUNTY BOARD OF EDUCATION

SCHEDULE "6"

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2019

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White-Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
Public School Employees Retirement System
Changes of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to RP-2000 BlueCollar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
School OPEB Fund
Changes of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy.
Changes in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees wee previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there was changes to the discount rate and an increase in the investment rate of return due to a longer term investment strategy.
In the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies.
The notes to the basic financial statements are an integral part of this statement. - 44 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2019

SCHEDULE "7"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program School Lunch Equipment Commercial Warehouse Storage and Delivery Grant Non-Cash Assistance (Commodities)
Total Child Nutrition Cluster
Total U.S. Department of Agriculture
Education, U. S. Department of Direct Impact Aid
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Title IV-Part A Student Support and Academic Enrichment Title IV-Part A Student Support and Academic Enrichment Improving Teacher Quality State Grants Improving Teacher Quality State Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants English Language Acquisition Grants Education for Homeless Children and Youth Education for Homeless Children and Youth
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 Expenditures of Federal Awards
N/A = Not Available

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555 10.579 10.555 10.555

185GA324N1099

(1)

185GA324N1099 $ 10,739,515 (1), (3)

175GA350N8103

8,000

185GA904N2533

16,037

185GA324N1099

785,746

11,549,298

11,549,298

84.041

N/A

(2)

84.027 84.173

H027A180073 H173A180081

84.010 84.010 84.424A 84.424A 84.367 84.367 84.048 84.365 84.365 84.196 84.196

S010A170010-17A S010A180010 S424A170011 S424A180011 S367A170001 S367A180001 V048A180010 S365A170010 S365A180010 S196A170011 S196A180011

4,312,162 99,756
4,411,918
161,856 2,199,995
3,214 116,059
28,953 363,219 167,350
129 63,310 2,563 44,767
3,151,415
7,563,333

12.U01 12.U02

N/A

284,705

N/A

65,394

350,099

$ 19,462,730

The notes to the basic financial statements are an integral part of this statement. - 45 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2019

SCHEDULE "7"

Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Columbia County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3. Sub-Recipients During the year ended June 30, 2019 the Board did not provide federal assistance to any sub-recipient.
(1) Expenditures for the funds earned on the School Breakfast Program ($862,106) were not maintained separately and are included in the 2018 National School Lunch Program.
(2) Funds earned on the Impact Aid program, in the amount of $959,405, do not require reporting of expenditures.
(3) During the year ended June 30, 2019, program income and federal funds related to the Child Nutrition Cluster were comingled and are included in the accompanying schedule of federal awards.

The notes to the basic financial statements are an integral part of this statement. - 46 -

COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE JUNE 30, 2019

SCHEDULE "8"

AGENCY/FUNDING
GRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities 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 Other State Programs Bus Bonds GOSA Summer Literacy Military Counselors Safety Grant Preschool Handicapped Program Science & Math Supplement State Health Benefit Plan Employer Contribution Holiday
Office of the State Treasurer Public School Employees Retirement Flood Funds
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$ 1,386,897 $

- $ 1,386,897

5,015,014 4,835,741 14,153,173 10,824,822 8,430,400 4,656,427 17,226,115 16,129,805 3,686,070
675,411 617,809 9,410,005 3,907,266 1,252,533 10,765,431 2,416,962 1,233,312 721,685 3,055,730 925,119 537,253
2,820,658 5,662,045 6,904,775

-

5,015,014

-

4,835,741

-

14,153,173

-

10,824,822

-

8,430,400

-

4,656,427

-

17,226,115

-

16,129,805

-

3,686,070

-

675,411

-

617,809

-

9,410,005

-

3,907,266

-

1,252,533

-

10,765,431

-

2,416,962

-

1,233,312

-

721,685

-

3,055,730

-

925,119

-

537,253

-

2,820,658

-

5,662,045

-

6,904,775

1,689,822 564,966 28,598
3,338,351 287,840 130,726
463,320 3,058
80,936 205,786 672,920 234,547 (1,316,385)

-

1,689,822

-

564,966

-

28,598

-

3,338,351

-

287,840

-

130,726

-

463,320

-

3,058

-

80,936

-

205,786

-

672,920

-

234,547

-

(1,316,385)

507,995 21,386

-

507,995

-

21,386

$ 144,164,324

5,902,534 $ 5,902,534

5,902,534 $ 150,066,858

The notes to the basic financial statements are an integral part of this statement. - 47 -

COLUMBIA COUNTY BOARD OF EDUCATION SSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
JUNE 30, 2019

SCHEDULE "9a"

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

ORIGINAL

CURRENT

BUDGET

BUDGET

(as of 06-30-2011) (as of 06-30-2019)

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 $ 96,591,164 $

38,196,026

38,196,026

11,000,000

15,141,387

5,000,000

5,000

600,000

354,465

163,396,026

150,288,042

- $

- $

- 38,196,068

-

-

-

-

-

61,860

- 38,257,928

- $ 96,591,164 $

-

-

-

-

-

-

44,900

247,705

44,900 96,838,869

- $

-

-

-

- 15,141,387

-

33,712

-

-

- 15,175,099

$ 96,591,164 38,196,068 15,141,387 33,712 354,465
150,316,796

100% 100% 100% N/A 100%

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 25,600
74,512,339
31,317,370 150,288,042

6,888,293 $

- $

- 1,164,333

-

-

- 29,414,763

- 7,678,779 - 38,257,875

65,000

43,268,400 25,600
29,891,188

4,068,116 4,133,116

19,594,186 92,779,374

- $

53 $ (4,088,216) $ 4,059,495 $

-

-

-

-

- 15,141,387

44,432,733 25,600
74,512,338

100% 100% 100%

-

5,000

31,346,081 100%

- 15,146,387 150,316,752

- $ 28,712 $

44

6/30/2018 6/30/2018 6/30/2019
6/30/2019

The voters of Columbia County approved the imposition of a 1% sales tax (ESPLOST) for 2012-2017 to fund the above projects 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.

The notes to the basic financial statements are an integral part of this statement. - 48 -

COLUMBIA COUNTY BOARD OF EDUCATION SSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
JUNE 30, 2019

SCHEDULE "9b"

Revenues Sales Tax 2017-2022 Proceeds 2015 Bond Proceeds Federal Proceeds/Erate State Proceeds Local Proceeds Interest Total Revenue

ORIGINAL BUDGET (as of 06-30-2015)

CURRENT BUDGET (as of 06-30-2019)

(2)

SPLOST 2017-2022

BONDS

SALES TAX PROCEEDS

Current Year Prior Year Current Year Prior Year

STATE AND LOCAL
FUNDING Current Year Prior Year

TOTAL

ESTIMATED

PERCENTAGE COMPLETION

COMPLETION

DATE

$ 108,000,000 $ 112,000,000 $

63,026,800

63,256,853

-

2,865,675

18,000,000

22,664,331

-

6,111,316

200,000

1,200,000

189,226,800

208,098,175

1,219 1,219

$

-

63,256,853

-

-

1,853

380,236

63,638,942

$22,659,252 -
588,303 23,247,555

$ 21,023,919 -
120,812 21,144,731

$

-

-

95,535

5,902,532

6,111,316

-

12,109,383

$

-

-

2,770,140

16,020,291

-

-

18,790,431

$ 43,683,171 63,256,853 2,865,675 21,922,823 6,113,169 1,090,570 138,932,261

39% 100% 100% 97% N/A 91%

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

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

68,253,482 70,000
80,136,664
58,734,772 207,194,918

- 4,822,118 8,910,612 1,287,807

-

- 15,020,537

22%

-

38,037

5,600

-

-

-

43,637

62%

- 45,841,171 6,128,678

655,181

3,518,693 18,404,130 74,547,853

93%

77,415 12,861,420 9,271,957

-

133,078

2,770,140 25,114,010

43%

77,415 63,562,746 24,316,847 1,942,988

3,651,771 21,174,270 114,726,037

Proceeds for Current and Future Projects

$

126,400 $

903,257 $ (76,196) $ 76,196 $ (1,069,292) $ 19,201,743 $ 8,457,612 $ (2,383,839) $ 24,206,224

10/1/2022 10/1/2022 Various
Various

The voters of Columbia County approved the imposition of a 1% sales tax (ESPLOST) for 2017-2022 to fund the above projects 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.

The notes to the basic financial statements are an integral part of this statement. - 49 -

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SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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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
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, 2019, 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 November 7, 2019.
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., CPAs Augusta, Georgia November 7, 2019
- 51 -

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Superintendent and Members of the 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 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, 2019. 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 federal statutes, regulations, and the terms and conditions of its federal awards 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit in cludes 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, 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, 2019.
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 the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of 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 pro gram that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
SEROTTA MADDOCKS EVANS & CO., CPAs
Augusta, Georgia November 7, 2019
- 53 -

SECTION III PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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COLUMBIA COUNTY BOARD OF EDUCATION SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019 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

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COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
A. Summary of Auditors' Results 1. The auditors' report expresses an unmodified opinion on whether the financial statements of the Columbia County Board of Education were prepared in accordance with GAAP. 2. No significant deficiencies were disclosed during the audit of internal control over the major federal award programs. 3. 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. 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 2 CFR Section 200.516(a) reported in this Schedule. 6. The programs tested as major programs included: Special Education Cluster: Grants to States (CFDA No. 84.027) Preschool Grants (CFDA No. 84.173) 7. The threshold used for distinguishing between Type A and Type B programs was $750,000. 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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