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

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

CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

i

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET POSITION

1

B

STATEMENT OF ACTIVITIES

2

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

4

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

5

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

6

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

7

G

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

8

H

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS

9

I NOTES TO THE BASIC FINANCIAL STATEMENTS

10

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

TEACHERS RETIREMENT SYSTEM OF GEORGIA

39

2 SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

40

3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

41

4 SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 42

5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

43

CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I
FINANCIAL
SCHEDULES
REQUIRED SUPPLEMENTARY INFORMATION
6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND
7 SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND 8 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SEAD OPEB 9 SCHEDULE OF CONTRIBUTIONS SEAD OPEB 10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND
SUPPLEMENTARY INFORMATION
12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 13 SCHEDULE OF STATE REVENUE 14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
SECTION III
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV
FINDINGS AND QUESTIONED COSTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Page
44 45 46 47 48 49
50 51 53

SECTION I FINANCIAL

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

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

INDEPENDENT AUDITOR'S REPORT

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Crisp County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 2, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

February 2, 2021

Greg S. Griffin State Auditor

CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
INTRODUCTION
The following discussion and analysis of the Crisp County School System (the School District) provides an introduction to the basic financial statements for the fiscal year ended June 30, 2020. Management prepared this discussion that should be read in conjunction with the basic financial statements, footnotes, and supplementary information found in this report. This information taken collectively is designed to provide readers with an understanding of the School District's finances.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District.
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole.
The Statement of Net Position presents information on all of the School District's assets, deferred outflows, liabilities, and deferred inflows, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District's is improving or deteriorating.
The Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
These statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid.
The government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and federal grant funds finance most of these activities.
The government-wide statements includes the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. As a result of implementation of GASB No. 68, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their retirement benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make retirement benefit payments. The contribution is determined by the Teachers Retirement System of Georgia Plan administrators, not the School District.
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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
The government-wide statements includes the fiscal year 2018 adoption of the Governmental Accounting Standard's Board's (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, which replaced GASB Statement No. 45. The Postemployment Benefits Other than Pensions (OPEB) liability discloses the School District's proportionate share of the collective net OPEB liability related to providing postemployment benefits to its employees. The School District participates in Georgia's State Health Benefit Plan. As a result of implementation of GASB No. 75, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their health benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make postemployment benefit payments. Contributions to the OPEB plan fund current expenditures of the plan for active employees, current administrative fees, and a contribution into the OPEB plan for retirees. The contribution is determined by the Georgia State Health Benefit Plan administrators, not the School District.
Fund Financial Statements.
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds, proprietary funds, or fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the governmental-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Governmental funds are reported using the modified accrual basis of accounting, which provides a short-term spending focus.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general and capital projects funds, which are considered to be major funds.
Fiduciary funds
These funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations.
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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. These schedules are intended to demonstrate the School District's compliance with the legally adopted and amended budgets. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $14,231,867. The largest portion of the School District's net position is $69,705,682, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. The School District reports a restricted net position of $9,340,985, which consist of SPLOST funds to be used for capital projects, debt services funds to be used for debt repayment, and school nutrition funds to be used for student meals. The remaining portion of the net position represents an unrestricted net position deficit of $64,814,800. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively, of the financial statements.
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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020

TABLE 1

CRISP COUNTY SCHOOL DISTRICT'S NET POSITION

2020

Assets

Current and Other Assets

$

20,860,178 $

Capital Assets

81,858,452

2019
20,467,671 60,018,763

Deferred Outflows of Resources

14,554,684

9,339,042

Total Assets and Deferred Outflows of Resources
Liabilities Current and Other Liabilities Long Term Liabilities
Deferred Inflows of Resources

117,273,314
7,941,652 82,932,061 12,167,734

89,825,476
4,549,386 70,472,568 10,438,869

Total Liabilities and Deferred Inflows of Resources
Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit)

Total Net Position

$

103,041,447

85,460,823

69,705,682 9,340,985 (64,814,800)
14,231,867

58,855,930 6,063,689 (60,554,966)
$ 4,364,653

Change in Net Position
Total net position (Table 1) increased year over year by 226% largely due to the construction of a new middle school. The change in net position (Table 2) was $9,867,215 which was a 93.95% increase compared to last year's change in net position of $5,087,588.
The 19.02% increase in total revenues is largely due to an increase of $7,629,712 in capital grants and contributions, which are state funds earned for capital improvement to provide funding for the new middle school. The cost incurred to date for the new middle school is recorded in capital assets as construction in progress. Next year once the school is complete, the building will be capitalized as an asset and will be expensed as depreciation each year for the useful life of the building.
Also, property tax revenue increased by $1,299,495. This is largely due to the property tax digest values increased which resulted in higher taxes levied for fiscal year 2020 and the taxes received for Title Ad valorem Taxes (TAVT) also increased for fiscal year 2020.

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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
The 10.60% increase in total expenses is largely due to raises for applicable personnel. The fulltime certified staff received a $3,000 raise and the fulltime classified staff received a 2% raise. All applicable staff also received their step raise in accordance with the approved salary schedules. This expense in reflected in all the program expenses. Also, the interest on short-term and long-term debt expenses increased which was due to expenses incurred for the interest payments for the bond debt issuance.

TABLE 2 CRISP COUNTY SCHOOL DISTRICT'S CHANGE IN NET POSITION

Revenue Program Revenues:
Charges for Services Operating Grants and Contributions Capital Grants and Contributions
General Revenues:
Property Taxes Sales Taxes Grants and Contributions not Rstricted to Specfic Programs Miscellaneous and Investment Earnings

Governmental Activities

2020

2019

Percentage Change

$

459,980 $

486,328

32,589,615 31,870,055

7,706,932

77,220

11,256,662 4,642,945 3,147,347
601,555

9,957,167 4,191,741 3,320,370
850,615

(5.42%) 2.26%
9880.49%
13.05% 10.76% (5.21%) (29.28%)

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

$ 60,405,036 $ 50,753,496

19.02%

$ 30,290,188 $ 26,674,499

13.55%

2,414,282 2,210,021
991,236 892,659 3,083,906 461,045 3,757,172 2,173,701 239,220 550,317

2,307,276 2,071,516
855,021 813,074 2,697,212 457,210 3,676,701 2,332,224 210,260 583,925

4.64% 6.69% 15.93% 9.79% 14.34% 0.84% 2.19% (6.80%) 13.77% (5.76%)

239,241 3,056,177
178,656

161,753 2,852,531
138

47.91% 7.14% 129360.87%

Total Expenses
Transfer

$ 50,537,821 $ 45,693,341

-

27,433

10.60% (100%)

Increase Net Position

$ 9,867,215 $ 5,087,588

93.95%

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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Revenues
The School District's total revenue was $60.4 million for the year. This chart provides a breakdown of the revenue source categories and the percentage of each category. Operating grants and contributions are the largest category at 59.15%. Property taxes accounted for 18.64% of the School District's revenue.

Operating Grants and Contributions Property Taxes
Capital Grants and Contributions Sales Taxes
Miscellaneous and Investment Earnings Charges for Services

REVENUES
59.15% 18.64% 12.76% 7.69% 1.00% 0.76%

Expenditures
The School Districts total expense were $50.5 million. This chart provides a breakdown of the expense categories and the percentage of each category. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 59.95% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 7.43% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure.

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

EXPENSES

59.95% 7.43% 6.10% 6.05% 4.78% 4.37% 4.30% 1.96% 1.77% 1.09% 0.91% 0.47% 0.47% 0.35%

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

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS

The focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year.

At the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $11,324,110 a decrease in fund balance of $3,560,433. The decrease is largely due to capital outlay expenses incurred for the construction of a new middle school.

General Fund

The general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $7,346,062 representing an unassigned fund balance of $6,948,244 and a restricted, non-spendable and assigned fund balance of $397,819. Fund balance increased by $1,466,595. This is largely due to collecting more property tax revenues and TAVT tax revenue than anticipated. Also, the instructional expenditures incurred was less than projected due to full time positions that weren't filled by full time employees. The School District tries to maintain an unassigned general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an unassigned general fund balance of 14.98% of the $46,369,923 general fund expenditures.

Capital Projects Fund

The capital projects funds accounts for capital projects managed by the School District. During the year capital outlay expenditures was $23,675,229 for the construction of a new middle school. State funds of $7,629,712 were received to supplement the funding for the new middle school. There was transfers out of the capital projects fund to the debt service fund to cover the bond principal and interest payments. After expenditures of $24,169,753, the capital projects fund had a decrease in fund balance of $5,027,028 and ended the year with a fund balance of $3,978,048.

TABLE 3 CRISP COUNTY SCHOOL DISTRICT'S GOVERNMENTAL FUND BALANCES

General Fund Capital Projects Fund

Fiscal Year 2020

Fiscal Year 2019

$ 7,346,062 $ 5,879,467

3,978,048

9,005,076

Total

$ 11,324,110 $ 14,884,543

General Fund Budgeting Highlights

The School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students.

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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
In the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. For fiscal year 2020, the School District's general fund had a favorable budget variance of $1,460,301. There was $490,974 favorable budget variance for revenues as well as a $1,051,597 favorable budget variance for expenditures. There was a favorable budget variance of $55,970 for other financing sources (uses) and an unfavorable budget variance for extraordinary item of $138,240.
The $490,974 favorable revenue budget variance is attributed to collecting more title ad valorem taxes than what was budgeted. These are reported as property taxes. Another factor that attributed to the favorable budget variance includes revenues for the various school accounts, which are reported as charges for services and miscellaneous revenues, that are not budgeted. These favorable budget variances were offset by federal grant revenue budgeted and not received in this fiscal year, but these funds will be rolled over and available for use in the next fiscal year.
The $1,051,597 favorable expenditure budget variance is attributable to a conservative budget approach and reviewing open positions vacated by retirees before filling those positions. This favorable budget variance was offset by other expenditure categories which were over budget for necessary expenditures arising during the year and the expenditures for the various school accounts which were also not included in the budget.
The $55,970 favorable other financing sources (uses) budget variance is attributed to insurance proceeds received which are not in the budget.
Capital Assets and Debt Administration
Capital Assets
At fiscal year end June 30, 2020, the School District had $81,858,452 invested in capital assets (net of accumulated depreciation). The capital assets increased by $21,839,690 due to the additions to construction in progress of $23,999,343 for a new middle school. Additional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements.
Table 4 Capital Assets (Net of Depreciation)

Land Construction in Progress Building and Building Improvements Equipment Land Improvements
Total

Fiscal Year 2020

Fiscal Year 2019

$ 2,222,328 $ 29,740,748

2,222,328 5,823,676

46,159,590

47,837,973

2,392,452 1,343,334

2,613,984 1,520,802

$ 81,858,452 $ 60,018,763

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CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Long-Term Debt At the end of the fiscal year 2020, the School District had a total debt outstanding of $7,350,001. The voters have authorized $15,000,000 of general obligation debt. The bonds have been issued for the $15,000,000 for the construction of a new middle school. Advancements will be drawn from the bonds issued during the construction project as funds are needed to support the construction cost. CURRENT ISSUES Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: Approximately 84% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2020. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that Crisp County students receive a quality education from effective personnel. The School District's millage rate from fiscal year 2013 to fiscal year 2017 was 17.45 mills. The millage rate for fiscal year 2019 and 2020 was rolled back each year and the fiscal year 2020 millage rate is 16.726 mills. The net digest for fiscal year 2020 was $627.0 billion, which produced approximately $627,000 per mill. As shown in the above revenue chart, property tax and sales tax are responsible for covering 26.33% of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. The School District is currently building a new middle school. This new school is projected to cost approximately $31,000,000. The School District is utilizing local, state and bonds funds for this project. The new school will open in the 2020-2021 school year. REQUESTS FOR INFORMATION This report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools,org or send an email to dbeavers@crispschools.org.
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CRISP COUNTY BOARD OF EDUCATION

CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020
ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Local Other Inventories Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable and Accrued Liabilities Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Net OPEB Asset Unrestricted (Deficit)
Total Net Position
The notes to the basic financial statements are an integral part of this statement.

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

13,995,999.77

2,525,122.21 3,339,096.16
756,042.50 48,487.28 34,007.52
137,243.36 24,179.00
31,963,076.36 49,895,375.96

102,718,630.12

12,429,235.48 2,125,449.00
14,554,684.48

348,798.25 2,596,928.82
8,040.84 93,355.08 2,023,674.29 2,795,595.63 75,259.22 41,875,954.00 33,521,979.00
2,965,000.00 4,569,128.12
90,873,713.25

1,909,343.00 10,258,391.00
12,167,734.00

69,705,682.40
233,987.93 3,023,453.22 6,059,364.56
24,179.00 (64,814,799.76)

$

14,231,867.35

- 1 -

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

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 Long-Term Debt
Total Governmental Activities
General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific 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

$ 30,290,187.93 $
2,414,282.04 2,210,020.81
991,236.13 892,659.39 3,083,905.51 461,044.74 3,757,172.06 2,173,701.31 239,219.98 550,317.02
239,241.36 3,056,176.92
178,656.37
$ 50,537,821.57 $

348,100.86
1,596.43 -
110,282.99
-
459,980.28

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

- 2 -

EXHIBIT "B"

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$ 23,013,887.82 $
463,209.13 1,547,160.05
501,975.00 901,286.18 1,180,622.01
6,905.40 1,442,641.97
660,589.04 2,480.14
66,697.39
2,802,160.54
-
$ 32,589,614.67 $

5,096,153.67 $
1,038,927.91 7,061.37
93,264.05 108,714.97
84,490.59 -
217,642.83 765,868.02
-
294,808.79
-
7,706,932.20

(1,832,045.58)
(912,145.00) (655,799.39) (395,997.08) 117,341.76 (1,818,792.91) (454,139.34) (2,095,290.83) (747,244.25) (236,739.84) (483,619.63)
(239,241.36) 151,075.40 (178,656.37)
(9,781,294.42)

11,180,318.60 76,343.71
4,545,408.70 97,536.09
3,147,347.00 178,659.98 422,895.10
19,648,509.18
9,867,214.76
4,364,652.59

$

14,231,867.35

- 3 -

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

EXHIBIT "C"

ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Local Other Inventories
Total Assets
LIABILITIES
Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable Restricted Assigned Unassigned
Total Fund Balances

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 5,603,250.32 $ 8,392,749.45 $

1,725,197.80 3,339,096.16
756,042.50 48,487.28 34,007.52
137,243.36

799,924.41 -

- $ 13,995,999.77

-

2,525,122.21

-

3,339,096.16

-

756,042.50

-

48,487.28

-

34,007.52

-

137,243.36

$ 11,643,324.94 $ 9,192,673.86 $

- $ 20,835,998.80

$

348,798.25 $

- $

2,596,928.82

-

8,040.84

-

-

2,023,674.29

-

2,795,595.63

75,259.22

-

3,029,027.13

4,819,269.92

- $ -
-

348,798.25 2,596,928.82
8,040.84 2,023,674.29 2,795,595.63
75,259.22
7,848,297.05

1,268,235.37 -
1,268,235.37

395,355.66
395,355.66

-

1,268,235.37

-

395,355.66

-

1,663,591.03

137,243.36 96,744.57
163,830.84 6,948,243.67
7,346,062.44

3,978,048.28
-
3,978,048.28

-

137,243.36

-

4,074,792.85

-

163,830.84

-

6,948,243.67

-

11,324,110.72

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 11,643,324.94 $ 9,192,673.86 $

- $ 20,835,998.80

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

- 4 -

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

EXHIBIT "D"

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

$ 11,324,110.72

$

2,222,327.89

29,740,748.47

66,626,182.44

8,796,037.73

6,412,552.67

(31,939,396.88)

81,858,452.32

$ (41,875,954.00) (33,521,979.00) 24,179.00

(75,373,754.00)

$ 10,519,892.48 (8,132,942.00)

2,386,950.48 1,663,591.03

$ (7,350,001.00) (93,355.08)
(184,127.12)

(7,627,483.20)

Net position of governmental activities (Exhibit "A")

$ 14,231,867.35

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

- 5 -

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

EXHIBIT "E"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation
Capital Outlay Debt Service
Principal Bond Issuance Costs Interest
Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of Bonds Insurance Proceeds Transfers In Transfers Out
Total Other Financing Sources (Uses)
EXTRAORDIANRY ITEM
Damage from Hurricane Michael
Net Change in Fund Balances
Fund Balances - Beginning
Adjustments Inventory - Net Change in Period

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 10,999,789.29 $ 97,536.09
29,092,155.28 6,704,659.46 459,980.28 84,381.32 422,895.10

- $ 4,150,053.04 7,629,712.20
94,278.66 -

47,861,396.82

11,874,043.90

- $ 10,999,789.29

-

4,247,589.13

-

36,721,867.48

-

6,704,659.46

-

459,980.28

-

178,659.98

-

422,895.10

-

59,735,440.72

27,354,359.46
2,038,284.01 2,116,281.13
921,602.05 819,151.92 2,921,597.90 409,766.99 3,755,139.36 2,093,151.85 230,401.36 541,900.76 239,241.36 2,929,045.10
-
-
46,369,923.25
1,491,473.57

-
13,200.00 23,355.82 424,468.57 23,675,228.67
33,500.00
-
24,169,753.06
(12,295,709.16)

-
-
2,700,000.00 -
85,439.60
2,785,439.60
(2,785,439.60)

27,354,359.46
2,038,284.01 2,116,281.13
921,602.05 819,151.92 2,934,797.90 409,766.99 3,778,495.18 2,093,151.85 230,401.36 541,900.76 239,241.36 3,353,513.67 23,675,228.67
2,700,000.00 33,500.00 85,439.60
73,325,115.91
(13,589,675.19)

138,240.16
(82,270.00)
55,970.16

9,971,851.00 -
82,270.00 (2,785,439.60)
7,268,681.40

2,785,439.60 -
2,785,439.60

9,971,851.00 138,240.16
2,867,709.60 (2,867,709.60)
10,110,091.16

(138,240.16) 1,409,203.57 5,879,466.69
57,392.18

(5,027,027.76) 9,005,076.04
-

-

(138,240.16)

-

(3,617,824.19)

-

14,884,542.73

-

57,392.18

Fund Balances - Ending

$ 7,346,062.44 $ 3,978,048.28 $

- $ 11,324,110.72

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

- 6 -

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

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense.
Capital outlay Depreciation expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities.
General obligation bonds issued Bond principal retirements
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.
Pension expense OPEB expense
Food inventories are expensed on the Statement of Activities using the consumption method while on the fund level food inventories are recorded as expenditures when purchased. In the current period this difference amounts to:
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.
Accrued interest on issuance of bonds Compensated absences

$ (3,617,824.19)

$ 24,238,960.05 (2,320,777.21)

21,918,182.84

(78,493.03)

652,228.68

$ (9,971,851.00) 2,700,000.00

(7,271,851.00)

$ (2,181,192.52) 507,567.00

(1,673,625.52)

57,392.18

$

(93,216.77)

(25,578.43)

(118,795.20)

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

$ 9,867,214.76

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

- 7 -

ASSETS Cash and Cash Equivalents Investments Receivables, Net
Interest and Dividends
Total Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes

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

EXHIBIT "G"

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$

35,947.95 $

121,278.82

75.61

70,595.36 -
-

$ 157,302.38 $

70,595.36

$

70,595.36

$ 157,302.38

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

- 8 -

CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020
ADDITIONS Investment Earnings Interest
DEDUCTIONS Other Deductions Change in Net Position
Net Position - Beginning
Net Position - Ending

EXHIBIT "H"

PRIVATE PURPOSE TRUSTS

$

1,438.48

107.04 1,331.44 155,970.94

$ 157,302.38

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

- 9 -

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

EXHIBIT "I"

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

3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
- 10 -

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

EXHIBIT "I"

Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS:
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest.
The School District reports the following fiduciary fund types:
Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments.
Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurements of results of operations.
BASIS OF ACCOUNTING
The basis of accounting determines when transactions are reported on the financial statements. The government-wide, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end.
- 11 -

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

EXHIBIT "I"

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 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 are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later.
In fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
INVESTMENTS
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.

- 12 -

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

EXHIBIT "I"

RECEIVABLES

Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
INVENTORIES

Food Inventories

On the government-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in first-out basis). The School District uses the purchase method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received, and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements.

The cost of governmental fund type inventories is reported as expenditures when purchased. CAPITAL ASSETS

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

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

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

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

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment Intangible Assets

ALL $ 10,000.00 $ 25,000.00 $ 5,000.00 $ 50,000.00

N/A 10 to 40 years 20 to 80 years
4 to 20 years 10 to 20 years

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

- 13 -

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

EXHIBIT "I"

In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time.
COMPENSATED ABSENCES
Compensated absences payable consists of vacation leave employees earned based on services already rendered.
Vacation leave of 10 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 to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits, up to 10 days, to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end.
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.
LONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (SEAD - OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have

- 14 -

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

EXHIBIT "I"

been determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
FUND BALANCES
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.
Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
USE OF ESTIMATES
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
PROPERTY TAXES
The Crisp County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on December 10, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on February 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Crisp County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $9,998,933.79.
The tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.726 mills

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

EXHIBIT "I"

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $924,511.79 during fiscal year ended June 30, 2020.
SALES TAXES
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $4,150,053.04 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditures in any budgeted fund is anticipated to be more than the budgeted fund total, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
COLLATERALIZATION OF DEPOSITS
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
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CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "I"

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, School District had deposits with a carrying amount of $7,187,144.65, including a certificate of deposit for $121,278.82, and a bank balance of $8,404,647.55. The bank balances insured by Federal depository insurance were $769,783.29 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $2,422,382.19.
At June 30, 2020, $7,634,864.26 of the School District's bank balances was exposed to custodial credit risk. $5,212,482.07 of this balance was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for 3each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

- 17 -

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

EXHIBIT "I"

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

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

$ 13,995,999.77 106,543.31

Total cash and cash equivalents

14,102,543.08

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

121,278.82

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

7,036,677.25

Total carrying value of deposits - June 30, 2020

$ 7,187,144.65

CATEGORIZATION OF CASH EQUIVALENTS
The School District reported cash equivalents of $7,036,677.25 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html.

- 18 -

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

EXHIBIT "I"

NOTE 5: CAPITAL ASSETS

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

Balances July 1, 2019

Increases

Decreases

Balances June 30, 2020

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

$ 2,222,327.89 $

- $

- $ 2,222,327.89

5,823,675.55 23,999,342.92

82,270.00 29,740,748.47

Total Capital Assets Not Being Depreciated

8,046,003.44 23,999,342.92

82,270.00 31,963,076.36

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

66,626,182.44 9,076,298.70 6,368,682.67

239,617.13
82,270.00

519,878.10
38,400.00

66,626,182.44 8,796,037.73 6,412,552.67

18,788,209.40 6,462,314.37 4,847,880.97

1,678,383.10 382,656.38 259,737.73

441,385.07
38,400.00

20,466,592.50 6,403,585.68 5,069,218.70

Total Capital Assets, Being Depreciated, Net 51,972,759.07

(1,998,890.08)

78,493.03 49,895,375.96

Governmental Activities Capital Assets - Net $ 60,018,762.51 $ 22,000,452.84 $ 160,763.03 $ 81,858,452.32

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 Maintenance and Operation of Plant Student Transportation Services Food Services

$

316,017.19

2,147.90

28,368.71

33,068.51

25,700.03

66,201.78

209,470.37

$ 1,550,128.89
680,974.49 89,673.83
$ 2,320,777.21

- 19 -

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

EXHIBIT "I"

NOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2020, consisted of the following:

Transfers to

General Fund

Transfers From Capital Projects
Fund

Total

Capital Projects Fund Debt Service Fund

$ 82,270.00 -

-

$

2,785,439.60

82,270.00 2,785,439.60

Total

$ 82,270.00 $ 2,785,439.60 $ 2,867,709.60

Transfers are used to move funds from the general fund to the capital projects fund to provide supplemental funding for capital construction projects and to transfer funds from the capital projects fund to the debt service fund to provide funding to service the debt.
NOTE 7: LONG-TERM LIABILITIES

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

Balance July 1, 2019

Additions

Deductions

Balance June 30, 2020

Due Within One Year

General Obligation Sales Tax Bonds $

78,150.00 $

Compensated Absences(1)

158,548.69

9,971,851.00 $ 32,905.34

2,700,000.00 $ 7,326.91

7,350,001.00 $ 2,965,000.00

184,127.12

-

$ 236,698.69 $ 10,004,756.34 $ 2,707,326.91 $ 7,534,128.12 $ 2,965,000.00

(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements.
GENERAL OBLIGATION DEBT OUTSTANDING
The School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation sales tax bonds from voter-approved Education Special Purpose Local Option Sales Tax (ESPLOST). General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
The School District's outstanding bonds from direct placement related to governmental activities of $7,350,001.00 contain a provision that in the event that proceeds of the Education Special Local Option Sales Tax are insufficient, an ad valorem tax must be levied to pay the debt service on the bonds.
Voters have authorized $15,000,000.00 of general obligation debt of which $15,000,000.00 of the general obligation sale tax bonds have been issued for constructing capital facilities. Advances up to the principal amount of these bonds are made to the School District by the bond purchaser. Currently, $4,949,999.00 remain undrawn by the School District.

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

EXHIBIT "I"

General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date Maturity Date

Amount Issued

Amount Available

Amount Outstanding

General Government - Series 2019 General Government - Series 2020

3.80% 3.80%

6/13/2019 2/26/2020

9/1/2023 $ 10,000,000.00 $

- $ 7,300,000.00

9/1/2023

5,000,000.00

4,949,999.00

50,001.00

$ 15,000,000.00 $ 4,949,999.00 $ 7,350,001.00

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

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

2021 2022 2023

$

2,965,000.00 $

234,438.54

3,030,000.00

109,533.22

1,355,001.00

25,956.62

Total Principal and Interest

$

7,350,001.00 $

369,928.38

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.
NOTE 8: RISK MANAGEMENT
INSURANCE
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters.
Georgia School Boards Association Risk Management Fund
The School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage.

- 21 -

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

EXHIBIT "I"

WORKERS' COMPENSATION Georgia Education Workers' Compensation Trust

The School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium.
UNEMPLOYMENT COMPENSATION

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2019 $

-

$

1,575.00

$

1,575.00

$

-

2020 $

-

$

-

$

-

$

-

SURETY BOND

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

Position Covered

Amount

Superintendent

$

100,000.00

- 22 -

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

EXHIBIT "I"

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS

The School District's financial statements include the following amounts presented in the aggregate at June 30, 2020:

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

$

137,243.36

$

96,744.57

861,239.98

3,116,808.30

4,074,792.85

163,830.84 6,948,243.67

Fund Balance, June 30, 2020

$ 11,324,110.72

When multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
NOTE 10: SIGNIFICANT COMMITMENTS
COMMITMENTS UNDER CONSTRUCTION CONTRACTS

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

Project

Unearned Executed Contracts (1)

Payments through June 30, 2020 (2)

Funding Available From State (1)

Crisp County Middle School Facility $ 3,759,458.82 $ 29,831,067.36 $ 847,745.80

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

OPERATING LEASES

The School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $81,900.00 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020:

Year Ending

Governmental Funds

2021 2022 2023

$

81,900.00

81,900.00

81,900.00

Total

$ 245,700.00

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

EXHIBIT "I"

NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
FEDERAL GRANTS
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
LITIGATION
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $886,483.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2020, the School District reported a liability of $33,521,979.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.273155%, which was an decrease of 0.006914% from its proportion measured as of June 30, 2018.

- 24 -

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

EXHIBIT "I"

For the year ended June 30, 2020, the School District recognized OPEB expense of $379,449.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources

OPEB

Deferred Inflows of Resources

Differences between expected and actual

experience

$

- $ 3,646,842.00

Changes of assumptions

1,164,153.00

4,725,541.00

Net difference between projected and

actual earnings on OPEB plan

investments

73,001.00

-

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

-

1,883,449.00

School District contributions subsequent

to the measurement date

886,483.00

-

Total

$ 2,123,637.00 $ 10,255,832.00

School District contributions subsequent to the measurement date of $886,483.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2021 2022 2023 2024 2025 2026

$ (2,019,217.00) $ (2,019,217.00) $ (2,022,023.00) $ (1,747,252.00) $ (972,651.00) $ (238,318.00)

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

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

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

- 25 -

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

EXHIBIT "I"

Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible
Ultimate trend rate Pre-Medicare Eligible Medicare Eligible
Year of Ultimate trend rate

7.250% 5.375%
4.75% 4.75%

Pre-Medicare Eligible

2028

Medicare Eligible

2022

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

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

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by

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

EXHIBIT "I"

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

Asset class

Target allocation

Long-Term Expected Real Rate of Return*

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

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

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

Total

100.00%

*Net of Inflation
Discount Rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate:

School Distict's proportionate share of the Net OPEB Liability

1% Decrease (2.58%)

Current Discount Rate (3.58%)

1% Increase (4.58%)

$ 38,963,604.00 $

33,521,979.00 $ 29,095,461.00

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

School District's proportionate share of the Net OPEB Liability

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

$ 28,328,716.00 $ 33,521,979.00 $ 40,232,124.00

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

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

EXHIBIT "I"

POSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS (SEAD OPEB)
Plan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.
Benefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.
Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

At June 30, 2020, the School District reported a asset of $24,179.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2019. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2018. An expected total OPEB asset as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.008551%, which was an increase of 0.000231 % from its proportion measured as of June 30, 2018.

For the year ended June 30, 2020, the School District recognized OPEB expense of ($533.00). At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

SEAD-OPEB

Deferred

Deferred

Outflows of Inflows of

Resources Resources

Differences between expected and actual experience

$ 123.00 $

-

Changes of assumptions

490.00

-

Net difference between projected and actual earnings on OPEB plan investments

-

2,222.00

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

1,199.00

337.00

Total

$ 1,812.00 $ 2,559.00

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

EXHIBIT "I"

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

Year Ended June 30:

SEAD-OPEB

2021 2022 2023 2024

$ 521.00 $ (1,167.00) $ (211.00) $ 110.00

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

SEAD OPEB:

Inflation Salary increases:
ERS GJRS LRS Investment rate of return

2.75%
3.25% 7.00% 4.50% N/A 7.30%, net of OPEB plan investment expense, including inflation

Healthcare cost trend rate

N/A

Postretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the longterm assumed rate of return.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return

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

EXHIBIT "I"

by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

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

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

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

Total

100.00%

* Rates shown are net of inflation
Discount rate: The discount rate used to measure the total OPEB liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Sensitivity of the School District's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB asset calculated using the discount rate of 7.30 %, as well as what the School District's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30 %) or 1- percentage-point higher (8.30 %) than the current rate:

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

School District's proportionate share of the net OPEB asset

$ (13,380.00) $

(24,179.00) $ (33,054.00)

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publicly available at www.ers.ga.gov/financials.
NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.

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

EXHIBIT "I"

Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.99% of payroll was required from the School District and 0.15% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,887,814.00 and $34,282.06 from the School District and the State, respectively.
EMPLOYEES' RETIREMENT SYSTEM
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the
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CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2020

EXHIBIT "I"

computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $11,931.48 for the current fiscal year.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
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 $108,904.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2020, the School District reported a liability of $41,875,954.00 for its proportionate share of the net pension liability for TRS ($41,697,399.00) and ERS ($178,555.00).

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

EXHIBIT "I"

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

School District's proportionate share of the net pension liability

$ 41,697,399.00

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

267,279.00

Total

$ 41,964,678.00

The net pension liability for TRS and ERS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2019.
At June 30, 2019, the School District's TRS proportion was 0.193917%, which was an increase of 0.008301% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.004327%, which was an decrease of 0.000189% from its proportion measured as of June 30, 2018.
At June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $510,603.00.
The PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019.
For the year ended June 30, 2020, the School District recognized pension expense of $7,072,041.00 for TRS, $2,131.00 for ERS and $157,464.00 for PSERS and revenue of ($3,089.00) for TRS and $157,464.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

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

EXHIBIT "I"

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

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual experience

$ 2,350,278.00 $

12,362.00

$ 5,946.00 $

-

Changes of assumptions

4,001,409.00

-

3,143.00

-

Net difference between projected and actual earnings on pension plan investments

-

992,942.00

-

5,558.00

Changes in proportion and differences between School District contributions and proportionate share of contributions
School District contributions subsequent to the measurement date
Total

1,168,714.00

878,470.00

-

20,011.00

4,887,814.00

-

$ 12,408,215.00 $ 1,883,774.00

11,931.48

-

$ 21,020.48 $ 25,569.00

The School District contributions subsequent to the measurement date of $4,887,814.00 for TRS and $11,931.48 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2021

$ 2,201,972.00 $ (9,902.00)

2022

$ 358,175.00 $ (6,219.00)

2023

$ 1,430,459.00 $ (1,095.00)

2024

$ 1,646,021.00 $ 736.00

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

Teachers Retirement System:

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

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

Post-retirement benefit increases

1.50% semi-annually

Post-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries'

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

EXHIBIT "I"

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

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

Inflation

2.75%

Salary increases

3.25% 7.00%, including inflation

Investment rate of return

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

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future

mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set

forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society

of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females

was used for death after disability retirement. There is a margin for future mortality improvement in

the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the

actual number of deaths that occurred during the study period for service retirements and

beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment of return.
Public School Employees Retirement System:

Inflation

2.75%

Salary increases

N/A

Investment rate of return

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

Post-retirement benefit increases 1.50% semi-annually
Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected
to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death
after disability retirement. There is a margin for future mortality improvement in the tables used by the
System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected
under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

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

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

EXHIBIT "I"

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

Asset class

TRS Target allocation

ERS/PSERS Target
allocation

Long-term expected real rate of return*

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

30.00% 51.00%
1.50% 12.40%
5.10% -

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

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

Total

100.00%

100.00%

* Rates shown are net of assumed rate of inflation.
Discount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

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

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

$ 67,687,082.00 $

41,697,399.00 $ 20,324,644.00

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

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

$

253,743.00 $

178,555.00 $ 114,458.00

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

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

EXHIBIT "I"

NOTE 14: TAX ABATEMENTS
Crisp County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Crisp County.
For the fiscal year ended June 30, 2020, Crisp County abated property taxes due to the School District that were levied on December 10, 2019 and due on February 20, 2020 totaling $18,854.75. Included in that amount abated, the following is the individual tax abatement agreement:
An 80 percent real property tax abatement was granted to a manufacturing plant. The abatement amounted to $18,854.75.
NOTE 15: EXTRAORDINARY ITEM
The School District has incurred expenses, for the damage to facilities due to Hurricane Michael, in the amount of $138,240.16. The School District has also received insurance proceeds in the amount of $138,240.16 for the damage to facilities due to Hurricane Michael. The majority of the damage was to roofs on several buildings and other structural damages; however, we were able to continue to use the buildings for their intended purposes. The expenditures have been reported as extraordinary items on the Statement of Revenues, Expenditures, and Changes in Fund Balances.

- 37 -

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

SCHEDULE "1"

Year Ended
2020 2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the net pension liability

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

0.193917% $ 0.185616% $ 0.190510% $ 0.194411% $ 0.196076% $ 0.197751% $

41,697,399.00 $ 34,454,305.00 $ 35,406,870.00 $ 40,109,157.00 $ 29,850,624.00 $ 24,983,231.00 $

267,279.00 $ 239,080.00 $ 345,687.00 $ 549,613.00 $ 412,571.00 $ 343,636.00 $

Total

School District's covered payroll

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

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

41,964,678.00 $ 34,693,385.00 $ 35,752,557.00 $ 40,658,770.00 $ 30,263,195.00 $ 25,326,867.00 $

23,827,909.77 22,262,430.94 22,112,634.26 21,612,594.73 20,992,143.60 20,449,227.39

174.99% 154.76% 160.12% 185.58% 142.20% 122.17%

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

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

- 39 -

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

SCHEDULE "2"

Year Ended

Contractually required contribution

Contributions in relation to the contractually required
contribution (1)

Contribution deficiency (excess)

2020

$

4,887,814.00 $

4,887,814.00 $

-

2019

$

4,947,044.44 $

4,947,044.44 $

-

2018

$

3,716,524.20 $

3,716,524.20 $

-

2017

$

3,124,771.94 $

3,124,771.94 $

-

2016

$

3,042,418.28 $

3,042,418.28 $

-

2015

$

2,722,853.56 $

2,722,853.56 $

-

2014

$

2,511,165.12 $

2,511,165.12 $

-

2013

$

2,279,559.30 $

2,279,559.30 $

-

2012

$

2,245,592.98 $

2,245,592.98 $

-

2011

$

2,162,475.36 $

2,162,475.36 $

-

(1) The School District has included on behalf payments within the contributions for 2014 and prior years.

School District's covered payroll

Contribution as a percentage of covered
payroll

$ 23,281,622.01 $ 23,827,909.77 $ 22,262,430.94 $ 22,112,634.26 $ 21,612,594.73 $ 20,992,146.30 $ 20,449,227.39 $ 19,978,611.18 $ 21,854,021.11 $ 21,035,754.13

20.99% 20.76% 16.69% 14.13% 14.08% 12.97% 12.28% 11.41% 10.28% 10.28%

- 40 -

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

SCHEDULE "3"

Year Ended

School District's proportion of the net
pension liability

School District's proportionate share of the
net pension liability

School District's covered payroll

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

2020 2019 2018 2017 2016 2015

0.004327% $ 0.004516% $ 0.006187% $ 0.006516% $ 0.007916% $ 0.008026% $

178,555.00 $ 185,654.00 $ 251,275.00 $ 308,234.00 $ 320,709.00 $ 301,025.00 $

120,357.23 115,179.70 151,752.46 151,515.54 180,996.28 180,721.38

148.35% 161.19% 165.58% 203.43% 177.19% 166.57%

Plan fiduciary net position as a
percentage of total pension liability
76.74% 76.68% 76.33% 72.34% 76.20% 77.99%

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

- 41 -

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

SCHEDULE "4"

Year Ended
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

11,931.48 $

11,931.48 $

-

$

29,824.00 $

29,824.00 $

-

$

28,576.10 $

28,576.10 $

-

$

37,649.78 $

37,649.78 $

-

$

37,454.64 $

37,454.64 $

-

$

39,746.79 $

39,746.79 $

-

$

33,361.16 $

33,361.16 $

-

$

30,462.80 $

30,462.80 $

-

$

23,575.85 $

23,575.85 $

-

$

15,058.49 $

15,058.49 $

-

School District's covered payroll

$

48,384.00

$

120,357.23

$

115,179.70

$

151,752.46

$

151,515.54

$

180,996.28

$

180,721.38

$

204,448.32

$

202,715.82

$

144,654.20

Contribution as a percentage of covered
payroll
24.66% 24.78% 24.81% 24.81% 24.72% 21.96% 18.46% 14.90% 11.63% 10.41%

- 42 -

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

SCHEDULE "5"

Year Ended
2020 2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the
net pension liability

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

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

-

$

-

$

-

$

-

$

-

$

-

$

510,603.00 $ 515,408.00 $ 539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $

Total

School District's covered payroll

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

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

510,603.00 $ 515,408.00 $ 539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $

1,743,130.69 1,743,663.21 1,788,126.82 1,693,662.41 1,652,417.20 1,643,846.70

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.90%

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

- 43 -

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

SCHEDULE "6"

Year Ended
2020 2019 2018

School District's proportion of the net OPEB liability

School District's proportionate share of the net OPEB liability

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

Total

School District's covered-employee
payroll

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

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

0.273155% $ 0.280069% $ 0.285491% $

33,521,979.00 $ 35,595,910.00 $ 40,111,370.00 $

-

$ 33,521,979.00 $ 17,705,824.44

-

$ 35,595,910.00 $ 19,215,391.19

-

$ 40,111,370.00 $ 19,261,608.86

189.33% 185.25% 208.25%

4.63% 2.93% 1.61%

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

- 44 -

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

SCHEDULE "7"

Year Ended
2020 2019 2018

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

886,483.00 $

886,483.00 $

-

$

1,471,131.00 $

1,471,131.00 $

-

$

1,451,573.00 $

1,451,573.00 $

-

School District's covered-employee
payroll

Contribution as a percentage of covered-
employee payroll

$ 20,066,452.48 $ 17,705,824.44 $ 19,215,391.19

4.42% 8.31% 7.55%

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

- 45 -

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

SCHEDULE "8"

Year Ended
2020 2019 2018

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

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

School District's covered-employee
payroll

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

0.008551% $ 0.008320% $ 0.010421% $

(24,179.00) $ (22,518.00) $ (27,085.00) $

120,357.23 115,179.70 151,752.46

(20.09%) (19.55%) (17.85%)

Plan fiduciary net position as a
percentage of total OPEB liability
129.73% 129.46% 130.17%

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

- 46 -

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

SCHEDULE "9"

Year Ended
2020 2019 2018

Contractually required contribution

$

-

$

-

$

-

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's coveredemployee payroll

Contribution as a percentage of covered-
employee payroll

$

-

$

-

$

48,384.00

0.00%

$

-

$

-

$

120,357.23

0.00%

$

-

$

-

$

115,179.70

0.00%

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

- 47 -

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

SCHEDULE "10"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On-November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
Employees' Retirement System
Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. $RQHWLPHSD\PHQWZDVJUDQWHGWRFHUWDLQUHWLUHHVDQGEHQHILFLDULHVHIIHFWLYH-XO\
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
Public School Employees Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual H[SHULHQFH
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The discount rate was updated from 3.07% as of June 30,2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019.
SEAD-OPEB Employer
Changes of assumptions: On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized E\WKH3ODQ3ULPDU\DPRQJWKHFKDQJHVZHUHWKHXSGDWHVWRUDWHVRIPRUWDOLW\UHWLUHPHQWGLVDELOLW\ZLWKGUDZDODQGVDODU\LQFUHDVHV
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.

- 48 -

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

SCHEDULE "11"

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

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$ 10,240,000.00 $ 10,240,000.00 $ 10,999,789.29 $

70,000.00

70,000.00

97,536.09

27,451,569.00

28,780,585.64

29,092,155.28

5,369,140.00

7,864,498.64

6,704,659.46

188,000.00

188,000.00

459,980.28

50,150.00

50,150.00

84,381.32

122,255.00

177,188.40

422,895.10

43,491,114.00

47,370,422.68

47,861,396.82

759,789.29 27,536.09
311,569.64 (1,159,839.18)
271,980.28 34,231.32
245,706.70
490,974.14

26,683,072.00
1,938,982.00 1,436,707.00
890,754.00 817,220.00 2,927,677.89 422,130.00 3,706,415.00 1,939,623.00 235,130.00 284,941.11
2,689,925.00
43,972,577.00
(481,463.00)

28,659,659.87
2,270,760.22 1,996,104.46
890,754.00 843,768.72 2,913,483.89 427,796.67 3,928,170.23 2,176,444.36 237,063.82 351,561.51
2,725,952.58
47,421,520.33
(51,097.65)

27,354,359.46
2,038,284.01 2,116,281.13
921,602.05 819,151.92 2,921,597.90 409,766.99 3,755,139.36 2,093,151.85 230,401.36 541,900.76 239,241.36 2,929,045.10
46,369,923.25
1,491,473.57

1,305,300.41
232,476.21 (120,176.67)
(30,848.05) 24,616.80 (8,114.01) 18,029.68 173,030.87 83,292.51
6,662.46 (190,339.25) (239,241.36) (203,092.52)
1,051,597.08
1,542,571.22

532,250.00 -
(532,250.00)
-

940,939.00 -
(940,939.00)
-

138,240.16 (82,270.00)
55,970.16

(940,939.00) 138,240.16 858,669.00
55,970.16

(481,463.00) 6,525,448.72
-

(51,097.65) 5,856,098.86
-

(138,240.16) 1,409,203.57 5,879,466.69
57,392.18

(138,240.16) 1,460,301.22
23,367.83 57,392.18

Fund Balances - Ending

$

6,043,985.72 $

5,805,001.21 $

7,346,062.44 $

1,541,061.23

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $506,072.55 and $469,657.19, respectively.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 49 -

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

SCHEDULE "12"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies
Total Other Programs
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

205GA324N1099 $ 205GA324N1099

695,629.00 2,069,467.92
2,765,096.92

84.027 84.027 84.173 84.173

H027A180073 H027A190073 H173A180081 H173A190081

236,486.00 728,036.57
8,229.00 16,906.11
989,657.68

84.048 84.011 84.011 84.358 84.358 84.371 84.367 84.010 84.010

V048A190010 S011A180011 S011A190011 S365B180010 S358B190010 S371C110049 S367A190001 S010A180010 S010A190010

67,140.25 5,542.00
29,380.25 7,060.28
60,146.46 96,925.64
193.00 442,590.92 2,266,421.16
2,975,399.96
3,965,057.64

12.UNKNOWN

51,052.63

Total Expenditures of Federal Awards

$ 6,781,207.19

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

See notes to the basic financial statements.

- 50 -

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

SCHEDULE "13"

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

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$ 1,343,660.19 $

- $ 1,343,660.19

790,569.00 617,683.00 1,595,865.00 2,012,783.00 248,684.00 2,348,348.00 2,507,652.00 1,840,010.00 877,168.00 4,701,047.00 506,820.00 725,275.00 174,662.00 129,515.00 439,535.00 131,801.00
90,934.00
784,671.00 877,443.00 962,478.00 (346,945.00)
553,473.00 79,556.00
3,147,347.00
73,214.00 833,234.00
4,800.80 28,637.06 103,265.00 77,220.00 166,465.78 34,282.06 151,320.83

-

790,569.00

-

617,683.00

-

1,595,865.00

-

2,012,783.00

-

248,684.00

-

2,348,348.00

-

2,507,652.00

-

1,840,010.00

-

877,168.00

-

4,701,047.00

-

506,820.00

-

725,275.00

-

174,662.00

-

129,515.00

-

439,535.00

-

131,801.00

-

90,934.00

-

784,671.00

-

877,443.00

-

962,478.00

-

(346,945.00)

-

553,473.00

-

79,556.00

-

3,147,347.00

-

73,214.00

-

833,234.00

-

4,800.80

-

28,637.06

-

103,265.00

-

77,220.00

-

166,465.78

-

34,282.06

-

151,320.83

-

7,629,712.20

312,777.56

-

108,904.00

-

50,000.00

-

8,000.00

-

7,629,712.20
312,777.56
108,904.00
50,000.00 8,000.00

$ 29,092,155.28 $ 7,629,712.20 $ 36,721,867.48

See notes to the basic financial statements.

- 51 -

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

SCHEDULE "14"

PROJECT

ORIGINAL ESTIMATED

CURRENT ESTIMATED

AMOUNT EXPENDED IN CURRENT (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

2012 ISSUE - SPLOST IV

1. Constructing and equipping a new school to include

furniture, fixtures and equipment

$ 5,000,000.00 $ 10,011,716.63 $

- $ 10,011,716.63 $ 10,011,716.63 $

-

2. Renovating, repairing, improving, and equipping

existing schools and related facilities, including

without limitation, roof replacements and repairs,

mechanical system repairs and replacements, parking

lot repairs and renovations, improvements and

renovations to physical education and athletic

facilities

12,000,000.00

11,651,859.24

-

11,651,859.24

11,651,859.24

-

3. Acquiring and installing systemwide instructional

and administrative technology, safety and security

equipment

3,000,000.00

418,657.70

-

418,657.70

418,657.70

-

4. Acquisition of school buses, vehicles and

transportation equipment

2,000,000.00

810,382.00

-

810,382.00

810,382.00

-

5. Acquiring any necessary property, and paying costs incident to accomplishing the foregoing

1,000,000.00

-

-

-

-

-

ESTIMATED COMPLETION
DATE
Completed
Completed Completed Completed Completed

$ 23,000,000.00 $ 22,892,615.57 $

- $ 22,892,615.57 $ 22,892,615.57 $

-

PROJECT

ORIGINAL ESTIMATED

CURRENT ESTIMATED

AMOUNT EXPENDED IN CURRENT (3)

2017 ISSUE - SPLOST V

1. Acquiring, constructing, repairing, improving,

renovating, adding to, extending, upgraiding, and

equipping school buildings, athletic facilities, and

support facilities, including acquiring any necessary

property therefor, both real and personal, specifically

including the following:

$

2,000,000.00 $

89,126.00 $

89,125.82 $

2. Acquiring, constructing, and equipping a new middle school to include furniture, fixtures and equipment

20,000,000.00

25,296,039.25

24,033,927.24

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

- $

- $

-

1,262,112.01

-

-

3. Roof replacements and repairs, mechanical system

repairs and replacements, parking lot repairs and

renovations, improvements and renovations to

physical education and athletic facilities

-

-

-

-

-

-

4. Acquiring and installing systemwide instructional

and administrative technology, safety and security

equipment

1,000,000.00

13,200.00

13,200.00

-

-

-

5. Acquisition of school buses, vehicles and transportation equipment

-

-

-

-

-

-

6.Paying costs incident to accomplishing the foregoing

-

-

-

-

-

-

7.Issuance of general obligation debt in the principal

amount of up to $15,000,000.00, repayable from the

proceeds of the aforesaid sales and use tax, for the

pupose of funding such portions of the above projects

as may be acquired, constructed and equipped with

the proceeds of general obligation debt.

-

-

-

-

-

-

ESTIMATED COMPLETION
DATE
12/31/2022 12/31/2022
12/31/2022

$ 23,000,000.00 $ 25,398,365.25 $ 24,136,253.06 $ 1,262,112.01 $

- $

-

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include
sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
(4) In addition to the expenditures above, the School District has incurred issuance cost of $111,650.00 for the above projects.

See notes to the basic financial statements.

- 53 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

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

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

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Crisp County Board of Education
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated February 2, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

February 2, 2021

Greg S. Griffin State Auditor

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

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

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

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

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

February 2, 2021

Greg S. Griffin State Auditor

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

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

SECTION IV FINDINGS AND QUESTIONED COSTS

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information
Internal control over financial reporting: Material weakness identified? Significant deficiency identified?

Unmodified
No None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

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

No None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

No

Identification of major programs:

CFDA Number

Name of Federal Program or Cluster

10.553, 10.555

Child Nutrition Cluster

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

$750,000.00

Auditee qualified as low-risk auditee?

Yes

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

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