ANNUAL FINANCIAL REPORT FISCAL YEAR 2021
Dawson County Board of Education
Dawsonville, Georgia
Including Independent Auditor's Report
Kristina A. Turner | Deputy State Auditor Greg S. Griffin | State Auditor

Dawson County Board of Education Table of Contents

Section I

Financial

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

of Governmental Funds to the Statement of Activities

6

G Notes to the Basic Financial Statements

7

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

35

2 Schedule of Contributions Teachers Retirement System of Georgia

36

3 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

37

4 Schedule of Proportionate Share of the Net OPEB Liability

Other Post-Employment Benefits

38

Dawson County Board of Education Table of Contents Section I Schedules Required Supplementary Information

5 Schedule of Contributions Other Post-Employment Benefits

39

6 Notes to the Required Supplementary Information

40

7 General Fund - Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual

41

Supplementary Information

8 Schedule of Expenditures of Federal Awards

42

9 Schedule of State Revenue

44

10 Schedule of Approved Local Option Sales Tax Projects

45

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
Section IV

Findings and Questioned Costs
Schedule of Findings and Questioned Costs

Section I Financial

Greg S. Griffin State Auditor
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 Dr. Damon Gibbs, Superintendent and Members of the Dawson County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Dawson County Board of Education (School District), as of and for the year ended June 30, 2021, 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 School District'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 School District'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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2021, 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 March 23, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
March 23, 2022

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
INTRODUCTION
The discussion and analysis of the Dawson County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2021 and June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal years 2021 and 2020 are as follows:
On the government-wide financial statements, the assets and deferred outflow of resources of the School District exceeded liabilities and deferred inflow of resources by $46.5 million and $38.6 million, respectively, for the fiscal years ended June 30, 2021 and 2020.
The School District had $58.0 million and $58.8 million in expenses relating to governmental activities for the fiscal years ended June 30, 2021 and June 30, 2020, respectively. Only $26.6 million and $24.9 million of the above-mentioned expenses for 2021 and 2020 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $39.4 million and $35.0 million, respectively, for 2021 and 2020, were adequate to provide for these programs.
General revenues accounts for $39.4 million in revenue or 59.7% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $26.6 million or 40.3% of total revenues of $65.9 million.
The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $13.0 million, an increase of $4.7million from the June 30, 2020 fund balance of $8.3 million.
Among major funds, the general fund had $53.5 million in revenues and $48.8 million in expenditures. The fund balance for the general fund increased from $8.3 million to approximately $13.0 million.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements.
The government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status.
The fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending.
i

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
The fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2021 and 2020, the general fund, the capital projects fund, and the debt service fund represent the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
Government-Wide Statements
The government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid.
The two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity:
Governmental Activities All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others.
Fund Financial Statements
The School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund.
Governmental Funds - The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements.
ii

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2021 and 2020.

Table 1 Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

Assets Current and Other Assets Capital Assets, Net

$

39,610,574 $ 32,487,625

101,310,292

100,498,308

Total Assets

140,920,866

132,985,933

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

14,613,331 7,602,958

13,838,376 2,659,145

Total Deferred Outflows of Resources

22,216,289

16,497,521

Liabilities Current and Other Liabilities Long-Term Liabilities Related to Defined Benefit Pension Plans Related to OPEB Plan

6,715,976 14,769,494 50,416,748 36,730,340

7,227,202 18,814,652 44,569,730 31,294,216

Total Liabilities

108,632,558

101,905,800

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

2,429 7,990,583

1,077,793 7,941,910

Total Deferred Inflows of Resources

7,993,012

9,019,703

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

93,710,960 14,344,048 (61,543,423)

91,636,273 9,508,770
(62,587,092)

Total Net Position

$

46,511,585 $ 38,557,951

Total assets and deferred outflows of resources increased by $13.7 million which was primarily due to the increase in current and other assets and the increase in the deferred outflows of resources in the OPEB Plan.

Total liabilities and deferred inflows of resources increased by $5.7 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded an increase in net position of $8.0 million.

iii

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Table 2 shows the changes in net position for fiscal years ending June 30, 2021 and June 30, 2020.

Table 2 Change in Net Position

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

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

$

461,130 $

853,316

24,863,727

23,352,598

1,255,211

669,966

Total Program Revenues

26,580,068

24,875,880

General Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous

25,597,300
10,925,310 1,245,184 27,927 1,566,705

23,464,651
9,415,094 876,016 43,639
1,224,542

Total General Revenues

39,362,426

35,023,942

Total Revenues

65,942,494

59,899,822

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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

32,636,249
2,508,552 3,937,321
863,138 660,777 3,421,164 627,715 6,540,008 3,199,319 507,765
14,170 12,889 2,786,062 273,731

34,877,849
2,204,130 3,801,125 1,141,528
671,526 3,340,899
744,182 5,078,331 3,294,570
561,386
332,928 12,760
2,722,971 12,313

Total Expenses Increase in Net Position

57,988,860

58,796,498

$

7,953,634 $

1,103,324

iv

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Program revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $1.7 million for governmental activities. This increase is largely due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Coronavirus Response & Relief Supplemental Appropriations (CRRSA) Act funding from the federal government.
General revenues increased by $4.3 million during fiscal year 2021 due to economic improvement in the local tax digest resulting in larger ad valorem tax revenue and increased ESPLOST revenues.
Governmental Activities
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity.
Table 3 Governmental Activities

Total Cost of Services

Fiscal Year

Fiscal Year

2021

2020

Net Cost of Services

Fiscal Year

Fiscal Year

2021

2020

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 Operations of Non-Instructional Services: Enterprise Operations Community Service Food Services Interest on Short-Term and Long-Term Debt

$ 32,636,249
2,508,552 3,937,321
863,138 660,777 3,421,164 627,715 6,540,008 3,199,319 507,765
14,170 12,889 2,786,062 273,731

$ 34,877,849
2,204,130 3,801,125 1,141,528
671,526 3,340,899
744,182 5,078,331 3,294,570
561,386
332,928 12,760
2,722,971 12,313

$ 15,848,266
1,766,176 2,592,772
288,526 482,285 2,442,727 476,261 4,572,756 2,051,315 379,379
11,330 12,700 210,568 273,731

$ 18,402,537
1,602,816 2,380,979
588,626 505,107 2,461,008 569,437 3,633,232 2,709,728 394,789
278,349 12,760
368,937 12,313

Total Expenses

$ 57,988,860 $ 58,796,498 $ 31,408,792 $ 33,920,618

Although program revenues support these costs, the School District is still dependent upon tax revenues for governmental activities. For 2021, 56% of instruction and support activities were supplemented by taxes and other general revenues compared to 58% in 2020.

v

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $69.8 million and total expenses and other financing uses of $61.8 million. There was a increase in the fund balance totaling $8.0 million for the governmental funds as a whole due to the revenue from ESPLOST and CARES and CRRSAA Federal Funds and the decrease in expenditures from 2020.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2021 and 2020, the School District amended its general fund budget as needed.
During fiscal year 2021 the general fund had final actual revenues and other financing sources totaling $53.5 million, which represented an increase from the original budgeted amount of $46.3 million by $7.2 million. This difference (final actual vs. original budget) was due to an increase of $1.4 million for property taxes, $0.5 million for sales tax, and $5.0 million for State and Federal Earnings.
Final actual expenditures during fiscal year 2021 totaling $48.8 million represented an increase from the original budgeted amount of $47.0 million by $1.8 million. The increase in actual expenditures versus original budget expenditures was due primarily to adding new positions as required from the staffing formula, personnel changes, and higher than expected expenditures in general.
CAPITAL ASSETS
At the fiscal years ended June 30, 2021 and June 30, 2020, the School District had $101.3 million and $100.5 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation.
Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

Land Construction In Progress Building and Improvements Equipment Land Improvements

$

5,686,802 $

2,007,272

88,097,012

2,718,353

2,800,853

4,804,724 1,821,689 88,279,115 2,670,080 2,922,700

Total

$ 101,310,292 $ 100,498,308

vi

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
DEBT ADMINISTRATION
At June 30, 2021, the School District had $13.2 million in general obligation debt outstanding with $3.2 million due within one year. Table 5 summarizes bond debt outstanding at June 30, 2021 and 2020.
Table 5 Debt at June 30

Bond Rating Bond Issue

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

AA-

2015 Bonds

AA-

2020 Bonds

3,235,000 10,000,000

6,345,000 10,000,000

Total Bonds Payable

13,235,000

16,345,000

Less Current Portion

3,235,000

3,110,000

Long-Term Bonds $ 10,000,000 $ 13,235,000

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:
The School District is financially stable. The School District's operating millage for fiscal year 2021 based on the 2020 tax digest was 15.778 mills, which produces $1,520,123 per mill. This millage rate has remained constant since 2016.
Due to the impact of the COVID-19 pandemic on the country, Congress passed three bills to provide immediate economic assistance to state and local educational agencies through the Elementary and Secondary School Emergency Relief funds. The intent of these funds was to support the School District's efforts to safely reopen schools, address learning loss, support students' mental health and wellbeing and more.
The School District anticipates steady growth in regard to student population in the foreseeable future.
The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues, anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education and collections from the Education Special Purpose Local Option Sales Tax. The School District regularly monitors anticipated capital outlay needs. Fiscal Year 2021 included capital projects from ESPLOST for DCMS Connections renovation, DCHS Multi-Purpose Building, DCHS Agri-Science Center, district wide safety projects, purchase of school buses, and technology needs.

vii

DAWSON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 The School District will continue to be a good steward of taxpayer funds and remains confident in the ability to maximize resources to provide the best educational experience for all of our students. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mrs. Jamie Ulrich, Chief Financial Officer, at the Dawson County Board of Education, 28 Main Street, Dawsonville, GA 30534.
viii

Dawson County Board of Education

DAWSON COUNTY BOARD OF EDUCATION
STATEMENT OF NET POSITION JUNE 30, 2021

EXHIBIT "A"

ASSETS
Cash and cash equivalents Receivables:
Taxes Intergovernmental:
State Federal Local Other Inventory Capital assets (nondepreciable) Capital assets (depreciable, net of accumulated depreciation) Total assets
DEFERRED OUTFLOWS OF RESOURCES
OPEB related items Pension related items
Total deferred outflows of resources
LIABILITIES
Due to others Accounts payable Salaries and benefits payable Accrued interest payable Contracts and retainage payable Bonds payable due within one year Bonds payable due in more than one year Capital lease due within one year Capital lease due in more than one year Compensated absences due within one year Net OPEB liability Net pension liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
OPEB related items Pension related items
Total deferred outflows of resources
NET POSITION
Net investment in capital assets Restricted for:
Capital projects Debt service Continuation of federal programs Unrestricted (Deficit)
Total net position

Governmental Activities

$

34,226,335

1,629,376

2,511,623 1,056,455
121,818 24,580 40,387
7,694,074 93,616,218 140,920,866

7,602,958 14,613,331 22,216,289

14,904 1,090,620 5,155,012
104,896 350,544 3,235,000 10,000,000 672,000 672,000 190,494 36,730,340 50,416,748 108,632,558

7,990,583 2,429
7,993,012

93,710,960

10,929,236

3,255,979

158,833

(61,543,423)

$

46,511,585

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

- 1 -

DAWSON COUNTY BOARD OF EDUCATION
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2021

EXHIBIT "B"

Functions/Programs Governmental activities:
Instruction Support services:
Pupil services Improvement of instructional
services Educational media services General administration School administration Business administration Maintenance and operation of facilities Student transportation services Central support services Community services Enterprise operations Food services operation Interest on long-term debt Total governmental activities

Expenses
$ 32,636,249
2,508,552
3,937,321 863,138 660,777
3,421,164 627,715
6,540,008 3,199,319
507,765 12,889 14,170 2,786,062 273,731 $ 57,988,860

Charges for Services

Program Revenues Operating Grants and
Contributions

Capital Grants and Contributions

$

105,217 $ 16,116,108 $ 566,658

83,585

658,374

417

-

1,343,405

1,144

7,100

551,624

15,888

-

165,043

13,449

-

922,830

55,607

-

151,454

-

-

1,847,319

119,933

3,826

714,758

429,420

-

128,386

-

-

189

-

2,840

-

-

258,562

2,264,237

52,695

-

-

-

$

461,130 $ 24,863,727 $ 1,255,211

Net (Expense) Revenue and
Changes in Net Position Governmental
Activities
$ (15,848,266)
(1,766,176)
(2,592,772) (288,526) (482,285)
(2,442,727) (476,261)
(4,572,756) (2,051,315)
(379,379) (12,700) (11,330)
(210,568) (273,731) (31,408,792)

General revenues: Taxes: Property taxes, levied for general purposes Sales taxes: Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax
Investment earnings Miscellaneous
Total general revenues Change in net position
Net position, beginning of year Net position, end of year

25,597,300
10,925,310 1,245,184 27,927 1,566,705 39,362,426 7,953,634
38,557,951 $ 46,511,585

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

- 2 -

DAWSON COUNTY BOARD OF EDUCATION
BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2021

EXHIBIT "C"

ASSETS

General

Capital Projects

Debt Service

Total Governmental
Funds

Cash and cash equivalents Receivables:
Taxes Intergovernmental:
State Federal Local Other receivables
Inventory

Total assets

$

14,174,965 $

20,051,370 $

610,453

1,018,923

2,511,623 1,056,455
121,818 16,057

8,523

40,387

-

$

18,531,758 $

21,078,816 $

- $
-
- $

34,226,335
1,629,376
2,511,623 1,056,455
121,818 24,580 40,387
39,610,574

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

LIABILITIES Intergovernmental payable Accounts payable Salaries and benefits payable Contracts and retainage payable

$

14,904 $

288,127

5,155,012

-

- $ 802,493
350,544

- $ -

14,904 1,090,620 5,155,012
350,544

Total liabilities

5,458,043

1,153,037

-

6,611,080

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

81,219

-

-

81,219

FUND BALANCES Nonspendable:
Inventory Restricted:
Capital projects Debt service Continuation of federal programs Assigned: School activity accounts Ivey donation Unassigned Total fund balances
Total liabilities, deferred inflows of resources and fund balances

40,387

-

118,446

16,564,904 3,360,875 -

574,119 25,011
12,234,533 12,992,496

19,925,779

$

18,531,758 $

21,078,816 $

-
-
-
- $

40,387
16,564,904 3,360,875 118,446
574,119 25,011
12,234,533 32,918,275
39,610,574

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

- 3 -

DAWSON COUNTY BOARD OF EDUCATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION AS OF JUNE 30, 2021

EXHIBIT "D"

Amounts reported for governmental activities in the statement of net position are different because:

Total fund balance-governmental funds

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. The cost of the assets is $139,968,808 and the accumulated depreciation is $38,658,516.

Taxes that are not available to pay for current period expenditures are deferred in the funds.

The net pension liability and related balances are not expected to be paid with current financial resources and are therefore not reported in the governmental funds.

Net pension liability

$

Deferred inflows of resources - pensions

Deferred outflows of resources - pensions

The net OPEB liability and related balances are not expected to be paid with current financial resources and are therefore not reported in the governmental funds.

Net OPEB liability

$

Deferred inflows of resources - OPEB

Deferred outflows of resources - OPEB

Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.

Bonds payable

$

Compensated absences

Capital leases

Accrued interest payable

Total net position--governmental activities

$
(50,416,748) (2,429)
14,613,331
(36,730,340) (7,990,583) 7,602,958
(13,235,000) (190,494)
(1,344,000) (104,896) $

32,918,275 101,310,292
81,219
(35,805,846)
(37,117,965)
(14,874,390) 46,511,585

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

- 4 -

DAWSON COUNTY BOARD OF EDUCATION
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

EXHIBIT "E"

REVENUES Property taxes Sales taxes Other local sources State funds Federal funds Charges for services Investment earnings Total revenues
EXPENDITURES Current: Instruction Support services: Pupil services Improvement of instructional services Educational media services General administration School administration Business services Maintenance and operation of facilities Student transportation services Central support services Community services Enterprise operations School nutrition Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures
Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses)
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year

General

$

25,636,965 $

1,245,184

929,952

19,059,928

6,138,483

461,130

4,242

53,475,884

28,487,580
2,366,022 3,346,192
762,731 580,008 2,990,350 577,614 4,025,914 2,519,589 482,288 13,435
14,770 2,609,055
-
48,775,548

4,700,336

-

4,700,336

8,292,160

$

12,992,496 $

Capital Projects

Debt Service

Total Governmental
Funds

- $ 11,324,075
636,753 919,795
23,685 12,904,308

- $ -

25,636,965 12,569,259
1,566,705 19,979,723 6,138,483
461,130 27,927 66,380,192

253,347
21,881 314,778 27,405
4,926 -
10,998 2,215,918
241,186 -
1,984,519
1,073,350 2,523
6,150,831

-
-
3,110,000 312,750
3,422,750

6,753,477

(3,422,750)

(3,422,750) (3,422,750)
3,330,727
16,595,052
19,925,779 $

3,422,750 -
3,422,750
-
-
- $

28,740,927
2,387,903 3,660,970
790,136 584,934 2,990,350 588,612 6,241,832 2,760,775 482,288 13,435
14,770 2,609,055 1,984,519
4,183,350 315,273
58,349,129
8,031,063
3,422,750 (3,422,750)
-
8,031,063
24,887,212
32,918,275

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

- 5 -

DAWSON COUNTY BOARD OF EDUCATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2021

EXHIBIT "F"

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

Net change in fund balances - total governmental funds

$

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year.

Capital outlay Depreciation expense

$ 4,090,598 (3,277,772)

In the statement of activities, only the gain or loss on the sale of capital assets is recorded. The change in net position differs from the change in fund balance by the net book value of the capital assets disposed.

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the

Property taxes

$

(39,665)

Sales taxes

(398,765)

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 between the carrying value and acquisition cost of debt when first issued. These amounts are deferred and amortized in the statement of activities.

Principal payments - bonds Principal payments - capital leases

$ 3,110,000 1,073,350

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in net OPEB liabilities and related deferred outflows and inflows of resources
Change in net pension liabilities and related deferred outflows and inflows of resources
Change in compensated absences Change in accrued interest
Change in net position - governmental activities

$

(540,984)

(3,996,699) (138,192) 41,542

$

8,031,063 812,826 (842) (438,430)
4,183,350
(4,634,333) 7,953,634

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

- 6 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Dawson 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. 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.

- 7 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Statement of Net Position presents the School District's 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.
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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.

- 8 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund.
Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including sales taxes legally restricted for the payment of general long-term principal and interest.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. 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 and acquisitions under capital leases are reported as other financing sources.
- 9 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education (QBE) Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally, teachers are contracted for the school year (July 1 June 30) and paid over a twelve-month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School District over the same twelve-month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board (GASB) Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
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 position 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.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (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.
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.

- 10 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.
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 governmentwide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land

Land Improvements

$

Buildings and Improvements $

Equipment

$

Intangible Assets

$

All 100,000 100,000 10,000 250,000

N/A 20 years 20 to 80 years 8 to 15 years 10 to 20 years

- 11 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Deferred Outflows/Inflows of Resources

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

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

Compensated Absences

Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.

Vacation leave is awarded on a fiscal year basis to all full-time personnel employed on twelvemonth basis, according to the following guidelines:

Employees with 0 - 10 years credible service Employees with 10 - 20 years credible service Employees with 20 plus years credible service

10 days per year 15 days per year 20 days per year

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 twenty (20) days for both Classified and Certified Employees. An employee whose employment is terminated will be compensated for no more than ten (10) unused annual leave days.

Long-Term Liabilities and Bond Discounts/Premiums

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

- 12 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits other than Pensions
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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
- 13 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assigned Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

Unassigned The residual classification for the general fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The School District reports positive unassigned fund balances only in the general fund. Negative unassigned fund balances may be reported in the other funds.

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Property Taxes

The Dawson County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on August 20, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 1, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Dawson 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, 2021, for maintenance and operations amounted to $25,636,965, which includes $2,318,434 of Title Ad Valorem Tax revenue.

The tax millage rate levied for the 2020 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.778 mills

Sales Taxes

Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $11,324,075 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 reauthorized at least every five years.

- 14 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

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 fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes 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 Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
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
Collateralization of Deposits
Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. At June 30, 2021, all deposits were secured by surety bond, insurance or collateral as specified above.
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,

- 15 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

(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 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 $34,226,335, and a bank balance of $35,524,069. The bank balances insured by Federal depository insurance were $1,037,896 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $7,024,890.
At June 30, 2021, $27,461,283 of the School District's bank balance was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

- 16 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 5: CAPITAL ASSETS

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

Governmental activities:
Capital assets, not being depreciated: Land Construction in progress Total capital assets not being depreciated
Capital assets, being depreciated: Buildings and improvements Equipment Land improvements Intangible assets Total capital assets being depreciated
Less accumulated depreciation for: Buildings and improvements Equipment Land improvements Intangible assets Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net

Balance July 1, 2020

$

4,804,724

1,821,689

6,626,413

114,109,769 8,325,381 6,840,066 340,000
129,615,216
(25,830,654) (5,655,301) (3,917,366) (340,000)
(35,743,321)

93,871,895

$ 100,498,308

Increases

Decreases/ Transfers

$

882,078 $

-

2,482,506

(2,296,923)

3,364,584

(2,296,923)

2,124,896 726,014 172,027 -
3,022,937

(363,419)
-
(363,419)

(2,306,999) (676,899) (293,874) -
(3,277,772)

362,577
362,577

(254,835)

(842)

$ 3,109,749 $ (2,297,765)

Balance June 30, 2021

$

5,686,802

2,007,272

7,694,074

116,234,665 8,687,976 7,012,093 340,000
132,274,734
(28,137,653) (5,969,623) (4,211,240) (340,000)
(38,658,516)

93,616,218

$ 101,310,292

Current year depreciation expense by function is as follows:

Instruction

Support Services

Pupil Services

$

Instructional Staff Training

Educational Media Services

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Food Services

$
1,446 3,963 55,032 46,582 192,604 415,407 417,510

$

1,962,710
1,132,544 182,518
3,277,772

- 17 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 6: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2021, consisted of the following:

Transfers In Debt Service Fund

Transfers Out Capital Projects Fund

Amount $ 3,422,750

Transfers are used to move ESPLOST and other revenue from the capital projects fund to the debt service fund for payment of bonds.

NOTE 7: LONG-TERM LIABILITIES
The changes in long-term liabilities during the fiscal year for governmental activities were as follows:

Balance July 1, 2020

Governmental Activities

Additions

Deductions

Balance June 30,
2021

Due Within One Year

General Obligation (G.O.) Bonds $ Compensated absences Capital Leases

16,345,000 $ 52,302
2,417,350

- $ 190,494
-

3,110,000 $ 52,302
1,073,350

13,235,000 $ 190,494
1,344,000

3,235,000 190,494 672,000

$ 18,814,652 $

190,494 $ 4,235,652 $ 14,769,494 $ 4,097,494

General Obligation Debt Outstanding

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

The School District's outstanding bonds related to governmental activities of $13,235,000 contain provisions that in the event of nonpayment, the State Board is authorized to and must withhold from any state appropriations to which the School District may be entitled amounts necessary to satisfy the principal and interest payments then due (Intercept Program).

General obligation bonds currently outstanding are as follows:

Description General Government - Series 2015 Direct Placement -
General Government - Series 2020

Interest Rates 3.00% - 5.00%
0.90%

Issue Date Maturity Date Amount Issued 5/28/2015 8/1/2021 $ 15,000,000 $

4/16/2020

8/1/2025

10,000,000

$ 25,000,000 $

Amount Outstanding
3,235,000
10,000,000 13,235,000

- 18 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 7: LONG-TERM LIABILITIES (CONTINUED)

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 Government

Series 2015

Principal

Interest

Direct Placement - General

Government Series 2020

Principal

Interest

Total

Principal

Interest

2022

$ 3,235,000 $

80,875 $

- $

90,000 $ 3,235,000 $ 170,875

2023

-

-

2,320,000

79,560

2,320,000

79,560

2024

-

-

2,435,000

58,163

2,435,000

58,163

2025

-

-

2,560,000

35,685

2,560,000

35,685

2026

-

-

2,685,000

12,083

2,685,000

12,083

Totals

$ 3,235,000 $

Capital Leases

80,875 $ 10,000,000 $ 275,491 $ 13,235,000 $ 356,366

The School District has acquired iPads under the provisions of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for a transfer of ownership by the end of the lease term. The associated assets acquired through the capital lease did not meet the School District's capitalization threshold and therefore are not included on the accompanying statement of net position.

Capital leases currently outstanding are as follows:

Purpose iPad 2020

Interest Rate 0.00%

Issue Date 4/2/2020

Maturity Date
3/1/2023

The following is a schedule of total capital lease payments:

Amount Issued $ 2,236,709

Amount Outstanding $ 1,344,000

Fiscal Year Ended June 30

Principal

2022

$

672,000

2023

672,000

Total Principal and Interest $

1,344,000

- 19 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

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. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
Georgia School Boards Association Risk and Insurance Management System
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, 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 premium to the Fund for its general insurance coverage. Additional coverage is provided through the Fund's agreements with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation, and abuse), errors and omissions, crime, and automobile risks. Reinsurance limits and retentions vary by line of coverage.
Workers' Compensation
The School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, 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 Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $200,000 per year corridor retention. The School District has not incurred any liabilities for workers' compensation during the past two years.

- 20 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 8: RISK MANAGEMENT (CONTINUED)

Unemployment Compensation

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two years.

Surety Bond

The School District has purchased a superintendent's (surety) bond to provide additional insurance coverage in the amount of $100,000.

NOTE 9: SIGNIFICANT COMMITMENTS

Commitments Under Construction Contracts

The following is an analysis of significant outstanding construction or renovation contracts

executed by the School District as of June 30, 2021.

Unearned

Payments

Executed

through

Project

Contracts (1) June 30, 2021 (2)

Dawson County High School Multi-Purpose Building $ Dawson County High School Agri-Science Center Dawson County Middle School Renovation

8,157,615 $ 3,134,460
471,493

132,717 30,540
529,201

$ 11,763,568 $

692,458

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

- 21 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 9: SIGNIFICANT COMMITMENTS (CONTINUED)

Operating Leases

The School District leases copiers and a postage machine under the provisions of long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $94,134 for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021:

Year Ending
2022 2023 2024 2025 2026

Governmental Activities

$

84,913

84,913

84,913

84,913

70,608

Total

$

410,260

NOTE 10: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.

- 22 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the DCH 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 pay-as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $894,495 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, 2021, the School District reported a liability of $36,730,340 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 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, 2020. At June 30, 2020, the School District's proportion was 0.250076%, which was a decrease of 0.004926% from its proportion measured as of June 30, 2019.

- 23 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)

For the year ended June 30, 2021, the School District recognized OPEB expense of $1,435,479. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$

- $ 4,009,813

Changes of assumptions

6,074,383

3,268,210

Net difference between projected and actual

earnings on OPEB plan investments

95,733

-

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

538,347

712,560

School District contributions subsequent to

the measurement date

894,495

-

Total

$ 7,602,958 $ 7,990,583

School District contributions subsequent to the measurement date of $894,495 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, 2022. 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

2022 2023 2024 2025 2026 Thereafter

$

(753,567)

(756,137)

(548,325)

60,112

529,952

185,845

- 24 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Actuarial assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 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, 2020:

OPEB: Inflation Salary increases Long-term expected rate of return
Healthcare cost trend rate: Pre-Medicare Eligible Medicare Eligible
Ultimate trend rate Pre-Medicare Eligible Medicare Eligible
Year of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible

2.50% 3.00 8.75%, including inflation 7.30%, compounded annually, net of investment expense, and including inflation
7.00% 5.25%
4.50% 4.50%
2029 2023

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 Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with the MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with the MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.

For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward five years for both males and females) is used for the period 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. There is a margin for future mortality improvement in the tables used by the plan.

- 25 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.

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, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 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 lognormal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rate of return for the major asset class are summarized in the following table:

Asset class
Fixed income Equities
Total

Target allocation
30.00% 70.00%
100.00%

Long-Term Expected Real Rate of Return*
0.5% 9.2%

*Net of Inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 2.22% was used as the discount rate, as compared with last year's rate of 3.58%. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal Bond Index Rate). The projection of cashflows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118.

- 26 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the collective net OPEB liability of the participating employers calculated using the discount rate of 2.22%, as well as what the collective net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1-percentage-point higher (3.22%) than the current discount rate:

School District's proportionate share of the Net OPEB Liability

1% Decrease (1.22%)
$ 43,152,090

Current Discount Rate (2.22%)

1% Increase (3.22%)

$

36,730,340 $ 31,594,734

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 collective net OPEB liability of the participating employers, as well as what the collective 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

$ 30,581,700 $

36,730,340 $ 44,691,043

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report (ACFR) which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

NOTE 12: RETIREMENT PLANS

The School District participates in various retirement plans administered by the State of Georgia, as further explained below.

Teachers Retirement System of Georgia (TRS)
Plan Description: All teachers of the School District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a costsharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. TRS issues a publicly available financial report that can be obtained at www.trsga.com/publications.

- 27 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 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 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.88% of payroll was required from the School District and 0.18% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $5,118,468 and $46,291 from the School District and the State, respectively.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/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 $15.50, 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.
- 28 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)

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 $76,195.

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

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

$

50,416,748

416,167

$

50,832,915

The net pension liability for TRS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2020.

At June 30, 2020, the School District's TRS proportion was 0.208128%, which was an increase of 0.000853% from its proportion measured as of June 30, 2019.

At June 30, 2021, 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 $457,244.

- 29 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)

The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 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, 2020.

For the year ended June 30, 2021, the School District recognized pension expense of $9,019,566 for TRS and $92,013 for PSERS and revenue of ($91,281) for TRS and $92,013 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.

At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience

$

2,195,665 $

-

Changes of assumption

5,192,983

-

Net difference between projected and actual earnings on

pension plan investments

1,214,296

-

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

891,919

2,429

School District contributions subsequent to the measurement date

5,118,468

-

Total

$ 14,613,331 $

2,429

The School District contributions subsequent to the measurement date of $5,118,468 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as detailed in the table on the following page:

- 30 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)

Year ended June 30: 2022 2023 2024 2025 Total

$ 2,261,402 3,132,327 2,915,932 1,182,773
$ 9,492,434

Actuarial assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System

Inflation Salary increases
Investment rate of return
Postretirement benefit increases

2.50% 3.00 8.75%, average, including inflation 7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually

Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Postretirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

Public School Employees Retirement System

Inflation Salary increases
Investment rate of return
Postretirement benefit increases

2.75% N/A 7.30%, net of pension plan investment expense, including inflation 1.50% semi-annually

- 31 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)

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, 2019 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.

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

The target allocation and best estimates of arithmetic real rates of return for each major asset class

are summarized in the following table.

Asset class

TRS Target allocation

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 the 2.75% assumed rate of inflation with the exception of TRS, which assumed a rate of 2.50% 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 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 and PSERS pension plans' fiduciary net position were 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.
- 32 -

DAWSON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 12: RETIREMENT PLANS (CONTINUED)

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%, 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%) or 1-percentage-point higher (8.25%) than the current rate:

School District's proportionate share of the net pension liability

1% Decrease (6.25%)
$ 79,948,927

Current Discount Rate
(7.25%)
$ 50,416,748

1% Increase (8.25%)
$ 26,208,829

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

Defined Contribution Plan

In 2008, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group.

The School District selected Lincoln and Vanguard as the providers of this plan. The Board began contributing to the plan an amount equal to 4 % of the employee's base pay.

The employee becomes vested in the plan with zero years of experience. Employees at the time the plan was implemented were vested upon enrollment.

Funds accumulated in the employer-paid accounts are only available to the employee upon termination of employment.

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

Fiscal Year

Percentage Contributed

Required Contribution

2021 2020 2019

100%

$

1,368,471

100%

$

1,368,558

100%

$

1,293,571

- 33 -

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

SCHEDULE "1"

School District's proportion of the net pension liability

2021 0.208128%

2020 0.207275%

2019 0.207298%

School District's proportionate share of the net pension liability

$ 50,416,748 $ 44,569,730 $ 38,478,949 $

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

416,167

419,088

363,261

Total

$ 50,832,915 $ 44,988,818 $ 38,842,210 $

School District's covered payroll

$ 27,075,555 $ 25,480,422 $ 24,923,584 $

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

186.21%

174.92%

154.39%

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

77.01%

78.56%

80.27%

School District's proportion of the net pension liability

2017 0.195468%

2016 0.190500%

2015 0.184417%

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

$ 40,327,228 $ 29,001,733 $ 23,298,655

1,482,346

987,886

724,794

$ 41,809,574 $ 29,989,619 $ 24,023,449

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

22,238,613 $ 20,105,929 $ 19,412,789

181.34% 76.06%

144.24% 81.44%

121.17% 84.03%

2018 0.199043% 36,992,755
786,159 37,778,914 23,376,643
158.25% 79.33%

Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available.

- 35 -

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

SCHEDULE "2"

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

2021

2020

2019

2018

$ 5,118,468 $ 5,676,934 $ 5,275,699 $ 4,189,655 $

5,118,468

5,676,934

5,275,699

4,189,655

$

- $

- $

- $

- $

27,104,309

27,075,555

25,480,422

24,923,584

18.88%

20.97%

20.70%

16.81%

2017 3,270,259
3,270,259 -
23,376,643
13.99%

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

2016

2015 (1)

2014 (1)

2013 (1)

2012 (1)

$ 3,060,989 $ 2,643,930 $ 2,383,890 $ 2,194,128 $

2,068,464

3,060,989

2,643,930

2,383,890

2,194,128

$

- $

- $

- $

- $

22,238,613

20,105,929

19,412,789

19,229,866

2,068,464 -
20,121,247

13.76%

13.15%

12.28%

11.41%

10.28%

(1) For years 2015 and earlier, the contribution amounts include payments made on behalf of the School District employees by the Georgia Department of Education.

- 36 -

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

SCHEDULE "3"

School District's proportion of the net pension liability

2021 0.000000%

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

457,244

Total

$ 457,244

School District's covered payroll

$ 1,141,474

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

N/A 84.45%

School District's proportion of the net pension liability

2017 0.000000%

School District's proportionate share of the net

pension liability

$

-

2020 0.000000%

$

-

419,936 $ 419,936 $ 1,206,857

N/A

85.02% 2016 0.000000%

$

-

2019 0.000000%

$

-

397,860 $ 397,860 $ 1,152,463

N/A

85.26% 2015 0.000000%

$

-

2018 0.000000%

$

-

355,333 $ 355,333 $ 1,218,163

N/A 85.69%

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

513,656

Total

$ 513,656

School District's covered payroll

$ 1,031,548

School District's proportionate share of the net

pension liability as a percentage of its covered

payroll

N/A

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

81.00%

322,493 $ 322,493 $ 1,153,208
N/A 87.00%

284,556 $ 284,556 $ 1,045,194
N/A 88.29%

Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they become available. - 37 -

DAWSON COUNTY BOARD OF EDUCATION
SCHEDULE "4"
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF NET OPEB LIABILITY
OTHER POST-EMPLOYMENT BENEFITS FOR THE FISCAL YEAR ENDED JUNE 30

School District's proportion of the net OPEB liability

2021 0.250076%

2020 0.255002%

2019 0.249857%

2018 0.250679%

School District's proportionate share of the net OPEB liability Total
School District's covered-employee payroll

$ 36,730,340 $ 36,730,340

$ 31,294,216 $ 31,294,216

$ 31,756,058 $ 31,756,058

$ 35,220,299 $ 35,220,299

23,271,674

22,178,500

21,814,505

20,807,858

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

157.83%

141.10%

145.57%

169.26%

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

3.99%

4.63%

2.93%

1.61%

Schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available.

- 38 -

DAWSON COUNTY BOARD OF EDUCATION
REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS
OTHER POST-EMPLOYMENT BENEFITS FOR THE FISCAL YEAR ENDED JUNE 30

SCHEDULE "5"

Contractually required contribution

2021

2020

2019

2018

$ 894,495 $ 845,697 $ 1,373,361 $ 1,294,984 $

2017 1,307,059

Contributions in relation to the contractually required contribution

894,495

845,697

1,373,361

1,294,984

1,307,059

Contribution deficiency (excess)

$

- $

- $

- $

- $

-

School District's covered-employee payroll

$ 24,022,383 $ 23,271,674 $ 22,178,500 $ 21,814,505 $ 20,807,858

Contributions as a percentage of covered-employee payroll

3.72%

3.63%

6.19%

5.94%

6.28%

Schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available.

- 39 -

DAWSON COUNTY BOARD OF EDUCATION
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "6"

Teachers Retirement System of Georgia:
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the 53 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 53 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%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Public School Employees Retirement System of Georgia:
Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the 53 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the 53 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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.
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 June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, 3.87% as of June 30, 2018, 3.58% as of June 30, 2019, and 2.22% as of June 30, 2020.
- 40 -

DAWSON COUNTY BOARD OF EDUCATION
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "7"

REVENUES Property taxes Sales taxes Other local sources State and federal funds Charges for Services Investment earnings
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 facilities Student transportation services Central support services Community services Enterprise operations School nutrition Total expenditures
Net change in fund balances
FUND BALANCE, beginning of year
ADJUSTMENTS
FUND BALANCE, end of year

Budget

Original (1)

Final (1)

Actual

Variance With Final Budget

$ 24,241,538 $ 25,381,275 $ 25,636,965 $

714,576

1,107,975

1,245,184

322,002

364,707

929,952

20,218,775

25,067,991

25,198,411

808,006

225,328

461,130

15,225

3,660

4,242

46,320,122

52,150,936

53,475,884

255,690 137,209 565,245 130,420 235,802
582 1,324,948

27,715,472

28,685,859

28,487,580

1,843,382 3,495,865
710,942 549,932 2,990,589 551,909 4,058,640 2,342,795 479,276 48,423
2,257,945 47,045,170

1,955,059 3,555,657
729,763 566,946 2,986,793 581,876 4,029,134 2,681,016 493,208
9,423 -
2,400,111 48,674,845

2,366,022 3,346,192
762,731 580,008 2,990,350 577,614 4,025,914 2,519,589 482,288 13,435 14,770 2,609,055 48,775,548

(725,048)

3,476,091

4,700,336

8,292,160

8,292,160

8,292,160

41,296

(16,158)

-

$ 7,608,408 $ 11,752,093 $ 12,992,496 $

198,279
(410,963) 209,465 (32,968) (13,062)
(3,557) 4,262 3,220 161,427 10,920 (4,012) (14,770) (208,944) (100,703)
1,224,245
-
16,158
1,240,403

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual
(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $708,871 and $771,623, respectively.
The accompanying schedule of revenues, expenditures and changes in fund balance budget and actual is presented on the modified accrual basis of accounting which is the bases of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 41 -

DAWSON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

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 Child Nutrition Discretionary Grants Limited Availability
Total Child Nutrition Cluster
Forest Service Schools and Road Cluster Pass-Through from Office of the State Treasurer Schools and Roads - Grants to States
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 (IDEA)
Title I, Part A Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies
Total Title I, Part A
Pass-Through From Georgia Department of Education Education for Homeless Children and Youth Education for Homeless Children and Youth
Total Education for Homeless Children and Youth
Title II Pass-Through From Georgia Department of Education Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants
Total Title II
Education, U. S. Department of Title III Pass-Through From Georgia Department of Education English Language Acquisition Grants English Language Acquisition Grants
Total Title III

Assistance Listing Number

PassThrough Entity
ID Number

Total Expenditures

10.553 10.555 10.579

215GA324N1199 $ 215GA324N1199 215GA350N8103

536,815 1,784,724
43,072
2,364,611

10.665

486Forest

16,408 2,381,019

84.027A 84.027A 84.173A 84.173A

H027A190073 H027A200073 H173A190081 H173A200081

84.010A 84.010A

S010A190010 S010A200010

84.196A 84.196A

S196A190011 S196A200011

84.367A 84.367A

S367A190001 S367A200001

84.365A 84.365A

S365A190010 S365A200010

105,143 521,223
5,604 13,883 645,853
72,231 586,513 658,744
14,486 39,522 54,008
3,172 87,152 90,324
80 14,884 14,964
continued

- 42 -

DAWSON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Funding Agency Program/Grant

CFDA Number

PassThrough Entity
ID Number

Total Expenditures

Title IV Pass-Through From Georgia Department of Education Student Support and Academic Achievement Student Support and Academic Achievement

84.424A 84.424A

S424A190011 S424A200011

7,200 35,797

Total Title IV

42,997

Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund

84.425D

S425D210012

2,406,108

Total Education Stabilization Fund

2,406,108

Vocational Education - Basic Grants to States Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States

84.048 84.048 84.048

V048A200010 V048A200010 V048A200010

2,340 23,245
7,124

Total Vocational Education - Basic Grants to States

32,709

Total U. S. Department of Education

3,945,707

Health and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-Through From Bright From the Start Georgia Department of Early Care and Learning Child Care and Development Block Grant

93.575

2110GACCC5

10,145

Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program

12.Unknown

76,875

Total Expenditures of Federal Awards

$

6,413,746

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 Dawson County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2021. 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.

Note 4. Donated Personal Protective Equipment

In response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Federal Emergency Management and Homeland Security Agency (FEMA/HSA). FEMA/HSA, then, donated PPE with an estimated fair market value of $8,900.00 to the Dawson County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

- 43 -

DAWSON COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "9"

Agency/Funding
Grants 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 Career Technical and Agricultural Education Program (9-12) Students with Disabilities Gifted Students - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Twenty Days Additional Instruction Staff and Professional Development Principal Staff & Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Bus Replacement Nursing Services Vocational Supervisors Food Services Career, Technical, and Agricultural Education Preschool Handicapped State Grant Teachers Retirement
Office of Treasury and Fiscal Services Public School Employees Retirement
Grants from Pre-K Lottery Georgia Pre-Kindergarten Program
Other Grants From Georgia Department of Education Hygiene Products in Georgia Schools Math and Science Supplement
Funds from Other State Agencies GEMA Donations to LEAs
Capital Outlay Grants Miscellaneous

Governmental

Fund Types

Capital

General

Projects

Fund

Fund

$

1,034,351 $

172,823

2,412,819

386,394

1,050,007

261,177

2,149,184

2,056,265

627,189

3,710,535

456,270

200,658

165,193

146,344

372,928

115,830

64,616

1,644

511,974 894,791 756,143 (575,255) 378,991

430,729 308,880
74,573 13,649 50,876 82,815 95,101 46,291

- $ -
-
-

76,195

-

482,216

-

756

-

8,665

-

38,311

-

$ 19,059,928 $

919,795 919,795 $

Total
1,034,351 172,823
2,412,819 386,394
1,050,007 261,177
2,149,184 2,056,265
627,189 3,710,535
456,270 200,658 165,193 146,344 372,928 115,830
64,616 1,644
511,974 894,791 756,143 (575,255) 378,991
430,729 308,880
74,573 13,649 50,876 82,815 95,101 46,291
76,195
482,216
756 8,665
38,311
919,795
19,979,723

See notes to the basic financial statements.

- 44 -

DAWSON COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)(4)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

ESPLOST V

1. Adding to, renovating, repairing, improving, and

equipping existing school building and school system

facilities;

7,635,000

6,696,613

1,789,634

2,841,747

-

-

2. Acquiring and/or improving land for school system

facilities;

2,000,000

2,540,967

605,130

1,115,837

-

-

3. Acquiring miscellaneous new equipment, fixtures

and furnishings for the school system, including

technology equipment, tablets and laptops, and safety

and security equipment,

7,200,000

7,291,965

341,097

6,913,868

-

-

4. Acquiring school buses and other vehicles,

transportation and maintenance equipment,

2,065,000

1,034,457

-

749,987

-

-

5. Acquiring books, digital resources, and other

media for the school system,

500,000

554,696

45,880

508,816

-

-

6. Constructing and equipping new classroom space including a performing arts center at Dawson County High School

13,000,000

24,060,629

-

24,060,629

24,060,629

-

7. Paying expenses incident to accomplishing the

foregoing, and for the purpose of payment of a

portion of the interest on such debt.

-

191,505

6,015

177,490

-

-

Total SPLOST V

$ 32,400,000 $

42,370,832 $

2,787,756 $

36,368,374 $ 24,060,629 $

-

ESPLOST VI

1a. Adding to, renovating, repairing, improving, and

equipping existing school building and school system

facilities;

17,500,000

17,500,000

1,163,606

1,786,690

-

-

2a. Acquiring and/or improving land for school

system facilities;

3,000,000

3,000,000

442,876

206,194

-

-

3a. Acquiring miscellaneous new equipment, fixtures

and furnishings for the school system, including

technology equipment, software, tablets and laptops,

and safety and security equipment,

12,280,000

12,280,000

1,277,525

546,430

-

-

4a. Acquiring school, transportation and maintenance

equipment,

2,000,000

2,000,000

235,802

-

-

-

5a. Acquiring books, digital resources and other

media for the school system,

1,294,990

1,294,990

26,014

-

-

-

6a. Constructing and equipping new school buildings

and facilities and new educational space, including

athletic, technological and academic facilities,

12,000,000

12,000,000

217,216

71,410

-

7a. Paying expenses incident to accomplishing the

foregoing, and for the purpose of payment of a

portion of the interest on such debt.

140,240

140,240

36

105,238

-

-

Total SPLOST VI

$ 48,215,230 $

48,215,230 $

3,363,075 $

2,715,962 $

- $

-

ESTIMATED COMPLETION
DATE
June 2022 June 2022
June 2022 June 2022 June 2022 Completed June 2022
June 2025 June 2025
June 2025 June 2025 June 2025
June 2025 June 2025

Total SPLOST

$ 80,615,230 $

90,586,062 $

6,150,831 $

39,084,336 $ 24,060,629 $

-

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

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

Prior Years

$ 2,559,730

Current Year Total

310,750 $ 2,870,480

See notes to the basic financial statements.

- 45 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
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 Dr. Damon Gibbs, Superintendent and Members of the Dawson County Board of Education
We have audited the financial statements of the governmental activities and each major fund of the Dawson County Board of Education (School District), as of and for the year ended June 30, 2021, 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 March 23, 2022. We conducted our audit 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.
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 basic 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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District'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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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,
Greg S. Griffin State Auditor
March 23, 2022

Greg S. Griffin State Auditor
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 Dr. Damon Gibbs, Superintendent and Members of the Dawson County Board of Education
Report on Compliance for Each Major Federal Program
We have audited the Dawson County Board of Education's (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, 2021. 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.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

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, 2021.
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 a 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,
Greg S. Griffin State Auditor
March 23, 2022

Section III Auditee's Response to Prior Year Findings and Questioned Costs

DAWSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

DAWSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities and Each Major Fund

Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified?

Noncompliance material to financial statements noted:

Federal Awards

Internal Control over major programs: Material weakness(es) identified?
Significant deficiency(ies) identified?

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

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?
Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

10.553, 10.555, 10.579 84.425

Child Nutrition Cluster Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

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

Unmodified No
None Reported No
No None Reported
Unmodified No
$750,000 Yes