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

ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019
(Including Independent Auditor's Reports)

DECATUR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET POSITION

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

G

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

H

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS

I NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA
2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA
4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND

Page
i
1 2 4 5 6 7 8 9 11
39 40 41 42

DECATUR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

SCHEDULES

REQUIIRED SUPPLEMTNARY INFORMATION

5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY

SEAD OPEB

43

6 SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

44

7 SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 45

8 SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

46

9 SCHEDULE OF CONTRIBUTIONS SEAD OPEB

47

10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

48

11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

49

SUPPLEMENTARY INFORMATION

12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

50

13 SCHEDULE OF STATE REVENUE

51

14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

53

SECTION II

COMPLIANCE AND INTERNAL CONTROL REPORTS

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

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

SECTION III

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Decatur County Board of Education
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Decatur County Board of Education (School District), as of and for the year ended June 30, 2019, 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 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.
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, 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.
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.

In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

February 20, 2020

Greg S. Griffin State Auditor

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
The discussion and analysis of the Decatur 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, 2019 and June 30, 2018. 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.
Key financial highlights for the fiscal years 2019 and 2018 are as follows:
On the government-wide financial statements, net position was ($2,637,418) and ($12,464,299), respectively, for the fiscal years ended June 30, 2019 and 2018, an increase of $9,826,881.
The School District had $53,002,940 and $56,040,071 in expenses relating to governmental activities for the fiscal years ended June 30, 2019 and June 30, 2018, respectively. Only $38,426,951 and $37,960,750 of the above mentioned expenses for 2019 and 2018 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $23,499,211 and $22,616,128, respectively, for 2019 and 2018, along with fund balance were adequate to provide for these programs.
General revenues and other sources accounts for $24,508,367 in revenue or 39% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $38,426,951 or 61% of total revenues and other sources of $62,935,318.
Among major funds, the general fund had $57,094,710 in revenues and other sources and $55,420,154 in expenditures and other uses. The fund balance for the general fund increased from $15,278,901 to $16,718,407. Of this total, $15,239,101 represents unassigned fund balance.
Special/Extraordinary Items this year: Insurance proceeds in the amount of $1,038,836 related to Hurricane Michael, expenses of $324,729 related to damage and losses of property and food spoilage from Hurricane Michael, and loss on disposal of fixed assets in the amount of $105,498 related to the disposal and demolition of an unused elementary school representing the undepreciated value of the assets.
This annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the governmentwide 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.

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
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. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others.
The fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2019 and 2018, 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.
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 and deferred outflows of resources and 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 and deferred outflows of resources, and liabilities and deferred inflows of resources, are 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.
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 - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. 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

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
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 to the financial statements.
Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations.
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 2019 and 2018.

Fiscal Year 2019

Governmental Activities

Percent

Fiscal

of Total

Year 2018

Percent of Total

Current and Other Assets Capital Assets, Net

$ 33,922,171 69,814,510
103,736,681
11,391,955

33% $ 26,006,533

67%

71,423,881

100%

97,430,414

100%

9,610,479

27% 73%
100%
100%

Current and Other Liabilities Long-Term Liabilities

5,636,706 99,360,237
104,996,943
12,769,111

5%

5,803,554

95% 106,599,404

100% 112,402,958

100%

7,102,234

5% 95%
100%
100%

Net Investment in Capital Assets Restricted Unrestricted (Deficit)

57,537,299 8,342,343
(68,517,060)

(2182)% (316)% 2598%

58,317,548 5,244,710
(76,026,557)

(468%) (42%) 610%

$ (2,637,418)

100% $ (12,464,299)

100%

Total assets and deferred outflows of resources increased by $8,087,743 which was primarily due to increase in cash and cash equivalents and increase in pension deferred outflows.

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Total liabilities and deferred inflows of resources decreased by $1,739,138 which was primarily due to decreases in debt OPEB liability and pension related liability. The combination of the increase in total assets and deferred outflows of resources and the decrease in total liabilities yielded an increase in net position of $9,826,881.
Table 2 shows the changes in net position for fiscal years ending June 30, 2019 and June 30, 2018.

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

Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions
Total Program Revenues
General Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Special Item
Extraordinary Item
Total Revenues
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt
Total Expenses
Increase in Net Position
Beginning Net Position
Adjustments
Ending Net Position

Fiscal Year 2019

Governmental Activities

Percent

Fiscal Year

of Total

2018

Percent of Total

$ 1,419,175 36,672,056 335,720
38,426,951

4% $ 95%
1%

1,060,974 36,822,456
77,320

100%

37,960,750

3% 97%
0%
100%

15,801,915 4,898,423
1,875,858 460,515 462,500
23,499,211
(105,498) 1,009,156
62,829,820
32,348,118
2,168,446 1,450,512 1,141,775
322,067 2,885,552
326,776 4,608,274 2,652,411
422,990 31,747
4,065,147 579,124
53,002,939
9,826,881
(12,464,299)
-
$ (2,637,418)

67% 21%
8% 2% 2%
100%
100% 100%
-

15,446,657 4,379,484
2,136,842 217,926 435,219
22,616,128
60,576,878

61%

34,216,161

4%

2,216,133

3%

1,609,715

2%

1,285,622

1%

356,755

5%

3,168,290

1%

330,683

8%

4,868,176

5%

2,636,570

1%

437,924

0%

41,211

8%

4,234,757

1%

638,074

100%

56,040,071

4,536,807

30,780,870

(47,781,976)

$ (12,464,299)

69% 19%
9% 1% 2%
100%
-
-
61%
3% 3% 2% 1% 6% 1% 9% 4% 1% 0%
8% 1%
100%

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Program revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $466,201 for governmental activities. This increase is largely due to increases in charges for services due to Bainbridge High School winning the state championship in football which caused increases in gate receipts and fundraising and increases in fundraising to help students who were affected by Hurricane Michael. In addition, increases are also due to increases in capital grants for funds received from Georgia Emergency Management Agency for damage from Hurricane Michael. The increase is offset by decreases in Federal funding from 2018 to 2019.
General revenues increased $883,083 during fiscal year 2019. This increase is largely due higher property and sales tax revenues.
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.

Total Cost of Services

Fiscal

Fiscal

Year 2019

Year 2018

Net Cost of Services

Fiscal

Fiscal

Year 2019

Year 2018

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

$ 32,348,118 $ 34,216,161 $ 5,099,230 $ 7,629,303

2,168,446 1,450,512 1,141,775
322,067 2,885,552
326,776 4,608,274 2,652,411
422,990 31,747

2,216,133 1,609,715 1,285,622
356,755 3,168,290
330,683 4,868,176 2,636,570
437,924 41,211

1,774,019 391,167 491,174 (502,077)
1,447,385 318,343
2,796,710 1,350,690
419,755 18,676

1,755,237 482,419 632,975 (472,702)
1,648,075 322,584
3,265,053 1,318,224
433,115 26,112

4,065,147 579,124

4,234,757 638,074

391,792 579,124

400,852 638,074

Total Expenses

$ 53,002,939 $ 56,040,071 $ 14,575,988 $ 18,079,321

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
Although program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2019 and 2018, 28% and 32%, respectively, of instruction and support activities were supplemented by taxes and other general revenues. It exemplifies the State's stance that the public is becoming an equal partner in bearing the cost of educating Georgia's children.
The School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $62,903,186 and expenditures and other financing uses of $54,850,546. The capital projects fund had an overall increase of $3,711,711 due to the transfer of funds from the general fund for future capital projects. The debt service fund had an overall increase of $2,901,422 primarily due to smaller principal payments and interest costs and higher sales taxes collected. The general fund had an overall increase of $1,439,506. The increase in the general fund for the year is due mostly to increases in property tax funding and insurance proceeds offset by decreases in federal and state funding and an increase in transfers to capital projects funds for future projects.
The amount of fund balance in the general fund of $16,718,407 continues to reflect that the Board was able to adequately meet current costs.
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 2019 and 2018, the School District amended its general fund budget as needed.
For the general fund, the final budgeted revenues and other financing sources of $57,898,507 increased from the original budgeted amount of $56,552,303 by $1,346,204. This difference was mainly due to increases in State and Federal funding and charges for services and other sources. The actual revenue was less than the final budgeted amount by $803,797. The majority of the variances between final budget and actual revenue are due to increase in property tax revenue offset by decreases in federal revenue.
The final budgeted expenditures and other financial uses of $59,704,134 was more than the original budgeted amount of $56,188,257 by $3,515,877. This difference was due mainly to increase in transfers to the capital outlay fund and other uses. The actual expenditures and other financing uses of $55,420,154 was $4,283,980 less than final budgeted. The majority of the variances between the final budgeted expenditures and actual are due to use of conservative estimates and reduced spending by the Board.

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019
At the fiscal years ended June 30, 2019 and June 30, 2018, the School District had $69,814,510 and $71,423,881, 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.

Governmental Activities

Fiscal

Fiscal

Year 2019

Year 2018

Land Construction in Progress Building and Improvements Equipment Land Improvements

$ 2,345,972 $ 2,345,972

300,468

-

64,644,089 67,020,763

1,617,387

1,192,518

906,594

864,628

Total

$ 69,814,510 $ 71,423,881

The overall capital assets decreased in fiscal year 2019 by $1,609,371 due primarily to depreciation expense offset by an increase in construction in progress and equipment.

At June 30, 2019, the School District had $16,358,605 in total debt outstanding with $923,763 due within one year. Table 5 summarizes bond debt outstanding at June 30, 2019 and 2018.

General Obligation Bonds Unamortized Bond Premiums
Total

Governmental Activities

Fiscal

Fiscal

Year 2019

Year 2018

$ 15,315,000 $ 16,130,000

1,043,605

1,122,368

$ 16,358,605 $ 17,252,368

The School District's bonds have assigned ratings of "AA+" by Standards and Poor's based on the School District's participation in the Georgia state intercept program. Standard and Poor's assigned an underlying rating of "A+" for the School District's Bonds.

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

The Decatur County Board of Education has faced severe financial challenges in recent years but has remained stable and financially sound. The financial challenges have included rising costs in employee benefits, the state formula allotment reductions, federal reductions, a decline in student enrollment (FTE), and a declining tax digest.

The School District's current millage rate is 15.807 for the 2019 tax year (Fiscal Year 2020). The net tax digest increased to $857,771,874 from $854,641,183 mainly due to increase in real property offset by a decline in values of motor vehicles as result of State changes in how motor vehicles are taxed.

Student enrollment is the major factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a "Full Time Equivalent (FTE)" count. As student enrollment and FTE decrease so does state funding. The student enrollment for fiscal year 2019 and the previous three years is as follows:

FY2016 FY2017 FY2018 FY2019

5,320 5,253 5,184 5,051

The student enrollment of fiscal year 2020 as of October 2019 is 4,744. The decrease this year is mainly due to a state charter school that opened in Decatur County this fall.

The Decatur County School District consists of 8 schools located on 7 sites in Decatur County, which had an estimated population of 26,575 in 2018, compared to 27,842 in 2010 which is a 5 percent decline.

The School Board's fifth Education Local Option Sales Tax (ELOST) began July 1, 2017. For fiscal year 2019, the average monthly tax collection was $392,724, an increase of 10.3 percent over the average for fiscal year 2018 of $355,917.

In the past, unemployment for Decatur County was relatively low. As of August, 2019, Decatur County had an unemployment rate of 4.0 percent, compared to 3.6 percent for Georgia as a whole. This is an improvement from the rate of 4.5 percent the prior year.

For 2020, our state funding remains low and the challenge is maintaining the educational programs of the system while receiving less funding from the state and federal governments, and, at the same time, not placing a larger burden on local taxpayers. The continued relaxation of class size requirements and other waivers by the Georgia Department of Education are providing the flexibility the system needs to offset the shortfall of state funding.

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 Tim Matthews, Chief Financial Officer at the Decatur County Board of Education, 100 S. West Street, Bainbridge, GA 39817. You may also email your questions to tmatthews@dcboe.com.

DECATUR COUNTY BOARD OF EDUCATION

DECATUR COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019
ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Other Inventories Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable Salaries and Benefits Payable Interest Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Net OPEB Asset Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

27,731,098.76

885,210.53 3,850,825.50 1,169,609.72
138,824.52 135,902.81
10,699.00 2,646,440.04 67,168,070.44

103,736,681.32

856,496.41 8,653,889.75 1,881,569.00
11,391,955.16

32,006.49 5,438,654.84
145,972.95 20,072.10
40,498,893.00 42,502,739.00
923,762.72 15,434,842.47
104,996,943.57

4,564,305.00 8,204,806.00
12,769,111.00

57,537,299.13
1,479,306.12 6,593,838.12
258,500.00 10,699.00
(68,517,060.46)

$

(2,637,418.09)

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

- 1 -

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

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

EXPENSES

CHARGES FOR SERVICES

$

32,348,117.53 $

2,168,446.33 1,450,512.12 1,141,775.03
322,066.55 2,885,551.70
326,775.91 4,608,274.00 2,652,411.40
422,990.32 31,746.89

4,065,147.31 579,124.42

$

53,002,939.51 $

1,332,211.44
-
86,963.97 -
1,419,175.41

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

- 2 -

EXHIBIT "B"

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$

25,916,676.08 $

394,427.79 1,059,345.05
650,601.38 824,143.11 1,438,166.46
8,432.95 1,553,063.97 1,224,501.54
3,235.55 13,070.60

3,586,391.60 -

$

36,672,056.08 $

- $
258,500.00 77,220.00 -
-
335,720.00

(5,099,230.01)
(1,774,018.54) (391,167.07) (491,173.65) 502,076.56
(1,447,385.24) (318,342.96)
(2,796,710.03) (1,350,689.86)
(419,754.77) (18,676.29)
(391,791.74) (579,124.42)
(14,575,988.02)

15,745,085.28 56,829.20
4,211,348.51 552,593.00 134,481.83
1,875,858.00 460,514.77 462,500.43
(105,497.97)
1,009,156.23
24,402,869.28
9,826,881.26
(12,464,299.35)

$

(2,637,418.09)

- 3 -

DECATUR COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2019

EXHIBIT "C"

ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Other Inventories

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 16,620,567.33 $
455,098.12 3,850,825.50 1,169,609.72
138,824.52 135,902.81

4,800,832.77 $
-

6,309,698.66 $ 27,731,098.76

430,112.41 -

885,210.53 3,850,825.50 1,169,609.72
138,824.52 135,902.81

Total Assets
LIABILITIES
Accounts Payable Salaries and Benefits Payable Retainages Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
FUND BALANCES
Nonspendable Restricted Assigned Unassigned
Total Fund Balances

$ 22,370,828.00 $

4,800,832.77 $

6,739,811.07 $ 33,911,471.84

$

32,006.49 $

5,438,654.84

-

5,470,661.33

- $ 20,072.10
20,072.10

- $ -
-

32,006.49 5,438,654.84
20,072.10
5,490,733.43

181,759.35

-

-

181,759.35

135,902.81 1,343,403.31
15,239,101.20
16,718,407.32

258,500.00 4,522,260.67
-
4,780,760.67

6,739,811.07
-
6,739,811.07

135,902.81 8,341,714.38 4,522,260.67 15,239,101.20
28,238,979.06

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 22,370,828.00 $ 4,800,832.77 $ 6,739,811.07 $ 33,911,471.84

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

- 4 -

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

EXHIBIT "D"

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

$ 28,238,979.06

$

2,345,972.39

300,467.65

97,412,344.59

7,488,291.36

3,739,275.14

(41,471,840.65)

69,814,510.48

$ (40,498,893.00) 10,699.00
(42,502,739.00)

(82,990,933.00)

856,496.41

$

4,089,584.75

(6,323,237.00)

(2,233,652.25)

181,759.35

$ (15,315,000.00) (145,972.95)
(1,043,605.19)

(16,504,578.14)

Net position of governmental activities (Exhibit "A")

$ (2,637,418.09)

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

- 5 -

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

EXHIBIT "E"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

15,778,289.07 $

134,481.83

30,010,237.99

8,576,708.74

1,419,175.41

284,479.42

462,500.43

56,665,872.89

- $ 552,593.00 258,500.00
71,636.68 -
882,729.68

- $ 4,211,348.51
104,398.67 -
4,315,747.18

15,778,289.07 4,898,423.34
30,268,737.99 8,576,708.74 1,419,175.41 460,514.77 462,500.43
61,864,349.75

32,181,483.19
2,236,694.87 1,563,629.22 1,026,644.99
337,694.43 2,974,755.62
346,413.64 4,511,135.54 2,531,002.77
447,634.32 31,746.89
3,897,517.63 -
-
52,086,353.11
4,579,519.78
428,837.06 -
(3,333,801.00)
(2,904,963.94)
(235,049.45)
1,439,506.39
15,278,900.93

-
1,025,138.82
-
1,025,138.82
(142,409.14)
609,999.17 3,333,801.00
-
3,943,800.17
(89,680.00)
3,711,711.03
1,069,049.64

-
-
815,000.00 599,325.00
1,414,325.00
2,901,422.18

32,181,483.19
2,236,694.87 1,563,629.22 1,026,644.99
337,694.43 2,974,755.62
346,413.64 4,511,135.54 2,531,002.77
447,634.32 31,746.89
3,897,517.63 1,025,138.82
815,000.00 599,325.00
54,525,816.93
7,338,532.82

-

1,038,836.23

-

3,333,801.00

-

(3,333,801.00)

-

1,038,836.23

2,901,422.18 3,838,388.89

(324,729.45) 8,052,639.60 20,186,339.46

Fund Balances - Ending

$

16,718,407.32 $

4,780,760.67 $

6,739,811.07 $

28,238,979.06

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

- 6 -

DECATUR COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense.
Capital outlay Depreciation expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities.
Amortization of deferred charge on refunding of bonds Bond principal retirements Amortization of bond premium
District pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities.
Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Accrued interest on issuance of bonds

$

8,052,639.60

$

1,260,912.94

(2,764,785.42)

(1,503,872.48) (105,497.97) 23,625.41

$

(64,641.24)

815,000.00

78,762.72

829,121.48

$

2,547,146.12

(22,360.00)

2,524,786.12

6,079.10

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

$

9,826,881.26

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

- 7 -

ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others
NET POSITION Held in Trust for Private Purposes

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

EXHIBIT "G"

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$

37,746.80 $ 171,374.61

$ 171,374.61

$

37,746.80

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

- 8 -

DECATUR COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019
ADDITIONS Investment Earnings Interest
DEDUCTIONS Scholarships Change in Net Position
Net Position - Beginning
Net Position - Ending

EXHIBIT "H"

PRIVATE PURPOSE TRUSTS

$

595.12

500.00 95.12
37,651.68

$

37,746.80

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

- 9 -

(This page left intentionally blank)

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

(; ,%,7 ,

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY

REPORTING ENTITY

7 H 'HFDWXU RX W %RDUG RI (GXFDWLR 6F RRO 'LVWULFW DV HVWDEOLV HG X GHU W H OD V RI W H 6WDWH RI *HRUJLD D G RSHUDWHV X GHU W H JXLGD FH RI D ERDUG HOHFWHG E W H YRWHUV D G D 6XSHUL WH GH W DSSRL WHG E W H %RDUG 7 H 6F RRO 'LVWULFW LV RUJD L HG DV D VHSDUDWH OHJDO H WLW D G DV W H SR HU WR OHY WD HV D G LVVXH ER GV ,WV EXGJHW LV RW VXEMHFW WR DSSURYDO E D RW HU H WLW $FFRUGL JO W H 6F RRO 'LVWULFW LV D SULPDU JRYHU PH W D G FR VLVWV RI DOO W H RUJD L DWLR V W DW FRPSRVH LWV OHJDO H WLW

Blended Component Unit

7 H 'HFDWXU RX W 6F RRO 'LVWULFW %XLOGL J $XW RULW W H $XW RULW DV FUHDWHG E RXVH %LOO

GXUL J W H

VHVVLR RI W H *HRUJLD *H HUDO $VVHPEO 7 H SXUSRVH RI W H $XW RULW LV WR SURYLGH

DFTXLUH FR VWUXFW HTXLS PDL WDL D G RSHUDWH SXEOLF VHUYLFH IDFLOLWLHV WR DFTXLUH W H HFHVVDU

SURSHUW W HUHIRUH ERW UHDO D G SHUVR DO D G WR OHDVH RU VHOO D RU DOO RI VXF IDFLOLWLHV L FOXGL J

UHDO D G SHUVR DO SURSHUW IRU W H EH HILW RI W H 6F RRO 'LVWULFW 7 H $XW RULW FR VLVWV RI W UHH

PHPEHUV DSSRL WHG E W H JRYHU L J DXW RULW RI W H 6F RRO 'LVWULFW 7 H $XW RULW LV D FRPSR H W

X LW RI W H 6F RRO 'LVWULFW D G DV VXF W H $XW RULW V IL D FLDO DFWLYLW DV EHH EOH GHG LW W H

6F RRO 'LVWULFW V EDVLF IL D FLDO VWDWHPH WV

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

7 H DFFRPSD L J IL D FLDO VWDWHPH WV RI W H 6F RRO 'LVWULFW DYH EHH SUHSDUHG L FR IRUPLW LW JH HUDOO DFFHSWHG DFFRX WL J SUL FLSOHV *$$3 DV SUHVFULEHG E W H *RYHU PH WDO $FFRX WL J 6WD GDUGV %RDUG *$6% *$6% LV W H DFFHSWHG VWD GDUG VHWWL J ERG IRU JRYHU PH WDO DFFRX WL J D G IL D FLDO UHSRUWL J SUL FLSOHV 7 H PRVW VLJ LILFD W RI W H 6F RRO 'LVWULFW V DFFRX WL J SROLFLHV DUH GHVFULEHG EHOR

BASIS OF PRESENTATION

7 H 6F RRO 'LVWULFW V EDVLF IL D FLDO VWDWHPH WV DUH FROOHFWLYHO FRPSULVHG RI W H JRYHU PH W LGH IL D FLDO VWDWHPH WV IX G IL D FLDO VWDWHPH WV D G RWHV WR W H EDVLF IL D FLDO VWDWHPH WV 7 H JRYHU PH W LGH VWDWHPH WV IRFXV R W H 6F RRO 'LVWULFW DV D ROH LOH W H IX G IL D FLDO VWDWHPH WV IRFXV R PDMRU IX GV (DF SUHVH WDWLR SURYLGHV YDOXDEOH L IRUPDWLR W DW FD EH D DO HG D G FRPSDUHG EHW HH HDUV D G EHW HH JRYHU PH WV WR H D FH W H L IRUPDWLR V XVHIXO HVV

GOVERNMENT-WIDE STATEMENTS:

7 H 6WDWHPH W RI 1HW 3RVLWLR D G W H 6WDWHPH W RI $FWLYLWLHV GLVSOD L IRUPDWLR DERXW W H IL D FLDO DFWLYLWLHV RI W H RYHUDOO 6F RRO 'LVWULFW D G LWV FRPSR H W X LWV H FHSW IRU ILGXFLDU DFWLYLWLHV (OLPL DWLR V DYH EHH PDGH WR PL LPL H W H GRXEOH FRX WL J RI L WHU DO DFWLYLWLHV *RYHU PH WDO DFWLYLWLHV JH HUDOO DUH IL D FHG W URXJ WD HV L WHUJRYHU PH WDO UHYH XHV D G RW HU R H F D JH WUD VDFWLR V

7 H 6WDWHPH W RI 1HW 3RVLWLR SUHVH WV W H 6F RRO 'LVWULFW V R ILGXFLDU DVVHWV D G OLDELOLWLHV LW W H GLIIHUH FH UHSRUWHG DV HW SRVLWLR 1HW SRVLWLR LV UHSRUWHG L W UHH FDWHJRULHV DV IROOR V

FR VLVWV RI W H 6F RRO 'LVWULFW V WRWDO L YHVWPH W L FDSLWDO DVVHWV HW RI DFFXPXODWHG GHSUHFLDWLR D G UHGXFHG E RXWVWD GL J GHEW REOLJDWLR V UHODWHG WR W RVH FDSLWDO DVVHWV 7R W H H WH W GHEW DV EHH L FXUUHG EXW RW HW H SH GHG IRU FDSLWDO DVVHWV VXF DPRX WV DUH RW L FOXGHG DV D FRPSR H W RI HW L YHVWPH W L FDSLWDO DVVHWV

FR VLVWV RI UHVRXUFHV IRU LF W H 6F RRO 'LVWULFW LV OHJDOO RU FR WUDFWXDOO REOLJDWHG WR VSH G L DFFRUGD FH LW UHVWULFWLR V LPSRVHG E H WHU DO W LUG SDUWLHV RU LPSRVHG E OD W URXJ FR VWLWXWLR DO SURYLVLR V RU H DEOL J OHJLVODWLR

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

(; ,%,7 ,

FR VLVWV RI UHVRXUFHV RW PHHWL J W H GHIL LWLR RI W H W R SUHFHGL J FDWHJRULHV 8 UHVWULFWHG HW SRVLWLR RIWH DV FR VWUDL WV R UHVRXUFHV LPSRVHG E PD DJHPH W LF FD EH UHPRYHG RU PRGLILHG
7 H 6WDWHPH W RI $FWLYLWLHV SUHVH WV D FRPSDULVR EHW HH GLUHFW H SH VHV D G SURJUDP UHYH XHV IRU HDF IX FWLR RI W H 6F RRO 'LVWULFW V JRYHU PH WDO DFWLYLWLHV
'LUHFW H SH VHV DUH W RVH W DW DUH VSHFLILFDOO DVVRFLDWHG LW D SURJUDP RU IX FWLR D G W HUHIRUH DUH FOHDUO LGH WLILDEOH WR D SDUWLFXODU IX FWLR , GLUHFW H SH VHV H SH VHV RI W H 6F RRO 'LVWULFW UHODWHG WR W H DGPL LVWUDWLR D G VXSSRUW RI W H 6F RRO 'LVWULFW V SURJUDPV VXF DV RIILFH D G PDL WH D FH SHUVR HO D G DFFRX WL J DUH RW DOORFDWHG WR SURJUDPV
3URJUDP UHYH XHV L FOXGH D F DUJHV SDLG E W H UHFLSLH WV RI JRRGV RU VHUYLFHV RIIHUHG E W H SURJUDPV D G E JUD WV D G FR WULEXWLR V W DW DUH UHVWULFWHG WR PHHWL J W H RSHUDWLR DO RU FDSLWDO UHTXLUHPH WV RI D SDUWLFXODU SURJUDP 5HYH XHV W DW DUH RW FODVVLILHG DV SURJUDP UHYH XHV L FOXGL J DOO WD HV DUH SUHVH WHG DV JH HUDO UHYH XHV
FUND FINANCIAL STATEMENTS
7 H IX G IL D FLDO VWDWHPH WV SURYLGH L IRUPDWLR DERXW W H 6F RRO 'LVWULFW V IX GV L FOXGL J ILGXFLDU IX GV (OLPL DWLR V DYH EHH PDGH WR PL LPL H W H GRXEOH FRX WL J RI L WHU DO DFWLYLWLHV 6HSDUDWH IL D FLDO VWDWHPH WV DUH SUHVH WHG IRU JRYHU PH WDO D G ILGXFLDU IX GV 7 H HPS DVLV RI IX G IL D FLDO VWDWHPH WV LV R PDMRU JRYHU PH WDO IX GV HDF GLVSOD HG L D VHSDUDWH FROXP
7 H 6F RRO 'LVWULFW UHSRUWV W H IROOR L J PDMRU JRYHU PH WDO IX GV
7 H JH HUDO IX G LV W H 6F RRO 'LVWULFW V SULPDU RSHUDWL J IX G ,W DFFRX WV IRU D G UHSRUWV DOO IL D FLDO UHVRXUFHV RW DFFRX WHG IRU D G UHSRUWHG L D RW HU IX G
7 H FDSLWDO SURMHFWV IX G DFFRX WV IRU D G UHSRUWV IL D FLDO UHVRXUFHV L FOXGL J (GXFDWLR 6SHFLDO 3XUSRVH /RFDO 2SWLR 6DOHV 7D (63/267 D G *HRUJLD (PHUJH F 0D DJHPH W $JH F IX GV W DW DUH UHVWULFWHG FRPPLWWHG RU DVVLJ HG IRU FDSLWDO RXWOD H SH GLWXUHV L FOXGL J W H DFTXLVLWLR RU FR VWUXFWLR RI FDSLWDO IDFLOLWLHV D G RW HU FDSLWDO DVVHWV
7 H GHEW VHUYLFH IX G DFFRX WV IRU D G UHSRUWV IL D FLDO UHVRXUFHV W DW DUH UHVWULFWHG FRPPLWWHG RU DVVLJ HG L FOXGL J WD HV VDOHV OHJDOO UHVWULFWHG IRU W H SD PH W RI JH HUDO OR J WHUP SUL FLSDO D G L WHUHVW
7 H 6F RRO 'LVWULFW UHSRUWV W H IROOR L J ILGXFLDU IX G W SHV
3ULYDWH SXUSRVH WUXVW IX GV DUH XVHG WR UHSRUW DOO WUXVW DUUD JHPH WV RW HU W D W RVH SURSHUO UHSRUWHG HOVH HUH L LF SUL FLSDO D G L FRPH EH HILW L GLYLGXDOV SULYDWH RUJD L DWLR V RU RW HU JRYHU PH WV
$JH F IX GV DUH XVHG WR UHSRUW UHVRXUFHV HOG E W H 6F RRO 'LVWULFW L D SXUHO FXVWRGLDO FDSDFLW DVVHWV HTXDO OLDELOLWLHV D G GR RW L YROYH PHDVXUHPH W RI UHVXOWV RI RSHUDWLR V
BASIS OF ACCOUNTING
7 H EDVLV RI DFFRX WL J GHWHUPL HV H WUD VDFWLR V DUH UHSRUWHG R W H IL D FLDO VWDWHPH WV 7 H JRYHU PH W LGH D G ILGXFLDU IX G IL D FLDO VWDWHPH WV DUH UHSRUWHG XVL J W H HFR RPLF UHVRXUFHV PHDVXUHPH W IRFXV D G W H DFFUXDO EDVLV RI DFFRX WL J 5HYH XHV DUH UHFRUGHG H HDU HG D G H SH VHV DUH UHFRUGHG DW W H WLPH OLDELOLWLHV DUH L FXUUHG UHJDUGOHVV RI H W H UHODWHG FDV IOR V WDNH SODFH 1R H F D JH WUD VDFWLR V L LF W H 6F RRO 'LVWULFW JLYHV RU UHFHLYHV YDOXH LW RXW GLUHFWO UHFHLYL J RU JLYL J HTXDO YDOXH L H F D JH L FOXGH SURSHUW WD HV VDOHV WD HV D G JUD WV 2 D DFFUXDO EDVLV UHYH XH IURP SURSHUW WD HV LV UHFRJ L HG L W H ILVFDO HDU IRU LF W H WD HV DUH OHYLHG 5HYH XH IURP VDOHV WD HV LV UHFRJ L HG L W H ILVFDO HDU L LF W H X GHUO L J WUD VDFWLR VDOH WDNHV SODFH 5HYH XH IURP JUD WV LV UHFRJ L HG L W H ILVFDO HDU L LF DOO HOLJLELOLW UHTXLUHPH WV DYH EHH VDWLVILHG

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

(; ,%,7 ,

7 H 6F RRO 'LVWULFW XVHV IX GV WR UHSRUW R LWV IL D FLDO SRVLWLR D G W H UHVXOWV RI LWV RSHUDWLR V )X G DFFRX WL J LV GHVLJ HG WR GHPR VWUDWH OHJDO FRPSOLD FH D G WR DLG IL D FLDO PD DJHPH W E VHJUHJDWL J WUD VDFWLR V UHODWHG WR FHUWDL JRYHU PH WDO IX FWLR V RU DFWLYLWLHV $ IX G LV D VHSDUDWH DFFRX WL J H WLW LW D VHOI EDOD FL J VHW RI DFFRX WV

*RYHU PH WDO IX GV DUH UHSRUWHG XVL J W H FXUUH W IL D FLDO UHVRXUFHV PHDVXUHPH W IRFXV D G W H

PRGLILHG DFFUXDO EDVLV RI DFFRX WL J 8 GHU W LV PHW RG UHYH XHV DUH UHFRJ L HG H PHDVXUDEOH

D G DYDLODEOH 7 H 6F RRO 'LVWULFW FR VLGHUV DOO UHYH XHV UHSRUWHG L W H JRYHU PH WDO IX GV WR EH

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NEW ACCOUNTING PRONOUNCEMENTS

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

(; ,%,7 ,

INVENTORIES

Consumable Supply

2 W H EDVLF IL D FLDO VWDWHPH WV FR VXPDEOH VXSSOLHV DUH UHSRUWHG DW FRVW ILUVW L ILUVW RXW 7 H 6F RRO 'LVWULFW XVHV W H FR VXPSWLR PHW RG WR DFFRX W IRU W H FR VXPDEOH VXSSOLHV L YH WRU
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H UHFHLYHG D G H SH VHV H SH GLWXUHV DUH UHFRUGHG DV W H L YH WRU LWHPV DUH XVHG 3XUF DVHG IRRGV DUH UHFRUGHG DV D DVVHW H SXUF DVHG D G H SH VHV H SH GLWXUHV DUH UHFRUGHG DV W H L YH WRU LWHPV DUH XVHG

CAPITAL ASSETS

2 W H JRYHU PH W LGH IL D FLDO VWDWHPH WV FDSLWDO DVVHWV DUH UHFRUGHG DW FRVW HUH LVWRULFDO UHFRUGV DUH DYDLODEOH D G DW HVWLPDWHG LVWRULFDO FRVW EDVHG R DSSUDLVDOV RU GHIODWHG FXUUH W UHSODFHPH W FRVW HUH R LVWRULFDO UHFRUGV H LVW 'R DWHG FDSLWDO DVVHWV DUH UHFRUGHG DW W H DFTXLVLWLR YDOXH R W H GDWH GR DWHG 7 H FRVW RI RUPDO PDL WH D FH D G UHSDLUV W DW GR RW DGG WR W H YDOXH RI DVVHWV RU PDWHULDOO H WH G W H XVHIXO OLYHV RI W H DVVHWV LV RW FDSLWDOL HG 7 H 6F RRO 'LVWULFW GRHV RW FDSLWDOL H ERRN FROOHFWLR V RU RUNV RI DUW

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

(; ,%,7 ,

LONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS
, W H 6F RRO 'LVWULFW V JRYHU PH W LGH IL D FLDO VWDWHPH WV RXWVWD GL J GHEW LV UHSRUWHG DV OLDELOLWLHV %R G SUHPLXPV D G GLVFRX WV D G W H GLIIHUH FH EHW HH W H UHDFTXLVLWLR SULFH D G W H
HW FDUU L J YDOXH RI UHIX GHG GHEW DUH GHIHUUHG D G DPRUWL HG RYHU W H OLIH RI W H ER GV XVL J W H VWUDLJ W OL H PHW RG 7R FR IRUP WR JH HUDOO DFFHSWHG DFFRX WL J SUL FLSOHV ER G SUHPLXPV D G GLVFRX WV V RXOG EH DPRUWL HG XVL J W H HIIHFWLYH L WHUHVW PHW RG 7 H HIIHFW RI W LV GHYLDWLR LV GHHPHG WR EH LPPDWHULDO WR W H IDLU SUHVH WDWLR RI W H EDVLF IL D FLDO VWDWHPH WV %R G LVVXD FH FRVWV DUH UHFRJ L HG DV D RXWIOR RI UHVRXUFHV L W H ILVFDO HDU L LF W H ER GV DUH LVVXHG
, W H JRYHU PH WDO IX G IL D FLDO VWDWHPH WV W H 6F RRO 'LVWULFW UHFRJ L HV W H SURFHHGV RI GHEW D G SUHPLXPV DV RW HU IL D FL J VRXUFHV RI W H FXUUH W SHULRG %R G LVVXD FH FRVWV DUH UHSRUWHG DV GHEW VHUYLFH H SH GLWXUHV
PENSIONS
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LW W H EH HILW WHUPV , YHVWPH WV DUH UHSRUWHG DW IDLU YDOXH
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
)RU SXUSRVHV RI PHDVXUL J W H HW 23(% OLDELOLW GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI UHVRXUFHV UHODWHG WR 23(% D G 23(% H SH VH L IRUPDWLR DERXW W H ILGXFLDU HW SRVLWLR RI W H *HRUJLD 6F RRO (PSOR HHV 3RVWHPSOR PH W %H HILW )X G 6F RRO 23(% )X G D G DGGLWLR V WR GHGXFWLR V IURP 6F RRO 23(% )X G ILGXFLDU HW SRVLWLR DYH EHH GHWHUPL HG R W H VDPH EDVLV DV W H DUH UHSRUWHG E 6F RRO 23(% )X G )RU W LV SXUSRVH EH HILW SD PH WV DUH UHFRJ L HG H GXH D G SD DEOH L DFFRUGD FH LW W H EH HILW WHUPV , YHVWPH WV DUH UHSRUWHG DW IDLU YDOXH
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (SEAD - OPEB)
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FUND BALANCES
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7 H 6F RRO 'LVWULFW V IX G EDOD FHV DUH FODVVLILHG DV IROOR V
FR VLVWV RI UHVRXUFHV W DW FD RW EH VSH W HLW HU EHFDXVH W H DUH L D R VSH GDEOH IRUP RU EHFDXVH W H DUH OHJDOO RU FR WUDFWXDOO UHTXLUHG WR EH PDL WDL HG L WDFW
FR VLVWV RI UHVRXUFHV W DW FD EH XVHG R O IRU VSHFLILF SXUSRVHV SXUVXD W FR VWUDL WV HLW HU H WHU DOO LPSRVHG E FUHGLWRUV JUD WRUV FR WULEXWRUV RU OD V D G UHJXODWLR V RI RW HU JRYHU PH WV RU LPSRVHG E OD W URXJ FR VWLWXWLR DO SURYLVLR V RU H DEOL J OHJLVODWLR
FR VLVWV RI UHVRXUFHV W DW FD EH XVHG R O IRU VSHFLILF SXUSRVHV SXUVXD W WR FR VWUDL WV LPSRVHG E IRUPDO DFWLR RI W H %RDUG 7 H %RDUG LV W H 6F RRO 'LVWULFW V LJ HVW OHYHO RI GHFLVLR

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

(; ,%,7 ,

PDNL J DXW RULW D G W H IRUPDO DFWLR W DW LV UHTXLUHG WR EH WDNH WR HVWDEOLV PRGLI RU UHVFL G D IX G EDOD FH FRPPLWPH W LV D UHVROXWLR DSSURYHG E W H %RDUG RPPLWWHG IX G EDOD FH DOVR V RXOG L FRUSRUDWH FR WUDFWXDO REOLJDWLR V WR W H H WH W W DW H LVWL J UHVRXUFHV L W H IX G DYH EHH VSHFLILFDOO FRPPLWWHG IRU XVH L VDWLVI L J W RVH FR WUDFWXDO UHTXLUHPH WV

FR VLVWV RI UHVRXUFHV FR VWUDL HG E W H 6F RRO 'LVWULFW V L WH W WR EH XVHG IRU VSHFLILF SXUSRVHV EXW DUH HLW HU UHVWULFWHG RU FRPPLWWHG 7 H L WH W V RXOG EH H SUHVVHG E W H %RDUG RU
W H EXGJHW RU IL D FH FRPPLWWHH RU W H 6XSHUL WH GH W RU GHVLJ HH WR DVVLJ DPRX WV WR EH XVHG IRU VSHFLILF SXUSRVHV

FR VLVWV RI UHVRXUFHV LW L W H JH HUDO IX G RW PHHWL J W H GHIL LWLR RI D DIRUHPH WLR HG FDWHJRU 7 H JH HUDO IX G V RXOG EH W H R O IX G W DW UHSRUWV D SRVLWLYH X DVVLJ HG IX G EDOD FH DPRX W , RW HU JRYHU PH WDO IX GV LW PD EH HFHVVDU WR UHSRUW D HJDWLYH X DVVLJ HG IX G EDOD FH

USE OF ESTIMATES

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PROPERTY TAXES

7 H 'HFDWXU RX W %RDUG RI RPPLVVLR HUV DGRSWHG W H SURSHUW WD OHY IRU W H

WD GLJHVW

HDU FDOH GDU HDU R $XJXVW

OHY GDWH EDVHG R SURSHUW YDOXHV DV RI -D XDU

7D HV HUH GXH R 'HFHPEHU

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LW L GD V DIWHU HDU H G R W H

WD GLJHVW DUH UHSRUWHG DV UHYH XH L W H JRYHU PH WDO

IX GV IRU ILVFDO HDU

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W H EDOD FH RI WD HV FROOHFWHG WR W H 6F RRO 'LVWULFW 3URSHUW WD UHYH XHV DW W H IX G UHSRUWL J OHYHO

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D PLOO HTXDOV SHU W RXVD G GROODUV RI DVVHVVHG YDOXH

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PLOOV

$GGLWLR DOO 7LWOH $G 9DORUHP 7D UHYH XHV DW W H IX G UHSRUWL J OHYHO DPRX WHG WR GXUL J ILVFDO HDU H GHG -X H

SALES TAXES

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NOTE 3: BUDGETARY DATA

7 H EXGJHW LV D FRPSOHWH IL D FLDO SOD IRU W H 6F RRO 'LVWULFW V ILVFDO HDU D G LV EDVHG XSR FDUHIXO HVWLPDWHV RI H SH GLWXUHV WRJHW HU LW SUREDEOH IX GL J VRXUFHV 7 H EXGJHW LV OHJDOO DGRSWHG HDF HDU IRU W H JH HUDO GHEW VHUYLFH D G FDSLWDO SURMHFWV IX GV 7 HUH LV R VWDWXWRU SUR LELWLR UHJDUGL J RYHU H SH GLWXUH RI W H EXGJHW DW D OHYHO 7 H EXGJHW IRU DOO JRYHU PH WDO IX GV LV SUHSDUHG D G DGRSWHG E IX G IX FWLR D G REMHFW 7 H OHJDO OHYHO RI EXGJHWDU FR WURO DV HVWDEOLV HG E W H %RDUG DW W H DJJUHJDWH IX G OHYHO 7 H EXGJHW IRU W H JH HUDO IX G DV SUHSDUHG L DFFRUGD FH LW DFFRX WL J SUL FLSOHV JH HUDOO DFFHSWHG L W H 8 LWHG 6WDWHV RI $PHULFD

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

(; ,%,7 ,

7 H EXGJHWDU SURFHVV EHJL V LW W H 6F RRO 'LVWULFW V DGPL LVWUDWLR SUHVH WL J D L LWLDO EXGJHW IRU

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D G D WH WDWLYH EXGJHW LV DSSURYHG $IWHU DSSURYDO RI W LV WH WDWLYH EXGJHW E W H %RDUG VXF EXGJHW

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'LVWULFW V HEVLWH $W W H H W UHJXODUO VF HGXOHG PHHWL J RI W H %RDUG DIWHU DGYHUWLVHPH W W H %RDUG

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7 H DSSURYHG EXGJHW LV W H VXEPLWWHG L DFFRUGD FH LW SURYLVLR V RI 2 * $

F WR W H

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NOTE 4: DEPOSITS AND CASH EQUIVALENTS

COLLATERALIZATION OF DEPOSITS

2 *$

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RI VHFXULWLHV SOHGJHG V DOO EH HTXDO WR RW OHVV W D

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2 *$

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%R GV ELOOV RWHV FHUWLILFDWHV RI L GHEWHG HVV RU RW HU REOLJDWLR V RI W H FRX WLHV RU PX LFLSDOLWLHV RI W H 6WDWH RI *HRUJLD

%R GV RI D SXEOLF DXW RULW FUHDWHG E W H OD V RI W H 6WDWH RI *HRUJLD SURYLGL J W DW W H VWDWXWH W DW FUHDWHG W H DXW RULW DXW RUL HG W H XVH RI W H ER GV IRU W LV SXUSRVH

, GXVWULDO UHYH XH ER GV D G ER GV RI GHYHORSPH W DXW RULWLHV FUHDWHG E W H OD V RI W H 6WDWH RI *HRUJLD D G

%R GV ELOOV RWHV FHUWLILFDWHV RI L GHEWHG HVV RU RW HU REOLJDWLR V RI D VXEVLGLDU FRUSRUDWLR RI W H 8 LWHG 6WDWHV JRYHU PH W LF DUH IXOO JXDUD WHHG E W H 8 LWHG 6WDWHV JRYHU PH W ERW DV WR SUL FLSDO D G L WHUHVW RU GHEW REOLJDWLR V LVVXHG E RU VHFXULWLHV JXDUD WHHG E W H )HGHUDO /D G %D N W H )HGHUDO RPH /RD %D N W H )HGHUDO , WHUPHGLDWH UHGLW %D N W H H WUDO %D N IRU RRSHUDWLYHV W H )DUP UHGLW %D NV W H )HGHUDO RPH /RD 0RUWJDJH $VVRFLDWLR D G W H )HGHUDO 1DWLR DO 0RUWJDJH $VVRFLDWLR

CATEGORIZATION OF DEPOSITS

XVWRGLDO FUHGLW ULVN LV W H ULVN W DW L W H HYH W RI D ED N IDLOXUH W H 6F RRO 'LVWULFW V GHSRVLWV PD

RW EH UHWXU HG WR LW 7 H 6F RRO 'LVWULFW GRHV RW DYH D GHSRVLW SROLF IRU FXVWRGLDO FUHGLW ULVN $W

-X H

W H 6F RRO 'LVWULFW DG GHSRVLWV LW D FDUU L J DPRX W RI

D G D ED N

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

(; ,%,7 ,

EDOD FH RI

7 H ED N EDOD FHV L VXUHG E )HGHUDO GHSRVLWRU L VXUD FH HUH

D G W H ED N EDOD FHV FROODWHUDOL HG LW VHFXULWLHV HOG E W H SOHGJL J IL D FLDO

L VWLWXWLR V WUXVW GHSDUWPH W RU DJH W L W H 6F RRO 'LVWULFW V DPH HUH

5HFR FLOLDWLR RI FDV D G FDV HTXLYDOH WV WR FDUU L J YDOXH RI GHSRVLWV

DV D G FDV HTXLYDOH WV 6WDWHPH W RI 1HW 3RVLWLR 6WDWHPH W RI )LGXFLDU 1HW 3RVLWLR

7RWDO FDV D G FDV HTXLYDOH WV

/HVV , YHVWPH W SRROV UHSRUWHG DV FDV D G FDV HTXLYDOH WV
*HRUJLD )X G

7RWDO FDUU L J YDOXH RI GHSRVLWV -X H

CATEGORIZATION OF CASH EQUIVALENTS

7 H 6F RRO 'LVWULFW UHSRUWHG FDV HTXLYDOH WV RI

L *HRUJLD )X G D ORFDO

JRYHU PH W L YHVWPH W SRRO LF LV L FOXGHG L W H FDV EDOD FHV DERYH *HRUJLD )X G LV RW

UHJLVWHUHG LW W H 6( DV D L YHVWPH W FRPSD D G GRHV RW RSHUDWH L D PD HU FR VLVWH W LW

W H 6( V 5XOH D RI W H , YHVWPH W RPSD $FW RI

7 H L YHVWPH W LV YDOXHG DW W H SRRO V

V DUH SULFH

SHU V DUH LF DSSUR LPDWHV IDLU YDOXH 7 H SRRO LV D $$$I UDWHG L YHVWPH W SRRO

E 6WD GDUG D G 3RRU V 7 H HLJ WHG DYHUDJH PDWXULW RI *HRUJLD )X G PD RW H FHHG GD V

7 H HLJ WHG DYHUDJH PDWXULW IRU *HRUJLD )X G R -X H

DV GD V

*HRUJLD )X G DGPL LVWHUHG E W H 6WDWH RI *HRUJLD 2IILFH RI W H 6WDWH 7UHDVXUHU LV RW UHTXLUHG WR EH FDWHJRUL HG VL FH W H 6F RRO 'LVWULFW GLG RW R D VSHFLILF LGH WLILDEOH VHFXULWLHV L W H SRRO 7 H L YHVWPH W SROLF RI W H 6WDWH RI *HRUJLD 2IILFH RI W H 6WDWH 7UHDVXUHU IRU W H *HRUJLD )X G GRHV
RW SURYLGH IRU L YHVWPH W L GHULYDWLYHV RU VLPLODU L YHVWPH WV $GGLWLR DO L IRUPDWLR R W H *HRUJLD )X G LV GLVFORVHG L W H 6WDWH RI *HRUJLD RPSUH H VLYH $ XDO )L D FLDO 5HSRUW 7 LV DXGLW FD EH REWDL HG IURP W H *HRUJLD 'HSDUWPH W RI $XGLWV D G $FFRX WV DW DXGLWV JD JRY 6*' $)5 WPO

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

(; ,%,7 ,

NOTE 5: CAPITAL ASSETS

7 H IROOR L J LV D VXPPDU RI F D JHV L W H FDSLWDO DVVHWV IRU JRYHU PH WDO DFWLYLWLHV GXUL J W H ILVFDO HDU

%DOD FHV -XO

, FUHDVHV

'HFUHDVHV

%DOD FHV -X H

*RYHU PH WDO $FWLYLWLHV DSLWDO $VVHWV 1RW %HL J 'HSUHFLDWHG /D G R VWUXFWLR L 3URJUHVV

7RWDO DSLWDO $VVHWV 1RW %HL J 'HSUHFLDWHG

DSLWDO $VVHWV %HL J 'HSUHFLDWHG %XLOGL JV D G ,PSURYHPH WV (TXLSPH W /D G ,PSURYHPH WV
/HVV $FFXPXODWHG 'HSUHFLDWLR IRU %XLOGL JV D G ,PSURYHPH WV (TXLSPH W /D G ,PSURYHPH WV

7RWDO DSLWDO $VVHWV %HL J 'HSUHFLDWHG 1HW

*RYHU PH WDO $FWLYLWLHV DSLWDO $VVHWV 1HW

XUUH W HDU GHSUHFLDWLR H SH VH E IX FWLR LV DV IROOR V
, VWUXFWLR 6XSSRUW 6HUYLFHV
3XSLO 6HUYLFHV (GXFDWLR DO 0HGLD 6HUYLFHV 6F RRO $GPL LVWUDWLR 0DL WH D FH D G 2SHUDWLR RI 3OD W 6WXGH W 7UD VSRUWDWLR 6HUYLFHV )RRG 6HUYLFHV

NOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS
, WHUIX G WUD VIHUV IRU W H HDU H GHG -X H
7UD VIHUV WR

FR VLVWHG RI W H IROOR L J
7UD VIHUV )URP *H HUDO )X G

DSLWDO 3URMHFWV )X G
7UD VIHUV DUH XVHG WR PRYH SURSHUW WD UHYH XHV FROOHFWHG E W H JH HUDO IX G WR W H FDSLWDO SURMHFWV IX G DV VXSSOHPH WDO IX GL J VRXUFH IRU FDSLWDO FR VWUXFWLR SURMHFWV

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

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NOTE 7: LONG-TERM LIABILITIES
7 H F D JHV L OR J WHUP OLDELOLWLHV GXUL J W H ILVFDO HDU IRU JRYHU PH WDO DFWLYLWLHV HUH DV IROOR V

%DOD FH -XO

Additions

*RYHU PH WDO $FWLYLWLHV

%DOD FH

'HGXFWLR V

-X H

'XH :LW L 2 H HDU

*H HUDO 2EOLJDWLR %R GV 8 DPRUWL HG %R G 3UHPLXPV

7 H 6F RRO 'LVWULFW DG R X XVHG OL H RI FUHGLW RU RXWVWD GL J RWHV IURP GLUHFW ERUUR L JV D G GLUHFW

SODFHPH WV UHODWHG WR JRYHU PH WDO DFWLYLWLHV DV RI -X H

, W H HYH W W H H WLW LV X DEOH

WR PDNH W H SUL FLSOH D G L WHUHVW SD PH WV XVL J SURFHHGV RI W H (GXFDWLR 6SHFLDO 3XUSRVH /RFDO

2SWLR 6DOHV 7D (63/267 W H GHEW LOO EH VDWLVILHG IURP W H JH HUDO IX G RU IURP D GLUHFW D XDO

DG YDORUHP WD OHYLHG XSR DOO WD DEOH SURSHUW LW L W H 6F RRO 'LVWULFW

GENERAL OBLIGATION DEBT OUTSTANDING

7 H 6F RRO 'LVWULFW V ER GHG GHEW FR VLVWV RI JH HUDO REOLJDWLR ER GV W DW DUH JH HUDOO R FDOODEOH LW L WHUHVW SD DEOH VHPLD XDOO %R G SURFHHGV SULPDULO SD IRU DFTXLUL J RU FR VWUXFWL J FDSLWDO
IDFLOLWLHV %R GV DYH DOVR EHH LVVXHG WR DGYD FH UHIX G SUHYLRXVO LVVXHG ER GV 7 H 6F RRO 'LVWULFW UHSD V JH HUDO REOLJDWLR ER GV IURP YRWHU DSSURYHG SURSHUW WD HV *H HUDO REOLJDWLR ER GV DUH GLUHFW REOLJDWLR V D G SOHGJH W H IXOO IDLW D G FUHGLW RI W H 6F RRO 'LVWULFW

7 H YRWHUV RI 'HFDWXU RX W DYH DXW RUL HG

L JH HUDO REOLJDWLR ER GV W DW HUH

RW LVVXHG DV RI -X H

7 H SULPDU SXUSRVH RI W H ER GV LV WR SD IRU DFTXLUL J RU

FR VWUXFWL J FDSLWDO IDFLOLWLHV

*H HUDO REOLJDWLR ER GV FXUUH WO RXWVWD GL J DUH DV IROOR V

'HVFULSWLR

, WHUHVW 5DWHV

,VVXH 'DWH

0DWXULW 'DWH

$PRX W ,VVXHG

$PRX W 2XWVWD GL J

*H HUDO *RYHU PH W 5HIX GL J 6HULHV

7 H IROOR L J VF HGXOH GHWDLOV GHEW VHUYLFH UHTXLUHPH WV WR PDWXULW IRU W H 6F RRO 'LVWULFW V WRWDO JH HUDO REOLJDWLR ER GV SD DEOH

)LVFDO HDU ( GHG -X H

*H HUDO 2EOLJDWLR 'HEW

3UL FLSDO

, WHUHVW

8 DPRUWL HG %R G 3UHPLXP

7RWDO 3UL FLSDO D G , WHUHVW

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

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NOTE 8: RISK MANAGEMENT

INSURANCE

Commercial Insurance

7 H 6F RRO 'LVWULFW LV H SRVHG WR YDULRXV ULVNV RI ORVV UHODWHG WR WRUWV W HIW RI GDPDJH WR D G GHVWUXFWLR RI DVVHWV HUURUV RU RPLVVLR V MRE UHODWHG LOO HVV RU L MXULHV WR HPSOR HHV DWXUDO GLVDVWHUV X HPSOR PH W FRPSH VDWLR D G GH WDO SOD V

Georgia School Boards Association Risk and Insurance Management System

7 H 6F RRO 'LVWULFW SDUWLFLSDWHV L W H *HRUJLD 6F RRO %RDUGV $VVRFLDWLR 5LVN D G , VXUD FH

0D DJHPH W 6 VWHP W H 6 VWHP D SXEOLF H WLW ULVN SRRO RUJD L HG R -XO

WR GHYHORS D G

DGPL LVWHU D SOD WR UHGXFH ULVN RI ORVV R DFFRX W RI JH HUDO OLDELOLW PRWRU YH LFOH OLDELOLW RU SURSHUW

GDPDJH L FOXGL J VDIHW H JL HHUL J D G RW HU ORVV SUHYH WLR D G FR WURO WHF LTXHV D G WR

DGPL LVWHU R H RU PRUH JURXSV RI VHOI L VXUD FH IX GV L FOXGL J W H SURFHVVL J D G GHIH VH RI FODLPV

EURXJ W DJDL VW PHPEHUV RI W H V VWHP 7 H 6F RRO 'LVWULFW SD V D D XDO SUHPLXP WR W H 6 VWHP

IRU LWV JH HUDO L VXUD FH FRYHUDJH $GGLWLR DO FRYHUDJH LV SURYLGHG W URXJ DJUHHPH WV E W H 6 VWHP

LW RW HU FRPSD LHV DFFRUGL J WR W HLU VSHFLDOW IRU SURSHUW ERLOHU D G PDF L HU L FOXGL J

FRYHUDJH IRU IORRG D G HDUW TXDNH JH HUDO OLDELOLW L FOXGL J FRYHUDJH IRU VH XDO DUDVVPH W

PROHVWDWLR D G DEXVH HUURUV D G RPLVVLR V FULPH D G DXWRPRELOH ULVNV 3D PH W RI H FHVV

L VXUD FH IRU W H 6 VWHP YDULHV E OL H RI FRYHUDJH

WORKERS' COMPENSATION

Georgia Education Workers' Compensation Trust

7 H 6F RRO 'LVWULFW SDUWLFLSDWHV L W H *HRUJLD (GXFDWLR :RUNHUV RPSH VDWLR 7UXVW W H 7UXVW D

SXEOLF H WLW ULVN SRRO RUJD L HG R 'HFHPEHU

WR GHYHORS LPSOHPH W D G DGPL LVWHU D

SURJUDP RI RUNHUV FRPSH VDWLR VHOI L VXUD FH IRU LWV PHPEHU RUJD L DWLR V 7 H 6F RRO 'LVWULFW

SD V D D XDO SUHPLXP WR W H 7UXVW IRU LWV JH HUDO RUNHUV FRPSH VDWLR L VXUD FH FRYHUDJH

6SHFLILF H FHVV RI ORVV L VXUD FH FRYHUDJH LV SURYLGHG W URXJ D DJUHHPH W E W H 7UXVW LW W H

6DIHW 1DWLR DO DVXDOW RPSD WR SURYLGH FRYHUDJH IRU SRWH WLDO ORVVHV VXVWDL HG E W H 7UXVW L

H FHVV RI

PLOOLR ORVV SHU RFFXUUH FH XS WR W H VWDWXWRU OLPLW (PSOR HUV /LDELOLW L VXUD FH

FRYHUDJH LV DOVR SURYLGHG LW OLPLWV RI

PLOOLR 7 H 7UXVW FRYHUV W H ILUVW

PLOOLR RI HDF

(PSOR HUV /LDELOLW FODLP LW 6DIHW 1DWLR DO SURYLGL J DGGLWLR DO (PSOR HUV /LDELOLW OLPLWV XS WR D

PLOOLR SHU RFFXUUH FH PD LPXP 6DIHW 1DWLR DO DVXDOW RPSD DOVR SURYLGHV PLOOLR

L DJJUHJDWH FRYHUDJH WR W H 7UXVW DWWDF L J DW

RI W H ORVV IX G D G EDVHG R W H )X G V D XDO

RUPDO SUHPLXP

DENTAL INSURANCE

7 H 6F RRO 'LVWULFW DV HVWDEOLV HG D OLPLWHG ULVN PD DJHPH W SURJUDP IRU GH WDO L VXUD FH FODLPV $ SUHPLXP LV F DUJHG WR FRYHUHG HPSOR HHV $GGLWLR DOO D SUHPLXP LV F DUJHG E W H *H HUDO )X G WR HDF XVHU IX G R W H EDVLV RI HPSOR HH SDUWLFLSDWLR L RUGHU WR FRYHU HVWLPDWHG FODLPV EXGJHWHG E PD DJHPH W EDVHG R N R FODLPV D G SULRU H SHULH FH 7 H 6F RRO 'LVWULFW DFFRX WV IRU FODLPV
LW H SH GLWXUH D G OLDELOLW EHL J UHSRUWHG H LW LV SUREDEOH W DW D ORVV DV RFFXUUHG D G W H DPRX W RI W DW ORVV FD EH UHDVR DEO HVWLPDWHG

D JHV L W H GH WDO L VXUD FH FODLPV OLDELOLW GXUL J W H ODVW W R ILVFDO HDUV DUH DV IROOR V

%HJL L J RI HDU /LDELOLW

ODLPV D G D JHV L
(VWLPDWHV

ODLPV 3DLG

( G RI HDU /LDELOLW

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

(; ,%,7 ,

UNEMPLOYMENT COMPENSATION

7 H 6F RRO 'LVWULFW LV VHOI L VXUHG LW UHJDUG WR X HPSOR PH W FRPSH VDWLR FODLPV 7 H 6F RRO 'LVWULFW DFFRX WV IRU FODLPV LW L W H JH HUDO IX G LW H SH VHV H SH GLWXUHV D G OLDELOLW EHL J UHSRUWHG H LW LV SUREDEOH W DW D ORVV DV RFFXUUHG D G W H DPRX W RI W DW ORVV FD EH UHDVR DEO HVWLPDWHG

7 HUH DYH EHH R X HPSOR PH W FRPSH VDWLR FODLPV GXUL J W H ODVW W R ILVFDO HDUV

SURETY BOND

7 H 6F RRO 'LVWULFW SXUF DVHG VXUHW ER GV WR SURYLGH DGGLWLR DO L VXUD FH FRYHUDJH DV IROOR V

3RVLWLR RYHUHG

$PRX W

6XSHUL WH GH W LHI )L D FLDO 2IILFHU
%RRNNHHSHU 3D UROO 2IILFHU
NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
7 H 6F RRO 'LVWULFW V IL D FLDO VWDWHPH WV L FOXGH W H IROOR L J DPRX WV SUHVH WHG L W H DJJUHJDWH DW -X H
1R VSH GDEOH , YH WRULHV
5HVWULFWHG R WL XDWLR RI )HGHUDO 3URJUDPV DSLWDO 3URMHFWV
'HEW 6HUYLFH $VVLJ HG
/RFDO DSLWDO 2XWOD 3URMHFWV 8 DVVLJ HG

)X G %DOD FH -X H

: H PXOWLSOH FDWHJRULHV RI IX G EDOD FH DUH DYDLODEOH IRU H SH GLWXUH W H 6F RRO 'LVWULFW LOO VWDUW LW W H PRVW UHVWULFWHG FDWHJRU D G VSH G W RVH IX GV ILUVW EHIRUH PRYL J GR WR W H H W FDWHJRU LW DYDLODEOH IX GV

,W LV W H JRDO RI W H 6F RRO 'LVWULFW WR DF LHYH D G PDL WDL D FRPPLWWHG DVVLJ HG D G X DVVLJ HG

IX G EDOD FH L W H JH HUDO IX G DW ILVFDO HDU H G RI RW OHVV W D

RI H SH GLWXUHV RW WR

H FHHG RI W H WRWDO EXGJHW RI W H VXEVHTXH W ILVFDO HDU ,I W H X DVVLJ HG IX G EDOD FH DW ILVFDO

HDU H G IDOOV EHOR W H JRDO W H 6F RRO 'LVWULFW V DOO GHYHORS D UHVWRUDWLR SOD WR DF LHYH D G

PDL WDL W H PL LPXP IX G EDOD FH

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

(; ,%,7 ,

NOTE 10: SIGNIFICANT COMMITMENTS

COMMITMENTS UNDER CONSTRUCTION CONTRACTS

7 H IROOR L J LV D D DO VLV RI VLJ LILFD W RXWVWD GL J FR VWUXFWLR RU UH RYDWLR FR WUDFWV H HFXWHG E W H 6F RRO 'LVWULFW DV RI -X H

3URMHFW

8 HDU HG ( HFXWHG R WUDFWV

3D PH WV W URXJ -X H

7UD VSRUWDWLR %XV 6 RS

7 H DPRX WV GHVFULEHG DUH RW UHIOHFWHG L W H EDVLF IL D FLDO VWDWHPH WV 3D PH WV L FOXGH FR WUDFWV D G UHWDL DJHV SD DEOH DW HDU H G

OPERATING LEASES

7 H 6F RRO 'LVWULFW OHDVHV FRSLHUV X GHU W H SURYLVLR V RI R H RU PRUH OR J WHUP OHDVH DJUHHPH WV

FODVVLILHG DV RSHUDWL J OHDVHV IRU DFFRX WL J SXUSRVHV 5H WDO H SH GLWXUHV X GHU W H WHUPV RI W H

RSHUDWL J OHDVHV WRWDOHG

IRU JRYHU PH WDO DFWLYLWLHV IRU W H HDU H GHG -X H

7 H IROOR L J IXWXUH PL LPXP OHDVH SD PH WV HUH UHTXLUHG X GHU RSHUDWL J OHDVHV DW -X H

HDU ( GL J

*RYHU PH WDO )X GV

7RWDO
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
FEDERAL GRANTS
$PRX WV UHFHLYHG RU UHFHLYDEOH SUL FLSDOO IURP W H )HGHUDO JRYHU PH W DUH VXEMHFW WR DXGLW D G UHYLH E JUD WRU DJH FLHV 7 LV FRXOG UHVXOW L UHTXHVWV IRU UHLPEXUVHPH W WR W H JUD WRU DJH F IRU D FRVWV LF DUH GLVDOOR HG X GHU JUD W WHUPV $ GLVDOOR D FHV UHVXOWL J IURP W H JUD WRU DXGLW PD EHFRPH D OLDELOLW RI W H 6F RRO 'LVWULFW R HYHU W H 6F RRO 'LVWULFW EHOLHYHV W DW VXF GLVDOOR D FHV LI D LOO EH LPPDWHULDO WR LWV RYHUDOO IL D FLDO SRVLWLR
LITIGATION
7 H 6F RRO 'LVWULFW LV D GHIH GD W L YDULRXV OHJDO SURFHHGL JV SHUWDL L J WR PDWWHUV L FLGH WDO WR W H SHUIRUPD FH RI URXWL H 6F RRO 'LVWULFW RSHUDWLR V 7 H XOWLPDWH GLVSRVLWLR RI W HVH SURFHHGL JV LV RW SUHVH WO GHWHUPL DEOH EXW LV RW EHOLHYHG WR DYH D PDWHULDO DGYHUVH HIIHFW R W H IL D FLDO FR GLWLR RI W H 6F RRO 'LVWULFW

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

(; ,%,7 ,

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)

GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND

HUWLILHG WHDF HUV D G R FHUWLILHG SXEOLF VF RRO HPSOR HHV RI W H 6F RRO 'LVWULFW

DV GHIL HG L

RI W H 2IILFLDO RGH RI *HRUJLD $ RWDWHG 2 * $ DUH SURYLGHG 23(%

W URXJ W H 6F RRO 23(% )X G D FRVW V DUL J PXOWLSOH HPSOR HU GHIL HG EH HILW SRVWHPSOR PH W

HDOW FDUH SOD UHSRUWHG DV D HPSOR HH WUXVW IX G D G DGPL LVWHUHG E D %RDUG RI RPPX LW HDOW

%RDUG 7LWOH RI W H 2 * $ DVVLJ V W H DXW RULW WR HVWDEOLV D G DPH G W H EH HILW WHUPV RI W H

JURXS HDOW SOD WR W H %RDUG

7 H 6F RRO 23(% )X G SURYLGHV HDOW FDUH EH HILWV IRU UHWLUHHV D G W HLU GHSH GH WV GXH X GHU W H JURXS HDOW SOD IRU SXEOLF VF RRO WHDF HUV L FOXGL J OLEUDULD V RW HU FHUWLILHG HPSOR HHV RI SXEOLF VF RROV UHJLR DO HGXFDWLR DO VHUYLFH DJH FLHV D G R FHUWLILHG SXEOLF VF RRO HPSOR HHV 5HWLUHH PHGLFDO HOLJLELOLW LV DWWDL HG H D HPSOR HH UHWLUHV D G LV LPPHGLDWHO HOLJLEOH WR GUD D UHWLUHPH W D XLW IURP (PSOR HHV 5HWLUHPH W 6 VWHP (56 *HRUJLD -XGLFLDO 5HWLUHPH W 6 VWHP -56 /HJLVODWLYH 5HWLUHPH W 6 VWHP /56 7HDF HUV 5HWLUHPH W 6 VWHP 756 RU 3XEOLF 6F RRO (PSOR HHV 5HWLUHPH W 6 VWHP 36(56 ,I HOHFWHG GHSH GH W FRYHUDJH VWDUWV R W H VDPH GD DV UHWLUHH FRYHUDJH 0HGLFDUH HOLJLEOH UHWLUHHV DUH RIIHUHG 6WD GDUG D G 3UHPLXP 0HGLFDUH $GYD WDJH SOD RSWLR V 1R 0HGLFDUH HOLJLEOH UHWLUHH SOD RSWLR V L FOXGH HDOW 5HLPEXUVHPH W $UUD JHPH W 5$ HDOW 0DL WH D FH 2UJD L DWLR 02 D G D LJ 'HGXFWLEOH HDOW 3OD
' 3 7 H 6F RRO 23(% )X G DOVR SD V IRU DGPL LVWUDWLYH H SH VHV RI W H IX G % OD R RW HU XVH RI W H DVVHWV RI W H 6F RRO 23(% )X G LV SHUPLWWHG

$V HVWDEOLV HG E W H %RDUG W H 6F RRO 23(% )X G LV VXEVWD WLDOO IX GHG R D SD

DV RX JR EDVLV W DW LV D XDO FRVW RI SURYLGL J EH HILWV LOO EH IL D FHG L W H VDPH HDU DV FODLPV

RFFXU R WULEXWLR V WR W H 6F RRO 23(% )X G IURP W H 6F RRO 'LVWULFW HUH

IRU W H

HDU H GHG -X H

$FWLYH HPSOR HHV DUH RW UHTXLUHG WR FR WULEXWH WR W H 6F RRO 23(% )X G

$W -X H

W H 6F RRO 'LVWULFW UHSRUWHG D OLDELOLW RI

IRU LWV SURSRUWLR DWH V DUH

RI W H HW 23(% OLDELOLW 7 H HW 23(% OLDELOLW DV PHDVXUHG DV RI -X H

7 H WRWDO 23(%

OLDELOLW XVHG WR FDOFXODWH W H HW 23(% OLDELOLW DV EDVHG R D DFWXDULDO YDOXDWLR DV RI

-X H

$ H SHFWHG WRWDO 23(% OLDELOLW DV RI -X H

DV GHWHUPL HG XVL J VWD GDUG

UROO IRU DUG WHF LTXHV 7 H 6F RRO 'LVWULFW V SURSRUWLR RI W H HW 23(% OLDELOLW DV DFWXDULDOO

GHWHUPL HG EDVHG R HPSOR HU FR WULEXWLR V GXUL J W H ILVFDO HDU H GHG -X H

$W

-X H

W H 6F RRO 'LVWULFW V SURSRUWLR DV

LF DV D GHFUHDVH RI

IURP LWV SURSRUWLR PHDVXUHG DV RI -X H

)RU W H HDU H GHG -X H

W H 6F RRO 'LVWULFW UHFRJ L HG 23(% H SH VH RI

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

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DEFINED CONTRIBUTION PLAN

(PSOR HHV RI W H 6F RRO 'LVWULFW PD HOHFW WR FR WULEXWH WR D E D G RU SOD 7 H 6F RRO 'LVWULFW VHOHFWHG 9$/, DV W H SURYLGHU RI W HVH SOD V 7 H HPSOR HH EHFRPHV YHVWHG L W H SOD DV RI W HLU LUH GDWH (PSOR HH SDUWLFLSDWLR L HLW HU RI W HVH SOD V LV RW PD GDWRU

)RU W H JURXSV RI HPSOR HHV RW FRYHUHG X GHU W H )HGHUDO 6RFLDO 6HFXULW SURJUDP LW DV W H %RDUG V GHVLUH WR VXSSOHPH W W H UHWLUHPH W RI W LV JURXS RI HPSOR HHV )RU HDF HPSOR HH RW FRYHUHG X GHU 6RFLDO 6HFXULW W DW FR WULEXWH RI W HLU EDVH SD WR W H E SOD RU W H SOD W H 6F RRO 'LVWULFW PDWF HV RI W H HPSOR HH V FR WULEXWLR

(PSOR HU FR WULEXWLR V IRU W H FXUUH W ILVFDO HDU D G W H SUHFHGL J W R ILVFDO HDUV DUH DV IROOR V

)LVFDO HDU

3HUFH WDJH R WULEXWLR

5HTXLUHG R WULEXWLR

NOTE 14: TAX ABATEMENTS

'HFDWXU RX W H WHUV L WR SURSHUW WD DEDWHPH W DJUHHPH WV LW ORFDO EXVL HVVHV IRU W H SXUSRVH RI DWWUDFWL J RU UHWDL L J EXVL HVVHV LW L W HLU MXULVGLFWLR V 7 H DEDWHPH WV PD EH JUD WHG WR D EXVL HVV ORFDWHG LW L RU SURPLVL J WR UHORFDWH WR 'HFDWXU RX W

)RU W H ILVFDO HDU H GHG -X H

'HFDWXU RX W DEDWHG SURSHUW WD HV GXH WR W H 6F RRO

'LVWULFW W DW HUH OHYLHG R $XJXVW

D G GXH R 'HFHPEHU

WRWDOL J

7 H IROOR L J LV W H L GLYLGXDO WD DEDWHPH W DJUHHPH W

$

SHUFH W SURSHUW WD DEDWHPH W WR *OREDO $LU , F D PD XIDFWXUL J FRPSD IRU

UHORFDWL J D G HPSOR L J UHVLGH WV 7 H DEDWHPH W DPRX WHG WR

NOTE 15: SPECIAL/EXTRAORDINARY ITEMS

7 H 6F RRO 'LVWULFW UHFHLYHG L VXUD FH SURFHHGV L W H DPRX W RI

UHODWHG WR XUULFD H

0LF DHO GDPDJH D G ORVVHV RI SURSHUW D G IRRG VSRLODJH 7 H L VXUD FH SURFHHGV DYH EHH

UHSRUWHG DV D H WUDRUGL DU LWHP R W H 6WDWHPH W RI $FWLYLWLHV

7 H 6F RRO 'LVWULFW L FXUUHG H SH VHV IRU W H GDPDJH WR IDFLOLWLHV D G IRRG VSRLODJH GXH WR XUULFD H 0LF DHO L W H DPRX W RI

$ ORVV R GLVSRVDO RI IL HG DVVHWV L W H DPRX W RI

LV UHODWHG WR W H GLVSRVDO D G

GHPROLWLR RI D X XVHG HOHPH WDU VF RRO UHSUHVH WL J W H X GHSUHFLDWHG YDOXH RI W H DVVHWV LV

UHSRUWHG R W H 6WDWHPH W RI $FWLYLWLHV

(This page left intentionally blank)

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

SCHEDULE "1"

Year Ended
2019 2018 2017 2016 2015

School District's proportion of the
net pension liability

School District's proportionate share of the
net pension liability

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

0.217705%

$

0.227194%

$

0.234773%

$

0.245751%

$

0.255968%

$

40,410,711.00 $ 42,224,705.00 $ 48,436,288.00 $ 37,413,149.00 $ 32,338,181.00 $

151,838.00 $ 236,405.00 $ 311,117.00 $ 241,909.00 $ 204,792.00 $

Total

School District's covered payroll

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

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

40,562,549.00 $ 42,461,110.00 $ 48,747,405.00 $ 37,655,058.00 $ 32,542,973.00 $

26,071,117.28 26,314,899.69 25,966,553.21 26,123,937.28 26,396,136.56

155.00% 160.46% 186.53% 143.21% 122.51%

80.27% 79.33% 76.06% 81.44% 84.03%

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

- 39 -

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

SCHEDULE "2"

Year Ended
2019 2018 2017 2016 2015

School District's proportion of the net
pension liability
0.002145% 0.002412% 0.004315% 0.004951% 0.005014%

School District's proportionate share of the net pension
liability

School District's covered payroll

$

88,182.00 $

$

97,959.00 $

$

204,118.00 $

$

200,585.00 $

$

188,056.00 $

54,722.80 59,159.66 100,333.87 113,202.45 115,377.78

School District's proportionate share of the net pension liability
as a percentage of covered payroll
161.14% 165.58% 203.44% 177.19% 162.99%

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

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

- 40 -

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

SCHEDULE "3"

Year Ended
2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the
net pension liability

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

0.00%

$

0.00%

$

0.00%

$

0.00%

$

0.00%

$

-

$

-

$

-

$

-

$

-

$

764,070.00 $ 686,160.00 $ 908,360.00 $ 589,501.00 $ 518,192.00 $

Total

School District's covered payroll

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

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

764,070.00 $ 686,160.00 $ 908,360.00 $ 589,501.00 $ 518,192.00 $

2,037,798.41 1,994,459.85 1,939,577.85 1,942,270.26 1,937,302.02

N/A

85.26%

N/A

85.69%

N/A

81.00%

N/A

87.00%

N/A

88.29%

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

- 41 -

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

SCHEDULE "4"

Year Ended
2019 2018

School District's proportion of the net OPEB liability
0.334412% 0.334694%

School District's proportionate share of the net OPEB liability

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

Total

School District's covered-employee
payroll

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

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

$

42,502,739.00 $

$

47,024,372.00 $

-

$ 42,502,739.00 $ 23,872,886.98

-

$ 47,024,372.00 $ 23,855,482.46

178.04% 197.12%

2.93% 1.61%

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

- 42 -

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

SCHEDULE "5"

Year Ended
2019 2018

School District's proportion of the net OPEB asset

School District's proportionate share of
the net OPEB asset

School District's covered-employee
payroll

0.003953%

$

(10,699.00) $

0.004062%

$

(10,557.00) $

54,722.80 59,159.66

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

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

19.55% 17.84%

129.46% 130.17%

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

- 43 -

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

SCHEDULE "6"

Year Ended
2019 2018 2017 2016 2015

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

$

5,348,714.55 $

5,348,714.55 $

-

$

4,366,089.87 $

4,366,089.87 $

-

$

3,733,920.39 $

3,733,920.39 $

-

$

3,681,830.55 $

3,681,830.55 $

-

$

3,413,244.46 $

3,413,244.46 $

-

School District's covered payroll

$

25,694,995.44

$

26,071,117.28

$

26,314,899.69

$

25,966,553.21

$

26,123,937.28

Contribution as a percentage of covered
payroll
20.82% 16.75% 14.19% 14.18% 13.07%

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

- 44 -

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

SCHEDULE "7"

Year Ended

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

2019

$

13,249.20 $

13,249.20 $

-

2018

$

13,576.76 $

13,576.76 $

-

2017

$

14,677.44 $

14,677.44 $

-

2016

$

24,802.45 $

24,802.45 $

-

2015

$

24,860.14 $

24,860.14 $

-

School District's covered payroll

Contribution as a percentage of covered
payroll

$

53,467.13

$

54,722.80

$

59,159.66

$

100,333.87

$

113,202.45

24.78% 24.81% 24.69% 24.72% 21.96%

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

- 45 -

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

SCHEDULE "8"

Year Ended

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

2019

$

1,778,157.00 $

1,778,157.00 $

-

2018

$

1,733,228.00 $

1,733,228.00 $

-

School District's covered-employee
payroll
$ 21,870,813.31 $ 23,872,886.98

Contribution as a percentage of covered-
employee payroll
8.13% 7.26%

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

- 46 -

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

SCHEDULE "9"

Year Ended

Contractually required contribution

2019

$

-

2018

$

-

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

School District's covered-employee
payroll

$

54,722.80

$

59,159.66

Contribution as a percentage of covered-
employee payroll
0% 0%

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

- 47 -

DECATUR COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019

SCHEDULE "10"

On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.

A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
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, disability, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to 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).
In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
There have been no changes in benefit terms.
June 30, 2017 valuation: 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 the State OPEB fund based on their last employee payroll location: irrespective of retirement affiliation.
The discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018.
There have been no changes in benefit terms.
June 30, 2017 valuation: 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 the State OPEB fund based on their last employee payroll location: irrespective of retirement affiliation.
The discount rate was updated from 3.60% as of June 30, 2017 to 5.22% as of June 30, 2018.

- 48 -

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

SCHEDULE "11"

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

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

14,507,793.00 $

14,507,793.00 $

15,778,289.07 $

75,000.00

75,000.00

134,481.83

30,171,213.00

30,385,374.00

30,010,237.99

10,083,368.00

10,595,770.00

8,576,708.74

1,110,400.00

1,410,994.00

1,419,175.41

15,300.00

15,375.00

284,479.42

479,364.00

479,364.00

462,500.43

56,442,438.00

57,469,670.00

56,665,872.89

1,270,496.07 59,481.83
(375,136.01) (2,019,061.26)
8,181.41 269,104.42 (16,863.57)
(803,797.11)

33,630,861.00
2,589,422.00 1,691,743.00 1,127,020.00
391,777.00 2,930,030.00
343,939.00 4,567,282.00 2,624,306.00
475,924.00 274,714.00 4,597,573.00
55,244,591.00
1,197,847.00

34,299,236.00
2,594,734.00 1,742,013.00 1,127,020.00
419,603.00 3,011,728.00
349,445.00 4,669,520.00 2,758,633.00
476,901.00 278,812.00 4,642,688.00
56,370,333.00
1,099,337.00

32,181,483.19
2,236,694.87 1,563,629.22 1,026,644.99
337,694.43 2,974,755.62
346,413.64 4,511,135.54 2,531,002.77
447,634.32 31,746.89
3,897,517.63
52,086,353.11
4,579,519.78

2,117,752.81
358,039.13 178,383.78 100,375.01
81,908.57 36,972.38
3,031.36 158,384.46 227,630.23
29,266.68 247,065.11 745,170.37
4,283,979.89
3,480,182.78

109,865.00 -
(943,666.00)
(833,801.00)

428,837.00 (3,333,801.00)
(2,904,964.00)

428,837.06 (3,333,801.00)
(2,904,963.94)

0.06
-
0.06

364,046.00 15,278,900.93
23,462.45

(1,805,627.00) 15,278,900.93
-

(235,049.45) 1,439,506.39 15,278,900.93
-

(235,049.45) 3,245,133.39
-

$

15,666,409.38 $

13,473,273.93 $

16,718,407.32 $

3,245,133.39

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 49 -

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2019

SCHEDULE "12"

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

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

195GA324N1099 $ 195GA324N1099

1,012,074.32 2,764,973.97
3,777,048.29

84.027 84.027 84.173

H027A170073 H027A180073 H173A180081

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

V048A180010 S365A170010 S365A180010 S011A170011 S011A180011 S365B170010 S365B180010 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 S287C170010 S287C180010

111,481.00 1,016,274.87
39,625.61
1,167,381.48
68,605.00 5,880.00
11,098.02 52,000.00 143,151.69 10,298.00 80,010.02 24,411.00 96,885.93 34,473.00 206,424.29 188,985.16 2,353,948.25 74,078.00 572,491.19
3,922,739.55
5,090,121.03

12.UNKNOWN

48,594.63

Total Expenditures of Federal Awards

$

8,915,763.95

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 Decatur County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.

Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

See notes to the basic financial statements.

- 50 -

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019

SCHEDULE "13"

AGENCY/FUNDING
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless State Heralth Benefit Plan Employee Holiday Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teachers Retirement Vocational Education
Office of the State Treasurer Public School Employees Retirement
Georgia Emergency Management Agency Hurricane Michael Recovery

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$ 1,268,930.22 $

- $ 1,268,930.22

1,238,203.00 647,299.00
2,741,409.00 1,743,839.00 1,316,005.00 1,219,451.00 3,022,039.00 2,732,468.00
920,865.00 3,894,495.00
869,853.00 668,932.00 224,264.00 343,323.00 553,752.00 170,332.00
97,211.00 2,362.00
639,114.00 1,206,170.00 1,239,162.00
126,491.00 (270,270.00)
837,415.00 104,218.00 1,875,858.00
91,884.00 26,203.12 91,910.00 77,220.00 20,586.65 133,703.00
130,541.00
5,000.00

-
-
-
-
-
258,500.00

1,238,203.00 647,299.00
2,741,409.00 1,743,839.00 1,316,005.00 1,219,451.00 3,022,039.00 2,732,468.00
920,865.00 3,894,495.00
869,853.00 668,932.00 224,264.00 343,323.00 553,752.00 170,332.00
97,211.00 2,362.00
639,114.00 1,206,170.00 1,239,162.00
126,491.00 (270,270.00)
837,415.00 104,218.00 1,875,858.00
91,884.00 26,203.12 91,910.00 77,220.00 20,586.65 133,703.00
130,541.00
263,500.00

$ 30,010,237.99 $

258,500.00 $ 30,268,737.99

See notes to the basic financial statements.

- 51 -

(This page left intentionally blank)

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2019

SCHEDULE "14"

PROJECT
ESPLOST IV Bond Interest Bond Principal payments - series 2015

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

ESTIMATED COMPLETION
DATE

$ 5,682,173.00 $ 5,932,421.92 $

-

595,919.96

305,775.00 $ 465,919.96

5,626,646.92 $ 130,000.00

5,932,421.92 $ 595,919.96

-

Completed

-

Completed

$

ESPLOST V

Bond Interest

$

Bond Principal payments - series 2015

Property

Planning, construction and equiping new facilities

Renovations, repairs, extensions, equipping existing facilities

School buses and transportation equipment

Technology, safety, security, nutrition equipment

Instructional, music, vocational, physical education equipment

System-wide software

Textbooks and library books

Demolition existing facilities

5,682,173.00 $ 6,528,341.88 $

2,250,000.00 $ 4,000,000.00 2,000,000.00 8,000,000.00 8,250,000.00 2,000,000.00 1,500,000.00
500,000.00 500,000.00 500,000.00 500,000.00

2,250,000.00 $ 4,000,000.00 2,000,000.00 8,000,000.00 8,250,000.00 2,000,000.00 1,500,000.00
500,000.00 500,000.00 500,000.00 500,000.00

771,694.96 $ 5,756,646.92 $ 6,528,341.88 $

293,550.00 $ 349,080.04
300,467.65 271,593.00 -

- $ 903,106.20 287,972.00 -

- $ -

-

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

-

6/30/2022

$ 30,000,000.00 $ 30,000,000.00 $ 1,214,690.69 $ 1,191,078.20 $

- $

-

(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 Decatur 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) During fiscal year 2015, the Decatur County School Building Authority, a component unit of the Decatur County Board of Education, issued General Obligation Refunding Bond Issue 2015 to refund portions of the 2007 Bond Issue.

See notes to the basic financial statements.

- 53 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Decatur County Board of Education
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Decatur County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated February 20, 2020.
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

February 20, 2020

Greg S. Griffin State Auditor

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Decatur County Board of Education
We have audited the Decatur 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 program for the year ended June 30, 2019. The School District's major federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
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 the major federal program. However, our audit does not provide a legal determination of the School District's compliance.

In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2019.
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,

February 20, 2020

Greg S. Griffin State Auditor

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

DECATUR COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

SECTION IV FINDINGS AND QUESTIONED COSTS

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019

Financial Statements

Type of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information

Unmodified

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

No None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

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

No None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

No

Identification of major programs:

CFDA Number

Name of Federal Program or Cluster

84.010

Title I Grants to Local Education Agencies

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

$750,000.00

Auditee qualified as low-risk auditee?

Yes

No matters were reported.

No matters were reported.