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

Decatur County Board of Education Table of Contents

Section I

Financial

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G Notes to the Basic Financial Statements

7

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

39

2 Schedule of Contributions Teachers Retirement System of Georgia

40

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

41

4 Schedule of Contributions Employees' Retirement System of Georgia

42

5 Schedule of Proportionate Share of the Net Pension Liability

Public School Employees Retirement System of Georgia

43

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

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

44

7 Schedule of Contributions School OPEB Fund

45

8 Schedule of Proportionate Share of the Net OPEB Asset

SEADOPEB

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

50

Supplementary Information

12 Schedule of Expenditures of Federal Awards

51

13 Schedule of State Revenue

53

14 Schedule of Approved Local Option Sales Tax Projects

54

Section II

Compliance and Internal Control Reports
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance

Section III

Auditee's Response to Prior Year Findings and Questioned Costs
Summary Schedule of Prior Year Findings
Section IV

Findings and Questioned Costs
Schedule of Findings and Questioned Costs

Section I Financial

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mr. Tim Cochran, Superintendent and Members of the Decatur County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Decatur County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 11, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
April 11, 2021

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
INTRODUCTION
The discussion and analysis of the Decatur County Board of Education's (the School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2021, and June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal years 2021 and 2020 are as follows:
On the government-wide financial statements, net position was $15,876,436 and $3,679,631, respectively, for the fiscal years ended June 30, 2021 and 2020, an increase of $12,196,805.
The School District had $58,251,901 and $57,241,889 in expenses relating to governmental activities for the fiscal years ended June 30, 2021 and June 30, 2020, respectively. Only $46,204,049 and $38,931,036 of the above-mentioned expenses for 2021 and 2020 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $24,831,977 and $24,418,781, respectively, for 2021 and 2020, along with fund balance were adequate to provide for these programs.
General revenues and the special item account for $24,244,658 in revenue or 34% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $46,204,049 or 66% of total revenues and special item of $70,448,707.
Among major funds, the general fund had $65,700,440 in revenues and $64,980,883 in expenditures and other uses. The fund balance for the general fund increased from $20,325,581 to $21,045,138. Of this total, $19,919,259 represents unassigned fund balance.
Special Items this year: During the current year, the School District recognized that certain capital assets qualified as being impaired due to them no longer being used for their intended purpose. These changes resulted in an impairment loss of $587,319.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements.
The government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status.
The fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending.
The fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2021 and 2020, the general fund, the capital projects fund, and the debt service fund represent the most significant funds.
i

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
Government-Wide Statements
The government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid.
The two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity:
Governmental Activities All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others.
Fund Financial Statements
The School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund.
Governmental Funds - 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 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.
ii

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

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE

Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2021 and 2020.

Table 1 Net Position
Fiscal Year 2021

Governmental Activities

Percent of

Fiscal Year

Total

2020

Percent of Total

Assets Current and Other Assets Capital Assets, Net

$ 48,511,542

39% $ 34,361,362

31%

74,452,227

61%

75,452,466

69%

Total

122,963,769

100% 109,813,828

100%

Deferred Outflows of Resources

23,212,018

100%

15,869,426

100%

Liabilities Current and Other Liabilities Long-Term Liabilites

5,469,129

5%

5,908,100

6%

111,105,970

95% 101,136,350

94%

Total Liabilities

116,575,099

100% 107,044,450

100%

Deferred Inflows of Resources

13,724,252

100%

14,959,173

100%

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

63,908,259 6,133,855
(54,165,678)

402% 39%
-341%

63,624,611 4,036,767
(63,981,747)

1729% 110%
-1739%

Total Net Position

$ 15,876,436

100% $ 3,679,631

100%

Total assets and deferred outflows of resources increased by $20,492,533 which was primarily due to increase in cash and cash equivalents and increase in pension and OPEB deferred outflows.
Total liabilities and deferred inflows of resources increased by $8,295,728 which was primarily due to increases OPEB and pension related liability offset with decreases in pension related deferred inflows and debt. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows yielded an increase in net position of $12,196,805.

iii

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

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

Table 2 Change in Net Position

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

Fiscal Year 2021

Governmental Activities

Percent

Fiscal Year

of Total

2020

Percent of Total

$

973,373

44,921,796

308,880

46,204,049

2% $ 1,257,280

97% 37,087,317

1%

586,439

100% 38,931,036

3% 95%
2%
100%

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

16,130,959 5,510,725

65% 15,977,909

65%

22%

5,176,451

21%

2,745,109

11%

2,669,291

11%

22,984

0%

368,809

2%

422,200

2%

226,321

1%

Total General Revenues
Special Item
Total Revenues and Special Item
Program Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Debt
Total Expenses
Increase in Net Position

24,831,977 (587,319)
70,448,707

100% 100%

24,418,781 -
63,349,817

100% 0%

36,212,895
2,748,601 1,733,918 1,329,519
394,751 3,209,475
341,279 4,907,510 2,656,954
524,669 20,760
3,649,694 521,876
58,251,901
12,196,806

62% 35,717,291

62%

5%

2,679,999

5%

3%

1,563,344

3%

2%

1,226,497

2%

1%

350,752

1%

5%

3,200,763

6%

1%

367,814

1%

8%

4,781,873

8%

5%

2,655,434

4%

1%

469,829

1%

0%

25,250

0%

6% 1%
100%

3,649,042 554,001
57,241,889
6,107,928

6% 1%
100%

Beginning Net Position

3,679,631

(2,428,297)

Ending Net Position

$ 15,876,436

$ 3,679,632

iv

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

Program revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $7,273,013 for governmental activities. This increase is largely due to, increases in federal funding. The increase is offset by decreases in State funding from 2020 to 2021.

General revenues increased $413,196 during fiscal year 2021. This increase is largely due to increases in sales taxes and title ad valorem taxes offset by lower investment earnings.

Governmental Activities

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity.

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 Long-Term Debt

Total Expenses

$

Table 3 Governmental Activities

Total Cost of Services

Fiscal Year

Fiscal Year

2021

2020

36,212,895 $

35,717,291 $

2,748,601 1,733,918 1,329,519
394,751 3,209,475
341,279 4,907,510 2,656,954
524,669 20,760

2,679,999 1,563,344 1,226,497
350,752 3,200,763
367,814 4,781,873 2,655,434
469,829 25,250

3,649,694 521,876

3,649,042 554,001

58,251,901 $

57,241,889 $

Net Cost of Services

Fiscal Year

Fiscal Year

2021

2020

1,491,764 $

7,052,362

2,299,696 639,804 714,113
(1,515,491) 1,733,746
331,420 3,312,858 1,278,184
519,474 20,209

2,223,041 585,881 594,626 (498,540)
1,874,576 357,464
3,061,814 1,467,580
466,133 18,658

700,200 521,876

553,257 554,001

12,047,853 $

18,310,853

Although program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2021 and 2020, 21% 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 a partner in bearing the cost of educating Georgia's children.
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
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 $84,175,435 and expenditures and other financing uses of $69,297,247. The capital projects fund had an overall increase of $11,995,225 due to the transfer of funds from the general fund for future capital projects. The debt service fund had an overall increase of $2,163,408 primarily due to higher sales taxes collected and a decrease in the transfer of funds to the capital projects fund for current capital projects. The general fund had an overall increase of $719,557. The increase in the general fund for the year is due mostly to increases in federal funding offset by decreases

v

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

in state funding and an increase in transfers to capital projects funds for future projects. The amount of fund balance in the general fund of $21,045,138 continues to reflect that the School District was able to adequately meet current costs.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2021 and 2020, the School District amended its general fund budget as needed.
For the general fund, the final budgeted revenues and other financing sources of $66,270,139 increased from the original budgeted amount of $56,530,011 by $9,740,128. This difference was mainly due to increases in federal funding. The actual revenue was less than the final budgeted amount by $289,658.27. The majority of the variances between final budget and actual revenue are due to increase in state revenue and property tax revenue offset by decreases in federal revenue.
The final budgeted expenditures and other financial uses of $81,033,879 was more than the original budgeted amount of $57,214,439 by $23,819,440. This difference was due mainly to federal grants awarded being higher than originally anticipated and increase in transfers to the capital outlay fund. The actual expenditures and other financing uses of $64,980,883 was $16,052,996 less than final budgeted. The majority of the variances between the final budgeted expenditures and actual are due to use of conservative budget estimates and reduced spending by the School District.
CAPITAL ASSETS
At the fiscal years ended June 30, 2021 and June 30, 2020, the School District had $74,452,227 and $75,452,466, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation.
Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

Land Construction in Progress Building and Improvements Equipment Land Improvements

$

2,345,972 $

2,345,972

49,300

5,133,861

69,285,576

65,345,356

1,652,113

1,690,229

1,119,266

937,048

Total

$ 74,452,227 $ 75,452,466

The overall capital assets decreased in fiscal year 2021 by $1,000,239 due primarily to loss on impairment of assets and an increase depreciation expense.

vi

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

DEBT ADMINISTRATION
At June 30, 2021, the School District had $14,496,080 in total debt outstanding with $978,763 due within one year. Table 5 summarizes bond debt outstanding at June 30, 2021 and 2020.
Table 5 Debt at June 30

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

General Obligation Bonds $ 13,610,000 $ 14,470,000

Bond Premiums Amortized

886,080

964,842

Total

$ 14,496,080 $ 15,434,842

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.

CURRENT ISSUES

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), a declining tax digest and COVID-19.

The School District's current millage rate is 14,565 for the 2021 tax year (fiscal year 2022). The net tax digest increased to $948,690,277 from $894,167,739 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 2021 and the previous three years is as follows:

FY2018 FY2019 FY2020 FY2021

5,184 5,051 4,744 4,469

The student enrollment of fiscal year 2022 as of October 2021 is 4,424.

The Decatur County School District consists of 6 schools located in Decatur County, which had an estimated population of 26,404 in 2020, compared to 27,842 in 2010 which is a 5 percent decline.

The School District's fifth Education Special Purpose Local Option Sales Tax (ESPLOST) began July 1, 2017. For fiscal year 2021, the average monthly tax collection was $462,666, an increase of 17.2 percent over the average for fiscal year 2020 of $394,815.

vii

DECATUR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 In the past, unemployment for Decatur County has fluctuated. As of August 2021, Decatur County had an unemployment rate of 3.1 percent, compared to 3.5 percent for Georgia as a whole. This is decrease from the rate of 4.2 percent the prior year. For 2022, our state funding remains low, and the challenge is maintaining the educational programs of the system while receiving less funding from the state, 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. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Tim Matthews, Chief Financial Officer at the Decatur County Board of Education, 1417 Dothan Road, Bainbridge, GA 39817. You may also email your questions to tmatthews@dcboe.com.
viii

Decatur County Board of Education

DECATUR COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021
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 Salaries and Benefits Payable Interest 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 Net OPEB Asset Other - Bus Replacement Other - Scholarships Unrestricted (Deficit)
Total Net Position
The notes to the basic financial statements are an integral part of this statement.

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

41,183,863.86

1,070,036.51 3,537,731.47 2,320,330.81
156,611.47 236,662.60
6,305.00 2,395,272.39 72,056,954.56 122,963,768.67

727,213.93 13,424,020.53 9,060,784.00 23,212,018.46

5,338,012.06 131,117.08
49,697,909.00 46,911,981.00
978,762.72 13,517,317.03 116,575,098.89

2,612,860.00 11,111,392.00 13,724,252.00

63,908,258.56

857,061.65 5,001,671.33
6,305.00 231,660.00
37,157.49 (54,165,677.79)

$

15,876,436.24

- 1 -

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

EXHIBIT "B"

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 Long-Term Debt
Total Governmental Activities

EXPENSES

PROGRAM REVENUES

OPERATING

CAPITAL

CHARGES FOR GRANTS AND

GRANTS AND

SERVICES

CONTRIBUTIONS CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$ 36,212,895.46 $ 957,795.02 $ 33,763,336.73 $

- $

(1,491,763.71)

2,748,601.14 1,733,918.13 1,329,518.69 394,751.05 3,209,475.39 341,279.45 4,907,509.53 2,656,954.41 524,668.50
20,759.71

-

448,904.65

-

(2,299,696.49)

-

1,094,114.16

-

(639,803.97)

-

615,405.50

-

(714,113.19)

-

1,910,242.07

-

1,515,491.02

-

1,475,729.28

-

(1,733,746.11)

-

9,859.65

-

(331,419.80)

-

1,594,651.32

-

(3,312,858.21)

-

1,069,890.01

308,880.00

(1,278,184.40)

-

5,194.42

-

(519,474.08)

-

551.17

-

(20,208.54)

3,649,694.34 521,875.52

15,577.48 -

2,933,916.90 -

-

(700,199.96)

-

(521,875.52)

$ 58,251,901.32 $ 973,372.50 $ 44,921,795.86 $ 308,880.00

(12,047,852.96)

General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Tax 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 Impairment Total General Revenues and Special Item
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year

16,072,025.63 58,933.36

3,263,800.36 2,068,541.32
178,383.48 2,745,109.00
22,983.95 422,199.55

(587,318.73) 24,244,657.92

12,196,804.96

3,679,631.28

$

15,876,436.24

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

- 2 -

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

EXHIBIT "C"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

19,753,993.81 $ 16,807,996.66 $ 4,621,873.39 $ 41,183,863.86

559,121.49 3,537,731.47 2,320,330.81
156,611.47 236,662.60

-

510,915.02

1,070,036.51

-

-

3,537,731.47

-

-

2,320,330.81

-

-

156,611.47

-

-

236,662.60

$

26,564,451.65 $ 16,807,996.66 $ 5,132,788.41 $ 48,505,236.72

$

5,338,012.06 $

-

$

-

$

5,338,012.06

181,301.86

-

-

181,301.86

236,662.60 889,216.54
19,919,258.59 21,045,137.73

16,807,996.66 16,807,996.66

5,132,788.41
5,132,788.41

236,662.60 6,022,004.95 16,807,996.66 19,919,258.59 42,985,922.80

$

26,564,451.65 $ 16,807,996.66 $ 5,132,788.41 $ 48,505,236.72

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

- 3 -

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

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
Net position of governmental activities (Exhibit "A")

$ 42,985,922.80

$

2,345,972.39

49,300.00

107,144,954.08

7,768,076.99

4,251,112.20

(47,107,188.71)

74,452,226.95

$ (49,697,909.00) 6,305.00
(46,911,981.00)

(96,603,585.00)

727,213.93

$

10,811,160.53

(2,050,608.00)

8,760,552.53

181,301.86

$ (13,610,000.00) (131,117.08)
(886,079.75)

(14,627,196.83)

$ 15,876,436.24

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

- 4 -

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

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 Service Principal Interest Total Expenditures
Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

16,121,021.71 $

- $

-

$

16,121,021.71

178,383.48

2,068,541.32

3,565,780.76

5,812,705.56

30,086,406.54

-

-

30,086,406.54

17,902,945.16

-

-

17,902,945.16

973,372.50

-

-

973,372.50

16,110.79

4,695.89

2,177.27

22,983.95

422,199.55

-

-

422,199.55

65,700,439.73

2,073,237.21

3,567,958.03

71,341,634.97

32,298,580.80
2,504,402.56 1,668,931.05 1,123,941.97 381,110.87 2,912,781.15 323,567.50 4,684,772.86 2,533,856.07 411,054.06 20,759.71 3,283,323.50 -
52,147,082.10 13,553,357.63

-
2,911,813.66
2,911,813.66 (838,576.45)

-
-
860,000.00 544,550.00 1,404,550.00 2,163,408.03

32,298,580.80
2,504,402.56 1,668,931.05 1,123,941.97 381,110.87 2,912,781.15 323,567.50 4,684,772.86 2,533,856.07 411,054.06 20,759.71 3,283,323.50 2,911,813.66
860,000.00 544,550.00 56,463,445.76 14,878,189.21

(12,833,801.00) (12,833,801.00)

12,833,801.00 -
12,833,801.00

-

12,833,801.00

-

(12,833,801.00)

-

-

719,556.63

11,995,224.55

2,163,408.03

14,878,189.21

20,325,581.10

4,812,772.11

2,969,380.38

28,107,733.59

$

21,045,137.73 $ 16,807,996.66 $ 5,132,788.41 $ 42,985,922.80

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

- 5 -

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, 2021

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

$

2,775,242.14

(3,188,162.61)

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

$

(64,641.24)

860,000.00

78,762.72

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

(1,906,580.41) (365,196.00)

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

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

$

EXHIBIT "F" 14,878,189.21
(412,920.47) (587,318.73) (292,043.12)
874,121.48
(2,271,776.41) 8,553.00
12,196,804.96

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

- 6 -

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

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Decatur County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Blended Component Unit
The Decatur County School District Building Authority (the Authority) was created by House Bill 126 during the 2007 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of three members appointed by the governing authority of the School District. The Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.

- 7 -

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

EXHIBIT "G"

The Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general longterm principal and interest.

- 8 -

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

EXHIBIT "G"

Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
New Accounting Pronouncements
In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions.
- 9 -

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

EXHIBIT "G"

Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Inventories
Consumable Supply
On the basic financial statements, consumable supplies are reported at cost (first-in, first-out) The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased, and expenses are recorded at the time the supplies are consumed.
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.
Capital Assets
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.
Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements.
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.

- 10 -

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

EXHIBIT "G"

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

Capitalization Policy

Estimated Useful Life

Land

$

Land Improvements

$

Buildings and Improvements $

Equipment

$

Intangible Assets

$

25,000.00 25,000.00 25,000.00 25,000.00 100,000.00

N/A 15 years
10 to 100 years 5 to 10 years 15 years

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straightline method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

- 11 -

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

EXHIBIT "G"

Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (SEAD - OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have been determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.
Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.

- 12 -

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

EXHIBIT "G"

Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Property Taxes
The Decatur County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on September 8, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Decatur County Tax Commissioner bills and collects the property taxes for the School District, withholds 0.0483% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $14,358,105.80.
The tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.375 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,703,982.55 during fiscal year ended June 30, 2021.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $5,634,322.08 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
- 13 -

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

EXHIBIT "G"

See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
Collateralization of Deposits
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. At June 30, 2021, $210,709.36 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all the School District's deposits.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
Categorization of Deposits
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, the School District had deposits with a carrying amount of $3,280,888.65, and a bank balance of $5,239,969.15. The bank balances insured by Federal depository insurance were $540,081.61 and the bank balances collateralized with securities held by the pledging financial institution's or by the pledging financial institution's trust department or agent in the School District's name were $4,489,178.18.
- 14 -

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

EXHIBIT "G"

At June 30, 2021, $210,709.36 of the School District's bank balance was exposed to custodial credit risk as follows:

Uninsured and Uncollateralized

$

210,709.36

Uninsured with collateral held by the pledging

financial institution

-

Uninsured with collateral held by the pledging

financial institution's trust department or

agent but not in the School District's name

-

Total

$

210,709.36

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

Cash and cash equivalents Statement of Net Position

$ 41,183,863.86

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

37,902,975.21

Total carrying value of deposits - June 30, 2021

$ 3,280,888.65

Categorization of Cash Equivalents
The School District reported cash equivalents of $37,902,975.21 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021 was 36 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

- 15 -

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

EXHIBIT "G"

NOTE 5: CAPITAL ASSETS

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

Balances July 1, 2020

Increases

Decreases

Transfers

Balances June 30, 2021

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

$

2,345,972.39 $

- $

5,133,860.77

49,300.00

- $

- $

-

(5,133,860.77)

2,345,972.39 49,300.00

Total Capital Assets Not Being Depreciated

7,479,833.16

49,300.00

-

(5,133,860.77)

2,395,272.39

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

100,524,081.09 $ 7,702,102.86 3,912,475.14

2,112,567.79 $ 312,974.13
300,400.22

587,318.73 $ 247,000.00
-

5,095,623.93 -
38,236.84

107,144,954.08 7,768,076.99 4,251,112.20

35,178,724.86 6,011,874.26 2,975,426.98

2,680,653.37 351,090.20 156,419.04

247,000.00
-

-

37,859,378.23

-

6,115,964.46

-

3,131,846.02

Total Capital Assets Being Depreciated, Net

67,972,632.99

(462,220.47)

587,318.73

5,133,860.77

72,056,954.56

Governmental Activities Capital Assets - Net

$ 75,452,466.15 $ (412,920.47) $ 587,318.73 $

- $ 74,452,226.95

Current year depreciation expense by function is as follows:

Instruction

Support Services

Pupil Services

$

Educational Media Services

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Food Services

105,521.19 154,081.50 110,058.22 165,158.96 328,786.53
79,700.11

$ 1,967,093.87
943,306.51 277,762.23

$ 3,188,162.61

- 16 -

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

EXHIBIT "G"

NOTE 6: INTERFUND TRANSFERS Interfund Transfers Interfund transfers for the year ended June 30, 2021, consisted of the following:

Transfers To

Transfers From General Fund

Capital Projects Fund

$ 12,833,801.00

Transfers are used to move property tax revenues collected by the general fund to capital projects fund as required match or supplemental funding source for capital construction projects.

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

Balance July 1, 2020

Governmental Activities

Balance

Additions Deductions

June 30, 2021

Due Within One Year

General Obligation (G.O.) Bonds $ 14,470,000.00 $

Unamortized Bond Premiums

964,842.47

- $ 860,000.00 $ 13,610,000.00 $ 900,000.00

-

78,762.72

886,079.75

78,762.72

$ 15,434,842.47 $

- $ 938,762.72 $ 14,496,079.75 $ 978,762.72

General Obligation Debt Outstanding

The School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. Bonds have also been issued to advance-refund previously issued bonds. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.

The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2021. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or a direct annual ad valorem tax levied upon all taxable property within the School District.

During the current fiscal year, the voters of Decatur County authorized $30,000,000.00 in general obligation bonds that were not issued as of June 30, 2021. The primary purpose of the bonds is to pay for acquiring or constructing facilities.

General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Refunding - Series 2015 2.0% - 5.0%

4/21/2015 10/1/2032 $ 16,260,000.00 $ 13,610,000.00

- 17 -

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

EXHIBIT "G"

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

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2022 2023 2024 2025 2026 2027 - 2031 2032 - 2033

$

900,000.00 $ 509,350.00

$

935,000.00

472,650.00

980,000.00

434,350.00

1,020,000.00

389,250.00

1,070,000.00

337,000.00

6,030,000.00

971,050.00

2,675,000.00

101,925.00

78,762.72 78,762.72 78,762.72 78,762.72 78,762.72 393,813.60 98,452.55

Total Principal and Interest $

13,610,000.00 $ 3,215,575.00

$

886,079.75

NOTE 8: RISK MANAGEMENT
Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters; unemployment compensation; and dental plans.
Georgia School Boards Association Risk Management Fund
The School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage.
Workers' Compensation
Georgia Education Workers' Compensation Trust
The School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability

- 18 -

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

EXHIBIT "G"

claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium.

Dental Insurance
The School District has established a limited risk management program for dental insurance claims. A premium is charged to covered employees. Additionally, a premium is charged by the general fund to each user fund on the basis of employee participation in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount if that loss can be reasonably estimated.

Changes in the dental insurance claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020 $

-

$ 178,388.51

$ 178,388.51

$

-

2021 $

-

$ 187,577.96

$ 187,577.96

$

-

Unemployment Compensation
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
There have been no unemployment compensation claims during the last two fiscal years.
Surety Bond
The School District purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Chief Financial Officer Bookkeeper Payroll Officer

$

50,000.00

$

10,000.00

$

10,000.00

$

10,000.00

- 19 -

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

EXHIBIT "G"

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2021:

Nonspendable

Inventories

Restricted

Bus Replacement

$

Continuation of Federal Programs

Debt Service

Other - Scholarships

Assigned

Local Capital Outlay Projects

Unassigned

$
231,660.00 620,399.05 5,132,788.41
37,157.49

236,662.60
6,022,004.95 16,807,996.66 19,919,258.59

Fund Balance, June 30, 2021

$

42,985,922.80

When multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.

It is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 5% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance.

NOTE 10: SIGNIFICANT COMMITMENTS

Operating Leases
The School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $170,046.96 for governmental activities for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021:

Year Ending

Governmental Activities

2022 2023 2024 2025

$

165,941.88

85,710.44

44,966.10

1,716.12

Total

$ 298,334.54

- 20 -

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

EXHIBIT "G"

NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,152,908.00 for the year ended June 30, 2021. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2021, the School District reported a liability of $46,911,981.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019.
- 21 -

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

EXHIBIT "G"

An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.319397%, which was a decrease of 0.010766% from its proportion measured as of June 30, 2019.

For the year ended June 30, 2021, the School District recognized OPEB expense of $1,516,512.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$

-

$ 5,121,332.00

Changes of assumptions

7,758,200.00

4,174,157.00

Net difference between projected and

actual earnings on OPEB plan investments

122,270.00

-

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

24,349.00

1,815,729.00

School District contributions subsequent to

the measurement date

1,152,908.00

-

Total

$ 9,057,727.00 $ 11,111,218.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2022 2023 2024 2025 2026 Thereafter

$ (1,279,342.00) $ (1,282,623.00) $ (1,027,657.00) $ (272,254.00) $ 449,831.00 $ 205,646.00

- 22 -

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

EXHIBIT "G"

Actuarial assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020:
OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

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

Healthcare cost trend rate

Pre-Medicare Eligible Medicare Eligible Ultimate trend rate

7.00% 5.25%

Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate

4.50% 4.50%

Pre-Medicare Eligible

2029

Medicare Eligible

2023

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

For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. Rates of mortality in active service was based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan.

- 23 -

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

EXHIBIT "G"

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class Fixed income Equities

Target allocation 30.00% 70.00%

Long-Term Expected Real Rate of Return*
0.50% 9.20%

Total

100.00%

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

- 24 -

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

EXHIBIT "G"

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

1% Decrease (1.22%)

Current Discount Rate (2.22%)

1% Increase (3.22%)

School District's proportionate share of the Net OPEB liability

$ 55,113,838.00 $

46,911,981.00 $ 40,352,786.00

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

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

School District's Proportionate share of the Net OPEB liability

$ 39,058,940.00 $

46,911,981.00 $ 57,079,388.00

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.
Post-employment Benefits Other Than Pensions (SEAD-OPEB)
Plan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other post-employment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Post-employment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.
Benefits Provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.
Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2021.

- 25 -

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

EXHIBIT "G"

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

At June 30, 2021, the School District reported an asset of $6,305.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB asset was based on actual member salaries reported to the SEADOPEB plan during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.002220%, which was a decrease of 0.001972% from its proportion measured as of June 30, 2019.

For the year ended June 30, 2021, the School District recognized OPEB expense of $1,592.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

SEAD-OPEB

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience

$

2.00 $

59.00

Net difference between projected and actual earnings on OPEB plan investments

112.00

-

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

2,943.00

115.00

Total

$ 3,057.00 $

174.00

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

SEAD-OPEB

2022 2023 2024 2025

$ 1,933.00 $ 715.00 $ 132.00 $ 103.00

- 26 -

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

EXHIBIT "G"

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

SEAD OPEB:

Inflation

2.75%

Salary increases:

ERS

3.25% 7.00%

GJRS

4.50%

LRS

N/A

Investment rate of return

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

Healthcare cost trend rate

N/A

Postretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the long-term assumed rate of return and the assumed annual rate of inflation.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative
Total
* Rates shown are net of inflation

SEAD - OPEB Target
allocation
30.00% 46.20%
1.30% 12.40%
5.10% 5.00%
100.00%

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

- 27 -

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

EXHIBIT "G"

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

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

School District's proportionate share of

the net OPEB asset

$

3,497.00 $

6,305.00 $

8,620.00

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS annual comprehensive financial report which is publicly available at www.ers.ga.gov/financials.
NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
Teachers Retirement System of Georgia (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.

- 28 -

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

EXHIBIT "G"

Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.96% of payroll was required from the School District and 0.10% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,950,117.53 and $26,409.84 from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate for the year ended June 30, 2021 was 24.66% of annual
- 29 -

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

EXHIBIT "G"

covered payroll for old plan members of which 19.91% was required from the School District and 4.75% was contributed on behalf of the School District by the state. Additionally, the School District's total required contribution rate was 24.66% for new plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There were no employer contributions required for the fiscal year ended June 30, 2021.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $146,328.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $49,697,909.00 for its proportionate share of the net pension liability for TRS ($49,653,694.00) and ERS ($44,215.00).

- 30 -

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

EXHIBIT "G"

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

School District's proportionate share of the net pension liability

$ 49,653,694.00

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

210,990.00

Total

$ 49,864,684.00

The net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 0.204978%, which was a decrease of 0.004744% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.001049%, which was a decrease of 0.001072% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $736,671.00.
The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.
For the year ended June 30, 2021, the School District recognized pension expense of $6,879,902.00 for TRS, ($8,175.66) for ERS and $148,243.00 for PSERS and revenue of $10,928.00 for TRS and $148,243.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 31 -

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

EXHIBIT "G"

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

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual experience

$ 2,162,434.00 $

-

$ 539.00 $

-

Changes of assumptions

5,114,388.00

-

-

-

Net difference between projected and actual earnings on pension plan investments

1,195,917.00

-

625.00

-

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

-

2,586,628.00

-

26,232.00

School District contributions

subsequent to the measurement date

4,950,117.53

-

-

-

Total

$ 13,422,856.53 $ 2,586,628.00 $ 1,164.00 $ 26,232.00

The School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2022 2023 2024 2025

$ 635,754.00 $ $ 1,933,579.00 $ $ 2,307,812.00 $ $ 1,008,966.00 $

(18,003.00) (8,337.00) 725.00 547.00

- 32 -

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

EXHIBIT "G"

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

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

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

Post-retirement benefit increases 1.50% semi-annually
Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.
Employees' Retirement System:

Inflation

2.75%

Salary increases

3.25% - 7.00%, including inflation

Investment rate of return

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

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

- 33 -

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

EXHIBIT "G"

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.
Public School Employees Retirement System:

Inflation

2.75%

Salary increases

N/A

Investment rate of return

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

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

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.

- 34 -

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

EXHIBIT "G"

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

Asset class

TRS Target allocation

ERS/PSERS Target
allocation

Long-term expected real rate of return*

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

30.00% 51.00%
1.50% 12.40%
5.10% --

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

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

Total

100.00%

100.00%

* Rates shown are net of the 2.75% assumed rate of inflation with the exception of TRS, which assumed a rate
of 2.50% rate of inflation.
Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

- 35 -

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

EXHIBIT "G"

Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

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

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

$ 78,738,906.00 $

49,653,694.00 $ 25,812,160.00

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

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

$

62,203.00 $

44,215.00 $

28,865.00

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

Defined Contribution Plan

Employees of the School District may elect to contribute to a 403(b) and/or 457 plans. The School District selected VALIC as the provider of these plans. The employee becomes vested in the plan as of their hire date. Employee participation in either of these plans is not mandatory.

For the groups of employees not covered under the Federal Social Security program, it was the Board's desire to supplement the retirement of this group of employees. For each employee not covered under Social Security that contribute 4% of their base pay to the 403(b) or the 457 plan, then the School District matches 3% of the employee's contribution.

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

Fiscal Year

Percentage Contributed

Required Contribution

2021 2020 2019

3%

$

464,244.41

3%

$

472,940.24

3%

$

444,645.15

- 36 -

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

EXHIBIT "G"

NOTE 14: TAX ABATEMENTS
Decatur County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Decatur County.
For the fiscal year ended June 30, 2021, Decatur County abated property taxes due to the School District that were levied on September 08, 2020 and due on December 20, 2020 totaling $200,227.03. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10.00% percent of the total amount abated:
A 100 percent property tax abatement to a heat exchange industry manufacturing plant relocating and employing residents. The abatement amounted to $71,915.46.
A 100 percent property tax abatement to an international personal protection manufacturing plant relocating and employing residents. The abatement amounted to $128,311.57.
NOTE 15: IMPAIRMENT OF ASSETS
During the current year, the School District has recognized that the following assets qualified as impaired due to them no longer being used for their intended purpose. John-Johnson Elementary School was impaired after the school was closed and discontinued use of the buildings. Additionally, the old West Bainbridge Middle School was renovated and repurposed as administrative offices. These changes resulted in an impairment loss of $587,318.73.

Asset Qualifying As Impaired
Buildings - Old Elementary School Buildings - Old Middle School

Historical Cost

Less Accumulated Depreciation

Carrying Value

Fair Market Value as the new carrying value of assets

(Gain)/Loss

$ 2,788,857.74 $ 2,003,996.00 $

2,178,462.29

1,715,539.07

784,861.74 $ 462,923.22

442,620.00 $ 217,846.23

(342,241.74) (245,076.99)

Total

$ 4,967,320.03 $ 3,719,535.07 $ 1,247,784.96 $

660,466.23 $

(587,318.73)

This impairment loss is reported on the financial statements as a special item.

- 37 -

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DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "1"

For the Year Ended
June 30

School District's proportion of the net pension liability

School District's proportionate share of the net pension liability

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

Total

School District's 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

2021 2020 2019 2018 2017 2016 2015

0.204978% $ 49,653,694.00 $ 0.209722% $ 45,095,901.00 $ 0.217705% $ 40,410,711.00 $ 0.227194% $ 42,224,705.00 $ 0.234773% $ 48,436,288.00 $ 0.245751% $ 37,413,149.00 $ 0.255968% $ 32,338,181.00 $

210,990.00 180,408.00 151,838.00 236,405.00
311,117.00 241,909.00 204,792.00

$ 49,864,684.00 $ 45,276,309.00 $ 40,562,549.00 $ 42,461,110.00 $ 48,747,405.00 $ 37,655,058.00 $ 32,542,973.00

$ 26,540,623.92 $ 25,694,995.44 $ 26,071,117.28 $ 26,314,899.69 $ 25,966,553.21 $ 26,123,937.28 $ 26,396,136.56

187.09% 175.50% 155.00% 160.46% 186.53% 143.21% 122.51%

77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03%

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

- 39 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "2"

For the Year Ended June
30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

4,950,117.53 $ 5,587,515.90 $ 5,348,714.55 $ 4,366,089.87 $ 3,733,920.39 $ 3,681,830.55 $ 3,413,244.46 $

4,950,117.53 $ 5,587,515.90 $ 5,348,714.55 $ 4,366,089.87 $ 3,733,920.39 $ 3,681,830.55 $ 3,413,244.46 $

-

$ 26,114,175.92

-

$ 26,540,623.92

-

$ 25,694,995.44

-

$ 26,071,117.28

-

$ 26,314,899.69

-

$ 25,966,553.21

-

$ 26,123,937.28

18.96% 21.05% 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.

- 40 -

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

SCHEDULE "3"

For the Year Ended June 30

School District's proportion of the net
pension liability

School District's proportionate share of the net pension liability

School District's covered payroll

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

Plan fiduciary net position as a
percentage of total pension liability

2021 2020 2019 2018 2017 2016 2015

0.001049% $ 0.002121% $ 0.002145% $ 0.002412% $ 0.004315% $ 0.004951% $ 0.005014% $

44,215.00 $ 87,524.00 $ 88,182.00 $ 97,959.00 $ 204,118.00 $ 200,585.00 $ 188,056.00 $

26,456.00 53,467.13 54,722.80 59,159.66 100,333.87 113,202.45 115,377.78

167.13% 163.70% 161.14% 165.58% 203.44% 177.19% 162.99%

76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99%

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

- 41 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "4"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

-

$

6,524.08 $

13,249.20 $

13,576.76 $

14,677.44 $

24,802.45 $

24,860.14 $

-

$

6,524.08 $

13,249.20 $

13,576.76 $

14,677.44 $

24,802.45 $

24,860.14 $

-

$

-

-

$

26,456.00

-

$

53,467.13

-

$

54,722.80

-

$

59,159.66

-

$ 100,333.87

-

$

113,202.45

0.00% 24.66% 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.

- 42 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "5"

For the Year Ended
June 30

School District's proportion of the net pension liability

School District's proportionate share of the net pension liability

State of Georgia's proprotionate
share of the net pension liaibility associated with the School District

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

2021 2020 2019 2018 2017 2016 2015

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

-

$

736,671.00 $

736,671.00 $

1,958,173.13

-

$

749,204.00 $ 749,204.00 $ 1,980,252.81

-

$

764,070.00 $ 764,070.00 $ 2,037,798.41

-

$

686,160.00 $ 686,160.00 $ 1,994,459.85

-

$

908,360.00 $ 908,360.00 $ 1,939,577.85

-

$

589,501.00 $ 589,501.00 $ 1,942,270.26

-

$

518,192.00 $

518,192.00 $ 1,937,302.02

N/A

84.45%

N/A

85.02%

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.

- 43 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL OPEB FUND

SCHEDULE "6"

For the Year Ended
June 30

School District's proportion of the net OPEB liability

School District's proportionate share of the net OPEB liability

State of Georgia's proprotionate
share of the net OPEB liaibility 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 coveredemployee payroll

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

2021 2020 2019 2018

0.319397% $ 46,911,981.00 $ 0.330163% $ 40,518,083.00 $ 0.334412% $ 42,502,739.00 $ 0.334694% $ 47,024,372.00 $

-

$ 46,911,981.00 $ 24,429,081.76

-

$ 40,518,083.00 $ 21,870,813.31

-

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

-

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

192.03% 185.26% 178.04% 197.12%

3.99% 4.63% 2.93% 1.61%

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

- 44 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

SCHEDULE "7"

For the Year Ended June
30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-
employee payroll

Contribution as a percentage of
covered-employee payroll

2021

$

2020

$

2019

$

2018

$

1,152,908.00 $ 1,080,128.00 $ 1,778,157.00 $ 1,733,228.00 $

1,152,908.00 $ 1,080,128.00 $ 1,778,157.00 $ 1,733,228.00 $

-

$ 24,656,536.94

-

$ 24,429,081.76

-

$ 21,870,813.31

-

$ 23,872,886.98

4.68% 4.42% 8.13% 7.26%

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 PROPORTIONATE SHARE OF THE NET OPEB ASSET
SEAD-OPEB

SCHEDULE "8"

For the Year Ended June 30

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

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

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

2021 2020 2019 2018

0.002220% $ 0.004192% $ 0.003953% $ 0.004062% $

6,305.00 $ 11,854.00 $ 10,699.00 $ 10,557.00 $

26,456.00 53,467.13 54,722.80 59,159.66

-23.83% -22.17% -19.55% -17.84%

129.20% 129.73% 129.46% 130.17%

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

- 46 -

DECATUR COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SEAD-OPEB

SCHEDULE "9"

For the Year Ended June 30

Contractually required
contribution

2021

$

-

2020

$

-

2019

$

-

2018

$

-

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

$

-

$

-

$

-

0%

$

-

$

-

$

26,456.00

0%

$

-

$

-

$

53,467.13

0%

$

-

$

-

$

54,722.80

0%

This 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, 2021

SCHEDULE "10"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Employees' Retirement System
Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two onetime 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.
Public School Employees Retirement System
Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the 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.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.
- 48 -

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

SCHEDULE "10"

School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions : The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.
SEAD-OPEB Employer
Changes of assumptions : On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized by the Plan. 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 the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forward 2 years for both males and females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for 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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.

- 49 -

DECATUR COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANACES BUDGET AND ACTUAL
YEAD ENDED JUNE 30, 2021

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 Other Uses Total Other Financing Sources (Uses)
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 $

16,121,021.71 $

1,613,228.71

75,000.00

75,000.00

178,383.48

103,383.48

27,902,610.00

28,432,810.00

30,086,406.54

1,653,596.54

11,753,352.00

21,413,552.00

17,902,945.16

(3,510,606.84)

1,600,700.00

1,106,399.00

973,372.50

(133,026.50)

25,542.00

25,180.00

16,110.79

(9,069.21)

429,364.00

429,364.00

422,199.55

(7,164.45)

56,294,361.00

65,990,098.00

65,700,439.73

(289,658.27)

33,677,914.02
3,003,982.00 1,686,112.00 1,162,004.00 401,225.00
3,049,183.00 314,510.00
4,636,499.00 2,700,773.00
555,695.00 271,914.00 4,685,177.00 56,144,988.02 149,372.98

43,022,304.00
3,036,261.00 2,010,837.00 1,165,559.00 1,598,594.00 3,081,130.00
325,059.00 4,931,720.00 3,124,290.00
560,912.00 272,432.00 4,790,939.00 67,920,037.00 (1,929,939.00)

32,298,580.80
2,504,402.56 1,668,931.05 1,123,941.97 381,110.87 2,912,781.15 323,567.50 4,684,772.86 2,533,856.07 411,054.06 20,759.71 3,283,323.50
52,147,082.10 13,553,357.63

10,723,723.20
531,858.44 341,905.95
41,617.03 1,217,483.13 168,348.85
1,491.50 246,947.14 590,433.93 149,857.94 251,672.29 1,507,615.50 15,772,954.90 15,483,296.63

235,650.00 (1,069,451.00)
(833,801.00)

280,041.00 (13,113,842.00) (12,833,801.00)

(12,833,801.00) (12,833,801.00)

(280,041.00) 280,041.00
-

(684,428.02)

(14,763,740.00)

719,556.63

15,483,296.63

20,325,581.10

20,325,581.10

20,325,581.10

-

21,834.15

-

-

-

$

19,662,987.23 $

5,561,841.10 $

21,045,137.73 $

15,483,296.63

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.

- 50 -

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2021

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 Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Achievement Program Rural Education Achievement Program 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 Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

215GA324N1199 $

920,527.38

215GA324N1199

2,172,484.64

3,093,012.02

84.425D 84.425D

S425D200012 S425D210012

2,102,582.86 8,515,561.58 10,618,144.44

84.027A 84.027A 84.173A 84.173A

H027A190073 H027A200073 H173A190081 H173A200081

367,271.21 593,678.23
14,684.00 30,742.82 1,006,376.26

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

V048A200010 S365A190010 S365A200010 S011A190011 S011A200011 S358B190010 S358B200010 S424A190001 S424A200011 S367A190001 S367A200001 S010A190010 S010A200010 S010A200010-20A

67,985.00 7,380.00 17,935.80 39,814.00
129,704.15 13,931.00
81,811.12 88,976.37 116,762.46 24,223.00 201,965.11 502,030.02 32,979.12 2,146,310.41 3,471,807.56 15,096,328.26

93.575

2110GACCC5

24,348.00 - 51 -

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2021

SCHEDULE "12"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program
Total Expenditures of Federal Awards

ASSISTANCE LISTING NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

12.UNKNOWN

30,660.35 $ 18,244,348.63

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, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 4. Donated PPE
In response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management and Homeland Security Agency (GEMA/HS). GEMA/HS, then donated PPE with an estimated fair market value of $2,225.00 to the Decatur County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

See notes to the basic financial statements.

- 52 -

DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2021
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 Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Education Equalization Funding Grant Other State Programs Food Services Georgia Foundation for Public Education - COVID-19 Response Fund Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Safety Grant Teachers Retirement Vocational Education Georgia Emergency Mangement Agency Donations to LEA for COVID Office of the State Treasurer Public School Employees Retirement
See notes to the basic financial statements.

SCHEDULE "13"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

1,286,623.50

1,189,263.00 542,160.00
2,327,569.00 1,462,877.00 1,306,436.00 1,001,593.00 2,721,789.00 2,654,561.00
1,103,110.00 3,941,855.00
733,418.00 1,007,973.00
215,290.00 358,803.00 515,784.00 162,529.00
94,423.00 2,270.00
630,199.00 1,208,379.00 1,100,564.00
703,620.00 (826,019.00)

864,774.00 231,660.00
94,143.00 2,745,109.00

85,488.00 10,000.00
4,252.00 28,187.00 73,838.00 77,220.00 58,270.00 26,409.84 130,178.00

65,480.20

146,328.00

$

30,086,406.54

- 53 -

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

SCHEDULE "14"

PROJECT 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

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

$

2,250,000.00 $

2,250,000.00

4,000,000.00

4,000,000.00

2,000,000.00

903,106.20

8,000,000.00

7,876,065.85

8,250,000.00

9,470,827.95

2,000,000.00

2,000,000.00

1,500,000.00

1,500,000.00

500,000.00

500,000.00

500,000.00

500,000.00

500,000.00

500,000.00

500,000.00

500,000.00

$

30,000,000.00 $

30,000,000.00

ESTIMATED COMPLETION
DATE
6/30/2022 6/30/2022 completed 6/30/2023 completed 6/30/2022 6/30/2022 6/30/2022 6/30/2022 6/30/2022 6/30/2022

- 54 -

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

SCHEDULE "14"

PROJECT 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

EXPENDED IN CURRENT YEAR (3) (4)
$ 544,550.00 $ 860,000.00 49,300.00 2,057,185.11 -

EXPENDED IN PRIOR YEARS (3) (4)
867,975.00 $ 1,194,080.04
903,106.20 -
7,413,642.84 559,565.00 -

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

-

$

-

-

-

903,106.20

-

-

-

9,470,827.95

-

-

-

-

-

-

-

-

-

-

-

-

-

$

3,511,035.11 $ 10,938,369.08 $ 10,373,934.15 $

-

(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.

- 55 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mr. Tim Cochran, Superintendent and Members of the Decatur County Board of Education
We have audited the financial statements of the governmental activities and each major fund of the Decatur County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated April 11, 2021. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
April 11, 2021

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mr. Tim Cochran, Superintendent and Members of the Decatur County Board of Education
Report on Compliance for Each Major Federal Program
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 programs for the year ended June 30, 2021. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the School District's compliance.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
April 11, 2021

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, 2021
Prior Year Financial Statement Findings No matters were reported.
Prior Year Federal Award Findings and Questioned Costs No matters were reported.

Section IV Findings and Questioned Costs

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities and Each Major Fund
Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified?
Noncompliance material to financial statements noted:

Federal Awards

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

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

All major programs

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

Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

84.425

Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

Unmodified No
None Reported No
No None Reported
Unmodified No
$750,000.00 Yes

II FINANCIAL STATEMENT FINDINGS No matters were reported.

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