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

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

ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET POSITION

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

G

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

H

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS

I NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

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

Page
i
1 2
3 4 5 6 7 8 9
33 34 35 36

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ELBERT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION I FINANCIAL SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION 5 SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND SUPPLEMENTARY INFORMATION 8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
37 38 39
40 41 43

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
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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SECTION I FINANCIAL

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

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

INDEPENDENT AUDITOR'S REPORT

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

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

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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 15, 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,

March 15, 2021

Greg S. Griffin State Auditor

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ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Introduction
Our discussion and analysis of the Elbert County School District's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance.
Financial Highlights
Key financial highlights for fiscal year 2020 are as follows:
On the government-wide financial statements, the liabilities and deferred inflows of resources of the School District exceeded assets and deferred outflows of resources by $17.30 million. In part, this overage is due to the GASB No. 68 implementation and pension plan reporting as well as the GASB No. 75 implementation and OPEB plan reporting.
The School District had $38.61 million in expenses relating to governmental activities; only $25.25 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $14.29 million were utilized to provide for these programs with the result that net position was increased by $934 thousand.
As stated above, general revenues accounted for $14.29 million or 36.14% of all revenues totaling $39.54 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest.
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 School District's overall financial status.
The fund financial statements focus on individual parts of the School District, 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 fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Elbert County School District, the general fund and capital projects fund are the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
i

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Government-Wide Statements
The government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results 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.
The Statement of Net Position and the Statement of Activities reflects the School District's governmental activities.
Fund Financial Statements
The School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds.
Governmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements.
Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts and a private purpose trust. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations.
ii

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

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 this fiscal year as compared to the prior fiscal year.

Table 1 Net Postion

Assets Current and Other Assets Capital Assets, Net

Governmental Activities

Fiscal Year

Fiscal Year

2020

2019

$ 12,695,372 $ 27,251,574

11,381,882 28,247,322

Total Assets

39,946,946

39,629,204

Deferred Outflows of Resources Deferred Outflows for Pension Plans Deferred Outflows for OPEB Plans

9,439,707 2,197,689

7,020,006 1,142,848

Total Deferred Outflows of Resources

11,637,396

8,162,854

Liabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability

2,261,633 1,751,441 30,982,601 25,252,885

3,185,900 2,325,548 27,946,233 25,581,307

Total Liabilities

60,248,560

59,038,988

Deferred Inflows of Resources Deferred Inflows for Pension Plans Deferred Inflows for OPEB Plans

2,135,609 6,501,505

1,831,762 5,156,438

Total Deferred Inflows of Resources

8,637,114

6,988,200

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

25,662,396 1,725,928
(44,689,656)

25,602,051 542,662
(44,379,843)

Total Net Position

$ (17,301,332) $ (18,235,130)

iii

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

Table 2 shows the Changes in Net Position for this fiscal year as compared to the prior fiscal year.

Table 2 Changes in Net Position

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

Governmental Activities

Fiscal Year

Fiscal Year

2020

2019

$

158,125 $

236,541

24,869,895

23,704,079

223,355

582,814

Total Program Revenues

25,251,375

24,523,434

General Revenues: Taxes Property Taxes for Maintenance & Operations Railroad Cars Sales Taxes Other Sales Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous

9,123,947
2,206,539 106,901
2,349,683 12,425
490,257

9,004,697 37,811
2,132,515 109,990
1,775,815 9,586
883,591

Total General Revenues Total Revenues

14,289,752 39,541,127

13,954,005 38,477,439

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

23,508,230
1,696,286 1,480,972
571,039 696,321 2,766,817 440,526 2,502,875 1,955,189 451,100 326,491
4,305 2,150,149
57,029

21,187,422
1,554,544 1,582,381
520,890 608,937 2,328,678 426,175 2,933,623 1,660,161 116,982 177,654
21,830 2,276,659
82,716

Total Expenses

38,607,329

35,478,652

Net Increase in Net Position

$

933,798 $

2,998,787

iv

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

Governmental Activities

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, 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 as compared to the prior fiscal year.

Table 3 Net Costs of Governmental Activities

Total Cost of Services

Fiscal Year

Fiscal Year

2020

2019

Net Cost of Services

Fiscal Year

Fiscal Year

2020

2019

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

$ 23,508,230 $ 21,187,422 $ 5,595,926 $ 4,297,443

1,696,286 1,480,972
571,039 696,321 2,766,817 440,526 2,502,875 1,955,189 451,100 326,491

1,554,544 1,582,381
520,890 608,937 2,328,678 426,175 2,933,623 1,660,161 116,982 177,654

1,468,078 765,564 138,113 (165,738)
1,679,656 420,210
1,359,891 1,227,676
432,951 303,505

1,304,828 814,964 106,027 (76,334)
1,276,331 404,752
1,903,750 845,109 108,201 32,062

4,305 2,150,149
57,029

21,830 2,276,659
82,716

4,305 68,788 57,029

(6,323) (138,307)
82,716

$ 38,607,329 $ 35,478,652 $ 13,355,954 $ 10,955,219

Financial Analysis of the School District's Funds
The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $40.92 million and total expenditures and other financing uses of $38.08 million.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2020, the School District amended its general fund budget as needed.
For the general fund, the final actual revenues of $37.55 million exceeded the final budgeted amounts of $36.23 million by $1.32 million. This difference (final actual vs. final budget) was due primarily to property tax, state revenue and miscellaneous revenues exceeding the final budget by $901, $442 and $283 thousand, respectfully.
The final actual expenditures and other financing uses of $36.23 million were less than the final budgeted amount of $36.44 million by $214 thousand. This difference was due to sub costs, professional development, utilities and transportation expenses being down due to school closures for the COVID pandemic.
v

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At fiscal year ended June 30, 2020, the School District had $27.25 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation as compared to the prior fiscal year.

Table 4 Capital Assets (Net of Depreciation)

Governmental Activities

Fiscal Year

Fiscal Year

2020

2019

Land Construction In Progress Buildings and Improvements Equipment Intangible Assets Land Improvements

$ 1,497,522 $ 1,497,522

-

788,890

21,220,399

21,028,141

2,403,336

2,698,089

2,128,075

5,250

2,242

2,229,430

Debt

Total Capital Assets

$ 27,251,574 $ 28,247,322

At fiscal year ended June 30, 2020, the School District had $1.75 million in other long-term debt. Table 5 summarizes the School District's debt.

Table 5 Long-Term Debt

Governmental Activities

Fiscal Year

Fiscal Year

2020

2019

Capital Leases

$

Energy Efficiency Lease

Revenue Bonds

Installment Sales Agreement

333,749 $ 698,960
20,422 698,310

152,857 923,960
20,422 1,228,310

Current Issues

Total Long Term Debt

$ 1,751,441 $ 2,325,549

Currently known facts, decisions or conditions that are expected to have a significant effect on financial position or results of operations are as follows:
The ESPLOST funds capital improvements and debt payments for the School District. The voters approved the continuation of the current ESPLOST until June 2022. During the fiscal year the ESPLOST fund revenues exceeded expenditures. In prior years, the ESPLOST fund was over-spent to initiate large scale projects and required loans from general fund to cover deficits. School District management intentionally controlled spending during fiscal year 2020
vi

ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020
to grow fund balance so that approved loans to ESPLOST could be paid back to general fund, $425 thousand in fiscal year 2021 and $425 thousand in fiscal year 2022. The remainder will be absorbed by the general fund. Over the past years, the enrollment of the School District has declined, causing a reduction in state funding. The School District has been able to absorb the reductions through normal attrition of staff to match student enrollment trends and conservative budget practices. Management expects the number of students remaining about the same over the next five years. The COVID-19 pandemic had both a positive and negative impact on the financial position of the School District. During fiscal year 2020, the virus had a positive impact due to school closures the costs of subs, professional development, transportation, utilities and other areas decreased, while additional costs were incurred for personal protective equipment and resources for e-learning. The pandemic will affect future years due to state revenue cuts and the rising costs of personal protective equipment and e-learning resources. The recognition of the pension and OPEB activity as required by GASB No. 68 and No. 75, respectively, makes the net position of the School District appear to be a large negative balance. Without the pension and OPEB activity, the School District would have a positive net position of over $35.93 million. 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 Mr. W. Keith Martin, Chief Financial Officer at Elbert County School District, 50 Laurel Drive, Elberton, Georgia 30635 or by phone at (706) 213-4000. You may also email your question to Mr. Martin at keith.martin@elbert.k12.ga.us.
vii

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ELBERT COUNTY BOARD OF EDUCATION

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ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020
ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Local Other Inventories Prepaid Items Restricted Assets Investments Held with Fiscal Agent or Trustee Due From Other Funds Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plan Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES
Accounts Payable Salaries and Benefits Payable Due to Other Funds 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 Plan Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Capital Projects Debt Service Unrestricted (Deficit)
Total Net Position
The notes to the basic financial statements are an integral part of this statement.

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

8,699,254.09

818,903.28 2,510,956.00
352,136.51 95,206.83
121,113.90 73,499.59 7,155.75

17,143.13 2.51
1,497,522.00 25,754,051.98

39,946,945.57

9,439,707.00 2,197,689.00
11,637,396.00

77,606.12 2,044,639.33
139,387.91 30,982,601.00 25,252,885.00
861,152.99 890,287.56
60,248,559.91

2,135,609.00 6,501,505.00
8,637,114.00

25,662,395.56
491,476.19 1,217,309.16
17,143.13 (44,689,656.38)

$ (17,301,332.34)

- 1 -

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

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 Enterprise Operations Food Services Interest on Long-Term Debt
Total Governmental Activities

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$ 23,508,229.85 $
1,696,285.89 1,480,971.71
571,038.73 696,321.49 2,766,817.24 440,525.95 2,502,875.40 1,955,189.26 451,099.57 326,491.25
4,304.86 2,150,149.04
57,028.70
$ 38,607,328.94 $

6,124.60 $ 17,819,129.21 $

-

206,254.35

-

715,407.34

-

432,926.00

-

861,733.45

-

1,080,067.76

-

20,316.18

-

1,127,090.89

-

650,293.16

-

18,148.48

-

11,350.99

152,000.36
-

1,927,177.63
-

158,124.96 $ 24,869,895.44 $

87,049.74 $ (5,595,926.30)

21,953.15 -
326.15 7,093.60
15,893.72 77,220.00
11,635.49

(1,468,078.39) (765,564.37) (138,112.73) 165,738.11
(1,679,655.88) (420,209.77)
(1,359,890.79) (1,227,676.10)
(432,951.09) (303,504.77)

2,183.33
-

(4,304.86) (68,787.72) (57,028.70)

223,355.18

(13,355,953.36)

General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects/Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year

9,123,947.42
2,206,538.63 106,900.49
2,349,683.00 12,425.12
490,256.53
14,289,751.19
933,797.83
(18,235,130.17)

Net Position - End of Year

$ (17,301,332.34)

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

- 2 -

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

EXHIBIT "C"

ASSETS
Cash and Cash Equivalents Receivables, Net
Taxes State Government Federal Government Local Other Due from Other Funds Inventories Prepaid Items Restricted Investments with a Fiscal Agent or Trustee

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 6,817,977.41 $ 1,881,276.68 $ 8,699,254.09

615,727.67 2,510,956.00
352,136.51 95,206.83
121,113.90 850,002.51
73,499.59 7,155.75

203,175.61 -

818,903.28 2,510,956.00
352,136.51 95,206.83
121,113.90 850,002.51
73,499.59 7,155.75

17,143.13

-

17,143.13

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

$ 11,460,919.30 $ 2,084,452.29 $ 13,545,371.59

$

77,606.12 $

2,044,639.33

139,387.91

2,261,633.36

- $ 850,000.00
850,000.00

77,606.12 2,044,639.33
989,387.91
3,111,633.36

356,472.76

-

356,472.76

80,655.34 495,196.60 194,793.51 8,072,167.73
8,842,813.18

1,234,452.29
-
1,234,452.29

80,655.34 1,729,648.89
194,793.51 8,072,167.73
10,077,265.47

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

$ 11,460,919.30 $ 2,084,452.29 $ 13,545,371.59

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

- 3 -

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

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Capital assets Accumulated depreciation
Certain Liabilities, including pension obligations, are not due and payable in the current period, and therefore are not reported in the governmental funds
Net pension liability Net OPEB liability
Deferred outflows and inflows of resources related to certain activities are applicable to future periods and, therefore, are not reported in the governmental 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 as liabilities in the funds.
Energy efficiency lease Capital leases Installment sales agreement Revenue bonds payable

$ 10,077,265.47

$ 48,672,858.43 (21,421,284.45)

27,251,573.98

$ (30,982,601.00) (25,252,885.00)

(56,235,486.00)

$

7,304,098.00

(4,303,816.00)

3,000,282.00 356,472.76

$

(698,960.00)

(333,748.96)

(698,309.63)

(20,421.96)

(1,751,440.55)

Net position of governmental activities (Exhibit "A")

$ (17,301,332.34)

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

- 4 -

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

EXHIBIT "E"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

TOTAL

$ 9,447,592.17 $ 106,900.49
22,891,482.18 4,356,642.26 158,124.96 10,683.53 580,913.74
37,552,339.33

- $ 2,206,538.63
418,136.00 -
1,741.59 -

9,447,592.17 2,313,439.12 23,309,618.18 4,356,642.26
158,124.96 12,425.12
580,913.74

2,626,416.22

40,178,755.55

21,862,731.51
1,609,697.25 1,404,783.71
553,890.73 680,335.98 2,619,337.39 430,966.95 2,105,028.50 1,800,519.10 367,054.82 263,751.75
4,304.86 2,101,056.83
17,682.00
4,249.44 -
35,825,390.82
1,726,948.51

121,412.07
228,797.87 62,739.50 480,126.55
908,571.54 57,028.70
1,858,676.23
767,739.99

21,984,143.58
1,609,697.25 1,404,783.71
553,890.73 680,335.98 2,619,337.39 430,966.95 2,333,826.37 1,800,519.10 367,054.82 326,491.25
4,304.86 2,101,056.83
497,808.55
912,820.98 57,028.70
37,684,067.05
2,494,688.50

(400,000.00)
(400,000.00)
1,326,948.51
7,515,864.67

338,713.12 400,000.00
-
738,713.12
1,506,453.11
(272,000.82)

338,713.12 400,000.00 (400,000.00)
338,713.12
2,833,401.62
7,243,863.85

Fund Balances - Ending

$ 8,842,813.18 $ 1,234,452.29 $ 10,077,265.47

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

- 5 -

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

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense.
Capital outlay Depreciation expense
In the Statement of Activities, only the gain or loss on the sale or disposal of the capital assets equipment is reported, whereas in the governmental funds, the entire proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balances by the carrying value of the capital assets sold or disposed of.
Proceeds received from capital leases are reported as liabilities in the Statement of Activities whereas in the Governmental Funds these proceeds are reported as other financing sources
Capital lease proceeds
Certain revenues are not deferred in the Statement of Activities based on availability as they are in the Governmental Funds
Unavailable state construction funds Unavailable property taxes
Repayment of long-term debt is reported as an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position. In the current year, these amounts consist of:
Capital lease payments Energy efficiency lease payments Installment sale agreement payments
Expenses recorded in the Statement of Activities related to the deferred benefit plans do require the use of the current financial resources
Pension expense OPEB expense

$ 2,833,401.62

$

768,762.62

(1,673,853.02)

(905,090.40)

(90,657.21)

(338,713.12)

$

(272,000.82)

(323,644.75)

(595,645.57)

$

157,820.98

225,000.00

530,000.00

912,820.98

$

(920,514.47)

38,196.00

(882,318.47)

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

$

933,797.83

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

- 6 -

ASSETS Cash and Cash Equivalents Due From Other Funds
Total Assets LIABILITIES Due To Other Funds Funds Held for Others Total Liabilities NET POSITION Held in Trust for Private Purposes

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

EXHIBIT "G"

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$

44,550.04 $

-

139,387.91

$

44,550.04 $ 139,387.91

2.51 -
2.51

139,387.91
139,387.91

$

44,547.53

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

- 7 -

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

EXHIBIT "H"

PRIVATE PURPOSE TRUSTS

$

63.08

1,000.00 (936.92)
45,484.45
$ 44,547.53

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

- 8 -

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

EXHIBIT "I"

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

- 9 -

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

EXHIBIT "I"

Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS:
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. The School District had no funds that were reported as nonmajor governmental funds.
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) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The School District reports the following fiduciary fund types:
Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments.
Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations.
BASIS OF ACCOUNTING
The basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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-

- 10 -

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

EXHIBIT "I"

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 and acquisitions under capital leases are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
NEW ACCOUNTING PRONOUNCEMENTS
In fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.
INVESTMENTS
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
RECEIVABLES
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Due to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year.
INVENTORIES
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (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
- 11 -

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

EXHIBIT "I"

when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

PREPAID ITEMS

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

RESTRICTED ASSETS

Certain resources set aside for repayment of debt are classified as restricted assets on the Statement of net position because their use is limited by applicable debt statutes, associated with the Rutland Center revenue bonds.

CAPITAL ASSETS

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

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

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

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

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment Intangible Assets

Any Amount

$

5,000.00

$

5,000.00

$

5,000.00

$

5,000.00

N/A 20 years Up to 50 years 2 to 25 years 3 to 6 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
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period.
- 12 -

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

EXHIBIT "I"

PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
FUND BALANCES
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.
Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.
Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.
USE OF ESTIMATES
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

- 13 -

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

EXHIBIT "I"

PROPERTY TAXES

The Elbert County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on September 26, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 17, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Elbert County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $9,447,592.17.

The tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.933 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in the property tax revenue as shown above, amounted to $847,281.92 during fiscal year ended June 30, 2020.
SALES TAXES
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,206,538.63 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. The most recent authorization expires June 30, 2022.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, Title II program, and various minor local programs, is prepared and adopted by fund and function. 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.
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 fiscal year 2020.

- 14 -

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

EXHIBIT "I"

NOTE 4: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, School District had deposits with a carrying amount of $8,743,804.13, and a bank balance of $9,815,903.44. The bank balances insured by Federal depository insurance were $609,081.90 and the remaining balance of 9,206,821.54 was exposed to custodial credit risk and was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.

- 15 -

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

EXHIBIT "I"

In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.
CATEGORIZATION OF INVESTMENTS
At June 30, 2020, the School District had the following investments:

Investment Type

Fair Value

Investment Maturity Less Than 1 Year

Debt Securities Bond Mutual Funds

$ 17,143.13 $

17,143.13

Fair Value of Investments
The School District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs.
The Bond Mutual Funds of $17,143.13 shown above are valued using quoted market prices. (Level 1 inputs)
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk.
Custodial Credit Risk
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk.
At June 30, 2020, $17,143.13 of the School District's applicable investments were held by the investment's counterparty, not in the School District's name.
Credit Quality Risk
Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed O.C.G.A. 36-83-4. The School District does not have a formal policy that would further limit its investment choices or one that addresses credit risk.
NOTE 5: RESTRICTED ASSETS
The restricted assets represent the investment balance, totaling $17,143.13 for the Rutland Revenue Bonds. These assets are pledged to redeem revenue bonds upon maturity.

- 16 -

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

EXHIBIT "I"

NOTE 6: CAPITAL ASSETS

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

Balances July 1, 2019

Increases

Decreases

Transfers

Balances June 30, 2020

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

$ 1,497,522.00 $ 788,889.78

- $ 339,871.87

- $

- $ 1,497,522.00

-

(1,128,761.65)

-

Total Capital Assets Not Being Depreciated

2,286,411.78

339,871.87

-

(1,128,761.65)

1,497,522.00

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

33,935,275.52 9,143,235.33 2,584,676.93 306,516.25
12,907,135.04 6,445,146.42 355,246.50 301,266.26

34,204.00 370,081.00
24,605.75 -

352,020.00
-

1,128,761.65 -

35,098,241.17 9,161,296.33 2,609,282.68 306,516.25

970,707.29 574,176.26 125,961.25
3,008.22

261,362.79
-

-

13,877,842.33

-

6,757,959.89

-

481,207.75

-

304,274.48

Total Capital Assets, Being Depreciated, Net

25,960,909.81

(1,244,962.27)

90,657.21

1,128,761.65

25,754,051.98

Governmental Activities Capital Assets - Net $ 28,247,321.59 $ (905,090.40) $ 90,657.21 $

- $ 27,251,573.98

Current year depreciation expense by function is as follows:

Instruction Support Services
Pupil Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services

$ 231,972.93 3,446.32
74,956.17 167,944.67 129,682.27 122,949.17

$ 919,830.80
730,951.53 23,070.69

$ 1,673,853.02

NOTE 7: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS

INTERFUND ASSETS AND LIABILITIES

Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2020, consisted of the following:

Due From Other Funds

Due To Other Funds

General Fund

$

Capital Projects Fund

Private Purpose Trust Funds

Agency Funds

850,002.51 -
139,387.91

$ 139,387.91 850,000.00 2.51 -

$ 989,390.42 $ 989,390.42

- 17 -

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

EXHIBIT "I"

INTERFUND TRANSFERS

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

Transfers to

Transfers From General Fund

Capital Projects Fund

$ 400,000.00

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

NOTE 8: LONG-TERM LIABILITIES

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

Balance July 1, 2019

Governmental Activities

Balance

Additions

Deductions

June 30, 2020

Due Within One Year

Revenue Bonds Installment Sales Agreement Capital Leases Energy Efficient Lease

$ 20,421.96 $

- $

- $

1,228,309.63

-

530,000.00

152,856.82

338,713.12

157,820.98

923,960.00

-

225,000.00

20,421.96 $ 20,421.96

698,309.63 544,000.00

333,748.96

71,731.03

698,960.00 225,000.00

$ 2,325,548.41 $ 338,713.12 $ 912,820.98 $ 1,751,440.55 $ 861,152.99

REVENUE BONDS

The School District entered into a contract with the Northeast Georgia Regional Educational Service Agency (RESA) Dated June 1, 2006, for the issuance of revenue bonds to provide funds for the construction and subsequent lease of the Rutland Center, located in Athens, Georgia. Under terms of the contract, the School District will make annual payments through August 1, 2020. Various School Districts pledged funds annually to retire the bonds as they become due. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract.

Debt currently outstanding under Revenue Bonds is as follows:

Purpose

Interest Rate Issue Date Maturity Date Amount Issued

Amount Outstanding

Rutland Agreement

3.07%

6/1/2006

8/1/2020 $

The following is a schedule of total revenue bond payments:

Fiscal Year Ended June 30:

Principal

176,332.95 $ Interest

20,421.96

2021

$

20,421.96 $

998.26

CAPITAL LEASES
The School District has acquired copier equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term.

- 18 -

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

EXHIBIT "I"

During the current fiscal year, the School District entered into a new lease agreement as lessee for financing the acquisition of copiers at a cost of $338,713.12. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception.
Capital leases currently outstanding are as follows:

Purpose

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Copier Lease Copier Lease Copier Lease

0.00% 0.00% 2.25%

10/17/2018 4/29/2019 3/17/2020

6/17/2021 $ 6/17/2022 3/20/2025

6,360.00 $ 12,748.32 338,713.12

2,583.75 8,498.88 322,666.33

$

357,821.44 $ 333,748.96

The following is a schedule of total capital lease payments:

Fiscal Year Ended June 30:

Principal

Interest

2021 2022 2023 2024 2025

$

71,731.03 $

71,024.65

68,089.98

69,637.90

53,265.40

6,591.41 5,111.54 3,598.02 2,050.10
500.61

Total Principal and Interest $

333,748.96 $

17,851.68

OBLIGATIONS UNDER FINANCED PURCHASES

An energy efficiency lease agreement dated November 26, 2012, was executed by and between the School District and the lessee and Regions Bank, the lessor. The agreement authorized the borrowing of $1,998,960.00 for the purchase of energy efficiency equipment, machinery, supplies, building modifications and other energy saving items. Payments of the lease shall be made from the School District's capital projects fund.

The School District's outstanding obligations from an energy efficiency lease agreement related to governmental activities of $698,960.00 contain a provision that in an event of default, the lessor has the option of declaring outstanding amounts immediately due and payable or they make take possession of project, equipment, machinery or supplies.

Debt currently outstanding is as follows:

Purpose

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Regions Bank Energy Efficiency Lease

2.60%

11/26/2012

1/1/2023 $ 1,998,960.00 $ 698,960.00

- 19 -

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

EXHIBIT "I"

The following is a schedule of total finance purchase payments:

Fiscal Year Ended June 30:

Principal

Interest

2021 2022 2023

$

225,000.00 $

225,000.00

248,960.00

18,186.94 12,332.44
6,477.94

Total Principal and Interest $

698,960.00 $

36,997.32

INSTALLMENT SALES AGREEMENT

The Elbert County School District entered into an agreement dated April 16, 2014, with the Georgia Municipal Association for the construction and subsequent lease of buildings and related improvements. Under terms of the agreement, the School District will make semi-annual payments through May 1, 2022.

The School District's outstanding obligations from this installment agreement at June 30, 2020 amounted to $698,309.63. This agreement contains a stipulation that in the event of a default, outstanding amounts become immediately due if the School District is unable to make payments.

Purpose

Interest Rate Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Georgia Municipal Association

2.72%

4/16/2014

5/1/2022 $ 4,127,000.00 $

698,309.63

Debt currently outstanding under the installment agreement is as follows:

Fiscal Year Ended June 30:

Principal

Interest

2021 2022

$

544,000.00 $

154,309.63

30,001.60 15,204.80

Total Principal and Interest $

698,309.63 $

45,206.40

ASSETS ACQUIRED UNDER CAPITAL LEASES
The School District has acquired land and equipment under the provision of various long-term debt agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or transfer of ownership by the end of the lease term. Assets and related accumulated depreciation thereof acquired under such agreements are as follows:

Energy Efficient Lease

Capital Leases

Installment Sales Agreement

Revenue Bonds

Land

$

- $

Equipment

1,853,841.00

Less: Accumulated Depreciation

1,024,279.22

- $ 338,713.12
20,818.98

- $ 4,480,429.05 1,380,749.59

17,569.00 145,820.89
27,275.32

$ 829,561.78 $ 317,894.14 $ 3,099,679.46 $ 136,114.57

- 20 -

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

EXHIBIT "I"

NOTE 9: RISK MANAGEMENT
INSURANCE
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Georgia School Boards Association Risk 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 School Boards Association Workers' Compensation Fund
The School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses.

UNEMPLOYMENT COMPENSATION
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims with expenses/expenditures with the liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The District has had 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 Driver's Education

$ 100,000.00

$

10,000.00

- 21 -

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

EXHIBIT "I"

NOTE 10: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2020:

Nonspendable Inventories Prepaid Assets
Restricted Continuation of Federal Programs Bus Replacement Capital Projects Debt Service
Assigned School Activity Accounts Other Local Projects

$

73,499.59

7,155.75 $

80,655.34

$

417,976.60

77,220.00

1,217,309.16

17,143.13

1,729,648.89

$

179,865.91

14,927.60

194,793.51

Unassigned

8,072,167.73

Fund Balance, June 30, 2020

$ 10,077,265.47

When multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
FEDERAL GRANTS
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
LITIGATION
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial
- 22 -

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

EXHIBIT "I"

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 $689,753.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund.

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

At June 30, 2020, the School District reported a liability of $25,252,885.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.205774%, which was an increase of 0.004500% from its proportion measured as of June 30, 2018.

For the year ended June 30, 2020, the School District recognized OPEB expense of $651,557.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual

experience

$

- $ 2,747,251.00

Changes of assumptions

876,984.00

3,559,859.00

Net difference between projected and actual

earnings on OPEB plan investments

54,993.00

-

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

575,959.00

194,395.00

School District contributions subsequent to

the measurement date

689,753.00

-

Total

$

2,197,689.00 $ 6,501,505.00

- 23 -

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

EXHIBIT "I"

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, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2021 2022 2023 2024 2025 2026

$ (1,155,413.00)

$ (1,155,413.00)

$ (1,157,527.00)

$ (983,056.00)

$ (471,464.00)

$

(70,696.00)

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

OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return Healthcare cost trend rate
Pre-Medicare Eligible Medicare Eligible

7.30%, compounded annually, net of investment expense, and including inflation
7.250% 5.375%

Ultimate trend rate Pre-Medicare Eligible Medicare Eligible

4.75% 4.75%

Year of Ultimate trend rate Pre-Medicare Eligible

2028

Medicare Eligible

2022

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

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

- 24 -

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

EXHIBIT "I"

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018.

The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation.

Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class

Target allocation

Long-Term Expected Real Rate of Return*

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

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

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

Total

100.00%

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

- 25 -

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

EXHIBIT "I"

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate:

School District's Proportionate share

of the net OPEB Liability

$

1% Decrease (2.58%)

Current Discount Rate (3.58%)

29,352,187.00 $

25,252,885.00 $

1% Increase (4.58%)
21,918,286.00

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

School District's Proportionate share

of the net OPEB Liability

$

1% Decrease

Current Healthcare Cost Trend Rate

21,272,880.00 $

22,252,885.00 $

1% Increase 30,307,793.00

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports.
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 P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually
- 26 -

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

EXHIBIT "I"

required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $3,903,298.00 from the School District.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution by the State of Georgia was $60,227.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2020, the School District reported a liability of $30,982,601.00 for its proportionate share of the net pension liability for TRS.
The net pension liability for TRS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2019.
At June 30, 2019, the School District's TRS proportion was 0.144087%, which was a decrease of 0.006468% from its proportion measured as of June 30, 2018.
At June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $353,129.00.

- 27 -

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

EXHIBIT "I"

The PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019.

For the year ended June 30, 2020, the School District recognized pension expense of $4,831,139.00 for TRS, and $108,901.00 for PSERS and revenue of $108,901.00 for PSERS. The revenue is support provided by the State of Georgia.

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

TRS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual experience

$ 1,746,337.00 $

9,186.00

Changes of assumptions

2,973,185.00

-

Net difference between projected and actual earnings on pension plan investments

-

737,790.00

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

816,887.00

1,388,633.00

School District contributions subsequent to the

measurement date

3,903,298.00

-

Total

$ 9,439,707.00 $ 2,135,609.00

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

Year Ended June 30:

TRS

2021 2022 2023 2024

$ 1,401,485.00 $ 175,314.00 $ 1,006,751.00 $ 817,250.00

- 28 -

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

EXHIBIT "I"

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

Teachers Retirement System:

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

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

Post-retirement benefit increases 1.50% semi-annually

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

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

Public School Employees Retirement System:

Inflation

2.75%

Salary increases

N/A

Investment rate of return

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

Post-retirement benefit increases

1.50% semi-annually

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

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

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

- 29 -

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

EXHIBIT "I"

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

Asset class

TRS Target allocation

PSERS Target allocation

Long-term expected real rate of return*

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

30.00% 51.00%
1.50% 12.40%
5.10% -

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

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

Total

100.00%

100.00%

* Rates shown are net of assumed rate of inflation.

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

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

Teachers Retirement System:

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

School District's proportionate share of the net pension liability

$ 50,293,830.00 $

30,982,601.00 $ 15,101,910.00

Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials.
DEFINED CONTRIBUTION PLAN
The School District maintains an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group.
The School District has selected Lincoln Financial Services as the provider of this plan. For each employee covered under PSERS, the Board contributes an amount equal to 3% of the employee's base pay. The employee becomes vested in the plan from the enrollment date. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment.

- 30 -

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

EXHIBIT "I"

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

Fiscal Year

Percentage Contributed

Required Contribution

2020 2019 2018

100%

$

11,286.00

100%

$

13,583.00

100%

$

14,833.00

- 31 -

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

SCHEDULE "1"

Year Ended
2020 2019 2018 2017 2016 2015

School District's proportion of the net
pension liability

School District's proportionate share of the net pension liability

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

0.144087% $ 0.150555% $ 0.142965% $ 0.146132% $ 0.151458% $ 0.158677% $

30,982,601.00 $ 27,946,233.00 $ 26,568,441.00 $ 30,148,661.00 $ 23,057,977.00 $ 20,046,746.00 $

17,549,418.52 17,943,982.57 16,431,083.38 16,034,314.13 16,023,377.62 16,202,581.03

176.54% 155.74% 161.70% 188.03% 143.90% 123.73%

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.

- 33 -

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

SCHEDULE "2"

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

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

3,903,298.00 $

3,903,298.00 $

-

$

3,667,828.47 $

3,667,828.47 $

-

$

3,016,383.47 $

3,016,383.47 $

-

$

2,344,715.60 $

2,344,715.60 $

-

$

2,288,096.62 $

2,288,096.62 $

-

$

2,106,396.50 $

2,106,396.50 $

-

$

1,989,676.95 $

1,989,676.95 $

-

$

1,839,965.90 $

1,839,965.90 $

-

$

1,773,669.56 $

1,773,669.56 $

-

$

2,036,726.54 $

2,036,726.54 $

-

School District's covered payroll
$ 18,464,037.77 $ 17,549,418.52 $ 17,943,982.57 $ 16,431,083.38 $ 16,034,314.13 $ 16,023,377.62 $ 16,202,581.03 $ 16,125,906.22 $ 17,253,594.96 $ 19,812,514.95

Contribution as a percentage of covered
payroll
21.14% 20.90% 16.81% 14.27% 14.27% 13.15% 12.28% 11.41% 10.28% 10.28%

- 34 -

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

SCHEDULE "3"

Year Ended

School District's proportion of the net pension liability

School District's proportionate share of the net pension liability

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

2020 2019 2018 2017 2016 2015

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

-

$

-

$

-

$

-

$

-

$

-

$

353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $

Total

School District's covered payroll

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

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

353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $

809,074.92 845,484.37 852,404.01 794,053.46 773,148.31 717,174.57

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.

- 35 -

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

SCHEDULE "4"

Year Ended
2020 2019 2018

School District's proportion of the net OPEB liability

School District's proportionate share of the net OPEB liability

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

0.205774% $

25,252,885.00 $

-

0.201274% $

25,581,307.00 $

-

0.202548% $

28,457,913.00 $

-

Total

School District's covered-employee
payroll

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

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

$ 25,252,885.00 $ 16,227,984.46 $ 25,581,307.00 $ 16,850,692.05 $ 28,457,913.00 $ 15,389,820.86

155.61% 151.81% 184.91%

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.

- 36 -

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

SCHEDULE "5"

Year Ended
2020 2019 2018 2017

Contractually required contribution

Contributions in relation to the contractually required contribution

School District's covered- Contribution as a percentage

Contribution deficiency (excess)

employee payroll

of covered-employee payroll

$

689,753.00 $

$

1,108,237.00 $

$

1,043,181.00 $

$

1,056,097.00 $

689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $

-

$

17,114,840.48

-

$

16,227,984.46

-

$

16,850,692.05

-

$

15,389,820.88

4.03% 6.83% 6.19% 6.86%

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

- 37 -

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

SCHEDULE "6"

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 RP2000 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%.

Public School Employees 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.
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 RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019.

- 38 -

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

SCHEDULE "7"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL (1)

FINAL (1)

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$

8,546,095.00 $

8,546,095.00 $

9,447,592.17 $

-

-

106,900.49

22,448,951.50

22,448,951.50

22,891,482.18

3,044,260.00

4,741,757.00

4,356,642.26

193,750.00

193,750.00

158,124.96

5,400.00

5,400.00

10,683.53

298,300.00

298,300.00

580,913.74

34,536,756.50

36,234,253.50

37,552,339.33

901,497.17 106,900.49 442,530.68 (385,114.74) (35,625.04)
5,283.53 282,613.74
1,318,085.83

21,589,191.36
1,489,845.01 1,195,785.55
538,818.12 660,325.42 2,619,967.89 431,620.87 2,121,893.86 1,998,953.57 380,538.55 254,765.00
1,967,455.50
15,000.00
35,264,160.70
(727,404.20)

21,931,259.30
1,537,107.59 1,499,630.20
541,252.40 672,153.92 2,625,992.12 451,699.21 2,148,206.68 1,998,953.57 382,038.55 268,359.96
1,967,455.50
15,000.00
36,039,109.00
195,144.50

21,862,731.51
1,609,697.25 1,404,783.71
553,890.73 680,335.98 2,619,337.39 430,966.95 2,105,028.50 1,800,519.10 367,054.82 263,751.75
4,304.86 2,101,056.83
17,682.00 4,249.44
35,825,390.82
1,726,948.51

68,527.79
(72,589.66) 94,846.49 (12,638.33) (8,182.06)
6,654.73 20,732.26 43,178.18 198,434.47 14,983.73
4,608.21 (4,304.86) (133,601.33) (17,682.00) 10,750.56
213,718.18
1,531,804.01

597,344.69 (400,000.00) 197,344.69 (530,059.51) 7,402,237.80
-

(400,000.00) (400,000.00) (204,855.50) 7,554,053.19
36,006.48

(400,000.00) (400,000.00) 1,326,948.51 7,515,864.67
-

1,531,804.01 (38,188.52) (36,006.48)

$

6,872,178.29 $

7,385,204.17 $

8,842,813.18 $

1,457,609.01

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual

(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures for the following programs which are reported as part of the general fund:

Revenues

Expenditures

Title II School Principals Accounts Various Other Local Programs

$

121,045.30 $

121,045.30

291,113.19

280,280.58

24,994.40

26,069.93

$

437,152.89 $

427,395.81

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.

- 39 -

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

SCHEDULE "8"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies
Total Other Programs
Total U. S. Department of Education
Health and Human Services, U. S. Department of Other Programs Pass-Through From Y.M.C.A. Head Start
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

205GA324N1099 $ 205GA324N1099

581,661.39 1,517,984.99
2,099,646.38

10.579

205GA324N8503

3,007.43 2,102,653.81

84.027 85.027 84.173

H027A180073 H027A190073 H173A190081

84.048 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010

V048A190010 S365B180010 S358B190010 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010

122,859.00 535,995.48
28,133.00
686,987.48
40,466.31 4,061.00
49,564.65 15,473.00 47,405.08 15,754.00 105,291.30 75,218.00 1,074,909.50
1,428,142.84
2,115,130.32

93.600

04CH010232

322,879.21

12.UNKNOWN

82,952.08

Total Expenditures of Federal Awards

$

4,623,615.42

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

See notes to the basic financial statements.

- 40 -

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

SCHEDULE "9"

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 Career Technical and Agricultural Education Program 9-12 (CTAE) 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 Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Other State Programs Career Technical and Agricultural Education Program(CTAE) Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Security Grant
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Governor's Office of Student Achievement Connections for Classrooms Grant
Office of the State Treasurer Public School Employees Retirement

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

865,382.57 $

- $

865,382.57

781,774.00 642,781.00 1,600,680.00 1,422,257.00 823,220.00 1,033,884.00 2,449,666.00 1,688,329.00 828,297.00 3,598,105.00 661,088.00
895.00 169,188.00 178,000.00 384,201.00 116,664.00
68,592.00 1,460.00
716,637.00 847,264.00 774,856.00 (295,598.00)
590,293.00 62,080.00 14,140.00
2,349,683.00
50,023.34 52,386.00 12,014.45 78,598.00 77,220.00 149,956.30

-

781,774.00

-

642,781.00

-

1,600,680.00

-

1,422,257.00

-

823,220.00

-

1,033,884.00

-

2,449,666.00

-

1,688,329.00

-

828,297.00

-

3,598,105.00

-

661,088.00

-

895.00

-

169,188.00

-

178,000.00

-

384,201.00

-

116,664.00

-

68,592.00

-

1,460.00

-

716,637.00

-

847,264.00

-

774,856.00

-

(295,598.00)

-

590,293.00

-

62,080.00

-

14,140.00

-

2,349,683.00

-

50,023.34

-

52,386.00

-

12,014.45

-

78,598.00

-

77,220.00

-

149,956.30

37,238.52 60,227.00

418,136.00 -

418,136.00 37,238.52 60,227.00

$ 22,891,482.18 $

418,136.00 $ 23,309,618.18

See notes to the basic financial statements.

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

SCHEDULE "10"

PROJECT

SPLOST 2016

(1) Renovating, modernizing, equipping,

repairing, improving, planning, and

acquiring other system facilities to

include elementary, middle, high,

athletic and operational facilities

$

(2) Purchasing textbooks and software

(3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities

(4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices

(5) Purchasing, upgrading, renovating, improving, planning and modernizing HVAC and associated systems

(6) Acquiring and preparing land for the construction of new or replacement facilties and the expansion of existing district facilties as well as replacing, purchasing, upgrading or supplementing capital equipment

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR YEARS (3) (4)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT EXPENDED (5)

6,747,219.00 $ 5,589,000.05 $ 171,427.99 $ 2,656,555.29 $

- $

-

725,000.00

352,280.63

80,161.43

146,773.84

-

-

805,000.00

332,547.63

3,278.00

304,205.75

-

-

3,400,000.00

1,327,969.66

196,061.07

644,070.80

-

-

2,616,219.00

2,193,719.00

330,758.01

957,225.14

-

-

125,000.00

75,000.00

-

157,317.26

-

-

ESTIMATED COMPLETION
DATE (6)
6/30/2022 6/30/2022 6/30/2022
6/30/2022 6/30/2022
6/30/2022

$ 14,418,438.00 $ 9,870,516.97 $ 781,686.50 $ 4,866,148.08 $

- $

-

(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 from all funding sources, including other state revenues.

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

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

Prior Years Current Year

$

186,866.10

57,451.43

Total

$

244,317.53

(5) All projects in SPLOST 2016 are appropriately funded as of June 30, 2020.

(6) All projects in SPLOST 2016 are expected to be completed on or before June 30, 2022.

See notes to the basic financial statements.

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SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

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

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

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Elbert County Board of Education
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Elbert County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 15, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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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,

March 15, 2021

Greg S. Griffin State Auditor

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

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

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

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

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

March 15, 2021

Greg S. Griffin State Auditor

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

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

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SECTION IV FINDINGS AND QUESTIONED COSTS

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements
Type of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information

Unmodified

Internal control over financial reporting: Material weaknesses identified? Significant deficiencies identified?

No None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

Internal Control over major programs: Material weaknesses identified? Significant deficiencies identified?

No None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

No

Identification of major programs: CFDA Numbers

Name of Federal Program or Cluster

10.553, 10.555

Child Nutrition Cluster

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

$750,000.00

Auditee qualified as low-risk auditee?

Yes

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

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