Lamar County Board of Education, Barnesville, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)

LAMAR COUNTY BOARD OF EDUCATION
BARNESVILLE, GEORGIA
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016
(Including Independent Auditor's Reports)

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LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
INTRODUCTION
The School District's financial statements for the fiscal year ended June 30, 2016 includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a shortterm and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities.
FINANCIAL HIGHLIGHTS
Key financial highlights for fiscal year 2016 are as follows:
On the government-wide financial statements:
The School District's net position at June 30, 2016 was $14.6 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2016 of $14.6 million represented an increase of $2.5 million when compared to the prior year.
The School District had $25.5 million in expenses relating to governmental activities; of which $16.7 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of almost $11.3 million were adequate to provide for these programs.
As stated above, general revenues accounted for about $11.3 million or about 40% of all revenues totaling almost $28.0 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.)

Source of Revenues
Program Revenues 59.5%

General Revenue Property Taxes 31.6%

General Revenue Sales Taxes
General Revenue - 5.9% All Other 3.0%

i

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
On the fund financial statements:
Among major funds, the general fund had $25.4 million in revenues and $25.1 million in expenditures (Ties to Exhibit E). The general fund balance of $5.3 million at June 30, 2016 increased marginally by about $310,000 from the prior year. This increase was better than expected as the School District's final budget forecasted a decrease in fund balance.
OVERVIEW OF THE FINANCIAL STATEMENTS
These financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the 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. In the case of the School District, the general fund, capital projects funds, and debt service funds are all considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
Government-wide Statements
Since Lamar County Board of Education has no operations that have been classified as "Business Activities", 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 now 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 of the 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.
ii

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
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, student-teacher ratios, and other factors.
When analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position:
x Capitalize current outlays for capital assets x Depreciate capital assets x Report long-term debt, including pension obligations, as a liability x Calculate revenue and expense using the economic resources measurement focus and the
accrual basis of accounting x Allocate net position as follows:
o Net Investment in capital assets o Restricted net position is amounts with constraints placed on the use by external
sources such as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use
Fund Financial Statements
The School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no non-major Funds as defined by generally accepted accounting principles.
The School District has two kinds of funds as discussed below:
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 be 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 in the financial statements.
Fiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations.
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LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE

Net position, which is the difference between total assets and deferred outflows of resources, and total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position as measured in the Statement of Activities are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District.

In the case of the Lamar County Board of Education, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by over $14.6 million at June 30, 2016. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $14.6 million of net position, $2.1 million was restricted for continuation of various State and Federal programs and debt service. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors.

In addition, the School District had $27.5 million net investment in capital assets (e.g., land,
buildings, and equipment). The School District uses these capital assets to provide educational
services to students within geographic boundaries served by the School District. Because of the very
nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending.

Because of the restrictions on net position as discussed above, the School District had a deficit of
$15.0 million at June 30, 2016. This deficit includes pension related charges recorded because of the implementation of GASB No. 68, Accounting and Financial Reporting for Pensions. The School
District believes it is also meaningful to view the School District's net position in the following
manner:

Net position associated with pension obligations Net position exclusive of pension obligations

$

(18,856,943)

33,407,853

Net pension, June 30, 2016

$

14,550,910

The above analysis reflects, despite pension obligations, the School District's net position is a positive $14.6 million and management believes the School District's financial position is sound.

iv

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
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 Position

Assets Current and Other Assets Capital Assets, Net

Governmental Activities

Fiscal Year 2016

Fiscal Year 2015

$

9,601,062 $

8,907,491

34,750,130

35,562,545

Total Assets

44,351,192

44,470,036

Deferred Outflows of Resources

1,873,406

1,730,454

Total Assets and Deferred Outflows of Resources
Liabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability

46,224,598
2,871,643 8,071,696 18,667,962

46,200,490
2,957,470 9,931,161 15,586,330

Total Liabilities

29,611,301

28,474,961

Deferred Inflows of Resources

2,062,387

5,724,322

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

31,673,688
27,522,438 2,105,004
(15,076,532)

34,199,283
26,498,115 1,544,317
(16,041,225)

Total Net Position

$

14,550,910 $

12,001,207

Total net position increased $2.5 million in fiscal year 2016 from the prior year, but the School District still reports a deficit as shown above. In connection with deficit shown above, management presents the following additional information:

Total unrestricted net pension (deficit) Plus unrestricted deficit in net position
resulting from recognitiion of net pension obligations
Unrestricted net position, exclusive of the net pension liability effect

$ (15,076,532) 18,856,943
$ 3,780,411

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LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Table 2 provides a summary of the School District's change in net position for this fiscal year as compared to the prior fiscal year.
Table 2 Change in Net Position

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

Governmental Activities

Fiscal Year 2016

Fiscal Year 2015

$

545,161

$

817,200

15,975,461

15,575,888

166,922

203,611

16,687,544

16,596,699

8,840,083 1,641,199
9,542 838,288
11,329,112
28,016,656

8,665,548 1,649,195
428,904 7,058
976,432
11,727,137
28,323,836

15,666,009
1,131,202 736,276 491,490 633,988
1,419,082 291,588
1,749,730 1,155,996
246,983 295,795
1,367,596
281,218
25,466,953

15,548,705
1,692,109 759,678 498,724 542,354
1,477,367 286,516
1,943,911 1,193,075
240,024 232,111
30,870 1,706,219
356,147
26,507,810

Increase in Net Position

$

2,549,703

$

1,816,026

vi

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Cost of Providing Services
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 Cost of Services

Total Cost of Services Fiscal Year 2016 Fiscal Year 2015

Net Cost of Services Fiscal Year 2016 Fiscal Year 2015

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 Community Services Food Services Interest on Short-Term and Long-Term Debt

$ 15,666,009 $ 15,548,705 $

3,988,342 $

4,576,932

1,131,202 736,276 491,490 633,988
1,419,082 291,588
1,749,730 1,155,996
246,983 295,795

1,692,109 759,678 498,724 542,354
1,477,367 286,516
1,943,911 1,193,075
240,024 232,111

1,015,407 511,737 149,856 92,318 715,067 287,557 941,777 553,267 242,390 199,862

1,023,588 531,676 169,859 23,755 818,101 268,290
1,159,554 651,136 220,242 158,161

1,367,596
281,218

30,870 1,706,219
356,147

(117,593) 199,422

30,870 (77,200) 356,147

Total Expenses

$ 25,466,953 $ 26,507,810 $

8,779,409 $

9,911,111

Overall School District expenses decreased about $1.0 million from the prior year, while the net costs of services decreased by over $1.1 million from the prior year. This situation indicates both expenses and program revenues increased at virtually the same rate in fiscal year 2016.
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
Information about the School District's governmental funds is presented starting on Exhibit "C" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $28.0 million and total expenditures and other financing uses of $27.4 million in fiscal year 2016. Total governmental fund balances of $6.6 million at June 30, 2016, increased about $652,000 from the prior year. Over half of this increase was attributable to an increase in the debt service fund balance.

vii

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016
General Fund Budget 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 2016, the School District amended its general fund budget as needed.
The School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well.
For the general fund, the final actual revenues of $25.4 million exceeded the final budgeted revenues by $2.0 million. This variance was primarily due to revenues from State Funds exceeding the final budgeted amount by $1,224,000 and revenues for miscellaneous revenues exceeding the final budget by almost $836,000. The primary reason miscellaneous revenues exceeded the budget was because the principal's accounts were not a part of the School District's final budget.
The general fund's final actual expenditures of $25.1 million exceeded the final budget amount by about $1.0 million. The primary reason expenditures exceeded the final budget was due to the fact the activities of the principal's accounts were not part of the School District's final budget.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At fiscal year ended June 30, 2016, the School District had $34.75 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year.

Table 4 Capital Assets at June 30
(Net of Depreciation)

Governmental Activities

Fiscal Year 2016

Fiscal Year 2015

Land

$

Land Improvements

Buildings and Improvements

Equipment

879,428

$

553,206

32,481,691

835,805

879,428 664,645 33,072,936 945,536

Total

$

34,750,130

$

35,562,545

Additional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements.

viii

LAMAR COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016

Long-Term Debt
At June 30, 2016, the School District had almost $8.1 million in total debt outstanding which consisted of over $7.9 million in various types of bond debt, and almost $127,000 in unamortized bond premiums. Table 5 summarizes the School District's debt as compared to the prior fiscal year.

Table 5 Change in Long-Term Debt

Governmental Activities

Fiscal Year 2016

Fiscal Year 2015

General Obligation Bonds Payable QZAB Bonds Payable Unamortized Bond Premiums

$ 3,945,000 $ 4,000,000 126,696

5,720,000 4,000,000
211,161

Total

$ 8,071,696 $

9,931,161

Additional information about the School District's debt can be found in the Notes to the Basic Financial Statements.
FACTORS BEARING ON THE DISTRICT'S FUTURE
Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows:
x The School District is financially stable. The School District's operating millage for fiscal year 2016 was 16.716, which produced almost $476,000 per mill. The School District will construct additional facilities to accommodate the growth at various schools as needed. The School District plans to fund additional capital outlays, in part, with the one percent local sales tax revenue and state capital outlay grants.
x The economy has shown very little improvement from the prior year. Operating revenues from property taxes and the State and Federal Governments remained virtually flat as compared to the prior year. In spite of this, the School District managed to marginally increase its unassigned general fund by $187,000 from the prior year to almost $4.1 million at June 30, 2016. The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity.
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. Bryan Stephens, Director of Finance, Lamar County Board of Education, 100 Victory Lane, Barnesville, Georgia 30204. You may also email Mr. Stephens at bryan.stephens@lamar.k12.ga.us.

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LAMAR COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016
ASSETS
Cash and Cash Equivalents Investments Receivables, Net
Interest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans
LIABILITIES
Accounts Payable Salaries and Benefits Payable Interest Payable Net Pension Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans
NET POSITION
Net Investment in Capital Assets Restricted for
Continuation of State and Federal Programs Debt Service Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

4,822,789.23

1,791,595.30

293.63 382,591.33 1,759,802.74 553,768.38
86,898.55 203,322.93 879,428.00 33,870,702.00

44,351,192.09

1,873,406.00

81,674.59 2,718,655.81
71,312.50 18,667,962.00
2,009,465.00 6,062,231.00
29,611,300.90

2,062,387.00

27,522,438.01
798,145.20 1,306,858.64 (15,076,531.66)

$

14,550,910.19

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

- 1 -

LAMAR COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2016

GOVERNMENTAL ACTIVITIES
Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt
Total Governmental Activities
General Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Investment Earnings Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year

EXPENSES

CHARGES FOR SERVICES

$

15,666,009.21 $

1,131,202.04 736,275.79 491,489.74 633,987.58
1,419,081.55 291,588.14
1,749,729.50 1,155,995.61
246,983.48 295,795.41

1,367,596.48 281,218.03

$

25,466,952.56 $

338,410.00
6,473.00 8,538.00 -
191,739.47 -
545,160.47

- 2 -

EXHIBIT "B"

PROGRAM REVENUES OPERATING GRANTS AND
CONTRIBUTIONS

CAPITAL GRANTS AND CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET POSITION

$

11,331,512.98 $

115,795.44 224,538.42 341,634.00 541,669.61 704,015.00
3,971.70 801,200.42 517,525.16
4,593.66 95,933.57

1,293,071.30 -

$

15,975,461.26 $

7,743.68 $
59.36 278.80 76,665.00 -
379.16 81,796.00
166,922.00

(3,988,342.55)
(1,015,406.60) (511,737.37) (149,855.74) (92,317.97) (715,066.55) (287,557.08) (941,777.28) (553,267.45) (242,389.82) (199,861.84)
117,593.45 (199,422.03)
(8,779,408.83)

7,932,460.06 884,806.26 22,816.91
1,556,231.41 84,966.55 9,542.15
838,288.20
11,329,111.54
2,549,702.71
12,001,207.48

$

14,550,910.19

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

- 3 -

LAMAR COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2016

EXHIBIT "C"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 4,824,937.74 $ 585,504.93
293.63 221,224.90 1,759,802.74 531,768.38
86,898.55 203,322.93

- $ 23,888.49
-

12,602.83 $ 1,182,201.88
161,366.43
-

4,837,540.57 1,791,595.30
293.63 382,591.33 1,759,802.74 531,768.38
86,898.55 203,322.93

$ 8,213,753.80 $

23,888.49 $

1,356,171.14 $

9,593,813.43

$

- $

72,537.44

2,718,655.81

2,791,193.25

14,751.34 $ 9,137.15 -
23,888.49

- $ -
-

70,820.37 97,262.76
168,083.13

-

6,558.53

-

-

-

6,558.53

203,322.93 594,822.27 231,307.92 154,886.12 4,070,138.18
5,254,477.42

-

-

-

1,349,612.61

-

-

-

-

-

-

-

1,349,612.61

$ 8,213,753.80 $

23,888.49 $

1,356,171.14 $

14,751.34 81,674.59 2,718,655.81 2,815,081.74
77,378.90 97,262.76 174,641.66
203,322.93 1,944,434.88
231,307.92 154,886.12 4,070,138.18 6,604,090.03
9,593,813.43

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

- 4 -

LAMAR COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2016

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:
Land Land improvements Accumulated depreciation - land improvements Buildings and improvements Accumulated depreciation - buildings Machinery and equipment Accumulated depreciation - equipment
Total capital assets
Certain revenues will be collected after year end but are not available soon enough to pay for the current period expenditures
Deferred inflows of resources Unavailable property taxes Unavailable Federal grants
Some liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds
Net pension liability
Qualified Zone Academy Bond Interest subsidy recorded as revenue in the statement of activities do not provide current financial resources and therefore are not recorded as revenue in the governmental funds.
Deferred Outflows and Inflows of resources related to Pensions are applicable to future periods and, therefore are not reported in the Governmental Funds.
Some liabilities reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as liabilities in the Governmental Fund Statements:
Accrued interest on long-term debt
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
Bonds payable Unamortized bond premiums
Net Position of Governmental Activities (Exhibit "A")

$

6,604,090.03

$

879,428.00

1,825,407.00

(1,272,201.00)

42,848,063.00

(10,366,372.00)

3,754,751.00

(2,918,946.00)

34,750,130.00

$

77,378.90

97,262.76

174,641.66

(18,667,962.00) 22,000.00
(188,981.00)

(71,312.50)

$

(7,945,000.00)

(126,696.00)

(8,071,696.00)

$

14,550,910.19

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

- 5 -

LAMAR COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016

EXHIBIT "E"

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

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$

7,949,668.43 $

75,913.99

13,264,015.26

2,750,150.24

545,160.47

8,493.69

838,288.20

25,431,690.28

- $ 22.29 -
22.29

883,135.80 $ 1,565,283.97
1,026.17 81,796.00
2,531,241.94

8,832,804.23 1,641,197.96 13,264,015.26 2,750,150.24
545,160.47 9,542.15
920,084.20
27,962,954.51

15,510,567.32
1,161,634.04 761,743.79 510,051.74 652,352.64
1,479,406.55 298,967.04
1,740,263.50 1,089,524.61
244,052.63 301,115.41 1,337,163.48
-
2,992.00
25,089,834.75
341,855.53
2,275.00 (34,598.61)
(32,323.61)
309,531.92
4,944,945.50

-
874.49 3,000.00 11,906.85 67,464.89
-
83,246.23
(83,223.94)
58,322.66 -
58,322.66
(24,901.28)
24,901.28

-
53.55 -
1,775,000.00 362,825.00
2,137,878.55
393,363.39

15,510,567.32
1,161,634.04 761,743.79 510,051.74 652,352.64
1,479,406.55 299,895.08
1,740,263.50 1,092,524.61
255,959.48 301,115.41 1,337,163.48
67,464.89
1,775,000.00 365,817.00
27,310,959.53
651,994.98

(25,999.05) (25,999.05) 367,364.34 982,248.27

60,597.66 (60,597.66)
651,994.98 5,952,095.05

Fund Balances - Ending

$

5,254,477.42 $

- $

1,349,612.61 $

6,604,090.03

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

- 6 -

LAMAR 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, 2016

EXHIBIT "F"

Total Net Change in Fund Balances - Governmental Funds (Exhibit "E")
Amounts reported for Governmental Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital outlay Depreciation expense - buildings Depreciation expense - equipment Depreciation expense - land improvements
Total capital assets
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 assets differes from the change in fund balances by the carrying value of the capital assets sold or disposed of.
Qualified Zone Academy Bond interest subsidy recorded as revenue in the Statement of Activties do not provided current financial resources and therefore are not recorded as revenue on the Governmental Fund Statements
Accounts Receivable - Internal Revenue Service Subsidy June 30, 2016
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The net adjustment consists of:
Pension expense
Certain revenues are not deferred in the Statement of Activities based on availability as they are in Governmental Funds:
Unavailable Federal grants Unavailable property taxes
June 30, 2015 June 30, 2016
When bonds are refunded, deferred gains on refundings, and similar items are reported at their full amounts in the governmental funds, but are reprted as deferred outflows of resources in the Governemtnal Activities Statements and are amortized over the term of the debt. The timing of the recognition of these differences in the Statement of Activities is as follows:
Amortization of deferred charge on refunded bonds
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures in governmental funds.
Accrued interest expense June 30, 2015 June 30, 2016
Repayment of long-term debt reported as an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. In the current year, these amounts consist of:
Redemption of bond principal Amortization of bond premiums

$

651,994.98

$ 425,007.00 (891,646.00) (231,351.00) (111,439.00)

(809,429.00)

(2,986.00)

22,000.00

745,982.00

$

97,262.76

(70,099.90) 77,378.90

104,541.76

(22,727.28)

$

72,173.75

(71,312.50)

861.25

$ 1,775,000.00 84,465.00

1,859,465.00

Change in Net Position of Governmental Activities (Exhibit "B")

$

2,549,702.71

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

- 7 -

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

LAMAR COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS JUNE 30, 2016

EXHIBIT "G"

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$ 10,996.00 $ 21,684.79

$ 21,684.79

$ 10,996.00

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

- 8 -

LAMAR COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2016
ADDITIONS Contributions Donors
DEDUCTIONS Administrative Expenses Change in Net Position
Net Position - Beginning
Net Position - Ending

EXHIBIT "H"
PRIVATE PURPOSE TRUSTS
$ 11,000.00
4.00 10,996.00
-
$ 10,996.00

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

- 9 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Lamar County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Blended Component Unit
The Lamar County and Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are used to specifically to cover the cost of its operations. The financial statements of the Charter School have been included within the School District's general fund.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
GOVERNMENT-WIDE STATEMENTS:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, 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 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.
- 10 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS:
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
x 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.
x The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
x The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest.
The School District reports the following fiduciary fund types:
x 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.
x 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.
- 11 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

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 longterm 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 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement.
In fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of Statement No. 73 does not have a significant impact on the School District's financial statements.
In fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The School District participates in an external investment pool, the State of Georgia local government investment pool (Georgia Fund 1), which does not meet the criteria of this statement. Therefore, the investment in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended.

- 12 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

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.
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 when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.
CAPITAL ASSETS
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at 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.

- 13 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

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

Capitalization Policy

Estimated Useful Life

Land

Land Improvements

$

Buildings and Improvements $

Equipment

$

Intangible Assets

$

All 5,000.00 5,000.00 5,000.00 100,000.00

N/A 10 to 60 years 20 to 60 years
3 to 15 years Individually determined

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

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

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

In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.

PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

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.

- 14 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

The School District's fund balances are classified as follows:

Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

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

Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.

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

PROPERTY TAXES
The Lamar County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on September 14, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on November 20, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Lamar 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, 2016, for maintenance and operations amounted to $7,439,258.92 and for school bonds amounted to $883,135.80.

Tax millage rates levied for the 2015 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

16.716 mills 2.000 mills

18.716 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $487,592.60 during fiscal year ended June 30, 2016.

- 15 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

SALES TAXES
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,556,231.41 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 on December 31, 2017.
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 and certain Federal, sponsored and 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 and function level. The budget for the general fund was prepared in accordance with accounting principles permitted by the State of Georgia, but not in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Board is authorized to approve adjustments of the amount budgeted for expenditures in any budget function. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
See the general fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during fiscal year 2016.
BUDGETARY/GAAP BASIS RECONCILIATION
In the general fund, accounting principles used in developing budgets on a budgetary basis differ from those used in preparing financial statements in conformity with generally accepted accounting principles (GAAP).
The primary differences between the budget basis and GAAP basis are:
1. Revenues and expenditures of school principals accounts and certain Federal, sponsored and local programs are omitted from the Budget.
2. Payments made by the State of Georgia for School District employee benefits are recognized as revenues and expenditures under GAAP and are not recognized on the budget basis.

- 16 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Thus, there is an accounting basis difference between the budget and actual Statement of Revenues, Expenditures and Changes in Fund Balances in the general fund that is reconciled as follows:

Actual Revenues, GAAP Basis Revenues from School Principals Accounts and
Certain Federal, Local and Sponsored Programs $ On-Behalf Benefits Contribution

$ 25,431,690.28

(1,121,354.45) (84,816.93)

(1,206,171.38)

Actual Revenues, Budgetary Basis

24,225,518.90

Actual Expenditures, GAAP Basis

25,089,834.75

Expenditures from School Principals Accounts Certain Federal, Local and Sponsored Programs $ On-Behalf Benefits Contribution

(1,191,212.40) (84,816.93)

(1,276,029.33)

Actual Expenditures, Budgetary Basis

23,813,805.42

Revenues Over Expenditures and Other Financing Sources (Uses), Budgetary Basis

$

411,713.48

Revenues Over Expenditures and Other Financing Sources (Uses), GAAP Basis

$

341,855.53

NOTE 4: DEPOSITS, CASH EQUIVALENTS 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

- 17 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

(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, 2016, the School District had deposits with a carrying amount of $4,081,227.84 and a bank balance of $4,803,245.44. The bank balances insured by Federal depository insurance were $500,000.00 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $4,303,245.44.
Reconciliation of cash and cash equivalents balances to carrying value of deposits:

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

$ 4,822,789.23 32,680.79

Total cash and cash equivalents

4,855,470.02

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

585,504.93

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

1,359,747.11

Total carrying value of deposits - June 30, 2016

$ 4,081,227.84

CATEGORIZATION OF CASH EQUIVALENTS
The School District reported cash equivalents of $1,359,747.11 in Georgia Fund 1, a local government investment pool. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html.

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LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

CATEGORIZATION OF INVESTMENTS At June 30, 2016, the School District had the following investments:

Investment Type

Fair Value

Investment Maturity Less Than 1 Year

Federated Government Obligation Fund

Institutional Shares

$ 1,206,090.37 $

1,206,090.37

The Federated Government Obligation Fund (GOF) Institutional Shares, formerly referred to as a government obligations fund, administered by the Federated Investors, Incorporated, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The Federated Government Obligations Fund invests primarily in a portfolio of short-term U.S. Treasury and government agency securities, including repurchase agreements.
The Federated Government Obligations Fund is registered with the SEC as an investment company and operated in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the fund's share price, $1.00 per share. The fund is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity for Federated Government Obligations Fund on June 30, 2016 was 53 days.
Fair Value of Investments
The School District 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 School District has the following recurring fair value measurements as of June 30, 2016:
Investments in the Federated Government Obligations Fund of $1,206,090.37 are valued using quoted market prices. (Level 1 inputs).

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LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

NOTE 5: CAPITAL ASSETS
The following is a summary of changes in the capital assets for governmental activities during the fiscal year:

Balances July 1, 2015

Increases

Decreases

Balances June 30, 2016

Governmental Activities Capital Assets, Not Being Depreciated:
Land

$

879,428.00 $

- $

- $

879,428.00

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

42,547,662.00 3,777,049.00 1,825,407.00
9,474,726.00 2,831,513.00 1,160,762.00

300,401.00 124,606.00
-
891,646.00 231,351.00 111,439.00

146,904.00
-

42,848,063.00 3,754,751.00 1,825,407.00

143,918.00
-

10,366,372.00 2,918,946.00 1,272,201.00

Total Capital Assets, Being Depreciated, Net

34,683,117.00

(809,429.00)

2,986.00

33,870,702.00

Governmental Activity Capital Assets - Net $ 35,562,545.00 $ (809,429.00) $

2,986.00 $ 34,750,130.00

Current year depreciation expense by function is as follows:

Instruction

Support Services

Business Administration

$

Maintenance and Operation of Plant

Student Transportation Services

Food Services

$
8,661.00 40,676.00 162,255.00

971,902.00
211,592.00 50,942.00

$ 1,234,436.00

NOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016, consisted of the following:

Transfers to

Transfers From

General

Debt Service

Fund

Fund

General Fund Capital Projects

$

- $

34,598.61

2,275.00 23,724.05

Total

$ 34,598.61 $ 25,999.05

- 20 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Transfers between funds were made for the following purposes: 1) Transfers were made from the debt service fund of $2,275.00 and $23,724.05 to the general fund and capital projects fund, respectively, as reimbursement for expenditures made by those funds that were eligible to be paid from SPLOST revenues.
2) A transfer of $34,598.61 was made from the general fund to the capital projects fund to fund a deficit that existed at fiscal year-end.
NOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows:

Balance July 1, 2015

Governmental Activities

Balance

Additions

Deductions

June 30, 2016

Due Within One Year

General Obligation Bonds

$

Unamortized Bond Premiums

Qualified Zone Academy Bonds

5,720,000.00 $ 211,161.00
4,000,000.00

- $ 1,775,000.00 $ 3,945,000.00 $ 1,925,000.00

-

84,465.00

126,696.00

84,465.00

-

-

4,000,000.00

-

$ 9,931,161.00 $

- $ 1,859,465.00 $ 8,071,696.00 $ 2,009,465.00

GENERAL OBLIGATION DEBT OUTSTANDING
The School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property and sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
General obligation bonds currently outstanding are as follows:

Description

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2008 3.00 - 5.00%

3/20/2008

4/1/2018 $ 12,000,000.00 $ 3,945,000.00

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

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2017

$

2018

Total Principal and Interest $

1,925,000.00 $ 2,020,000.00
3,945,000.00 $

197,250.00 $ 101,000.00
298,250.00 $

84,465.00 42,231.00
126,696.00

- 21 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

QUALIFIED ZONE ACADEMY BONDS (QZAB)
Section 226 of the Taxpayer Relief Act of 1997 (Public Law 105-34) provides for a source of capital at no or at nominal interest rates for costs incurred by School Districts in connection with the establishment of special academic programs, in partnership with the business community. This agreement establishes a method of repayment for qualified interest-free debt instrument.
In fiscal year 2007, The School District, in agreement with Liberty Freedom Academy, has entered into such an arrangement for the sale of $2,000,000.00 of Qualified Zone Academy Bonds (QZAB) for the purpose of Capital construction.
Additionally, in fiscal year 2012, the Lamar County Board of Education sold $2,000,000.00 of Qualified Zone Academy Bonds (QZAB) Series 2011 for the purpose of funding the costs of renovations and improvements at Lamar College and Career Center. Under Federal Law, these bonds are eligible to receive an interest subsidy from the U.S. Government which will materially offset the School District's liability to make full interest debt service amortization payments as scheduled. To qualify for this subsidy the School District is required to periodically file appropriate documents with the Internal Revenue Service. The amount of interest due on QZAB 2011 series bonds included in the amortization schedule is $616,000.00. The interest subsidy received by the School District from the U.S Government in fiscal year 2016 funded all but $6,204.00 of the $88,000.00 interest expense due on the series 2011 QZAB bonds in fiscal year 2016.
The School District is obligated to make an annual deposit of $500,000.00 to a sinking fund for retirement of this debt beginning April 1, 2021, through April 1, 2023.
Debt currently outstanding under Qualified Zone Academy Bonds is as follows:

Purpose

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Series 2007 QZAB Series 2011 QZAB

0.00% 4.40%

12/19/2007 12/29/2011

12/19/2018 $ 4/1/2023

2,000,000.00 $ 2,000,000.00

2,000,000.00 2,000,000.00

$ 4,000,000.00 $

4,000,000.00

The following schedule reports the annual Qualified Zone Academy Bond payments:

Fiscal Year Ended June 30:

Principal

Interest

2017 2018 2019 2020 2021 2022 - 2023

$

- $

2,000,000.00

-

-

-

2,000,000.00

88,000.00 88,000.00 88,000.00 88,000.00 88,000.00 176,000.00

Total Principal and Interest $

4,000,000.00 $

616,000.00

- 22 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

NOTE 8: RISK MANAGEMENT
INSURANCE
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

UNEMPLOYMENT COMPENSATION
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures with the related liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2015 $

- $

5,947.13 $

5,947.13 $

-

2016 $

- $

723.00 $

723.00 $

-

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

Position Covered

Amount

Superintendent

$

25,000.00

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2016:

Nonspendable Inventories
Restricted Continuation of Federal Programs Continuation of State Program Debt Service
Committed School Activity Accounts
Assigned Local School Projects
Unassigned

$ 203,322.93

$ 585,739.89 9,082.38
1,349,612.61

1,944,434.88

231,307.92

154,886.12 4,070,138.18

Fund Balance, June 30, 2016

$ 6,604,090.03

- 23 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

When multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
NOTE 10: SIGNIFICANT 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 11: POST-EMPLOYMENT BENEFITS
GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND
Plan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html.
Funding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy.

- 24 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "payas-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2016:

For certificated teachers, librarians and regional educational service agencies and certain other eligible participants:

July 1, 2015 June 30, 2016

$945.00 per member per month

For non-certificated school personnel:

July 1, 2015 December 31, 2015 $596.20 per member per month

January 1, 2016 June 30, 2016 $746.20 per member per month

No additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation.

The School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2016 2015 2014

100%

$

2,771,136.30

100%

$

2,704,723.70

100%

$

2,648,007.93

NOTE 12: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a 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 audit report that can be obtained at www.trsga.com/publications.

- 25 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2016. The School District's contractually required contribution rate for the year ended June 30, 2016 was 14.27% of annual School District payroll, of which 14.05% of payroll was required from the School District and 0.22% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,857,679.00 and $28,208.93 from the School District and the State, respectively.
EMPLOYEES' RETIREMENT SYSTEM
Plan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs.
Benefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

- 26 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Contributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $14,679.00 for the current fiscal year.
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS)
P lan 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/formspubs/formspubs.
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 $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $56,608.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2016, the School District reported a total liability of $18,667,962.00 for its proportionate share of the net pension liability, which consisted of a net pension liability for TRS of $18,564,611.00 and a net pension liability for ERS of $103,351.00.

- 27 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

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

School District's proportionate share of the net pension liability

$ 18,564,611.00

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

301,283.00

Total

$ 18,865,894.00

The net pension liability for TRS and ERS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2015.
At June 30, 2015, the School District's TRS proportion was 0.121943%, which was a decrease of 0.000673% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.002551%, which was an increase of 0.000007% from its proportion measured as of June 30, 2014.
At June 30, 2016, 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 $239,268.00.
The PSERS net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 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, 2015.
For the year ended June 30, 2016, the School District recognized pension expense of $1,139,122.00 for TRS, $6,962.00 for ERS and $14,269.00 for PSERS and revenue of $19,707.00 for TRS and $14,269.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 28 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

At June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS

Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience $

-

$ 163,285.00 $

-

$

826.00

Net difference between projected and actual earnings on pension plan investments

-

1,565,944.00

-

7,457.00

Changes in proportion and differences between

School District contributions and proportionate share

of contributions

-

324,875.00

1,048.00

-

School District contributions subsequent to the measurement date
Total

1,857,679.00

-

14,679.00

-

$ 1,857,679.00 $ 2,054,104.00 $ 15,727.00 $ 8,283.00

The School District contributions subsequent to the measurement date of $1,857,679.00 for TRS and $14,679.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2017 2018 2019 2020 2021

$ (856,403.00) $ (2,892.00)

$ (856,403.00) $ (3,533.00)

$ (856,404.00) $ (3,324.00)

$

527,289.00 $ 2,514.00

$

(12,183.00) $

-

Actuarial assum ptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System: Inflation Salary increases Investment rate of return

3.00%
3.75% 7.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females.
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

- 29 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Employees' Retirement System: Inflation Salary increases Investment rate of return

3.00%
5.45% 9.25%, average, including inflation 7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement.

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.

Public School Employees Retirement System:

Inflation

3.00%

Salary increases

N/A

Investment rate of return

7.50%, net of pension plan investment expense, including inflation

Mortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement.
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004 June 30, 2009.
The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class
Fixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks
Total
* Rates shown are net of the 3.00% assumed rate of inflation

Target allocation
30.00% 39.70%
3.70% 1.60% 18.90% 6.10%
100.00%

Long-term expected real rate of return*
3.00% 6.50% 10.00% 13.00% 6.50% 11.00%

- 30 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2016

EXHIBIT "I"

Discount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, 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 (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

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

1% Decrease (6.50%)

Current Discount Rate (7.50%)

1% Increase (8.50%)

$ 31,901,880.00 $

18,564,611.00 $ 7,571,527.00

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

1% Decrease (6.50%)

Current Discount Rate (7.50%)

1% Increase (8.50%)

$ 146,504.00 $

103,351.00 $ 66,562.00

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

NOTE 13: SUBSEQUENT EVENTS
In the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $24,000,000.00. The proceeds from these bonds will be used to pay the costs of the construction and equipping of a new high school complex to replace the current Lamar County High School complex, as specified in the referendum. The School District has not issued any of these bonds as of the report date. In conjunction, the referendum also authorized collections of a one percent sales and use tax for a period not to exceed twenty quarters which will be used to pay a portion of the debt service on the bonds and a portion of the cost of the projects authorized.

- 31 -


-
./012343435411671489

LAMAR 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
2016 2015

School District's proportion of the
net pension liability

School District's proportionate share of the
net pension liability

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

0.121943% $ 0.122616% $

18,564,611.00 $ 15,490,914.00 $

301,283.00 $ 246,736.00 $

Total

School District's coveredemployee payroll

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

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

18,865,894.00 $ 15,737,650.00 $

13,080,704.00 12,739,646.00

141.92% 121.60%

81.44% 84.03%

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

- 33 -

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

SCHEDULE "2"

Year Ended
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-employee
payroll

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

0.002551% $ 0.002544% $

103,351.00 $ 95,416.00 $

58,277.16 57,281.64

177.34% 166.57%

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

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

- 34 -

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

SCHEDULE "3"

Year Ended
2016 2015

School District's proportion of the
net pension liability

School District's proportionate share of the
net pension liability

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

0.00% $ 0.00% $

-

$

-

$

239,268.00 $ 221,654.00 $

Total

School District's covered-employee
payroll

239,268.00 $ 221,654.00 $

753,234.01 765,895.74

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

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

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 -

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

SCHEDULE "4"

Year Ended

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

2016

$

1,857,679.00 $

1,857,679.00 $

-

2015 (1)

$

1,719,711.00 $

1,719,711.00 $

-

2014 (1)

$

1,564,428.00 $

1,564,428.00 $

-

2013 (1)

$

1,477,572.00 $

1,477,572.00 $

-

2012 (1)

$

1,324,453.00 $

1,324,453.00 $

-

2011 (1)

$

1,266,865.00 $

1,266,865.00 $

-

2010 (1)

$

1,200,864.00 $

1,200,864.00 $

-

2009 (1)

$

1,128,989.00 $

1,128,989.00 $

-

(1) The School District has included On Behalf payments within the contributions for years 2015 and prior

School District's covered-employee
payroll
$ 13,217,267.39 $ 13,080,704.00 $ 12,739,646.00 $ 12,758,912.00 $ 12,692,579.00 $ 12,316,816.00 $ 12,172,314.00 $ 12,165,579.00

Contribution as a percentage of covered-
employee payroll
14.05% 13.15% 12.28% 11.58% 10.43% 10.29%
9.87% 9.28%

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

- 36 -

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

SCHEDULE "5"

Year Ended
2016 2015 2014

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

$

14,679.00 $

14,679.00 $

-

$

12,810.00 $

12,810.00 $

-

$

10,574.00 $

10,574.00 $

-

School District's covered-employee
payroll

$

59,380.80

$

58,277.16

$

57,281.64

Contribution as a percentage of covered-
employee payroll
24.72% 21.98% 18.46%

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

- 37 -

LAMAR COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2016

SCHEDULE "6"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.

Method and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule:

Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return

June 30, 2013 Entry age Level percentage of payroll, closed 30 years Five-year smoothed market 3.00% 3.75 7.00%, including inflation 7.50%, net of pension plan investment
expense, including inflation

Employees' Retirement System

Changes of assumptions: There were no changes in assumptions or benefits that affect the measurement of the total pension liability since the prior measurement date.

Method and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule:

Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return

June 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment
expense, including inflation

Public School Employees Retirement System

Changes of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were revised and adopted by the board on December 16, 2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014.

Method and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule:

Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return
Cost-of living adjustments

June 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment
expense, including inflation 1.50% semi-annually

- 38 -

LAMAR COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2016

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 Food Services Operation
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources 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

$

7,674,654.00 $

7,674,654.00 $

7,949,668.43 $

-

-

75,913.99

12,039,787.00

12,039,787.00

13,264,015.26

1,235,531.00

3,417,789.72

2,750,150.24

282,520.25

282,520.25

545,160.47

5,320.00

5,320.00

8,493.69

2,110.00

2,110.00

838,288.20

21,239,922.25

23,422,180.97

25,431,690.28

275,014.43 75,913.99
1,224,228.26 (667,639.48) 262,640.22 3,173.69 836,178.20
2,009,509.31

13,725,985.11
913,553.77 475,422.36 523,039.66 635,073.22 1,463,164.96 256,675.69 1,799,235.59 1,058,073.98 227,910.91 162,868.52 942,707.00
-
22,183,710.77
(943,788.52)

14,962,800.44
936,899.77 911,368.36 533,423.66 622,480.22 1,463,164.96 256,975.69 1,800,855.59 1,158,305.98 250,260.91 252,278.52 942,707.00
-
24,091,521.10
(669,340.13)

15,510,567.32
1,161,634.04 761,743.79 510,051.74 652,352.64
1,479,406.55 298,967.04
1,740,263.50 1,089,524.61
244,052.63 301,115.41 1,337,163.48
2,992.00
25,089,834.75
341,855.53

(547,766.88)
(224,734.27) 149,624.57
23,371.92 (29,872.42) (16,241.59) (41,991.35) 60,592.09 68,781.37
6,208.28 (48,836.89) (394,456.48)
(2,992.00)
(998,313.65)
1,011,195.66

60,000.00 -
60,000.00
(883,788.52)
5,186,457.72
69,286.42

60,000.00 -
60,000.00
(609,340.13)
5,186,457.72
156,720.66

2,275.00 (34,598.61)
(32,323.61)
309,531.92
4,944,945.50
-

(60,000.00) 2,275.00
(34,598.61)
(92,323.61)
918,872.05
(241,512.22)
(156,720.66)

$

4,371,955.62 $

4,733,838.25 $

5,254,477.42 $

520,639.17

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 and expenditures of the various programs reported as a part of general fund.

The actual revenue and expenses of these programs were as follows:

Revenues

Expenditures

Junior ROTC Program School Principal Accounts Career College Academy Public Relations School Fund Transfer After School Program Fund Raising SNP Services

$

59,515.86 $

1,021,384.80

9,534.05

13,710.86

226.95

9,251.32

5,723.00

2,007.61

74,103.86 1,081,513.97
11,560.29 16,942.99
3,295.00 -
2,179.42 1,616.87

$

1,121,354.45 $

1,191,212.40

See notes to the basic financial statements.

- 39 -

LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2016

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 Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Summer Food Service Program For Children
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 Preschool Grants
Total Special Education Cluster
Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers
Total Other Programs
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555

16165GA324N1099 $ 16165GA324N1099

263,583.35 1,002,080.49

10.559

16165GA368N1099

11,560.29 1,277,224.13

84.027 84.173

H027A150073 H173A150081

84.048 84.367 84.010 84.287

V048A150010 S367A150001 S010A150010 S287C150010

425,474.44 12,538.78
438,013.22
26,357.61 93,723.76 667,813.84 319,550.52
1,107,445.73
1,545,458.95

59,515.86

Total Expenditures of Federal Awards

$

2,882,198.94

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 Lamar County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2016. 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 assets 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. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

See notes to the basic financial statements.

- 40 -

LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016
AGENCY/FUNDING
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Other State Programs Food Services Preschool Handicapped Program Pupil Transportation - State Bonds Teachers Retirement Vocational Education Vocational Construction Related Equipment - State Bonds
Office of the State Treasurer Public School Employees Retirement

SCHEDULE "9"

GOVERNMENTAL FUND TYPE GENERAL FUND

$

486,234.28

720,354.00 216,909.00 1,980,512.00 349,233.00 881,423.00 162,367.00 1,612,235.00 1,415,015.00 497,243.00 1,981,178.00 526,405.00 142,546.00 116,648.00
24,362.00 287,654.00
88,268.00 49,127.00
1,015.00
435,910.00 593,071.00 665,297.00 (657,495.00)
373,205.00 49,044.00 6,791.95
38,716.00 24,701.27 76,665.00 28,208.93 26,102.83
8,461.00
56,608.00

$

13,264,015.26

See notes to the basic financial statements.

- 41 -


-
./012343435411671489

LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2016

SCHEDULE "10"

PROJECT

ORIGINAL ESTIMATED
COST (1)

SPLOST IV
The repayment of a portion of previously incurred general obligation debt of the School District, a portion of the principal and interest on the Series 2007 Bonds and the Series 2008 Bonds, and a portion of the costs of the following capital outlay projects not paid for with proceeds from said general obligation bonds (i) renovation and improvements to existing school buildings, including the primary, elementary, middle, and high schools, maintenance facilities and the central office, (ii) acquisition of school buses, transportation vehicles and equipment, and maintenance vehicles, (iii) the acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including computers and system-wide technology upgrades, athletic facilities and physical education equipment, textbooks, furnishings, band instruments, vocational equipment, and safety and security equipment.
$

11,000,000.00 $

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

11,332,961.58 $ 1,386,274.68 $

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

9,946,686.90 $

- $

EXCESS PROCEEDS NOT
EXPENDED
-

ESTIMATED COMPLETION
DATE
4/1/2018

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Lamar 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.

See notes to the basic financial statements.

- 43 -


-
./012343435411671489

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./012343435411671489

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LAMAR COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016

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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