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

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

LIBERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET POSITION

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

G

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

H NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA
2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA
3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND
4 SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND

Page
i
1 2
3 4 5 6 7 8
31 32 33 34 35 36 37

LIBERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I
FINANCIAL
SCHEDULES
SUPPLEMENTARY INFORMATION
8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
38 39 41

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

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

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

SECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION

SECTION I FINANCIAL

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

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

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

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

October 20, 2020

Greg S. Griffin State Auditor

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The discussion and analysis of Liberty County Board of Education's (School District) financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
Key financial highlights for fiscal year 2019 are as follows:
On the government-wide financial statements, the assets and deferred outflows of the School District exceeded liabilities and deferred inflows by $52.7 million.
General revenues accounted for $51.0 million in revenue or 42.7% of all revenues. Program specific revenues in the form of charges for services, operating and capital grants and contributions accounted for $68.6 million in revenue or 57.3% of total revenues. Total revenues were $119.6 million.
The School District had $113.5 million in expenses relating to governmental activities; only $68.6 million of these expenses are offset by program specific charges for services and grants and contributions. General revenues (primarily property taxes and sales taxes) of $51.0 million, along with the School District's beginning net position, were adequate to provide for these programs.
On the government-wide financial statements, the School District reported deferred inflows of resources of $18.9 million and deferred outflows of resources of $23.6 million related to defined benefit pension plans recognized by the implementation of GASB Statements No. 68 and No. 71 and other postemployment benefits recognized by the implementation of GASB Statement No. 75.
This annual report consists of several parts including management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. This discussion and analysis of the School District's financial statements provides an overview of its financial activities for the year. Comparative data is provided for fiscal year 2019 and 2018.
The government-wide financial statements include the Statement of Net Position and the 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 the individual parts of the School District, reporting the School District's operation in more detail. The governmental fund financial statements disclose how basic services are financed in the short-term as well as what remains for future spending. The fiduciary funds statement provides information about the financial relationships in which the School District acts solely as an agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Liberty County Board of Education, the general fund and capital projects fund are the most significant funds.
i

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
The government-wide 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 about whether the School District is in a better financial position than last year. The Statement of Net Position and the Statement of Activities provide the basis for answering this question. These financial statements include all of the School District's assets and liabilities and use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into consideration all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, implementation of new accounting pronouncements and other factors.
The Statement of Net Position and the Statement of Activities reflect the School District's governmental activities.
The School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detailed information about only the School District's significant or major funds.
Governmental Funds Most of the School district's activities are reported in governmental funds, which focus on how money flows in 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 basis of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled within the financial statements.
Fiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the school activity 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 government-wide financial statements because it cannot use these assets to finance its operations.
ii

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019 The Statement of Net Position provides the perspective of the School District as a whole. Table 1 presents a summary of the School District's net position for fiscal year 2019 as compared to net position for fiscal year 2018.
iii

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

ASSETS Cash and Cash Equivalents Investments Receivable, Net Taxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plans
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue Net Pension Liability Net OPEB Liability Long-Term Liabilities Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF OUTFLOWS Related to Defined Benefit Pension Plan Related to OPEB Plans
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for Continuation of Federal Programs Capital Projects Unrestricted (Deficit)
Total Net Position

Fiscal Year 2019

Governmental Activities Fiscal
Year 2018

Net Change

$ 30,841,799 $ 36,063,312 $ (5,221,513)

11,159

11,096

63

3,734,298 7,845,916 1,457,129
542,304 97,303
1,594,379 12,415,372 154,707,827

3,103,612 7,592,219 1,344,099
70,907 293,510 4,363,981 158,963,537

630,686 253,697 113,030 542,304
26,396 1,300,869 8,051,391 (4,255,710)

213,247,486

211,806,273

1,441,213

18,766,012 4,851,156
23,617,168

14,165,791 2,676,102
16,841,893

4,600,221 2,175,054
6,775,275

1,289,516 12,871,684
471,988 112,842 231,660 84,627,775 65,123,705
546,438
165,275,608

773,816 12,362,973
933,224 177,300
36,583 231,660 84,709,975 69,788,679
494,702
169,508,912

515,700 508,711 (933,224) 294,688
76,259 -
(82,200) (4,664,974)
51,736
(4,233,304)

5,998,607 12,918,957
18,917,564

6,760,570 5,808,509
12,569,079

(761,963) 7,110,448
6,348,485

165,896,141

162,874,000

3,022,141

2,410,175 7,629,585 (123,264,419)

2,403,985 7,413,237 (126,121,047)

6,190 216,348 2,856,628

$ 52,671,482 $ 46,570,175 $ 6,101,307

iv

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019 Total net position increased by $6.1 million in fiscal year 2019. The change is primarily due to an increase in property taxes, operating grants and contributions and investment earnings. Net capital assets increased by $3.8 million in the current year. Current year depreciation decreased the account balance by $5.4 million which was offset by $9.3 million in current year capital asset additions.
v

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
Table 2 shows the changes in net position for fiscal year 2019 compared to the changes in net position for fiscal year 2018.

Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions
Total Program Revenues
General Revenues: Taxes Property Taxes
For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax
For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues

Fiscal Year 2019

Governmental Activities Fiscal Year 2018

Net Change

$

1,101,895 $

1,096,310 $

5,585

67,242,426

64,006,136

3,236,290

195,166

100,451

94,715

68,539,487

65,202,897

3,336,590

32,084,076 64,561
8,776,722 321,975
7,653,323 466,395
1,723,496 51,090,548 119,630,035

31,066,340 -
7,863,303 296,673
7,392,583 317,482
1,687,852 48,624,233 113,827,130

1,017,736 64,561
913,419 25,302
260,740 148,913
35,644 2,466,315 5,802,905

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

67,178,238

68,814,313

(1,636,075)

5,791,015 5,538,719 1,948,574 2,040,320 6,482,516
866,534 8,074,328 6,870,923
778,910 457,329

6,163,749 4,934,510 2,054,392 1,559,629 6,472,365
707,475 8,378,083 6,675,622
885,820 463,321

(372,734) 604,209 (105,818) 480,691
10,151 159,059 (303,755) 195,301 (106,910)
(5,992)

275,492 7,225,830
-

261,568 7,101,304
18,116

113,528,728

114,490,267

$

6,101,307 $

(663,137) $

13,924 124,526 (18,116)
(961,539)
6,764,444

vi

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The School District is dependent upon operating grants and property taxes to support governmental activities. Instruction comprises 59.2%, Support Services 34.2%, Enterprise Operations and Food Services 6.6% of government program expenses. Although program revenue makes up 57.3% of all revenues, the School District is still dependent upon tax revenues and other general revenues which comprise 42.7% of all revenues.
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. It identifies the cost of these services supported by tax revenue and unrestricted State entitlements.

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

Total Cost of Services

Fiscal

Fiscal

Year 2019

Year 2018

Net Cost of Services

Fiscal

Fiscal

Year 2019

Year 2018

$ 67,178,238 $ 68,814,313 $ 18,910,067 $ 23,088,503

5,791,015 5,538,719 1,948,574 2,040,320 6,482,516
866,534 8,074,328 6,870,923
778,910 457,329

6,163,749 4,934,510 2,054,392 1,559,629 6,472,365
707,475 8,378,083 6,675,622
885,820 463,321

4,654,825 3,525,681
642,317 487,359 3,748,884 858,250 4,941,792 5,634,078 769,445 437,318

5,034,685 2,951,360
814,114 (17,820) 3,931,980 702,070 5,322,361 5,435,273 879,261 455,084

275,492 7,225,830
-

261,568 7,101,304
18,116

379,225
-

672,382
18,116

$ 113,528,728 $ 114,490,267 $ 44,989,241 $ 49,287,369

The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $119.7 million and total expenditures of $122.4 million. The excess of expenditures over revenues was due to an increase in expenditures, especially in salaries and benefits expenditures and capital outlay. The iPad lease was paid off in fiscal year 2018 which helped offset increased capital outlay expenditures due to new capital projects started in fiscal year 2019.

vii

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The School District's budget is prepared in accordance with Georgia law. The most significant budgeted fund is the general fund, which includes local, state and Federal funds collected and disbursed for the purpose of operating the school system.
The School District's budget is based on its overall mission and incorporates site-based budgeting into the budget process that provides flexibility for site management. For the general fund, the final budgeted revenues of $112.1 million exceeded the actual revenues of $110.6 million by $1.5 million. This difference between actual revenues and final budget revenues was due to several reasons. While State Funds were higher than budgeted, Federal Funds were substantially lower than budgeted. Charges for services and miscellaneous revenues were higher than budgeted because school activity account revenues were not budgeted. Investment Earnings Revenue were also higher than budgeted. The increase to these revenues was not sufficient to offset the difference in Federal Funds budgeted to actual revenue.
The actual expenditures of $113.1 million exceeded the final budgeted amount of $112.9 million as a result of an increase in instruction, pupil services, general administration, transportation and also food services costs.
At fiscal year end June 30, 2019, the School District had $167.1 million invested in capital assets in the governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District's capital assets, net of accumulated depreciation, totaling $167.1 million are comprised of buildings and building improvements (83.8%), land and land improvements (7.9%), construction in progress (5.2%), and equipment (3.1%).
Due to the steady collection of Educational Special Purpose Local Option Sales Tax (ESPLOST) revenues, the School District has completed numerous construction projects and continues with the capital improvements program as well as improvement of technology and purchase of digital textbooks as outlined in the referendum approved by local voters.

Land Construction In Progress Building and Improvements Equipment Land Improvements
Total

Fiscal Year 2019

Governmental Activities Fiscal
Year 2018

Net Change

$ 3,663,262 $ 8,752,111
139,985,955 5,247,327 9,474,544
$ 167,123,199 $

3,663,262 $ 700,719
143,179,417 5,698,506
10,085,614
163,327,518 $

8,051,392 (3,193,462)
(451,179) (611,070)
3,795,681

viii

LIBERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
At fiscal year end June 30, 2019, the School District had $0.5 million in long-term liabilities which was comprised of compensated absences.
The following statements should help to explain the current financial position of the Liberty County School District and the effects the economic recession have had on it. Like most school systems in the State of Georgia, the Liberty County School District has been negatively impacted by the effects of the economic recession. Beginning in fiscal year 2003, the state authorized austerity cuts (or amended formula adjustments), which negatively impacted the QBE funding formula funds that help to fund the education of our students. While the economic conditions of the State of Georgia continue to improve, the state continues to underfund education. In addition, employer health insurance costs and employer retirement plan costs funded by the School District have risen over the past few years which have negatively impacted our financial position. Although frowned upon by state law, the general fund balance has accumulated beyond the maximum allowed by the State of Georgia. This additional fund balance will allow the school system to absorb rising healthcare and retirement costs, prevent future staff reductions, prevent future furlough days, and maintain an educational environment to meet the needs of our students. It has also allowed the School District to maintain or lower its local millage rate.
In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States' economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations; however, the impact cannot be reasonably estimated at this time.
The School District will continue to look for ways to align resources and costs in a way to ensure the best opportunity for student success.
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 information, contact Stephanie Clark, Executive Director of Finance at the Liberty County Board of Education, 200 Bradwell Street, Hinesville, Georgia 31313. You may also email your questions to Mrs. Clark at sclark@liberty.k12.ga.us.
ix

LIBERTY COUNTY BOARD OF EDUCATION

/,%(57 2817 %2$5' 2) ('8 $7,21 67$7(0(17 2) 1(7 326,7,21 -81(
$66(76
DVK DQG DVK (TXLYDOHQWV ,QYHVWPHQWV 5HFHLYDEOHV 1HW
7D HV 6WDWH RYHUQPHQW )HGHUDO RYHUQPHQW 2WKHU ,QYHQWRULHV 3UHSDLG ,WHPV DSLWDO $VVHWV 1RQ 'HSUHFLDEOH DSLWDO $VVHWV 'HSUHFLDEOH 1HW RI $FFXPXODWHG 'HSUHFLDWLRQ
7RWDO $VVHWV
'()(55(' 287)/2:6 2) 5(6285 (6
5HODWHG WR 'HILQHG %HQHILW 3HQVLRQ 3ODQ 5HODWHG WR 23(% 3ODQ
7RWDO 'HIHUUHG 2XWIOR V RI 5HVRXUFHV
/,$%,/,7,(6
$FFRXQWV 3D DEOH 6DODULHV DQG %HQHILWV 3D DEOH
RQWUDFWV 3D DEOH 5HWDLQDJHV 3D DEOH 8QHDUQHG 5HYHQXHV 1HW 3HQVLRQ /LDELOLW 1HW 23(% /LDELOLW /RQJ 7HUP /LDELOLWLHV
'XH LQ 0RUH 7KDQ 2QH HDU
7RWDO /LDELOLWLHV
'()(55(' ,1)/2:6 2) 5(6285 (6
5HODWHG WR 'HILQHG %HQHILW 3HQVLRQ 3ODQ 5HODWHG WR 23(% 3ODQ
7RWDO 'HIHUUHG ,QIOR V RI 5HVRXUFHV
1(7 326,7,21
1HW ,QYHVWPHQW LQ DSLWDO $VVHWV 5HVWULFWHG IRU
RQWLQXDWLRQ RI )HGHUDO 3URJUDPV DSLWDO 3URMHFWV 8QUHVWULFWHG 'HILFLW
7RWDO 1HW 3RVLWLRQ

(; ,%,7 $
29(510(17$/ $ 7,9,7,(6

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

/,%(57 2817 %2$5' 2) ('8 $7,21 67$7(0(17 2) $ 7,9,7,(6
)25 7 ( ($5 (1'(' -81(

29(510(17$/ $ 7,9,7,(6
,QVWUXFWLRQ 6XSSRUW 6HUYLFHV
3XSLO 6HUYLFHV ,PSURYHPHQW RI ,QVWUXFWLRQDO 6HUYLFHV (GXFDWLRQDO 0HGLD 6HUYLFHV
HQHUDO $GPLQLVWUDWLRQ 6FKRRO $GPLQLVWUDWLRQ %XVLQHVV $GPLQLVWUDWLRQ 0DLQWHQDQFH DQG 2SHUDWLRQ RI 3ODQW 6WXGHQW 7UDQVSRUWDWLRQ 6HUYLFHV
HQWUDO 6XSSRUW 6HUYLFHV 2WKHU 6XSSRUW 6HUYLFHV 2SHUDWLRQV RI 1RQ ,QVWUXFWLRQDO 6HUYLFHV (QWHUSULVH 2SHUDWLRQV )RRG 6HUYLFHV
7RWDO RYHUQPHQWDO $FWLYLWLHV
HQHUDO 5HYHQXHV 7D HV
3URSHUW 7D HV )RU 0DLQWHQDQFH DQG 2SHUDWLRQV 5DLOURDG DU 7D
6DOHV 7D HV 6SHFLDO 3XUSRVH /RFDO 2SWLRQ 6DOHV 7D )RU DSLWDO 3URMHFWV 2WKHU 6DOHV 7D
UDQWV DQG RQWULEXWLRQV QRW 5HVWULFWHG WR 6SHFLILF 3URJUDPV ,QYHVWPHQW (DUQLQJV 0LVFHOODQHRXV
7RWDO HQHUDO 5HYHQXHV
KDQJH LQ 1HW 3RVLWLRQ
1HW 3RVLWLRQ %HJLQQLQJ RI HDU
1HW 3RVLWLRQ (QG RI HDU

(;3(16(6

$5 (6 )25 6(59, (6

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

(; ,%,7 %

352 5$0 5(9(18(6 23(5$7,1 5$176 $1' 2175,%87,216

$3,7$/ 5$176 $1' 2175,%87,216

1(7 (;3(16(6 5(9(18(6
$1' $1 (6 ,1 1(7 326,7,21

/,%(57

2817 %2$5' 2) ('8 $7,21 %$/$1 ( 6 ((7
29(510(17$/ )81'6 -81(

$66(76
DVK DQG DVK (TXLYDOHQWV ,QYHVWPHQWV 5HFHLYDEOHV 1HW
7D HV 6WDWH RYHUQPHQW )HGHUDO RYHUQPHQW 2WKHU ,QYHQWRULHV 3UHSDLG ,WHPV
7RWDO $VVHWV
/,$%,/,7,(6
$FFRXQWV 3D DEOH 6DODULHV DQG %HQHILWV 3D DEOH
RQWUDFWV 3D DEOH 5HWDLQDJHV 3D DEOH 'HSRVLWV DQG 8QHDUQHG 5HYHQXH
7RWDO /LDELOLWLHV
'()(55(' ,1)/2:6 2) 5(6285 (6
8QDYDLODEOH 5HYHQXH 3URSHUW 7D HV
)81' %$/$1 (6
1RQVSHQGDEOH 5HVWULFWHG $VVLJQHG 8QDVVLJQHG
7RWDO )XQG %DODQFHV
7RWDO /LDELOLWLHV 'HIHUUHG ,QIOR V RI 5HVRXUFHV DQG )XQG %DODQFHV

(1(5$/ )81'

$3,7$/ 352-( 76
)81'

(; ,%,7 727$/

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

/,%(57 2817 %2$5' 2) ('8 $7,21 5( 21 ,/,$7,21 2) 7 ( 29(510(17$/ )81'6 %$/$1 ( 6 ((7
72 7 ( 67$7(0(17 2) 1(7 326,7,21 -81(
7RWDO IXQG EDODQFHV JRYHUQPHQWDO IXQGV ( KLELW
$PRXQWV UHSRUWHG IRU JRYHUQPHQWDO DFWLYLWLHV LQ WKH 6WDWHPHQW RI 1HW 3RVLWLRQ DUH GLIIHUHQW EHFDXVH
DSLWDO DVVHWV XVHG LQ JRYHUQPHQWDO DFWLYLWLHV DUH QRW ILQDQFLDO UHVRXUFHV DQG WKHUHIRUH DUH QRW UHSRUWHG LQ WKH IXQGV
/DQG RQVWUXFWLRQ LQ SURJUHVV
%XLOGLQJV DQG LPSURYHPHQWV (TXLSPHQW /DQG LPSURYHPHQWV $FFXPXODWHG GHSUHFLDWLRQ
6RPH OLDELOLWLHV DUH QRW GXH DQG SD DEOH LQ WKH FXUUHQW SHULRG DQG WKHUHIRUH DUH QRW UHSRUWHG LQ WKH IXQGV
1HW SHQVLRQ OLDELOLW 1HW 23(% OLDELOLW
'HIHUUHG RXWIOR V DQG LQIOR V RI UHVRXUFHV UHODWHG WR SHQVLRQV 23(% DUH DSSOLFDEOH WR IXWXUH SHULRGV DQG WKHUHIRUH DUH QRW UHSRUWHG LQ WKH IXQGV
5HODWHG WR SHQVLRQV 5HODWHG WR 23(%
7D HV WKDW DUH QRW DYDLODEOH WR SD IRU FXUUHQW SHULRG H SHQGLWXUHV DUH GHIHUUHG LQ WKH IXQGV
/RQJ WHUP OLDELOLWLHV DUH QRW GXH DQG SD DEOH LQ WKH FXUUHQW SHULRG DQG WKHUHIRUH DUH QRW UHSRUWHG LQ WKH IXQGV
RPSHQVDWHG DEVHQFHV SD DEOH
1HW SRVLWLRQ RI JRYHUQPHQWDO DFWLYLWLHV ( KLELW $

(; ,%,7 '

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

/,%(57 2817 %2$5' 2) ('8 $7,21 67$7(0(17 2) 5(9(18(6 (;3(1',785(6 $1' $1 (6 ,1 )81' %$/$1 (6
29(510(17$/ )81'6 ($5 (1'(' -81(

5(9(18(6
3URSHUW 7D HV 6DOHV 7D HV 6WDWH )XQGV )HGHUDO )XQGV
KDUJHV IRU 6HUYLFHV ,QYHVWPHQW (DUQLQJV 0LVFHOODQHRXV
7RWDO 5HYHQXHV
(;3(1',785(6
XUUHQW ,QVWUXFWLRQ 6XSSRUW 6HUYLFHV
3XSLO 6HUYLFHV ,PSURYHPHQW RI ,QVWUXFWLRQDO 6HUYLFHV (GXFDWLRQDO 0HGLD 6HUYLFHV
HQHUDO $GPLQLVWUDWLRQ 6FKRRO $GPLQLVWUDWLRQ %XVLQHVV $GPLQLVWUDWLRQ 0DLQWHQDQFH DQG 2SHUDWLRQ RI 3ODQW 6WXGHQW 7UDQVSRUWDWLRQ 6HUYLFHV
HQWUDO 6XSSRUW 6HUYLFHV 2WKHU 6XSSRUW 6HUYLFHV (QWHUSULVH 2SHUDWLRQV )RRG 6HUYLFHV 2SHUDWLRQ DSLWDO 2XWOD
7RWDO ( SHQGLWXUHV
1HW KDQJH LQ )XQG %DODQFHV
)XQG %DODQFHV %HJLQQLQJ
)XQG %DODQFHV (QGLQJ

(1(5$/ )81'

$3,7$/ 352-( 76
)81'

(; ,%,7 ( 727$/

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

/,%(57 2817 %2$5' 2) ('8 $7,21 5( 21 ,/,$7,21 2) 7 ( 29(510(17$/ )81'6 67$7(0(17 2)
5(9(18(6 (;3(1',785(6 $1' $1 (6 ,1 )81' %$/$1 (6 72 7 ( 67$7(0(17 2) $ 7,9,7,(6 -81(
1HW FKDQJH LQ IXQG EDODQFHV WRWDO JRYHUQPHQWDO IXQGV ( KLELW (
$PRXQWV UHSRUWHG IRU JRYHUQPHQWDO DFWLYLWLHV LQ WKH 6WDWHPHQW RI $FWLYLWLHV DUH GLIIHUHQW EHFDXVH
RYHUQPHQWDO IXQGV UHSRUW FDSLWDO RXWOD V DV H SHQGLWXUHV R HYHU LQ WKH 6WDWHPHQW RI $FWLYLWLHV WKH FRVW RI FDSLWDO DVVHWV LV DOORFDWHG RYHU WKHLU HVWLPDWHG XVHIXO OLYHV DV GHSUHFLDWLRQ H SHQVH
DSLWDO RXWOD 'HSUHFLDWLRQ H SHQVH
7KH QHW HIIHFW RI YDULRXV PLVFHOODQHRXV WUDQVDFWLRQV LQYROYLQJ FDSLWDO DVVHWV L H VDOHV WUDGH LQV GRQDWLRQV DQG GLVSRVDOV LV WR GHFUHDVH QHW SRVLWLRQ
7D HV UHSRUWHG LQ WKH 6WDWHPHQW RI $FWLYLWLHV WKDW GR QRW SURYLGH FXUUHQW ILQDQFLDO UHVRXUFHV DUH QRW UHSRUWHG DV UHYHQXHV LQ WKH IXQGV
'LVWULFW SHQVLRQ FRQWULEXWLRQV DUH UHSRUWHG DV H SHQGLWXUHV LQ WKH JRYHUQPHQWDO IXQGV KHQ PDGH R HYHU WKH DUH UHSRUWHG DV GHIHUUHG RXWIOR V RI UHVRXUFHV LQ WKH 6WDWHPHQW RI 1HW 3RVLWLRQ EHFDXVH WKH UHSRUWHG QHW SHQVLRQ 23(% OLDELOLW LV PHDVXUHG D HDU EHIRUH WKH 'LVWULFW V UHSRUW GDWH 3HQVLRQ 23(% H SHQVH KLFK LV WKH FKDQJH LQ WKH QHW SHQVLRQ 23(% OLDELOLW DGMXVWHG IRU FKDQJHV LQ GHIHUUHG RXWIOR V DQG LQIOR V RI UHVRXUFHV UHODWHG WR SHQVLRQV 23(% LV UHSRUWHG LQ WKH 6WDWHPHQW RI $FWLYLWLHV
3HQVLRQ H SHQVH 23(% H SHQVH
6RPH LWHPV UHSRUWHG LQ WKH 6WDWHPHQW RI $FWLYLWLHV GR QRW UHTXLUH WKH XVH RI FXUUHQW ILQDQFLDO UHVRXUFHV DQG WKHUHIRUH DUH QRW UHSRUWHG DV H SHQGLWXUHV LQ JRYHUQPHQWDO IXQGV
RPSHQVDWHG DEVHQFHV
KDQJH LQ QHW SRVLWLRQ RI JRYHUQPHQWDO DFWLYLWLHV ( KLELW %

(; ,%,7 )

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

$66(76 DVK DQG DVK (TXLYDOHQWV
/,$%,/,7,(6 )XQGV HOG IRU 2WKHUV

/,%(57 2817 %2$5' 2) ('8 $7,21 67$7(0(17 2) ),'8 ,$5 1(7 326,7,21
),'8 ,$5 )81'6 -81(

(; ,%,7
$ (1 )81'6

7KH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV DUH DQ LQWHJUDO SDUW RI WKLV VWDWHPHQW

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

(; ,%,7

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
7KH /LEHUW RX W %RDUG RI (GXFDWLR 6FKRRO 'LVWULFW DV HVWDEOLVKHG X GHU WKH OD V RI WKH 6WDWH RI *HRUJLD D G RSHUDWHV X GHU WKH JXLGD FH RI D ERDUG HOHFWHG E WKH YRWHUV D G D 6XSHUL WH GH W DSSRL WHG E WKH %RDUG 7KH 6FKRRO 'LVWULFW LV RUJD L HG DV D VHSDUDWH OHJDO H WLW D G KDV WKH SR HU WR OHY WD HV D G LVVXH ER GV ,WV EXGJHW LV RW VXEMHFW WR DSSURYDO E D RWKHU H WLW $FFRUGL JO WKH 6FKRRO 'LVWULFW LV D SULPDU JRYHU PH W D G FR VLVWV RI DOO WKH RUJD L DWLR V WKDW FRPSRVH LWV OHJDO H WLW
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
7KH DFFRPSD L J IL D FLDO VWDWHPH WV RI WKH 6FKRRO 'LVWULFW KDYH EHH SUHSDUHG L FR IRUPLW LWK JH HUDOO DFFHSWHG DFFRX WL J SUL FLSOHV *$$3 DV SUHVFULEHG E WKH *RYHU PH WDO $FFRX WL J 6WD GDUGV %RDUG *$6% *$6% LV WKH DFFHSWHG VWD GDUG VHWWL J ERG IRU JRYHU PH WDO DFFRX WL J D G IL D FLDO UHSRUWL J SUL FLSOHV 7KH PRVW VLJ LILFD W RI WKH 6FKRRO 'LVWULFW V DFFRX WL J SROLFLHV DUH GHVFULEHG EHOR
BASIS OF PRESENTATION
7KH 6FKRRO 'LVWULFW V EDVLF IL D FLDO VWDWHPH WV DUH FROOHFWLYHO FRPSULVHG RI WKH JRYHU PH W LGH IL D FLDO VWDWHPH WV IX G IL D FLDO VWDWHPH WV D G RWHV WR WKH EDVLF IL D FLDO VWDWHPH WV 7KH JRYHU PH W LGH VWDWHPH WV IRFXV R WKH 6FKRRO 'LVWULFW DV D KROH KLOH WKH IX G IL D FLDO VWDWHPH WV IRFXV R PDMRU IX GV (DFK SUHVH WDWLR SURYLGHV YDOXDEOH L IRUPDWLR WKDW FD EH D DO HG D G FRPSDUHG EHW HH HDUV D G EHW HH JRYHU PH WV WR H KD FH WKH L IRUPDWLR V XVHIXO HVV
GOVERNMENT-WIDE STATEMENTS:
7KH 6WDWHPH W RI 1HW 3RVLWLR D G WKH 6WDWHPH W RI $FWLYLWLHV GLVSOD L IRUPDWLR DERXW WKH IL D FLDO DFWLYLWLHV RI WKH RYHUDOO 6FKRRO 'LVWULFW H FHSW IRU ILGXFLDU DFWLYLWLHV (OLPL DWLR V KDYH EHH PDGH WR PL LPL H WKH GRXEOH FRX WL J RI L WHU DO DFWLYLWLHV *RYHU PH WDO DFWLYLWLHV JH HUDOO DUH IL D FHG WKURXJK WD HV L WHUJRYHU PH WDO UHYH XHV D G RWKHU R H FKD JH WUD VDFWLR V
7KH 6WDWHPH W RI 1HW 3RVLWLR SUHVH WV WKH 6FKRRO 'LVWULFW V R ILGXFLDU DVVHWV D G OLDELOLWLHV LWK WKH GLIIHUH FH UHSRUWHG DV HW SRVLWLR 1HW SRVLWLR LV UHSRUWHG L WKUHH FDWHJRULHV DV IROOR V
FR VLVWV RI WKH 6FKRRO 'LVWULFW V WRWDO L YHVWPH W L FDSLWDO DVVHWV HW RI DFFXPXODWHG GHSUHFLDWLR D G UHGXFHG E RXWVWD GL J GHEW REOLJDWLR V UHODWHG WR WKRVH FDSLWDO DVVHWV 7R WKH H WH W GHEW KDV EHH L FXUUHG EXW RW HW H SH GHG IRU FDSLWDO DVVHWV VXFK DPRX WV DUH RW L FOXGHG DV D FRPSR H W RI HW L YHVWPH W L FDSLWDO DVVHWV
FR VLVWV RI UHVRXUFHV IRU KLFK WKH 6FKRRO 'LVWULFW LV OHJDOO RU FR WUDFWXDOO REOLJDWHG WR VSH G L DFFRUGD FH LWK UHVWULFWLR V LPSRVHG E H WHU DO WKLUG SDUWLHV RU LPSRVHG E OD WKURXJK FR VWLWXWLR DO SURYLVLR V RU H DEOL J OHJLVODWLR
FR VLVWV RI UHVRXUFHV RW PHHWL J WKH GHIL LWLR RI WKH W R SUHFHGL J FDWHJRULHV 8 UHVWULFWHG HW SRVLWLR RIWH KDV FR VWUDL WV R UHVRXUFHV LPSRVHG E PD DJHPH W KLFK FD EH UHPRYHG RU PRGLILHG
7KH 6WDWHPH W RI $FWLYLWLHV SUHVH WV D FRPSDULVR EHW HH GLUHFW H SH VHV D G SURJUDP UHYH XHV IRU HDFK IX FWLR RI WKH 6FKRRO 'LVWULFW V JRYHU PH WDO DFWLYLWLHV
'LUHFW H SH VHV DUH WKRVH WKDW DUH VSHFLILFDOO DVVRFLDWHG LWK D SURJUDP RU IX FWLR D G WKHUHIRUH DUH FOHDUO LGH WLILDEOH WR D SDUWLFXODU IX FWLR , GLUHFW H SH VHV H SH VHV RI WKH 6FKRRO 'LVWULFW UHODWHG WR WKH DGPL LVWUDWLR D G VXSSRUW RI WKH 6FKRRO 'LVWULFW V SURJUDPV VXFK DV RIILFH D G PDL WH D FH SHUVR HO D G DFFRX WL J DUH RW DOORFDWHG WR SURJUDPV

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

(; ,%,7

3URJUDP UHYH XHV L FOXGH D FKDUJHV SDLG E WKH UHFLSLH WV RI JRRGV RU VHUYLFHV RIIHUHG E WKH SURJUDPV D G E JUD WV D G FR WULEXWLR V WKDW DUH UHVWULFWHG WR PHHWL J WKH RSHUDWLR DO RU FDSLWDO UHTXLUHPH WV RI D SDUWLFXODU SURJUDP 5HYH XHV WKDW DUH RW FODVVLILHG DV SURJUDP UHYH XHV L FOXGL J DOO WD HV DUH SUHVH WHG DV JH HUDO UHYH XHV

FUND FINANCIAL STATEMENTS

7KH IX G IL D FLDO VWDWHPH WV SURYLGH L IRUPDWLR DERXW WKH 6FKRRO 'LVWULFW V IX GV L FOXGL J ILGXFLDU IX GV (OLPL DWLR V KDYH EHH PDGH WR PL LPL H WKH GRXEOH FRX WL J RI L WHU DO DFWLYLWLHV 6HSDUDWH IL D FLDO VWDWHPH WV DUH SUHVH WHG IRU JRYHU PH WDO D G ILGXFLDU IX GV 7KH HPSKDVLV RI IX G IL D FLDO VWDWHPH WV LV R PDMRU JRYHU PH WDO IX GV HDFK GLVSOD HG L D VHSDUDWH FROXP

7KH 6FKRRO 'LVWULFW UHSRUWV WKH IROOR L J PDMRU JRYHU PH WDO IX GV

7KH JH HUDO IX G LV WKH 6FKRRO 'LVWULFW V SULPDU RSHUDWL J IX G ,W DFFRX WV IRU D G UHSRUWV DOO IL D FLDO UHVRXUFHV RW DFFRX WHG IRU D G UHSRUWHG L D RWKHU IX G

7KH FDSLWDO SURMHFWV IX G DFFRX WV IRU D G UHSRUWV IL D FLDO UHVRXUFHV L FOXGL J (GXFDWLR 6SHFLDO 3XUSRVH /RFDO 2SWLR 6DOHV 7D (63/267 D G JUD WV IURP 8 6 'HSDUWPH W RI 'HIH VH WKDW DUH UHVWULFWHG FRPPLWWHG RU DVVLJ HG IRU FDSLWDO RXWOD H SH GLWXUHV L FOXGL J WKH DFTXLVLWLR RU FR VWUXFWLR RI FDSLWDO IDFLOLWLHV D G RWKHU FDSLWDO DVVHWV

7KH 6FKRRO 'LVWULFW UHSRUWV WKH IROOR L J ILGXFLDU IX G W SH

$JH F IX GV DUH XVHG WR UHSRUW UHVRXUFHV KHOG E WKH 6FKRRO 'LVWULFW L D SXUHO FXVWRGLDO FDSDFLW DVVHWV HTXDO OLDELOLWLHV D G GR RW L YROYH PHDVXUHPH W RI UHVXOWV RI RSHUDWLR V

BASIS OF ACCOUNTING

7KH EDVLV RI DFFRX WL J GHWHUPL HV KH WUD VDFWLR V DUH UHSRUWHG R WKH IL D FLDO VWDWHPH WV 7KH JRYHU PH W LGH D G ILGXFLDU IX G IL D FLDO VWDWHPH WV DUH UHSRUWHG XVL J WKH HFR RPLF UHVRXUFHV PHDVXUHPH W IRFXV D G WKH DFFUXDO EDVLV RI DFFRX WL J 5HYH XHV DUH UHFRUGHG KH HDU HG D G H SH VHV DUH UHFRUGHG DW WKH WLPH OLDELOLWLHV DUH L FXUUHG UHJDUGOHVV RI KH WKH UHODWHG FDVK IOR V WDNH SODFH 1R H FKD JH WUD VDFWLR V L KLFK WKH 6FKRRO 'LVWULFW JLYHV RU UHFHLYHV YDOXH LWKRXW GLUHFWO UHFHLYL J RU JLYL J HTXDO YDOXH L H FKD JH L FOXGH SURSHUW WD HV VDOHV WD HV D G JUD WV 2 D DFFUXDO EDVLV UHYH XH IURP SURSHUW WD HV LV UHFRJ L HG L WKH ILVFDO HDU IRU KLFK WKH WD HV DUH OHYLHG 5HYH XH IURP VDOHV WD HV LV UHFRJ L HG L WKH ILVFDO HDU L KLFK WKH X GHUO L J WUD VDFWLR VDOH WDNHV SODFH 5HYH XH IURP JUD WV LV UHFRJ L HG L WKH ILVFDO HDU L KLFK DOO HOLJLELOLW UHTXLUHPH WV KDYH EHH VDWLVILHG

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

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

PRGLILHG DFFUXDO EDVLV RI DFFRX WL J 8 GHU WKLV PHWKRG UHYH XHV DUH UHFRJ L HG KH PHDVXUDEOH

D G DYDLODEOH 7KH 6FKRRO 'LVWULFW FR VLGHUV DOO UHYH XHV UHSRUWHG L WKH JRYHU PH WDO IX GV WR EH

DYDLODEOH LI WKH DUH FROOHFWHG LWKL VL W GD V DIWHU HDU H G 7KH 6FKRRO 'LVWULFW FR VLGHUV DOO

L WHUJRYHU PH WDO UHYH XHV WR EH DYDLODEOH LI WKH DUH FROOHFWHG LWKL

GD V DIWHU HDU H G

3URSHUW WD HV VDOHV WD HV D G L WHUHVW DUH FR VLGHUHG WR EH VXVFHSWLEOH WR DFFUXDO ( SH GLWXUHV DUH

UHFRUGHG KH WKH UHODWHG IX G OLDELOLW LV L FXUUHG H FHSW IRU FRPSH VDWHG DEVH FHV KLFK DUH

UHFRJ L HG DV H SH GLWXUHV WR WKH H WH W WKH KDYH PDWXUHG DSLWDO DVVHW DFTXLVLWLR V DUH UHSRUWHG

DV H SH GLWXUHV L JRYHU PH WDO IX GV

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

(; ,%,7

7KH 6FKRRO 'LVWULFW IX GV FHUWDL SURJUDPV E D FRPEL DWLR RI VSHFLILF FRVW UHLPEXUVHPH W JUD WV FDWHJRULFDO JUD WV D G JH HUDO UHYH XHV 7KXV KH SURJUDP FRVWV DUH L FXUUHG WKHUH DUH ERWK UHVWULFWHG D G X UHVWULFWHG HW DVVHWV DYDLODEOH WR IL D FH WKH SURJUDP ,W LV WKH 6FKRRO 'LVWULFW V SROLF WR ILUVW DSSO JUD W UHVRXUFHV WR VXFK SURJUDPV IROOR HG E FRVW UHLPEXUVHPH W JUD WV WKH JH HUDO UHYH XHV

NEW ACCOUNTING PRONOUNCEMENTS

, ILVFDO HDU

WKH 6FKRRO 'LVWULFW DGRSWHG *RYHU PH WDO $FFRX WL J 6WD GDUGV %RDUG *$6%

6WDWHPH W 1R

D

P

O D R 7KLV VWDWHPH W DGGUHVVHV DFFRX WL J D G

IL D FLDO UHSRUWL J IRU FHUWDL DVVHW UHWLUHPH W REOLJDWLR V $52V $ $52 LV D OHJDOO H IRUFHDEOH

OLDELOLW DVVRFLDWHG LWK WKH UHWLUHPH W RI D WD JLEOH FDSLWDO DVVHW $ JRYHU PH W WKDW KDV OHJDO

REOLJDWLR V WR SHUIRUP IXWXUH DVVHW UHWLUHPH W DFWLYLWLHV UHODWHG WR LWV WD JLEOH FDSLWDO DVVHWV VKRXOG

UHFRJ L H D OLDELOLW EDVHG R WKH JXLGD FH L WKLV VWDWHPH W 7KH DGRSWLR RI WKLV VWDWHPH W GRHV RW

KDYH D LPSDFW R WKH 6FKRRO 'LVWULFW V IL D FLDO VWDWHPH WV

, ILVFDO HDU

WKH 6FKRRO 'LVWULFW DGRSWHG *RYHU PH WDO $FFRX WL J 6WD GDUGV %RDUG *$6%

6WDWHPH W 1R

D

OR

OD G R

OG

RR

DG

OD P 7KH SULPDU REMHFWLYH RI WKLV VWDWHPH W LV WR LPSURYH WKH L IRUPDWLR WKDW LV GLVFORVHG L

RWHV WR JRYHU PH W IL D FLDO VWDWHPH WV UHODWHG WR GHEW L FOXGL J GLUHFW ERUUR L JV D G GLUHFW

SODFHPH WV ,W DOVR FODULILHV KLFK OLDELOLWLHV JRYHU PH WV VKRXOG L FOXGH KH GLVFORVL J L IRUPDWLR

UHODWHG WR GHEW 7KH DGRSWLR RI WKLV VWDWHPH W GRHV RW KDYH D LPSDFW R WKH 6FKRRO 'LVWULFW V

IL D FLDO VWDWHPH WV

CASH AND CASH EQUIVALENTS

DVK D G FDVK HTXLYDOH WV FR VLVW RI FDVK R KD G GHPD G GHSRVLWV L YHVWPH WV L WKH 6WDWH RI

*HRUJLD ORFDO JRYHU PH W L YHVWPH W SRRO *HRUJLD )X G D G VKRUW WHUP L YHVWPH WV LWK RULJL DO

PDWXULWLHV RI WKUHH PR WKV RU OHVV IURP WKH GDWH RI DFTXLVLWLR L DXWKRUL HG IL D FLDO L VWLWXWLR V

2IILFLDO RGH RI *HRUJLD $ RWDWHG 2 * $

DXWKRUL HV WKH 6FKRRO 'LVWULFW WR GHSRVLW LWV

IX GV L R H RU PRUH VROYH W ED NV L VXUHG )HGHUDO VDYL JV D G ORD DVVRFLDWLR V RU L VXUHG

FKDUWHUHG EXLOGL J D G ORD DVVRFLDWLR V

INVESTMENTS

7KH 6FKRRO 'LVWULFW FD L YHVW LWV IX GV DV SHUPLWWHG E 2 * $

, VHOHFWL J DPR J RSWLR V

IRU L YHVWPH W RU DPR J L VWLWXWLR DO ELGV IRU GHSRVLWV WKH KLJKHVW UDWH RI UHWXU VKDOO EH WKH REMHFWLYH

JLYH HTXLYDOH W FR GLWLR V RI VDIHW D G OLTXLGLW

, YHVWPH WV PDGH E WKH 6FKRRO 'LVWULFW L R SDUWLFLSDWL J L WHUHVW HDU L J FR WUDFWV VXFK DV FHUWLILFDWHV RI GHSRVLW D G UHSXUFKDVH DJUHHPH WV DUH UHSRUWHG DW FRVW 3DUWLFLSDWL J L WHUHVW HDU L J FR WUDFWV D G PR H PDUNHW L YHVWPH WV LWK D PDWXULW DW SXUFKDVH RI R H HDU RU OHVV DUH UHSRUWHG DW DPRUWL HG FRVW $OO RWKHU L YHVWPH WV DUH UHSRUWHG DW IDLU YDOXH

)RU DFFRX WL J SXUSRVHV FHUWLILFDWHV RI GHSRVLW DUH FODVVLILHG DV L YHVWPH WV LI WKH KDYH D RULJL DO PDWXULW JUHDWHU WKD WKUHH PR WKV KH DFTXLUHG

RECEIVABLES

5HFHLYDEOHV FR VLVW RI DPRX WV GXH IURP SURSHUW D G VDOHV WD HV JUD W UHLPEXUVHPH WV GXH R )HGHUDO 6WDWH RU RWKHU JUD WV IRU H SH GLWXUHV PDGH EXW RW UHLPEXUVHG D G RWKHU UHFHLYDEOHV GLVFORVHG IURP L IRUPDWLR DYDLODEOH 5HFHLYDEOHV DUH UHFRUGHG KH HLWKHU WKH DVVHW RU UHYH XH UHFRJ LWLR FULWHULD KDV EHH PHW 5HFHLYDEOHV UHFRUGHG R WKH EDVLF IL D FLDO VWDWHPH WV GR RW L FOXGH D DPRX WV KLFK RXOG HFHVVLWDWH WKH HHG IRU D DOOR D FH IRU X FROOHFWLEOH UHFHLYDEOHV

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

(; ,%,7

INVENTORIES

Food Inventories

2 WKH EDVLF IL D FLDO VWDWHPH WV L YH WRULHV RI GR DWHG IRRG FRPPRGLWLHV XVHG L WKH SUHSDUDWLR RI PHDOV DUH UHSRUWHG DW WKHLU )HGHUDOO DVVLJ HG YDOXH D G SXUFKDVHG IRRGV L YH WRULHV DUH UHSRUWHG DW FRVW FDOFXODWHG R WKH ILUVW L ILUVW RXW EDVLV 7KH 6FKRRO 'LVWULFW XVHV WKH FR VXPSWLR PHWKRG WR DFFRX W IRU L YH WRULHV KHUHE GR DWHG IRRG FRPPRGLWLHV DUH UHFRUGHG DV D DVVHW D G DV UHYH XH
KH UHFHLYHG D G H SH VHV H SH GLWXUHV DUH UHFRUGHG DV WKH L YH WRU LWHPV DUH XVHG 3XUFKDVHG IRRGV DUH UHFRUGHG DV D DVVHW KH SXUFKDVHG D G H SH VHV H SH GLWXUHV DUH UHFRUGHG DV WKH L YH WRU LWHPV DUH XVHG

PREPAID ITEMS

3D PH WV PDGH WR YH GRUV IRU VHUYLFHV WKDW LOO EH HILW IXWXUH DFFRX WL J SHULRGV DUH UHFRUGHG DV SUHSDLG LWHPV L ERWK WKH JRYHU PH W LGH D G JRYHU PH WDO IX G IL D FLDO VWDWHPH WV

CAPITAL ASSETS

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

DSLWDO DFTXLVLWLR D G FR VWUXFWLR DUH UHFRUGHG DV H SH GLWXUHV L WKH JRYHU PH WDO IX G IL D FLDO VWDWHPH WV DW WKH WLPH RI SXUFKDVH L FOXGL J D FLOODU FKDUJHV D G WKH UHODWHG DVVHWV DUH UHSRUWHG DV FDSLWDO DVVHWV L WKH JRYHU PH WDO DFWLYLWLHV FROXP L WKH JRYHU PH W LGH IL D FLDO VWDWHPH WV

'HSUHFLDWLR LV FRPSXWHG XVL J WKH VWUDLJKW OL H IRU DOO DVVHWV H FHSW OD G D G LV XVHG WR DOORFDWH WKH DFWXDO RU HVWLPDWHG KLVWRULFDO FRVW RI FDSLWDO DVVHWV RYHU HVWLPDWHG XVHIXO OLYHV

DSLWDOL DWLR WKUHVKROGV D G HVWLPDWHG XVHIXO OLYHV RI FDSLWDO DVVHWV UHSRUWHG L WKH JRYHU PH W LGH VWDWHPH WV DUH DV IROOR V

DSLWDOL DWLR 3ROLF

(VWLPDWHG 8VHIXO /LIH

/D G /D G ,PSURYHPH WV %XLOGL JV D G ,PSURYHPH WV (TXLSPH W , WD JLEOH $VVHWV
6RIW DUH (DVHPH WV /D G 8VH 5LJKWV 3DWH WV 7UDGHPDUNV RS ULJKWV

$OO

1$

XS WR HDUV

XS WR HDUV

WR HDUV

HYDOXDWHG E FDVH HYDOXDWHG E FDVH HYDOXDWHG E FDVH HYDOXDWHG E FDVH

DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
, DGGLWLR WR DVVHWV WKH VWDWHPH W RI IL D FLDO SRVLWLR LOO UHSRUW D VHSDUDWH VHFWLR IRU GHIHUUHG RXWIOR V RI UHVRXUFHV 7KLV VHSDUDWH IL D FLDO VWDWHPH W HOHPH W UHSUHVH WV D FR VXPSWLR RI UHVRXUFHV WKDW DSSOLHV WR D IXWXUH SHULRG V D G WKHUHIRUH LOO RW EH UHFRJ L HG DV D RXWIOR RI UHVRXUFHV H SH VH H SH GLWXUH X WLO WKH

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

(; ,%,7

, DGGLWLR WR OLDELOLWLHV WKH VWDWHPH W RI IL D FLDO SRVLWLR LOO UHSRUW D VHSDUDWH VHFWLR IRU GHIHUUHG L IOR V RI UHVRXUFHV 7KLV VHSDUDWH IL D FLDO VWDWHPH W HOHPH W UHSUHVH WV D DFTXLVLWLR RI UHVRXUFHV WKDW DSSOLHV WR D IXWXUH SHULRG V D G WKHUHIRUH LOO RW EH UHFRJ L HG DV D L IOR RI UHVRXUFHV UHYH XH X WLO WKDW WLPH

COMPENSATED ABSENCES

RPSH VDWHG DEVH FHV SD DEOH FR VLVWV RI YDFDWLR OHDYH HPSOR HHV HDU HG EDVHG R VHUYLFHV DOUHDG UH GHUHG

9DFDWLR OHDYH RI

RU GD V LV D DUGHG R D ILVFDO HDU EDVLV WR DOO IXOO WLPH SHUVR HO HPSOR HG

R D W HOYH PR WK EDVLV 7KH UDWH RI DFFUXDO LV GHSH GH W XSR WKH SD OHYHO RI WKH HPSOR HH R WKHLU

UHVSHFWLYH VDODU VFDOH 1R RWKHU HPSOR HHV DUH HOLJLEOH WR HDU YDFDWLR OHDYH 9DFDWLR OHDYH RW

XWLOL HG GXUL J WKH ILVFDO HDU PD EH FDUULHG RYHU WR WKH H W ILVFDO HDU XS WR W R WLPHV WKH DFFUXDO

UDWH RI WKH HPSOR HH 8SR WHUPL DWL J HPSOR PH W WKH 6FKRRO 'LVWULFW SD V DOO X XVHG D G

X IRUIHLWHG YDFDWLR EH HILWV WR HPSOR HHV $FFRUGL JO YDFDWLR EH HILWV DUH DFFUXHG DV D OLDELOLW L

WKH JRYHU PH W LGH IL D FLDO VWDWHPH WV $ OLDELOLW IRU WKHVH DPRX WV LV UHSRUWHG L WKH

JRYHU PH WDO IX G IL D FLDO VWDWHPH WV R O LI WKH KDYH PDWXUHG IRU H DPSOH DV D UHVXOW RI

HPSOR HH UHVLJ DWLR V D G UHWLUHPH WV E ILVFDO HDU H G

0HPEHUV RI WKH 7HDFKHUV 5HWLUHPH W 6 VWHP RI *HRUJLD 756 PD DSSO X XVHG VLFN OHDYH WR DUG HDUO UHWLUHPH W 7KH OLDELOLW IRU HDUO UHWLUHPH W LOO EH ERU H E 756 UDWKHU WKD E WKH L GLYLGXDO 6FKRRO 'LVWULFWV 2WKHU LVH VLFN OHDYH GRHV RW YHVW LWK WKH HPSOR HH D G R OLDELOLW LV UHSRUWHG L WKH 6FKRRO 'LVWULFW V IL D FLDO VWDWHPH WV

PENSIONS

)RU SXUSRVHV RI PHDVXUL J WKH HW SH VLR OLDELOLW GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI UHVRXUFHV UHODWHG WR SH VLR V D G SH VLR H SH VH L IRUPDWLR DERXW WKH SH VLR SOD V ILGXFLDU HW SRVLWLR D G DGGLWLR V WR GHGXFWLR V IURP WKH SOD V ILGXFLDU HW SRVLWLR KDYH EHH GHWHUPL HG R WKH VDPH EDVLV DV WKH DUH UHSRUWHG E WKH SOD )RU WKLV SXUSRVH EH HILW SD PH WV L FOXGL J UHIX GV RI HPSOR HH FR WULEXWLR V DUH UHFRJ L HG KH GXH D G SD DEOH L DFFRUGD FH
LWK WKH EH HILW WHUPV , YHVWPH WV DUH UHSRUWHG DW IDLU YDOXH

POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)

)RU SXUSRVHV RI PHDVXUL J WKH HW 23(% OLDELOLW GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI UHVRXUFHV UHODWHG WR 23(% D G 23(% H SH VH L IRUPDWLR DERXW WKH ILGXFLDU HW SRVLWLR RI WKH *HRUJLD 6FKRRO (PSOR HHV 3RVWHPSOR PH W %H HILW )X G 6FKRRO 23(% )X G D G DGGLWLR V WR GHGXFWLR V IURP 6FKRRO 23(% )X G ILGXFLDU HW SRVLWLR KDYH EHH GHWHUPL HG R WKH VDPH EDVLV DV WKH DUH UHSRUWHG E 6FKRRO 23(% )X G )RU WKLV SXUSRVH EH HILW SD PH WV DUH UHFRJ L HG KH GXH D G SD DEOH L DFFRUGD FH LWK WKH EH HILW WHUPV , YHVWPH WV DUH UHSRUWHG DW IDLU YDOXH

FUND BALANCES

)X G EDOD FH IRU JRYHU PH WDO IX GV LV UHSRUWHG L FODVVLILFDWLR V WKDW FRPSULVH D KLHUDUFK EDVHG SULPDULO R WKH H WH W WR KLFK WKH JRYHU PH W LV ERX G WR KR RU FR VWUDL WV R WKH VSHFLILF SXUSRVHV IRU KLFK DPRX WV L WKRVH IX GV FD EH VSH W

7KH 6FKRRO 'LVWULFW V IX G EDOD FHV DUH FODVVLILHG DV IROOR V

FR VLVWV RI UHVRXUFHV WKDW FD RW EH VSH W HLWKHU EHFDXVH WKH DUH L D R VSH GDEOH IRUP RU EHFDXVH WKH DUH OHJDOO RU FR WUDFWXDOO UHTXLUHG WR EH PDL WDL HG L WDFW

FR VLVWV RI UHVRXUFHV WKDW FD EH XVHG R O IRU VSHFLILF SXUSRVHV SXUVXD W FR VWUDL WV HLWKHU H WHU DOO LPSRVHG E FUHGLWRUV JUD WRUV FR WULEXWRUV RU OD V D G UHJXODWLR V RI RWKHU JRYHU PH WV RU LPSRVHG E OD WKURXJK FR VWLWXWLR DO SURYLVLR V RU H DEOL J OHJLVODWLR

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

(; ,%,7

FR VLVWV RI UHVRXUFHV WKDW FD EH XVHG R O IRU VSHFLILF SXUSRVHV SXUVXD W WR FR VWUDL WV LPSRVHG E IRUPDO DFWLR RI WKH %RDUG 7KH %RDUG LV WKH 6FKRRO 'LVWULFW V KLJKHVW OHYHO RI GHFLVLR PDNL J DXWKRULW D G WKH IRUPDO DFWLR WKDW LV UHTXLUHG WR EH WDNH WR HVWDEOLVK PRGLI RU UHVFL G D IX G EDOD FH FRPPLWPH W LV D UHVROXWLR DSSURYHG E WKH %RDUG RPPLWWHG IX G EDOD FH DOVR VKRXOG L FRUSRUDWH FR WUDFWXDO REOLJDWLR V WR WKH H WH W WKDW H LVWL J UHVRXUFHV L WKH IX G KDYH EHH VSHFLILFDOO FRPPLWWHG IRU XVH L VDWLVI L J WKRVH FR WUDFWXDO UHTXLUHPH WV

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

FR VLVWV RI UHVRXUFHV LWKL WKH JH HUDO IX G RW PHHWL J WKH GHIL LWLR RI D DIRUHPH WLR HG FDWHJRU 7KH JH HUDO IX G VKRXOG EH WKH R O IX G WKDW UHSRUWV D SRVLWLYH X DVVLJ HG IX G EDOD FH DPRX W , RWKHU JRYHU PH WDO IX GV LW PD EH HFHVVDU WR UHSRUW D HJDWLYH X DVVLJ HG IX G EDOD FH

USE OF ESTIMATES

7KH SUHSDUDWLR RI WKH IL D FLDO VWDWHPH WV L FR IRUPLW LWK DFFRX WL J SUL FLSOHV JH HUDOO DFFHSWHG L WKH 8 LWHG 6WDWHV UHTXLUHV PD DJHPH W WR PDNH HVWLPDWHV D G DVVXPSWLR V WKDW DIIHFW WKH DPRX WV UHSRUWHG L WKH IL D FLDO VWDWHPH WV D G DFFRPSD L J RWHV $FWXDO UHVXOWV PD GLIIHU IURP WKRVH HVWLPDWHV

PROPERTY TAXES

7KH /LEHUW RX W %RDUG RI RPPLVVLR HUV DGRSWHG WKH SURSHUW WD OHY IRU WKH

WD GLJHVW HDU

FDOH GDU HDU R 1RYHPEHU

OHY GDWH EDVHG R SURSHUW YDOXHV DV RI -D XDU

7D HV HUH GXH R -D XDU

OLH GDWH 7D HV FROOHFWHG LWKL WKH FXUUH W ILVFDO HDU RU LWKL

GD V DIWHU HDU H G R WKH

WD GLJHVW DUH UHSRUWHG DV UHYH XH L WKH JRYHU PH WDO IX GV IRU

ILVFDO HDU

7KH /LEHUW RX W 7D RPPLVVLR HU ELOOV D G FROOHFWV WKH SURSHUW WD HV IRU WKH

6FKRRO 'LVWULFW LWKKROGV

RI WD HV FROOHFWHG DV D IHH IRU WD FROOHFWLR D G UHPLWV WKH EDOD FH

RI WD HV FROOHFWHG WR WKH 6FKRRO 'LVWULFW 3URSHUW WD UHYH XHV DW WKH IX G UHSRUWL J OHYHO GXUL J WKH

ILVFDO HDU H GHG -X H

IRU PDL WH D FH D G RSHUDWLR V DPRX WHG WR

7KH WD PLOODJH UDWH OHYLHG IRU WKH

WD HDU FDOH GDU HDU IRU WKH 6FKRRO 'LVWULFW DV DV IROOR V

D PLOO HTXDOV SHU WKRXVD G GROODUV RI DVVHVVHG YDOXH

6FKRRO 2SHUDWLR V

PLOOV

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

SALES TAXES

(GXFDWLR 6SHFLDO 3XUSRVH /RFDO 2SWLR 6DOHV 7D (63/267 DW WKH IX G UHSRUWL J OHYHO GXUL J WKH

HDU DPRX WHG WR

D G LV WR EH XVHG IRU FDSLWDO RXWOD IRU HGXFDWLR DO SXUSRVHV RU GHEW

VHUYLFH 7KLV VDOHV WD DV DXWKRUL HG E ORFDO UHIHUH GXP D G WKH VDOHV WD PXVW EH UH DXWKRUL HG DW

OHDVW HYHU ILYH HDUV

NOTE 3: BUDGETARY DATA

7KH EXGJHW LV D FRPSOHWH IL D FLDO SOD IRU WKH 6FKRRO 'LVWULFW V ILVFDO HDU D G LV EDVHG XSR FDUHIXO HVWLPDWHV RI H SH GLWXUHV WRJHWKHU LWK SUREDEOH IX GL J VRXUFHV 7KH EXGJHW LV OHJDOO DGRSWHG HDFK HDU IRU WKH JH HUDO D G FDSLWDO SURMHFWV IX GV 7KHUH LV R VWDWXWRU SURKLELWLR UHJDUGL J RYHU H SH GLWXUH RI WKH EXGJHW DW D OHYHO 7KH EXGJHW IRU DOO JRYHU PH WDO IX GV H FHSW WKH YDULRXV VFKRRO DFWLYLW SUL FLSDO DFFRX WV LV SUHSDUHG D G DGRSWHG E IX G D G IX FWLR 7KH OHJDO OHYHO RI

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

(; ,%,7

EXGJHWDU FR WURO DV HVWDEOLVKHG E WKH %RDUG DW WKH DJJUHJDWH IX G OHYHO 7KH EXGJHW IRU WKH JH HUDO IX G DV SUHSDUHG L DFFRUGD FH LWK DFFRX WL J SUL FLSOHV JH HUDOO DFFHSWHG L WKH 8 LWHG 6WDWHV RI $PHULFD

7KH EXGJHWDU SURFHVV EHJL V LWK WKH 6FKRRO 'LVWULFW V DGPL LVWUDWLR SUHVH WL J D L LWLDO EXGJHW IRU

WKH %RDUG V UHYLH 7KH DGPL LVWUDWLR PDNHV UHYLVLR V DV HFHVVDU EDVHG R WKH %RDUG V JXLGHOL HV

D G D WH WDWLYH EXGJHW LV DSSURYHG $IWHU DSSURYDO RI WKLV WH WDWLYH EXGJHW E WKH %RDUG VXFK EXGJHW

LV DGYHUWLVHG DW OHDVW R FH L D H VSDSHU RI JH HUDO FLUFXODWLR L WKH ORFDOLW DV HOO DV WKH 6FKRRO

'LVWULFW V HEVLWH $W WKH H W UHJXODUO VFKHGXOHG PHHWL J RI WKH %RDUG DIWHU DGYHUWLVHPH W WKH %RDUG

UHFHLYHV FRPPH WV R WKH WH WDWLYH EXGJHW PDNHV UHYLVLR V DV HFHVVDU D G DGRSWV D IL DO EXGJHW

7KH DSSURYHG EXGJHW LV WKH VXEPLWWHG L DFFRUGD FH LWK SURYLVLR V RI 2 * $

F WR WKH

*HRUJLD 'HSDUWPH W RI (GXFDWLR 7KH %RDUG PD L FUHDVH RU GHFUHDVH WKH EXGJHW DW D WLPH GXUL J

WKH HDU $OO X H SH GHG EXGJHW DXWKRULW ODSVHV DW ILVFDO HDU H G

7KH %RDUG PXVW DSSURYH D FKD JHV EHW HH WKH DSSURSULDWLR V E IX G KR HYHU WKH 6XSHUL WH GH W RU KLV KHU GHVLJ HH VKDOO KDYH WKH DXWKRULW WR WUD VIHU DSSURSULDWLR V LWKL WKH IX G OHYHO 8 GHU R FLUFXPVWD FH LV WKH 6XSHUL WH GH W RU RWKHU VWDII SHUVR DXWKRUL HG WR VSH G IX GV WKDW H FHHG WKH WRWDO EXGJHW LWKRXW DSSURYDO E WKH %RDUG

6HH WKH *H HUDO )X G 6FKHGXOH RI 5HYH XHV ( SH GLWXUHV D G KD JHV L )X G %DOD FHV %XGJHW WR $FWXDO L WKH 6XSSOHPH WDU , IRUPDWLR 6HFWLR IRU D GHWDLO RI D RYHU X GHU H SH GLWXUHV GXUL J WKH ILVFDO HDU X GHU UHYLH

NOTE 4: DEPOSITS AND CASH EQUIVALENTS

COLLATERALIZATION OF DEPOSITS

2 *$

SURYLGHV WKDW WKHUH VKDOO RW EH R GHSRVLW DW D WLPH L D GHSRVLWRU IRU D WLPH

OR JHU WKD WH GD V D VXP RI PR H KLFK KDV RW EHH VHFXUHG E VXUHW ER G E JXDUD WHH RI

L VXUD FH RU E FROODWHUDO 7KH DJJUHJDWH RI WKH IDFH YDOXH RI VXFK VXUHW ER G D G WKH PDUNHW YDOXH

RI VHFXULWLHV SOHGJHG VKDOO EH HTXDO WR RW OHVV WKD

RI WKH SXEOLF IX GV EHL J VHFXUHG DIWHU WKH

GHGXFWLR RI WKH DPRX W RI GHSRVLW L VXUD FH ,I D GHSRVLWRU HOHFWV WKH SRROHG PHWKRG

2 *$

WKH DJJUHJDWH RI WKH PDUNHW YDOXH RI WKH VHFXULWLHV SOHGJHG WR VHFXUH D SRRO RI

SXEOLF IX GV VKDOO EH RW OHVV WKD

RI WKH GDLO SRRO EDOD FH

$FFHSWDEOH VHFXULW IRU GHSRVLWV FR VLVWV RI D R H RI RU D FRPEL DWLR RI WKH IROOR L J

6XUHW ER G VLJ HG E D VXUHW FRPSD GXO TXDOLILHG D G DXWKRUL HG WR WUD VDFW EXVL HVV LWKL WKH 6WDWH RI *HRUJLD

, VXUD FH R DFFRX WV SURYLGHG E WKH )HGHUDO 'HSRVLW , VXUD FH RUSRUDWLR

%R GV ELOOV RWHV FHUWLILFDWHV RI L GHEWHG HVV RU RWKHU GLUHFW REOLJDWLR V RI WKH 8 LWHG 6WDWHV RU RI WKH 6WDWH RI *HRUJLD

%R GV ELOOV RWHV FHUWLILFDWHV RI L GHEWHG HVV RU RWKHU REOLJDWLR V RI WKH FRX WLHV RU PX LFLSDOLWLHV RI WKH 6WDWH RI *HRUJLD

%R GV RI D SXEOLF DXWKRULW FUHDWHG E WKH OD V RI WKH 6WDWH RI *HRUJLD SURYLGL J WKDW WKH VWDWXWH WKDW FUHDWHG WKH DXWKRULW DXWKRUL HG WKH XVH RI WKH ER GV IRU WKLV SXUSRVH

, GXVWULDO UHYH XH ER GV D G ER GV RI GHYHORSPH W DXWKRULWLHV FUHDWHG E WKH OD V RI WKH 6WDWH RI *HRUJLD D G

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

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

(; ,%,7

7KH 6FKRRO 'LVWULFW SDUWLFLSDWHV L WKH 6WDWH V 6HFXUH 'HSRVLW 3URJUDP 6'3 D PXOWL ED N SOHGJL J

SRRO 7KH 6'3 UHTXLUHV SDUWLFLSDWL J ED NV WKDW DFFHSW SXEOLF GHSRVLWV L *HRUJLD WR RSHUDWH

X GHU WKH SROLF D G SURFHGXUHV RI WKH SURJUDP 7KH *HRUJLD 2IILFH RI 6WDWH 7UHDVXUHU 267 VHWV

WKH FROODWHUDO UHTXLUHPH WV D G SOHGJL J OHYHO IRU HDFK FRYHUHG GHSRVLWRU 7KHUH DUH IRXU

WLHUV RI FROODWHUDOL DWLR OHYHOV VSHFLI L J SHUFH WDJHV RI HOLJLEOH VHFXULWLHV WR VHFXUH FRYHUHG

GHSRVLWV

DG

7KH 6'3 DOVR SURYLGHV IRU FROODWHUDO OHYHOV WR EH L FUHDVHG L

DPRX W RI XS WR

LI HFR RPLF RU IL D FLDO FR GLWLR V DUUD WV 7KH SURJUDP OLVWV WKH W SHV RI

HOLJLEOH FULWHULD 7KH 267 DSSURYHV DXWKRUL HG FXVWRGLD V

, DFFRUGD FH LWK WKH 6'3 LI D FRYHUHG GHSRVLWRU GHIDXOWV ORVVHV WR SXEOLF GHSRVLWRUV DUH ILUVW VDWLVILHG LWK D DSSOLFDEOH L VXUD FH IROOR HG E GHPD GV RI SD PH W X GHU D OHWWHUV RI FUHGLW RU VDOH RI WKH FRYHUHG GHSRVLWRU V FROODWHUDO ,I HFHVVDU D UHPDL L J ORVVHV DUH WR EH VDWLVILHG E DVVHVVPH WV PDGH DJDL VW WKH RWKHU SDUWLFLSDWL J FRYHUHG GHSRVLWRULHV 7KHUHIRUH IRU GLVFORVXUH SXUSRVHV DOO GHSRVLWV RI WKH 6'3 DUH FR VLGHUHG WR EH IXOO FROODWHUDOL HG

CATEGORIZATION OF DEPOSITS

XVWRGLDO FUHGLW ULVN LV WKH ULVN WKDW L WKH HYH W RI D ED N IDLOXUH WKH 6FKRRO 'LVWULFW V GHSRVLWV PD

RW EH UHWXU HG WR LW 7KH 6FKRRO 'LVWULFW GRHV RW KDYH D GHSRVLW SROLF IRU FXVWRGLDO FUHGLW ULVN $W

-X H

WKH 6FKRRO 'LVWULFW KDG GHSRVLWV LWK D FDUU L J DPRX W RI

D G D ED N

EDOD FH RI

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

WKH ED N EDOD FHV FROODWHUDOL HG LWK VHFXULWLHV KHOG E WKH SOHGJL J IL D FLDO

L VWLWXWLR V WUXVW GHSDUWPH W RU DJH W L WKH 6FKRRO 'LVWULFW V DPH HUH

D G WKH ED N

EDOD FHV L FOXGHG L WKH 6WDWH V 6HFXUH 'HSRVLW 3URJUDP 6'3 HUH

5HFR FLOLDWLR RI FDVK D G FDVK HTXLYDOH WV EDOD FHV WR FDUU L J YDOXH RI GHSRVLWV

DVK D G FDVK HTXLYDOH WV 6WDWHPH W RI 1HW 3RVLWLR 6WDWHPH W RI )LGXFLDU 1HW 3RVLWLR

7RWDO FDVK D G FDVK HTXLYDOH WV

$GG 'HSRVLWV LWK RULJL DO PDWXULW RI WKUHH PR WKV RU PRUH UHSRUWHG DV L YHVWPH WV

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

7RWDO FDUU L J YDOXH RI GHSRVLWV -X H

CATEGORIZATION OF CASH EQUIVALENTS

7KH 6FKRRO 'LVWULFW UHSRUWHG FDVK HTXLYDOH WV RI

L *HRUJLD )X G D ORFDO

JRYHU PH W L YHVWPH W SRRO KLFK LV L FOXGHG L WKH FDVK EDOD FHV DERYH *HRUJLD )X G LV RW

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

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

7KH L YHVWPH W LV YDOXHG DW WKH SRRO V

VKDUH SULFH

SHU VKDUH KLFK DSSUR LPDWHV IDLU YDOXH 7KH SRRO LV D $$$I UDWHG L YHVWPH W

SRRO E 6WD GDUG D G 3RRU V 7KH HLJKWHG DYHUDJH PDWXULW RI *HRUJLD )X G PD RW H FHHG

GD V 7KH HLJKWHG DYHUDJH PDWXULW IRU *HRUJLD )X G R -X H

DV GD V

*HRUJLD )X G DGPL LVWHUHG E WKH 6WDWH RI *HRUJLD 2IILFH RI WKH 6WDWH 7UHDVXUHU LV RW UHTXLUHG WR EH FDWHJRUL HG VL FH WKH 6FKRRO 'LVWULFW GLG RW R D VSHFLILF LGH WLILDEOH VHFXULWLHV L WKH SRRO 7KH L YHVWPH W SROLF RI WKH 6WDWH RI *HRUJLD 2IILFH RI WKH 6WDWH 7UHDVXUHU IRU WKH *HRUJLD )X G GRHV

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

(; ,%,7

RW SURYLGH IRU L YHVWPH W L GHULYDWLYHV RU VLPLODU L YHVWPH WV $GGLWLR DO L IRUPDWLR R WKH *HRUJLD )X G LV GLVFORVHG L WKH 6WDWH RI *HRUJLD RPSUHKH VLYH $ XDO )L D FLDO 5HSRUW 7KLV DXGLW FD EH REWDL HG IURP WKH *HRUJLD 'HSDUWPH W RI $XGLWV D G $FFRX WV DW DXGLWV JD JRY 6*' $)5 KWPO

NOTE 5: CAPITAL ASSETS

7KH IROOR L J LV D VXPPDU RI FKD JHV L WKH FDSLWDO DVVHWV IRU JRYHU PH WDO DFWLYLWLHV GXUL J WKH ILVFDO HDU

%DOD FHV -XO

, FUHDVHV

'HFUHDVHV

$GMXVWPH WV

%DOD FHV -X H

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

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

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

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

*RYHU PH WDO $FWLYLWLHV DSLWDO $VVHWV 1HW

XUUH W HDU GHSUHFLDWLR H SH VH E IX FWLR LV DV IROOR V
, VWUXFWLR 6XSSRUW 6HUYLFHV
3XSLO 6HUYLFHV ,PSURYHPH WV RI , VWUXFWLR DO 6HUYLFHV (GXFDWLR DO 0HGLD 6HUYLFHV *H HUDO $GPL LVWUDWLR 6FKRRO $GPL LVWUDWLR %XVL HVV $GPL LVWUDWLR 0DL WH D FH D G 2SHUDWLR RI 3OD W 6WXGH W 7UD VSRUWDWLR 6HUYLFHV
H WUDO 6XSSRUW 6HUYLFHV 2WKHU 6XSSRUW 6HUYLFHV )RRG 6HUYLFHV

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

(; ,%,7

NOTE 6: LONG-TERM LIABILITIES

7KH FKD JHV L OR J WHUP OLDELOLWLHV GXUL J WKH ILVFDO HDU IRU JRYHU PH WDO DFWLYLWLHV HUH DV IROOR V

*RYHU PH WDO $FWLYLWLHV

%DOD FH

%DOD FH

-XO

Additions

'HGXFWLR V -X H

RPSH VDWHG $EVH FHV

7KH SRUWLR RI FRPSH VDWHG DEVH FHV GXH LWKL R H HDU KDV EHH GHWHUPL HG WR EH LPPDWHULDO WR WKH EDVLF IL D FLDO VWDWHPH WV

COMPENSATED ABSENCES

RPSH VDWHG DEVH FHV UHSUHVH W REOLJDWLR V RI WKH 6FKRRO 'LVWULFW UHODWL J WR HPSOR HHV ULJKWV WR UHFHLYH FRPSH VDWLR IRU IXWXUH DEVH FHV EDVHG XSR VHUYLFH DOUHDG UH GHUHG 7KLV REOLJDWLR UHODWHV R O WR YHVWL J DFFXPXODWL J OHDYH L KLFK SD PH W LV SUREDEOH D G FD EH UHDVR DEO HVWLPDWHG 7 SLFDOO WKH JH HUDO IX G LV WKH IX G XVHG WR OLTXLGDWH WKLV OR J WHUP GHEW 7KH 6FKRRO 'LVWULFW XVHV WKH YHVWL J PHWKRG WR FRPSXWH FRPSH VDWHG DEVH FHV

NOTE 7: RISK MANAGEMENT

INSURANCE

Commercial Insurance

7KH 6FKRRO 'LVWULFW LV H SRVHG WR YDULRXV ULVNV RI ORVV UHODWHG WR WRUWV WKHIW RI GDPDJH WR D G GHVWUXFWLR RI DVVHWV HUURUV RU RPLVVLR V MRE UHODWHG LOO HVV RU L MXULHV WR HPSOR HHV D G DWXUDO GLVDVWHUV ( FHSW DV GHVFULEHG EHOR WKH 6FKRRO 'LVWULFW FDUULHV FRPPHUFLDO L VXUD FH IRU WKHVH ULVNV 6HWWOHG FODLPV UHVXOWL J IURP WKHVH L VXUHG ULVNV KDYH RW H FHHGHG FRPPHUFLDO L VXUD FH FRYHUDJH L D RI WKH SDVW WKUHH ILVFDO HDUV

WORKERS' COMPENSATION

Georgia Education Workers' Compensation Trust

7KH 6FKRRO 'LVWULFW SDUWLFLSDWHV L WKH *HRUJLD (GXFDWLR :RUNHUV RPSH VDWLR 7UXVW WKH 7UXVW D

SXEOLF H WLW ULVN SRRO RUJD L HG R 'HFHPEHU

WR GHYHORS LPSOHPH W D G DGPL LVWHU D

SURJUDP RI RUNHUV FRPSH VDWLR VHOI L VXUD FH IRU LWV PHPEHU RUJD L DWLR V 7KH 6FKRRO 'LVWULFW

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

6SHFLILF H FHVV RI ORVV L VXUD FH FRYHUDJH LV SURYLGHG WKURXJK D DJUHHPH W E WKH 7UXVW LWK WKH

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

H FHVV RI

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

FRYHUDJH LV DOVR SURYLGHG LWK OLPLWV RI

PLOOLR 7KH 7UXVW FRYHUV WKH ILUVW

PLOOLR RI HDFK

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

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

L DJJUHJDWH FRYHUDJH WR WKH 7UXVW DWWDFKL J DW

RI WKH ORVV IX G D G EDVHG R WKH )X G V D XDO

RUPDO SUHPLXP

UNEMPLOYMENT COMPENSATION

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

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

(; ,%,7

KD JHV L WKH X HPSOR PH W FRPSH VDWLR FODLPV OLDELOLW GXUL J WKH ODVW W R ILVFDO HDUV DUH DV IROOR V

%HJL L J RI HDU /LDELOLW

ODLPV D G KD JHV L (VWLPDWHV

ODLPV 3DLG

( G RI HDU /LDELOLW

SURETY BOND

7KH 6FKRRO 'LVWULFW SXUFKDVHG D VXUHW ER G WR SURYLGH DGGLWLR DO L VXUD FH FRYHUDJH DV IROOR V

3RVLWLR RYHUHG

$PRX W

6XSHUL WH GH W

NOTE 8: FUND BALANCE CLASSIFICATION DETAILS
7KH 6FKRRO 'LVWULFW V IL D FLDO VWDWHPH WV L FOXGH WKH IROOR L J DPRX WV SUHVH WHG L WKH DJJUHJDWH DW -X H
1R VSH GDEOH , YH WRULHV 3UHSDLG $VVHWV
5HVWULFWHG R WL XDWLR RI )HGHUDO 3URJUDPV DSLWDO 3URMHFWV
$VVLJ HG 6FKRRO $FWLYLW $FFRX WV
8 DVVLJ HG

)X G %DOD FH -X H

:KH PXOWLSOH FDWHJRULHV RI IX G EDOD FH DUH DYDLODEOH IRU H SH GLWXUH WKH 6FKRRO 'LVWULFW LOO VWDUW LWK WKH PRVW UHVWULFWHG FDWHJRU D G VSH G WKRVH IX GV ILUVW EHIRUH PRYL J GR WR WKH H W FDWHJRU LWK DYDLODEOH IX GV

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

(; ,%,7

NOTE 9: SIGNIFICANT COMMITMENTS

COMMITMENTS UNDER CONSTRUCTION CONTRACTS
7KH IROOR L J LV D D DO VLV RI VLJ LILFD W RXWVWD GL J FR VWUXFWLR RU UH RYDWLR FR WUDFWV H HFXWHG E WKH 6FKRRO 'LVWULFW DV RI -X H

3URMHFW

8 HDU HG ( HFXWHG R WUDFWV

3D PH WV WKURXJK -X H

%UDG HOO , VWLWXWH * P DVLXP 5H RYDWLR /LEHUW RX W LJK 6FKRRO 5HVWURRP D G )RX WDL 5H RYDWLR V /LEHUW RX W LJK 6FKRRO , WHULRU 5H RYDWLR V %XWWR * L HWW (OHPH WDU , WHULRU 5H RYDWLR V %UDG HOO , VWLWXWH %DVHEDOO )LHOG 5H RYDWLR V /LEHUW RX W 3UH . H WHU 'LJLWDO 6LJ 7D ORUV UHHN (OHPH WDU 'LJLWDO 6LJ

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

OPERATING LEASES

7KH 6FKRRO 'LVWULFW OHDVHV FRSLHUV X GHU WKH SURYLVLR V RI R H RU PRUH OR J WHUP OHDVH DJUHHPH WV

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

RSHUDWL J OHDVHV WRWDOHG

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

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

HDU ( GL J

*RYHU PH WDO )X GV

7RWDO
NOTE 10: SIGNIFICANT CONTINGENT LIABILITIES
FEDERAL GRANTS
$PRX WV UHFHLYHG RU UHFHLYDEOH SUL FLSDOO IURP WKH )HGHUDO JRYHU PH W DUH VXEMHFW WR DXGLW D G UHYLH E JUD WRU DJH FLHV 7KLV FRXOG UHVXOW L UHTXHVWV IRU UHLPEXUVHPH W WR WKH JUD WRU DJH F IRU D FRVWV KLFK DUH GLVDOOR HG X GHU JUD W WHUPV $ GLVDOOR D FHV UHVXOWL J IURP WKH JUD WRU DXGLW PD EHFRPH D OLDELOLW RI WKH 6FKRRO 'LVWULFW R HYHU WKH 6FKRRO 'LVWULFW EHOLHYHV WKDW VXFK GLVDOOR D FHV LI D LOO EH LPPDWHULDO WR LWV RYHUDOO IL D FLDO SRVLWLR
LITIGATION
7KH 6FKRRO 'LVWULFW LV D GHIH GD W L YDULRXV OHJDO SURFHHGL JV SHUWDL L J WR PDWWHUV L FLGH WDO WR WKH SHUIRUPD FH RI URXWL H 6FKRRO 'LVWULFW RSHUDWLR V 7KH XOWLPDWH GLVSRVLWLR RI WKHVH SURFHHGL JV LV
RW SUHVH WO GHWHUPL DEOH EXW LV RW EHOLHYHG WR KDYH D PDWHULDO DGYHUVH HIIHFW R WKH IL D FLDO FR GLWLR RI WKH 6FKRRO 'LVWULFW

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

(; ,%,7

NOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB)

GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND

HUWLILHG WHDFKHUV D G R FHUWLILHG SXEOLF VFKRRO HPSOR HHV RI WKH 6FKRRO 'LVWULFW

DV GHIL HG L

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

WKURXJK WKH 6FKRRO 23(% )X G D FRVW VKDUL J PXOWLSOH HPSOR HU GHIL HG EH HILW SRVWHPSOR PH W

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

%RDUG 7LWOH RI WKH 2 * $ DVVLJ V WKH DXWKRULW WR HVWDEOLVK D G DPH G WKH EH HILW WHUPV RI WKH

JURXS KHDOWK SOD WR WKH %RDUG

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

$V HVWDEOLVKHG E WKH %RDUG WKH 6FKRRO 23(% )X G LV VXEVWD WLDOO IX GHG R D SD

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

RFFXU R WULEXWLR V WR WKH 6FKRRO 23(% )X G IURP WKH 6FKRRO 'LVWULFW HUH

IRU WKH

HDU H GHG -X H

$FWLYH HPSOR HHV DUH RW UHTXLUHG WR FR WULEXWH WR WKH 6FKRRO 23(% )X G

$W -X H

WKH 6FKRRO 'LVWULFW UHSRUWHG D OLDELOLW RI

IRU LWV SURSRUWLR DWH VKDUH

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

7KH WRWDO 23(%

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

-X H

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

DV GHWHUPL HG XVL J VWD GDUG

UROO IRU DUG WHFK LTXHV 7KH 6FKRRO 'LVWULFW V SURSRUWLR RI WKH HW 23(% OLDELOLW DV DFWXDULDOO

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

$W

-X H

WKH 6FKRRO 'LVWULFW V SURSRUWLR DV

KLFK DV D L FUHDVH RI

IURP LWV SURSRUWLR PHDVXUHG DV RI -X H

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

(; ,%,7

)RU WKH HDU H GHG -X H

WKH 6FKRRO 'LVWULFW UHFRJ L HG 23(% H SH VH RI

$W -X H

WKH 6FKRRO 'LVWULFW UHSRUWHG GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI

UHVRXUFHV UHODWHG WR 23(% IURP WKH IROOR L J VRXUFHV

'HIHUUHG 2XWIOR V RI 5HVRXUFHV

23(% 'HIHUUHG , IOR V RI 5HVRXUFHV

'LIIHUH FHV EHW HH H SHFWHG D G DFWXDO H SHULH FH

KD JHV RI DVVXPSWLR V

1HW GLIIHUH FH EHW HH SURMHFWHG D G DFWXDO HDU L JV R 23(% SOD L YHVWPH WV

KD JHV L SURSRUWLR D G GLIIHUH FHV EHW HH 6FKRRO 'LVWULFW FR WULEXWLR V D G SURSRUWLR DWH VKDUH RI FR WULEXWLR V

6FKRRO 'LVWULFW FR WULEXWLR V VXEVHTXH W WR WKH PHDVXUHPH W GDWH

7RWDO

6FKRRO 'LVWULFW FR WULEXWLR V VXEVHTXH W WR WKH PHDVXUHPH W GDWH DUH UHSRUWHG DV GHIHUUHG RXWIOR V

RI UHVRXUFHV D G LOO EH UHFRJ L HG DV D UHGXFWLR RI WKH HW 23(% OLDELOLW L WKH HDU H GHG

-X H

2WKHU DPRX WV UHSRUWHG DV GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI

UHVRXUFHV UHODWHG WR 23(% LOO EH UHFRJ L HG L 23(% H SH VH DV IROOR V

HDU ( GHG -X H

23(%

7KHUHDIWHU

7KH WRWDO 23(% OLDELOLW DV RI -X H

DV GHWHUPL HG E D DFWXDULDO

YDOXDWLR DV RI -X H

XVL J WKH IROOR L J DFWXDULDO DVVXPSWLR V D G RWKHU L SXWV DSSOLHG WR

DOO SHULRGV L FOXGHG L WKH PHDVXUHPH W D G UROOHG IRU DUG WR WKH PHDVXUHPH W GDWH RI

-X H

, IODWLR 6DODU L FUHDVHV /R J WHUP H SHFWHG UDWH RI UHWXU
HDOWKFDUH FRVW WUH G UDWH

L FOXGL J L IODWLR
FRPSRX GHG D XDOO HW RI L YHVWPH W H SH VH D G L FOXGL J L IODWLR

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

(; ,%,7

3UH 0HGLFDUH (OLJLEOH

0HGLFDUH (OLJLEOH

8OWLPDWH WUH G UDWH

3UH 0HGLFDUH (OLJLEOH

0HGLFDUH (OLJLEOH

HDU RI 8OWLPDWH WUH G UDWH

3UH 0HGLFDUH (OLJLEOH

0HGLFDUH (OLJLEOH

0RUWDOLW UDWHV HUH EDVHG R WKH 53

RPEL HG 0RUWDOLW 7DEOH IRU 0DOHV RU )HPDOHV DV

DSSURSULDWH LWK DGMXVWPH WV IRU PRUWDOLW LPSURYHPH WV EDVHG R 6FDOH %% DV IROOR V

)RU 756 PHPEHUV 7KH 53

:KLWH ROODU 0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR

VFDOH %% VHW IRU DUG HDU IRU PDOHV LV XVHG IRU GHDWK DIWHU VHUYLFH UHWLUHPH W D G

EH HILFLDULHV 7KH 53

'LVDEOHG 0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR VFDOH

%% VHW IRU DUG W R HDUV IRU PDOHV D G IRXU HDUV IRU IHPDOHV LV XVHG IRU GHDWK DIWHU GLVDELOLW

UHWLUHPH W

)RU 36(56 PHPEHUV 7KH 53

%OXH ROODU 0RUWDOLW 7DEOH SURMHFWHG WR

LWK

SURMHFWLR VFDOH %% VHW IRU DUG HDUV IRU PDOHV D G HDUV IRU IHPDOHV LV XVHG IRU WKH

SHULRG DIWHU VHUYLFH UHWLUHPH W D G IRU EH HILFLDULHV RI GHFHDVHG PHPEHUV 7KH 53

'LVDEOHG 0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR VFDOH %% VHW IRU DUG HDUV IRU

ERWK PDOHV D G IHPDOHV LV XVHG IRU WKH SHULRG DIWHU GLVDELOLW UHWLUHPH W

7KH DFWXDULDO DVVXPSWLR V XVHG L WKH -X H

YDOXDWLR HUH EDVHG R WKH UHVXOWV RI D

DFWXDULDO H SHULH FH VWXG IRU WKH SH VLR V VWHPV KLFK FRYHUHG WKH ILYH HDU SHULRG H GL J

-X H

7KH UHPDL L J DFWXDULDO DVVXPSWLR V H J L LWLDO SHU FDSLWD FRVWV KHDOWK FDUH FRVW WUH GV UDWH RI SOD

SDUWLFLSDWLR UDWHV RI SOD HOHFWLR HWF XVHG L WKH -X H

YDOXDWLR HUH EDVHG R D UHYLH

RI UHFH W SOD H SHULH FH GR H FR FXUUH WO LWK WKH -X H

YDOXDWLR

3URMHFWLR RI EH HILWV IRU IL D FLDO UHSRUWL J SXUSRVHV DUH EDVHG R WKH VXEVWD WLYH SOD WKH SOD DV X GHUVWRRG E WKH HPSOR HU D G SOD PHPEHUV D G L FOXGH WKH W SHV RI EH HILWV SURYLGHG DW WKH WLPH RI HDFK YDOXDWLR D G WKH KLVWRULFDO SDWWHU RI VKDUL J RI EH HILW FRVWV EHW HH WKH HPSOR HU D G SOD PHPEHUV WR WKDW SRL W 7KH DFWXDULDO PHWKRGV D G DVVXPSWLR V XVHG L FOXGH WHFK LTXHV WKDW DUH GHVLJ HG WR UHGXFH WKH HIIHFWV RI VKRUW WHUP YRODWLOLW L DFWXDULDO DFFUXHG OLDELOLWLHV D G WKH DFWXDULDO YDOXH RI DVVHWV FR VLVWH W LWK WKH OR J WHUP SHUVSHFWLYH RI WKH FDOFXODWLR

7KH OR J WHUP H SHFWHG UDWH RI UHWXU R 23(% SOD L YHVWPH WV DV GHWHUPL HG XVL J D ORJ RUPDO GLVWULEXWLR D DO VLV L KLFK EHVW HVWLPDWH UD JHV RI H SHFWHG IXWXUH UHDO UDWHV RI UHWXU H SHFWHG
RPL DO UHWXU V HW RI L YHVWPH W H SH VH D G WKH DVVXPHG UDWH RI L IODWLR DUH GHYHORSHG IRU HDFK PDMRU DVVHW FODVV 7KHVH UD JHV DUH FRPEL HG WR SURGXFH WKH OR J WHUP H SHFWHG UDWH RI UHWXU E
HLJKWL J WKH H SHFWHG IXWXUH UHDO UDWHV RI UHWXU E WKH WDUJHW DVVHW DOORFDWLR SHUFH WDJH D G E

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

(; ,%,7

DGGL J H SHFWHG L IODWLR 'XUL J ILVFDO HDU

WKH 6FKRRO 23(% IX G XSGDWHG WKHLU L YHVWPH W

VWUDWHJ WR D PRUH OR J WHUP DSSURDFK 7KH WDUJHW DOORFDWLR D G EHVW HVWLPDWHV RI DULWKPHWLF UHDO

UDWHV RI UHWXU IRU HDFK PDMRU DVVHW FODVV DUH VXPPDUL HG L WKH IROOR L J WDEOH

)L HG L FRPH 'RPHVWLF 6WRFNV /DUJH DS 'RPHVWLF 6WRFNV 0LG DS 'RPHVWLF 6WRFNV 6PDOO DS , W O 6WRFNV 'HYHORSHG 0NW , W O 6WRFNV (PHUJL J 0NW $OWHU DWLYHV
7RWDO

1HW RI , IODWLR

7KH GLVFRX W UDWH KDV FKD JHG VL FH WKH SULRU PHDVXUHPH W GDWH IURP

WR

, RUGHU WR PHDVXUH WKH WRWDO 23(% OLDELOLW IRU WKH 6FKRRO 23(% )X G D VL JOH HTXLYDOH W

L WHUHVW UDWH RI

DV XVHG DV WKH GLVFRX W UDWH 7KLV LV FRPSULVHG PDL O RI WKH LHOG RU L GH

UDWH IRU HDU WD H HPSW JH HUDO REOLJDWLR PX LFLSDO ER GV LWK D DYHUDJH UDWL J RI $$ RU KLJKHU

SHU WKH %R G %X HUV , GH 7KH SURMHFWLR RI FDVK IOR V XVHG WR GHWHUPL H WKH GLVFRX W UDWH

DVVXPHG WKDW FR WULEXWLR V IURP PHPEHUV D G IURP WKH HPSOR HU LOO EH PDGH DW WKH FXUUH W OHYHO DV

DYHUDJHG RYHU WKH ODVW ILYH HDUV DGMXVWHG IRU D XDO SURMHFWHG FKD JHV L KHDGFRX W 3URMHFWHG

IXWXUH EH HILW SD PH WV IRU DOO FXUUH W SOD PHPEHUV HUH SURMHFWHG WKURXJK

%DVHG R WKHVH

DVVXPSWLR V WKH 23(% SOD V ILGXFLDU HW SRVLWLR DV SURMHFWHG WR EH DYDLODEOH WR PDNH 23(%

SD PH WV IRU L DFWLYH HPSOR HHV WKURXJK HDU

7KHUHIRUH WKH FDOFXODWHG GLVFRX W UDWH RI

DV DSSOLHG WR DOO SHULRGV RI SURMHFWHG EH HILW SD PH WV WR GHWHUPL H WKH WRWDO 23(% OLDELOLW

7KH IROOR L J SUHVH WV WKH 6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW 23(% OLDELOLW

FDOFXODWHG XVL J WKH GLVFRX W UDWH RI

DV HOO DV KDW WKH 6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH

RI WKH HW 23(% OLDELOLW RXOG EH LI LW HUH FDOFXODWHG XVL J D GLVFRX W UDWH WKDW LV SHUFH WDJH SRL W

OR HU

RU SHUFH WDJH SRL W KLJKHU

WKD WKH FXUUH W GLVFRX W UDWH

'HFUHDVH

XUUH W 'LVFRX W 5DWH

, FUHDVH

6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH 1HW 23(% /LDELOLW

7KH IROOR L J SUHVH WV WKH 6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW 23(% OLDELOLW DV HOO DV KDW WKH 6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW 23(% OLDELOLW RXOG EH LI LW HUH FDOFXODWHG XVL J KHDOWKFDUH FRVW WUH G UDWHV WKDW DUH SHUFH WDJH SRL W OR HU RU SHUFH WDJH SRL W KLJKHU WKD WKH FXUUH W KHDOWKFDUH FRVW WUH G UDWHV

'HFUHDVH

XUUH W HDOWKFDUH RVW 7UH G 5DWH

, FUHDVH

6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH 1HW 23(% /LDELOLW

'HWDLOHG L IRUPDWLR DERXW WKH 23(% SOD V ILGXFLDU HW SRVLWLR LV DYDLODEOH L WKH RPSUHKH VLYH $ XDO )L D FLDO 5HSRUW $)5 KLFK LV SXEOLFO DYDLODEOH DW KWWSV VDR JHRUJLD JRY FRPSUHKH VLYH D XDO IL D FLDO UHSRUWV

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

(; ,%,7

NOTE 12: RETIREMENT PLANS

7KH 6FKRRO 'LVWULFW SDUWLFLSDWHV L YDULRXV UHWLUHPH W SOD V DGPL LVWHUHG E WKH 6WDWH RI *HRUJLD DV IXUWKHU H SODL HG EHOR

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

$OO WHDFKHUV RI WKH 6FKRRO 'LVWULFW DV GHIL HG L 2 * $

D G FHUWDL RWKHU

VXSSRUW SHUVR HO DV GHIL HG E

DUH SURYLGHG D SH VLR WKURXJK WKH 7HDFKHUV 5HWLUHPH W

6 VWHP RI *HRUJLD 756 756 D FRVW VKDUL J PXOWLSOH HPSOR HU GHIL HG EH HILW SH VLR SOD LV

DGPL LVWHUHG E WKH 756 %RDUG RI 7UXVWHHV 756 %RDUG 7LWOH RI WKH

DVVLJ V WKH DXWKRULW

WR HVWDEOLVK D G DPH G WKH EH HILW SURYLVLR V WR WKH 6WDWH /HJLVODWXUH 7KH 7HDFKHUV 5HWLUHPH W

6 VWHP RI *HRUJLD LVVXHV D SXEOLFO DYDLODEOH VHSDUDWH IL D FLDO UHSRUW WKDW FD EH REWDL HG DW

WUVJD FRP SXEOLFDWLR V

756 SURYLGHV VHUYLFH UHWLUHPH W GLVDELOLW UHWLUHPH W D G GHDWK EH HILWV 1RUPDO UHWLUHPH W EH HILWV DUH GHWHUPL HG DV RI WKH DYHUDJH RI WKH HPSOR HH V W R KLJKHVW SDLG FR VHFXWLYH HDUV RI VHUYLFH PXOWLSOLHG E WKH XPEHU RI HDUV RI FUHGLWDEOH VHUYLFH XS WR HDUV $ HPSOR HH LV HOLJLEOH IRU RUPDO VHUYLFH UHWLUHPH W DIWHU HDUV RI FUHGLWDEOH VHUYLFH UHJDUGOHVV RI DJH RU DIWHU HDUV RI VHUYLFH D G DWWDL PH W RI DJH 7H HDUV RI VHUYLFH LV UHTXLUHG IRU GLVDELOLW D G GHDWK EH HILWV HOLJLELOLW 'LVDELOLW EH HILWV DUH EDVHG R WKH HPSOR HH V FUHGLWDEOH VHUYLFH D G FRPSH VDWLR XS WR WKH WLPH RI GLVDELOLW 'HDWK EH HILWV HTXDO WKH DPRX W WKDW RXOG EH SD DEOH WR WKH HPSOR HH V EH HILFLDU KDG WKH HPSOR HH UHWLUHG R WKH GDWH RI GHDWK 'HDWK EH HILWV DUH EDVHG R WKH HPSOR HH V FUHGLWDEOH VHUYLFH D G FRPSH VDWLR XS WR WKH GDWH RI GHDWK

3HU 7LWOH RI WKH 2 * $ FR WULEXWLR UHTXLUHPH WV RI DFWLYH HPSOR HHV D G

SDUWLFLSDWL J HPSOR HUV DV DFWXDULDOO GHWHUPL HG DUH HVWDEOLVKHG D G PD EH DPH GHG E WKH 756

%RDUG 3XUVXD W WR 2 * $

WKH HPSOR HU FR WULEXWLR V IRU FHUWDL IXOO WLPH SXEOLF VFKRRO

VXSSRUW SHUVR HO DUH IX GHG R EHKDOI RI WKH HPSOR HU E WKH 6WDWH RI *HRUJLD R WULEXWLR V DUH

H SHFWHG WR IL D FH WKH FRVWV RI EH HILWV HDU HG E HPSOR HHV GXUL J WKH HDU LWK D DGGLWLR DO

DPRX W WR IL D FH D X IX GHG DFFUXHG OLDELOLW (PSOR HHV HUH UHTXLUHG WR FR WULEXWH

RI

WKHLU D XDO SD GXUL J ILVFDO HDU

7KH 6FKRRO 'LVWULFW V FR WUDFWXDOO UHTXLUHG FR WULEXWLR UDWH

IRU WKH HDU H GHG -X H

DV

RI D XDO 6FKRRO 'LVWULFW SD UROO RI KLFK

RI

SD UROO DV UHTXLUHG IURP WKH 6FKRRO 'LVWULFW D G

RI SD UROO DV UHTXLUHG IURP WKH 6WDWH )RU

WKH FXUUH W ILVFDO HDU HPSOR HU FR WULEXWLR V WR WKH SH VLR SOD HUH

DG

IURP WKH 6FKRRO 'LVWULFW D G WKH 6WDWH UHVSHFWLYHO

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS)

36(56 LV D FRVW VKDUL J PXOWLSOH HPSOR HU GHIL HG EH HILW SH VLR SOD

HVWDEOLVKHG E WKH *HRUJLD *H HUDO $VVHPEO L

IRU WKH SXUSRVH RI SURYLGL J UHWLUHPH W

DOOR D FHV IRU SXEOLF VFKRRO HPSOR HHV KR DUH RW HOLJLEOH IRU PHPEHUVKLS L WKH 7HDFKHUV

5HWLUHPH W 6 VWHP RI *HRUJLD 7KH (56 %RDUG RI 7UXVWHHV SOXV W R DGGLWLR DO WUXVWHHV DGPL LVWHUV

36(56 7LWOH RI WKH 2 * $ DVVLJ V WKH DXWKRULW WR HVWDEOLVK D G DPH G WKH EH HILW SURYLVLR V WR

WKH 6WDWH /HJLVODWXUH 36(56 LVVXHV D SXEOLFO DYDLODEOH IL D FLDO UHSRUW WKDW FD EH REWDL HG DW

HUV JD JRY IRUPVSXEV IRUPVSXEV

$ PHPEHU PD UHWLUH D G HOHFW WR UHFHLYH RUPDO PR WKO UHWLUHPH W EH HILWV DIWHU FRPSOHWLR RI WH HDUV RI FUHGLWDEOH VHUYLFH D G DWWDL PH W RI DJH $ PHPEHU PD FKRRVH WR UHFHLYH UHGXFHG EH HILWV DIWHU DJH D G XSR FRPSOHWLR RI WH HDUV RI VHUYLFH

8SR UHWLUHPH W WKH PHPEHU LOO UHFHLYH D PR WKO EH HILW RI

PXOWLSOLHG E WKH XPEHU

RI HDUV RI FUHGLWDEOH VHUYLFH 'HDWK D G GLVDELOLW EH HILWV DUH DOVR DYDLODEOH WKURXJK 36(56

$GGLWLR DOO 36(56 PD PDNH SHULRGLF FRVW RI OLYL J DGMXVWPH WV WR WKH PR WKO EH HILWV 8SR

WHUPL DWLR RI HPSOR PH W PHPEHU FR WULEXWLR V LWK DFFXPXODWHG L WHUHVW DUH UHIX GDEOH XSR

UHTXHVW E WKH PHPEHU R HYHU LI D RWKHU LVH YHVWHG PHPEHU WHUPL DWHV D G LWKGUD V KLV KHU

PHPEHU FR WULEXWLR WKH PHPEHU IRUIHLWV DOO ULJKWV WR UHWLUHPH W EH HILWV

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

(; ,%,7

7KH JH HUDO DVVHPEO PDNHV D D XDO DSSURSULDWLR WR FRYHU WKH HPSOR HU

FR WULEXWLR WR 36(56 R EHKDOI RI ORFDO VFKRRO HPSOR HHV EXV GULYHUV FDIHWHULD RUNHUV D G

PDL WH D FH VWDII 7KH D XDO HPSOR HU FR WULEXWLR UHTXLUHG E VWDWXWH LV DFWXDULDOO GHWHUPL HG

D G SDLG GLUHFWO WR 36(56 E WKH 6WDWH 7UHDVXUHU L DFFRUGD FH LWK 2 * $

DDG E

R WULEXWLR V DUH H SHFWHG WR IL D FH WKH FRVWV RI EH HILWV HDU HG E HPSOR HHV GXUL J WKH HDU LWK

D DGGLWLR DO DPRX W WR IL D FH D X IX GHG DFFUXHG OLDELOLW

, GLYLGXDOV KR EHFDPH PHPEHUV SULRU WR -XO

FR WULEXWH SHU PR WK IRU L H PR WKV HDFK

ILVFDO HDU , GLYLGXDOV KR EHFDPH PHPEHUV R RU DIWHU -XO

FR WULEXWH SHU PR WK IRU

L H PR WKV HDFK ILVFDO HDU 7KH 6WDWH RI *HRUJLD DOWKRXJK RW WKH HPSOR HU RI 36(56 PHPEHUV LV

UHTXLUHG E VWDWXWH WR PDNH HPSOR HU FR WULEXWLR V DFWXDULDOO GHWHUPL HG D G DSSURYHG D G FHUWLILHG

E WKH 36(56 %RDUG RI 7UXVWHHV 7KH FXUUH W ILVFDO HDU FR WULEXWLR DV

$W -X H

WKH 6FKRRO 'LVWULFW UHSRUWHG D OLDELOLW RI

RI WKH HW SH VLR OLDELOLW IRU 756

IRU LWV SURSRUWLR DWH VKDUH

7KH 756 HW SH VLR OLDELOLW UHIOHFWHG D UHGXFWLR IRU VXSSRUW SURYLGHG WR WKH 6FKRRO 'LVWULFW E WKH 6WDWH RI *HRUJLD IRU FHUWDL SXEOLF VFKRRO VXSSRUW SHUVR HO 7KH DPRX W UHFRJ L HG E WKH 6FKRRO 'LVWULFW DV LWV SURSRUWLR DWH VKDUH RI WKH HW SH VLR OLDELOLW WKH UHODWHG 6WDWH RI *HRUJLD VXSSRUW D G WKH WRWDO SRUWLR RI WKH HW SH VLR OLDELOLW WKDW DV DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW HUH DV IROOR V

6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW SH VLR OLDELOLW

6WDWH RI *HRUJLD V SURSRUWLR DWH VKDUH RI WKH HW SH VLR OLDELOLW DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW

7RWDO

7KH HW SH VLR OLDELOLW IRU 756 DV PHDVXUHG DV RI -X H

7KH WRWDO SH VLR OLDELOLW XVHG

WR FDOFXODWH WKH HW SH VLR OLDELOLW DV EDVHG R D DFWXDULDO YDOXDWLR DV RI -X H

$

H SHFWHG WRWDO SH VLR OLDELOLW DV RI -X H

DV GHWHUPL HG XVL J VWD GDUG UROO IRU DUG

WHFK LTXHV 7KH 6FKRRO 'LVWULFW V SURSRUWLR RI WKH HW SH VLR OLDELOLW DV EDVHG R FR WULEXWLR V WR

756 GXUL J WKH ILVFDO HDU H GHG -X H

$W -X H RI

WKH 6FKRRO 'LVWULFW V 756 SURSRUWLR DV IURP LWV SURSRUWLR PHDVXUHG DV RI -X H

KLFK DV D L FUHDVH

$W -X H

WKH 6FKRRO 'LVWULFW GLG RW KDYH D 36(56 OLDELOLW IRU D SURSRUWLR DWH VKDUH RI WKH

HW SH VLR OLDELOLW EHFDXVH RI D 6SHFLDO )X GL J 6LWXDWLR LWK WKH 6WDWH RI *HRUJLD KLFK LV

UHVSR VLEOH IRU WKH HW SH VLR OLDELOLW RI WKH SOD 7KH DPRX W RI WKH 6WDWH V SURSRUWLR DWH VKDUH RI

WKH HW SH VLR OLDELOLW DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW LV

7KH 36(56 HW SH VLR OLDELOLW DV PHDVXUHG DV RI -X H

7KH WRWDO SH VLR OLDELOLW XVHG WR

FDOFXODWH WKH HW SH VLR OLDELOLW DV EDVHG R D DFWXDULDO YDOXDWLR DV RI -X H

$

H SHFWHG WRWDO SH VLR OLDELOLW DV RI -X H

DV GHWHUPL HG XVL J VWD GDUG UROO IRU DUG

WHFK LTXHV 7KH 6WDWH V SURSRUWLR RI WKH HW SH VLR OLDELOLW DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW DV

EDVHG R DFWXDULDOO GHWHUPL HG FR WULEXWLR V SDLG E WKH 6WDWH GXUL J WKH ILVFDO HDU H GHG

-X H

)RU WKH HDU H GHG -X H

WKH 6FKRRO 'LVWULFW UHFRJ L HG SH VLR H SH VH RI

IRU 756 D G

IRU 36(56 D G UHYH XH RI

IRU 756 D G

IRU

36(56 7KH UHYH XH LV VXSSRUW SURYLGHG E WKH 6WDWH RI *HRUJLD )RU 756 WKH 6WDWH RI *HRUJLD VXSSRUW

LV SURYLGHG R O IRU FHUWDL VXSSRUW SHUVR HO

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

(; ,%,7

$W -X H

WKH 6FKRRO 'LVWULFW UHSRUWHG GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG L IOR V RI

UHVRXUFHV UHODWHG WR SH VLR V IURP WKH IROOR L J VRXUFHV

756

'HIHUUHG 2XWIOR V RI 'HIHUUHG , IOR V RI

5HVRXUFHV

5HVRXUFHV

'LIIHUH FHV EHW HH H SHFWHG D G DFWXDO H SHULH FH

KD JHV RI DVVXPSWLR V

1HW GLIIHUH FH EHW HH SURMHFWHG D G DFWXDO HDU L JV R SH VLR SOD L YHVWPH WV

KD JHV L SURSRUWLR D G GLIIHUH FHV EHW HH 6FKRRO 'LVWULFW FR WULEXWLR V D G SURSRUWLR DWH VKDUH RI FR WULEXWLR V

6FKRRO 'LVWULFW FR WULEXWLR V VXEVHTXH W WR WKH PHDVXUHPH W GDWH
7RWDO

7KH 6FKRRO 'LVWULFW FR WULEXWLR V VXEVHTXH W WR WKH PHDVXUHPH W GDWH IRU 756 DUH UHSRUWHG DV

GHIHUUHG RXWIOR V RI UHVRXUFHV D G LOO EH UHFRJ L HG DV D UHGXFWLR RI WKH HW SH VLR OLDELOLW L WKH

HDU H GHG -X H

2WKHU DPRX WV UHSRUWHG DV GHIHUUHG RXWIOR V RI UHVRXUFHV D G GHIHUUHG

L IOR V RI UHVRXUFHV UHODWHG WR SH VLR V LOO EH UHFRJ L HG L SH VLR H SH VH DV IROOR V

HDU ( GHG -X H

756

7KH WRWDO SH VLR OLDELOLW DV RI -X H

DV GHWHUPL HG E D DFWXDULDO

YDOXDWLR DV RI -X H

XVL J WKH IROOR L J DFWXDULDO DVVXPSWLR V DSSOLHG WR DOO SHULRGV

L FOXGHG L WKH PHDVXUHPH W

, IODWLR 6DODU L FUHDVHV , YHVWPH W UDWH RI UHWXU

DYHUDJH L FOXGL J L IODWLR
HW RI SH VLR SOD L YHVWPH W H SH VH L FOXGL J L IODWLR

3RVW UHWLUHPH W PRUWDOLW UDWHV HUH EDVHG R WKH 53

:KLWH ROODU 0RUWDOLW 7DEOH LWK IXWXUH

PRUWDOLW LPSURYHPH W SURMHFWHG WR

LWK WKH 6RFLHW RI $FWXDULHV SURMHFWLR VFDOH %% VHW

IRU DUG R H HDU IRU PDOHV IRU VHUYLFH UHTXLUHPH WV D G GHSH GH W EH HILFLDULHV 7KH 53

'LVDEOHG 0RUWDOLW WDEOH LWK IXWXUH PRUWDOLW LPSURYHPH W SURMHFWHG WR

LWK 6RFLHW RI $FWXDULHV

SURMHFWLR VFDOH %% VHW IRU DUG W R HDUV IRU PDOHV D G IRXU HDUV IRU IHPDOHV DV XVHG IRU WKH GHDWK

DIWHU GLVDELOLW UHWLUHPH W 5DWHV RI PRUWDOLW L DFWLYH VHUYLFH HUH EDVHG R WKH 53

(PSOR HH

0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR VFDOH %%

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

(; ,%,7

7KH DFWXDULDO DVVXPSWLR V XVHG L WKH -X H DFWXDULDO H SHULH FH VWXG IRU WKH SHULRG -XO

YDOXDWLR HUH EDVHG R WKH UHVXOWV RI D -X H

, IODWLR 6DODU L FUHDVHV , YHVWPH W UDWH RI UHWXU

1$
HW RI SH VLR SOD L YHVWPH W H SH VH L FOXGL J L IODWLR

3RVW UHWLUHPH W PRUWDOLW UDWHV HUH EDVHG R WKH 53

%OXH ROODU 0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR VFDOH %% VHW IRU DUG HDUV IRU PDOHV D G HDUV IRU IHPDOHV IRU WKH SHULRG

DIWHU VHUYLFH UHWLUHPH WV D G IRU GHSH GH W EH HILFLDULHV 7KH 53

'LVDEOHG 0RUWDOLW SURMHFWHG

WR

LWK SURMHFWLR VFDOH %% VHW IRU DUG HDUV IRU ERWK PDOHV D G IHPDOHV DV XVHG IRU GHDWK

DIWHU GLVDELOLW UHWLUHPH W 7KHUH LV D PDUJL IRU IXWXUH PRUWDOLW LPSURYHPH W L WKH WDEOHV XVHG E

WKH 6 VWHP %DVHG R WKH UHVXOWV RI WKH PRVW UHFH W H SHULH FH VWXG DGRSWHG E WKH %RDUG R

'HFHPEHU

WKH XPEHUV RI H SHFWHG IXWXUH GHDWKV DUH

OHVV WKD WKH DFWXDO XPEHU

RI GHDWKV WKDW RFFXUUHG GXUL J WKH VWXG SHULRG IRU KHDOWK UHWLUHHV D G

OHVV WKD H SHFWHG

X GHU WKH VHOHFWHG WDEOH IRU GLVDEOHG UHWLUHHV 5DWHV RI PRUWDOLW L DFWLYH VHUYLFH HUH EDVHG R WKH

53

(PSOR HH 0RUWDOLW 7DEOH SURMHFWHG WR

LWK SURMHFWLR VFDOH %%

7KH DFWXDULDO DVVXPSWLR V XVHG L WKH -X H DFWXDULDO H SHULH FH VWXG IRU WKH SHULRG -XO

YDOXDWLR HUH EDVHG R WKH UHVXOWV RI D -X H

7KH OR J WHUP H SHFWHG UDWH RI UHWXU R 756 D G 36(56 SH VLR SOD L YHVWPH WV DV GHWHUPL HG XVL J D ORJ RUPDO GLVWULEXWLR D DO VLV L KLFK EHVW HVWLPDWH UD JHV RI H SHFWHG IXWXUH UHDO UDWHV RI UHWXU H SHFWHG UHWXU V HW RI SH VLR SOD L YHVWPH W H SH VH D G L IODWLR DUH GHYHORSHG IRU HDFK PDMRU DVVHW FODVV 7KHVH UD JHV DUH FRPEL HG WR SURGXFH WKH OR J WHUP H SHFWHG UDWH RI UHWXU E HLJKWL J WKH H SHFWHG IXWXUH UHDO UDWHV RI UHWXU E WKH WDUJHW DVVHW DOORFDWLR SHUFH WDJH D G E DGGL J H SHFWHG L IODWLR 7KH WDUJHW DVVHW DOORFDWLR D G EHVW HVWLPDWHV RI DULWKPHWLF UHDO UDWHV RI UHWXU IRU HDFK PDMRU DVVHW FODVV DUH VXPPDUL HG L WKH IROOR L J WDEOH

)L HG L FRPH 'RPHVWLF ODUJH VWRFNV 'RPHVWLF PLG VWRFNV 'RPHVWLF VPDOO VWRFNV , WHU DWLR DO GHYHORSHG PDUNHW VWRFNV , WHU DWLR DO HPHUJL J PDUNHW VWRFNV $OWHU DWLYH

7RWDO

5DWHV VKR DUH HW RI WKH

DVVXPHG UDWH RI L IODWLR

7KH GLVFRX W UDWH XVHG WR PHDVXUH WKH WRWDO 756 SH VLR OLDELOLW DV

7KH

GLVFRX W UDWH XVHG WR PHDVXUH WKH WRWDO 36(56 SH VLR OLDELOLW DV

7KH SURMHFWLR RI FDVK

IOR V XVHG WR GHWHUPL H WKH GLVFRX W UDWH DVVXPHG WKDW SOD PHPEHU FR WULEXWLR V LOO EH PDGH DW

WKH FXUUH W FR WULEXWLR UDWH D G WKDW HPSOR HU D G R HPSOR HU FR WULEXWLR V LOO EH PDGH DW UDWHV

HTXDO WR WKH GLIIHUH FH EHW HH DFWXDULDOO GHWHUPL HG FR WULEXWLR UDWHV D G WKH PHPEHU UDWH

%DVHG R WKRVH DVVXPSWLR V WKH 756 D G 36(56 SH VLR SOD V ILGXFLDU HW SRVLWLR DV SURMHFWHG

WR EH DYDLODEOH WR PDNH DOO SURMHFWHG IXWXUH EH HILW SD PH WV RI FXUUH W SOD PHPEHUV 7KHUHIRUH WKH

OR J WHUP H SHFWHG UDWH RI UHWXU R SH VLR SOD L YHVWPH WV DV DSSOLHG WR DOO SHULRGV RI SURMHFWHG

EH HILW SD PH WV WR GHWHUPL H WKH WRWDO SH VLR OLDELOLW

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

(; ,%,7

7KH IROOR L J SUHVH WV WKH 6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW

SH VLR OLDELOLW FDOFXODWHG XVL J WKH GLVFRX W UDWH RI

DV HOO DV KDW WKH 6FKRRO 'LVWULFW V

SURSRUWLR DWH VKDUH RI WKH HW SH VLR OLDELOLW RXOG EH LI LW HUH FDOFXODWHG XVL J D GLVFRX W UDWH WKDW

LV SHUFH WDJH SRL W OR HU

RU SHUFH WDJH SRL W KLJKHU

WKD WKH FXUUH W UDWH

'HFUHDVH

XUUH W 'LVFRX W 5DWH

, FUHDVH

6FKRRO 'LVWULFW V SURSRUWLR DWH VKDUH RI WKH HW SH VLR OLDELOLW

'HWDLOHG L IRUPDWLR DERXW WKH SH VLR SOD V ILGXFLDU HW

SRVLWLR LV DYDLODEOH L WKH VHSDUDWHO LVVXHG 756 D G 36(56 IL D FLDO UHSRUW KLFK LV SXEOLFO DYDLODEOH

DW WUVJD FRP SXEOLFDWLR V D G KWWS

HUV JD JRY IRUPVSXEV IRUPVSXEV KWPO

DEFINED CONTRIBUTION PLAN

2 'HFHPEHU

WKH 6FKRRO 'LVWULFW EHJD D HPSOR HU SDLG E D XLW SOD IRU WKH JURXS

RI HPSOR HHV FRYHUHG X GHU WKH 3XEOLF 6FKRRO (PSOR HHV 5HWLUHPH W 6 VWHP 36(56 5HFRJ L L J

WKDW 36(56 DV D OLPLWHG GHIL HG FR WULEXWLR D G GHIL HG EH HILW SOD KLFK GLG RW SURYLGH IRU D

DGHTXDWH UHWLUHPH W IRU WKLV JURXS RI HPSOR HHV LW DV WKH %RDUG V GHVLUH WR VXSSOHPH W WKH

UHWLUHPH W RI WKLV JURXS

7KH 6FKRRO 'LVWULFW VHOHFWHG 9$/, DV WKH SURYLGHU RI WKLV SOD )RU HDFK HPSOR HH FRYHUHG X GHU 36(56 WKH %RDUG EHJD FR WULEXWL J WR WKH SOD D DPRX W HTXDO WR RI WKH HPSOR HH V EDVH SD

7KH HPSOR HH EHFRPHV YHVWHG L WKH SOD LWK HDUV RI H SHULH FH (PSOR HHV KR KDG DOUHDG DFKLHYHG HDUV RI H SHULH FH DW WKH WLPH WKH SOD DV LPSOHPH WHG HUH YHVWHG XSR H UROOPH W

)X GV DFFXPXODWHG L WKH HPSOR HU SDLG DFFRX WV DUH R O DYDLODEOH WR WKH HPSOR HH XSR WHUPL DWLR RI HPSOR PH W D G HDUV RI VHUYLFH WR WKH 6FKRRO 'LVWULFW ,I D HPSOR HH WHUPL DWHV HPSOR PH W SULRU WR DFKLHYL J HDUV RI VHUYLFH IX GV SDLG R EHKDOI RI WKH R YHVWHG HPSOR HH DUH FUHGLWHG EDFN WR WKH 6FKRRO 'LVWULFW

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

)LVFDO HDU

3HUFH WDJH R WULEXWHG

5HTXLUHG R WULEXWLR

NOTE 13: TAX ABATEMENTS

7KH /LEHUW RX W , GXVWULDO $XWKRULW H WHUV L WR SURSHUW WD DEDWHPH W DJUHHPH WV LWK ORFDO

EXVL HVVHV IRU WKH SXUSRVH RI DWWUDFWL J RU UHWDL L J EXVL HVVHV LWKL /LEHUW RX W )RU WKH HDU

H GHG -X H

SURSHUW WD UHYH XHV OHYLHG R 1RYHPEHU

HUH DEDWHG L WKH DPRX W

RI

NOTE 14: SUBSEQUENT EVENTS

, 'HFHPEHU

D VWUDL RI FRUR DYLUXV 29,' EHJD WR VSUHDG RUOG LGH UHVXOWL J L D VHYHUH

LPSDFW WR WKH 8 LWHG 6WDWHV HFR RP L 0DUFK

7KH VSUHDG RI 29,' KDV KDG D HJDWLYH

LPSDFW R YLUWXDOO DOO EXVL HVVHV D G L GLYLGXDOV KLFK FRPSULVH WKH WD EDVH RI DOO OHYHOV RI

JRYHU PH W 7KH H WH W RI WKLV LPSDFW LV X FHUWDL EXW LV H SHFWHG WR KDYH HJDWLYH UHVXOWV R IL D FLDO

RSHUDWLR V KR HYHU WKH LPSDFW FD RW EH UHDVR DEO HVWLPDWHG DW WKLV WLPH

(This page left intentionally blank)

/,%(57 2817 %2$5' 2) ('8 $7,21 5(48,5(' 6833/(0(17$5 ,1)250$7,21 6 ('8/( 2) 3523257,21$7( 6 $5( 2) 7 ( 1(7 3(16,21 /,$%,/,7 7($ (56 5(7,5(0(17 6 67(0 2) (25 ,$
)25 7 ( ($5 (1'(' -81(

6 ('8/(

HDU (QGHG

6FKRRO 'LVWULFW V SURSRUWLRQ RI WKH QHW
SHQVLRQ OLDELOLW

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH
QHW SHQVLRQ OLDELOLW

6WDWH RI HRUJLD V SURSRUWLRQDWH VKDUH RI WKH QHW SHQVLRQ OLDELOLW
DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW

7RWDO

6FKRRO 'LVWULFW V FRYHUHG SD UROO

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH QHW SHQVLRQ OLDELOLW DV D SHUFHQWDJH RI LWV
FRYHUHG SD UROO

3ODQ ILGXFLDU QHW SRVLWLRQ DV D
SHUFHQWDJH RI WKH WRWDO SHQVLRQ OLDELOLW

7KLV VFKHGXOH LV LQWHQGHG WR VKR LQIRUPDWLRQ IRU HDUV $GGLWLRQDO HDUV LOO EH GLVSOD HG DV WKH EHFRPH DYDLODEOH

/,%(57 2817 %2$5' 2) ('8 $7,21 5(48,5(' 6833/(0(17$5 ,1)250$7,21 6 ('8/( 2) 3523257,21$7( 6 $5( 2) 7 ( 1(7 3(16,21 /,$%,/,7 38%/, 6 22/ (03/2 ((6 5(7,5(0(17 6 67(0 2) (25 ,$
)25 7 ( ($5 (1'(' -81(

6 ('8/(

HDU (QGHG

6FKRRO 'LVWULFW V SURSRUWLRQ RI WKH QHW SHQVLRQ OLDELOLW

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH QHW SHQVLRQ OLDELOLW

6WDWH RI HRUJLD V SURSRUWLRQDWH VKDUH RI WKH QHW SHQVLRQ OLDELOLW
DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW

7RWDO

6FKRRO 'LVWULFW V FRYHUHG SD UROO

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH QHW SHQVLRQ OLDELOLW DV D SHUFHQWDJH RI LWV FRYHUHG
SD UROO

3ODQ ILGXFLDU QHW SRVLWLRQ DV D
SHUFHQWDJH RI WKH WRWDO SHQVLRQ OLDELOLW

1$ 1$ 1$ 1$ 1$

7KLV VFKHGXOH LV LQWHQGHG WR VKR LQIRUPDWLRQ IRU HDUV $GGLWLRQDO HDUV LOO EH GLVSOD HG DV WKH EHFRPH DYDLODEOH

/,%(57 2817 %2$5' 2) ('8 $7,21 5(48,5(' 6833/(0(17$5 ,1)250$7,21 6 ('8/( 2) 3523257,21$7( 6 $5( 2) 7 ( 1(7 23(% /,$%,/,7
6 22/ 23(% )81' )25 7 ( ($5 (1'(' -81(

6 ('8/(

HDU (QGHG

6FKRRO 'LVWULFW V SURSRUWLRQ RI WKH QHW 23(% OLDELOLW

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH QHW 23(% OLDELOLW

6WDWH RI HRUJLD V SURSRUWLRQDWH VKDUH RI WKH QHW 23(% OLDELOLW
DVVRFLDWHG LWK WKH 6FKRRO 'LVWULFW

7RWDO

6FKRRO 'LVWULFW V FRYHUHG HPSOR HH
SD UROO

6FKRRO 'LVWULFW V SURSRUWLRQDWH VKDUH RI WKH QHW 23(% OLDELOLW DV D SHUFHQWDJH RI LWV FRYHUHG
HPSOR HH SD UROO

3ODQ ILGXFLDU QHW SRVLWLRQ DV D
SHUFHQWDJH RI WKH WRWDO 23(% OLDELOLW

7KLV VFKHGXOH LV LQWHQGHG WR VKR LQIRUPDWLRQ IRU HDUV $GGLWLRQDO HDUV LOO EH GLVSOD HG DV WKH EHFRPH DYDLODEOH

/,%(57 2817 %2$5' 2) ('8 $7,21 5(48,5(' 6833/(0(17$5 ,1)250$7,21
6 ('8/( 2) 2175,%87,216 7($ (56 5(7,5(0(17 6 67(0 2) (25 ,$
)25 7 ( ($5 (1'(' -81(

6 ('8/(

HDU (QGHG

RQWUDFWXDOO UHTXLUHG FRQWULEXWLRQ

RQWULEXWLRQV LQ UHODWLRQ WR WKH FRQWUDFWXDOO UHTXLUHG
FRQWULEXWLRQ

RQWULEXWLRQ GHILFLHQF H FHVV

6FKRRO 'LVWULFW V FRYHUHG SD UROO

RQWULEXWLRQ DV D SHUFHQWDJH RI FRYHUHG
SD UROO

7KHVH DPRXQWV LQFOXGH FRQWULEXWLRQV SDLG RQ WKH 6FKRRO 'LVWULFW V EHKDOI E HRUJLD 'HSDUWPHQW RI (GXFDWLRQ

/,%(57 2817 %2$5' 2) ('8 $7,21 5(48,5(' 6833/(0(17$5 ,1)250$7,21
6 ('8/( 2) 2175,%87,216 6 22/ 23(% )81'
)25 7 ( ($5 (1'(' -81(

6 ('8/(

HDU (QGHG

RQWUDFWXDOO UHTXLUHG FRQWULEXWLRQ

RQWULEXWLRQV LQ UHODWLRQ WR WKH FRQWUDFWXDOO UHTXLUHG
FRQWULEXWLRQ

RQWULEXWLRQ GHILFLHQF H FHVV

6FKRRO 'LVWULFW V FRYHUHG HPSOR HH SD UROO

RQWULEXWLRQ DV D SHUFHQWDJH RI FRYHUHG
HPSOR HH SD UROO

7KLV VFKHGXOH LV LQWHQGHG WR VKR LQIRUPDWLRQ IRU HDUV $GGLWLRQDO HDUV LOO EH GLVSOD HG DV WKH EHFRPH DYDLODEOH

/,%(57 2817 %2$5' 2) ('8 $7,21 127(6 72 7 ( 5(48,5(' 6833/(0(17$5 ,1)250$7,21
)25 7 ( ($5 (1'(' -81(

6 ('8/(

2Q 1RYHPEHU

WKH %RDUG DGRSWHG UHFRPPHQGHG FKDQJHV WR WKH HFRQRPLF DQG GHPRJUDSKLF DVVXPSWLRQV XWLOL HG E WKH

6 VWHP 3ULPDU DPRQJ WKH FKDQJHV HUH WKH XSGDWHV WR UDWHV RI PRUWDOLW UHWLUHPHQW GLVDELOLW LWKGUD DO DQG VDODU LQFUHDVHV 7KH H SHFWDWLRQ RI UHWLUHG OLIH

PRUWDOLW DV FKDQJHG WR 53

:KLWH ROODU 0RUWDOLW 7DEOH LWK IXWXUH PRUWDOLW LPSURYHPHQW SURMHFWHG WR

LWK WKH 6RFLHW RI $FWXDULHV SURMHFWLRQ VFDOH %%

VHW IRU DUG RQH HDU IRU PDOHV

,Q

DQG ODWHU WKH H SHFWDWLRQ RI UHWLUHG OLIH PRUWDOLW DV FKDQJHG WR WKH 53

0RUWDOLW 7DEOHV UDWKHU WKDQ WKH

URXS $QQXLW 0RUWDOLW 7DEOH KLFK

DV XVHG SULRU WR

,Q

UDWHV RI LWKGUD DO UHWLUHPHQW GLVDELOLW DQG PRUWDOLW HUH DGMXVWHG WR PRUH FORVHO UHIOHFW DFWXDO H SHULHQFH ,Q

DVVXPHG

UDWHV RI VDODU LQFUHDVH HUH DGMXVWHG WR PRUH FORVHO UHIOHFW DFWXDO DQG DQWLFLSDWHG H SHULHQFH

2Q 0DUFK

DV UHGXFHG IURP

WR

IRU -XQH

UHWXUQ DV IXUWKHU UHGXFHG E

IURP

WKH %RDUG DGRSWHG D QH IXQGLQJ SROLF %HFDXVH RI WKLV QH IXQGLQJ SROLF WKH DVVXPHG LQYHVWPHQW UDWH RI UHWXUQ

DFWXDULDO YDOXDWLRQ ,Q DGGLWLRQ EDVHG RQ WKH %RDUG V QH IXQGLQJ SROLF WKH DVVXPHG LQYHVWPHQW UDWH RI

WR

DV RI WKH -XQH

PHDVXUHPHQW GDWH

2Q 'HFHPEHU

WKH %RDUG DGRSWHG UHFRPPHQGHG FKDQJHV WR WKH HFRQRPLF DQG GHPRJUDSKLF DVVXPSWLRQV XWLOL HG E WKH 6 VWHP 3ULPDU DPRQJ WKH

FKDQJHV HUH WKH XSGDWHV WR UDWHV RI PRUWDOLW UHWLUHPHQW DQG LWKGUD DO 7KH H SHFWDWLRQ RI UHWLUHG OLIH PRUWDOLW DV FKDQJHG WR WKH 53

%OXH ROODU 0RUWDOLW

7DEOH SURMHFWHG WR

LWK SURMHFWLRQ VFDOH %% VHW IRU DUG HDUV IRU PDOHV DQG HDUV IRU IHPDOHV

,Q

DQG ODWHU WKH H SHFWDWLRQ RI UHWLUHG OLIH PRUWDOLW DV FKDQJHG WR WKH 53

0RUWDOLW 7DEOHV UDWKHU WKDQ WKH

URXS $QQXLW 0RUWDOLW 7DEOH KLFK

DV XVHG SULRU WR

,Q

UDWHV RI LWKGUD DO UHWLUHPHQW GLVDELOLW DQG PRUWDOLW HUH DGMXVWHG WR PRUH FORVHO UHIOHFW DFWXDO H SHULHQFH

7KHUH KDYH EHHQ QR FKDQJHV LQ EHQHILW WHUPV

-XQH

YDOXDWLRQ WKH -XQH

DFWXDULDO YDOXDWLRQ DV UHYLVHG IRU YDULRXV IDFWRUV LQFOXGLQJ WKH PHWKRGRORJ XVHG WR

GHWHUPLQH KR HPSOR HHV DQG UHWLUHHV HUH DVVLJQHG WR HDFK RI WKH 23(% )XQGV DQG DQWLFLSDWHG SDUWLFLSDWLRQ SHUFHQWDJHV XUUHQW DQG IRUPHU HPSOR HHV RI 6WDWH

RUJDQL DWLRQV LQFOXGLQJ WHFKQLFDO FROOHJHV FRPPXQLW VHUYLFH ERDUGV DQG SXEOLF KHDOWK GHSDUWPHQWV DUH QR DVVLJQHG WR WKH 6WDWH 23(% IXQG EDVHG RQ WKHLU ODVW

HPSOR HU SD UROO ORFDWLRQ LUUHVSHFWLYH RI UHWLUHPHQW DIILOLDWLRQ

7KH GLVFRXQW UDWH DV XSGDWHG IURP

DV RI -XQH

WR

DV RI -XQH

/,%(57 2817 %2$5' 2) ('8 $7,21 (1(5$/ )81'
6 ('8/( 2) 5(9(18(6 (;3(1',785(6 $1' $1 (6 ,1 )81' %$/$1 (6 %8' (7 $1' $ 78$/
($5 (1'(' -81(

6 ('8/(

5(9(18(6
3URSHUW 7D HV 6DOHV 7D HV 6WDWH )XQGV )HGHUDO )XQGV
KDUJHV IRU 6HUYLFHV ,QYHVWPHQW (DUQLQJV 0LVFHOODQHRXV
7RWDO 5HYHQXHV
(;3(1',785(6
XUUHQW ,QVWUXFWLRQ 6XSSRUW 6HUYLFHV 3XSLO 6HUYLFHV ,PSURYHPHQW RI ,QVWUXFWLRQDO 6HUYLFHV (GXFDWLRQDO 0HGLD 6HUYLFHV HQHUDO $GPLQLVWUDWLRQ 6FKRRO $GPLQLVWUDWLRQ %XVLQHVV $GPLQLVWUDWLRQ 0DLQWHQDQFH DQG 2SHUDWLRQ RI 3ODQW 6WXGHQW 7UDQVSRUWDWLRQ 6HUYLFHV HQWUDO 6XSSRUW 6HUYLFHV 2WKHU 6XSSRUW 6HUYLFHV (QWHUSULVH 2SHUDWLRQV )RRG 6HUYLFHV 2SHUDWLRQ
DSLWDO 2XWOD
7RWDO ( SHQGLWXUHV
( FHVV RI 5HYHQXHV RYHU XQGHU ( SHQGLWXUHV
27 (5 ),1$1 ,1 6285 (6 86(6
2WKHU 6RXUFHV 2WKHU 8VHV
7RWDO 2WKHU )LQDQFLQJ 6RXUFHV 8VHV
1HW KDQJH LQ )XQG %DODQFHV
)XQG %DODQFHV %HJLQQLQJ
)XQG %DODQFHV (QGLQJ

121$335235,$7(' %8' (76

25, ,1$/

),1$/

$ 78$/ $028176

9$5,$1 ( 29(5 81'(5

1RWHV WR WKH 6FKHGXOH RI 5HYHQXHV ( SHQGLWXUHV DQG KDQJHV LQ )XQG %DODQFHV %XGJHW DQG $FWXDO

2ULJLQDO DQG )LQDO %XGJHW DPRXQWV GR QRW LQFOXGH WKH EXGJHWHG UHYHQXHV RU H SHQGLWXUHV RI WKH YDULRXV SULQFLSDO DFFRXQWV

7KH DFWXDO UHYHQXHV DQG H SHQGLWXUHV RI WKH YDULRXV SULQFLSDO DFFRXQWV DUH

DQG

UHVSHFWLYHO

7KH DFFRPSDQ LQJ VFKHGXOH RI UHYHQXHV H SHQGLWXUHV DQG FKDQJHV LQ IXQG EDODQFHV EXGJHW DQG DFWXDO LV SUHVHQWHG RQ WKH PRGLILHG DFFUXDO EDVLV RI DFFRXQWLQJ KLFK LV WKH EDVLV RI DFFRXQWLQJ XVHG LQ WKH SUHVHQWDWLRQ RI WKH IXQG ILQDQFLDO VWDWHPHQWV

6HH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV

/,%(57 2817 %2$5' 2) ('8 $7,21 6 ('8/( 2) (;3(1',785(6 2) )('(5$/ $:$5'6
($5 (1'(' -81(

6 ('8/(

)81',1 $ (1 352 5$0 5$17
$JULFXOWXUH 8 6 'HSDUWPHQW RI KLOG 1XWULWLRQ OXVWHU 3DVV 7KURXJK )URP HRUJLD 'HSDUWPHQW RI (GXFDWLRQ )RRG 6HUYLFHV 6FKRRO %UHDNIDVW 3URJUDP 1DWLRQDO 6FKRRO /XQFK 3URJUDP
7RWDO 8 6 'HSDUWPHQW RI $JULFXOWXUH
(GXFDWLRQ 8 6 'HSDUWPHQW RI 'LUHFW ,PSDFW $LG
6SHFLDO (GXFDWLRQ OXVWHU 3DVV 7KURXJK )URP HRUJLD 'HSDUWPHQW RI (GXFDWLRQ 6SHFLDO (GXFDWLRQ UDQWV WR 6WDWHV UDQWV WR 6WDWHV 3UHVFKRRO UDQWV
7RWDO 6SHFLDO (GXFDWLRQ OXVWHU
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
7RWDO 2WKHU 3URJUDPV
7RWDO 8 6 'HSDUWPHQW RI (GXFDWLRQ
'HIHQVH 8 6 'HSDUWPHQW RI 'LUHFW 'HSDUWPHQW RI 'HIHQVH ,PSDFW $LG 'HSDUWPHQW RI WKH $UP 5 2 7 3URJUDP
7RWDO 8 6 'HSDUWPHQW RI 'HIHQVH

)'$ 180%(5

3$66 7 528
(17,7 ,'
180%(5

(;3(1',785(6 ,1 3(5,2'

$1 $1

$ $ $

9$

6$

6$

6$

6$

$

6$

$

6$

6$

6$

6$

6$

7RWDO ( SHQGLWXUHV RI )HGHUDO $ DUGV

1RWHV WR WKH 6FKHGXOH RI ( SHQGLWXUHV RI )HGHUDO $ DUGV

1RWH %DVLV RI 3UHVHQWDWLRQ

7KH DFFRPSDQ LQJ VFKHGXOH RI H SHQGLWXUHV RI IHGHUDO D DUGV WKH 6FKHGXOH LQFOXGHV WKH IHGHUDO D DUG DFWLYLW RI WKH /LEHUW RXQW %RDUG RI (GXFDWLRQ WKH %RDUG XQGHU

SURJUDPV RI WKH IHGHUDO JRYHUQPHQW IRU WKH HDU HQGHG -XQH

7KH LQIRUPDWLRQ LQ WKLV 6FKHGXOH LV SUHVHQWHG LQ DFFRUGDQFH LWK WKH UHTXLUHPHQWV RI 7LWOH 8 6 R R

U

R 3DUW

RUP P U

UP

R UF

U P RU U

U 8QLIRUP XLGDQFH %HFDXVH WKH 6FKHGXOH

SUHVHQWV RQO D VHOHFWHG SRUWLRQ RI WKH RSHUDWLRQV RI WKH %RDUG LW LV QRW LQWHQGHG WR DQG GRHV QRW SUHVHQW WKH ILQDQFLDO SRVLWLRQ RU FKDQJHV LQ QHW SRVLWLRQ RI WKH %RDUG

1RWH 6XPPDU RI 6LJQLILFDQW $FFRXQWLQJ 3ROLFLHV ( SHQGLWXUHV UHSRUWHG RQ WKH 6FKHGXOH DUH UHSRUWHG RQ WKH PRGLILHG DFFUXDO EDVLV RI DFFRXQWLQJ 6XFK H SHQGLWXUHV DUH UHFRJQL HG IROOR LQJ WKH FRVW SULQFLSOHV FRQWDLQHG LQ WKH 8QLIRUP XLGDQFH KHUHLQ FHUWDLQ W SHV RI H SHQGLWXUHV DUH QRW DOOR DEOH RU DUH OLPLWHG DV WR UHLPEXUVHPHQW 1RWH ,QGLUHFW RVW 5DWH 7KH %RDUG KDV HOHFWHG QRW WR XVH WKH SHUFHQW GH PLQLPLV LQGLUHFW FRVW UDWH DV DOOR HG XQGHU WKH 8QLIRUP XLGDQFH

6HH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV

/,%(57 2817 %2$5' 2) ('8 $7,21 6 ('8/( 2) 67$7( 5(9(18( ($5 (1'(' -81(

$ (1 )81',1

5$176 %ULJKW )URP WKH 6WDUW HRUJLD 'HSDUWPHQW RI (DUO DUH DQG /HDUQLQJ 3UH .LQGHUJDUWHQ 3URJUDP

(GXFDWLRQ HRUJLD 'HSDUWPHQW RI

4XDOLW %DVLF (GXFDWLRQ

'LUHFW ,QVWUXFWLRQDO RVW

.LQGHUJDUWHQ 3URJUDP

.LQGHUJDUWHQ 3URJUDP (DUO ,QWHUYHQWLRQ 3URJUDP

3ULPDU UDGHV 3URJUDP

3ULPDU UDGHV (DUO ,QWHUYHQWLRQ 3URJUDP

8SSHU (OHPHQWDU UDGHV 3URJUDP

8SSHU (OHPHQWDU UDGHV (DUO ,QWHUYHQWLRQ 3URJUDP

0LGGOH 6FKRRO 3URJUDP

LJK 6FKRRO HQHUDO (GXFDWLRQ

3URJUDP

9RFDWLRQDO /DERUDWRU

3URJUDP

6WXGHQWV LWK 'LVDELOLWLHV

LIWHG 6WXGHQW DWHJRU 9,

5HPHGLDO (GXFDWLRQ 3URJUDP

$OWHUQDWLYH (GXFDWLRQ 3URJUDP

(QJOLVK 6SHDNHUV RI 2WKHU /DQJXDJHV (62/

0HGLD HQWHU 3URJUDP

'D V $GGLWLRQDO ,QVWUXFWLRQ

6WDII DQG 3URIHVVLRQDO 'HYHORSPHQW

3ULQFLSDO 6WDII DQG 3URIHVVLRQDO 'HYHORSPHQW

,QGLUHFW RVW

HQWUDO $GPLQLVWUDWLRQ

6FKRRO $GPLQLVWUDWLRQ

)DFLOLW 0DLQWHQDQFH DQG 2SHUDWLRQV

2QH 7LPH 4%( $GMXVWPHQW 6WDWH HDOWK %HQHILW 3ODQ (PSOR HU

KDUWHU 6 VWHP $GMXVWPHQW

DWHJRULFDO UDQWV

3XSLO 7UDQVSRUWDWLRQ

5HJXODU

1XUVLQJ 6HUYLFHV

(GXFDWLRQ (TXDOL DWLRQ )XQGLQJ UDQW

2WKHU 6WDWH 3URJUDPV

)RRG 6HUYLFHV

0DWK DQG 6FLHQFH 6XSSOHPHQWV

0LOLWDU RXQVHORUV

3UHVFKRRO 'LVDELOLW 6HUYLFHV

7HDFKHUV 5HWLUHPHQW

9RFDWLRQDO (GXFDWLRQ

9RFDWLRQDO 6XSHUYLVRUV

RQWULEXWLRQ

ROLGD

2IILFH RI WKH 6WDWH 7UHDVXUHU 3XEOLF 6FKRRO (PSOR HHV 5HWLUHPHQW

6 ('8/(
29(510(17$/ )81' 7 3( (1(5$/ )81'

6HH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV

(This page left intentionally blank)

352-( 7
(/267 5HIHUHQGXP
$GGLQJ WR UHQRYDWLQJ UHSDLULQJ LPSURYLQJ IXUQLVKLQJ DQG HTXLSSLQJ H LVWLQJ VFKRRO EXLOGLQJV DQG RWKHU EXLOGLQJV DQG IDFLOLWLHV XVHIXO DQG GHVLUDEOH LQ FRQQHFWLRQ WKHUH LWK LQFOXGLQJ EXW QRW OLPLWHG WR FODVVURRPV DQG SK VLFDO HGXFDWLRQ DWKOHWLF IDFLOLWLHV 9$ DQG RWKHU HQHUJ VDYLQJV DQG PDQDJHPHQW XSJUDGHV URRILQJ DQG SDYLQJ
$FTXLULQJ WHFKQRORJ LPSURYHPHQWV LQFOXGLQJ VDIHW DQG VHFXULW LPSURYHPHQWV FRPSXWHU WHFKQRORJ DQG VRIW DUH DQG LULQJ XSJUDGHV
$FTXLULQJ QH VFKRRO HTXLSPHQW DQG IXUQLVKLQJV LQFOXGLQJ EXW QRW OLPLWHG WR QH EXVHV PDLQWHQDQFH YHKLFOHV DQG RWKHU VFKRRO HTXLSPHQW
$FTXLULQJ FRQVWUXFWLQJ DQG HTXLSSLQJ QH VFKRRO EXLOGLQJV DQG IDFLOLWLHV XVHIXO DQG GHVLUDEOH LQ FRQQHFWLRQ WKHUH LWK
$FTXLULQJ ODQG DQG
$FTXLULQJ DQ QHFHVVDU RU GHVLUDEOH SURSHUW ERWK UHDO DQG SHUVRQDO LQFOXGLQJ WH WERRNV DQG EDQG LQVWUXPHQWV

/,%(57 2817 %2$5' 2) ('8 $7,21 6 ('8/( 2) $33529(' /2 $/ 237,21 6$/(6 7$; 352-( 76
($5 (1'(' -81(

25, ,1$/ (67,0$7('
267

855(17 (67,0$7('
2676

$02817 (;3(1'(' ,1 855(17
($5

$02817 (;3(1'(' ,1 35,25
($56

6 ('8/(

727$/ 203/(7,21
267

(; (66 352 (('6 127
(;3(1'('

(67,0$7(' 203/(7,21
'$7(

-XQH -XQH -XQH -XQH
-XQH

7KH 6FKRRO 'LVWULFW V RULJLQDO FRVW HVWLPDWH DV VSHFLILHG LQ WKH UHVROXWLRQ FDOOLQJ IRU WKH LPSRVLWLRQ RI WKH /RFDO 2SWLRQ 6DOHV 7D
7KH 6FKRRO 'LVWULFW V FXUUHQW HVWLPDWH RI WRWDO FRVW IRU WKH SURMHFWV ,QFOXGHV DOO FRVW IURP SURMHFW LQFHSWLRQ WR FRPSOHWLRQ
7KH YRWHUV RI /LEHUW RXQW DSSURYHG WKH LPSRVLWLRQ RI D VDOHV WD WR IXQG WKH DERYH SURMHFWV DQG UHWLUH DVVRFLDWHG GHEW $PRXQWV H SHQGHG IRU WKHVH SURMHFWV PD LQFOXGH VDOHV WD SURFHHGV VWDWH ORFDO SURSHUW WD HV DQG RU RWKHU IXQGV RYHU WKH OLIH RI WKH SURMHFWV

6HH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Liberty County Board of Education
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Liberty County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated October 20, 2020.
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2019-001, that we consider to be a significant deficiency.

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

October 20, 2020

Greg S. Griffin State Auditor

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the Liberty County Board of Education
We have audited the Liberty County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Our responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance.

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

October 20, 2020

Greg S. Griffin State Auditor

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

LIBERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Accounting Controls (Overall) Cash and Cash Equivalents Employee Compensation Revenues/Receivables/Receipts Capital Assets Significant Deficiency None
Previously Reported Corrective Action Plan Implemented

Entity Response:

Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None
Partially Resolved
The School District has reviewed the overall accounting controls of the School Activity accounts and has implemented a monitoring process to ultimately strengthen compensating controls and reduce the risk of errors and/or irregularities.

Cash and Cash Equivalents Employee Compensation Revenues/Receivables/Receipts General Ledger Significant Deficiency None
Previously Reported Corrective Action Plan Implemented

Entity Response:

Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None
Partially Resolved
The School District has reviewed the overall accounting controls of the School Activity accounts and has implemented a monitoring process to ultimately strengthen compensating controls and reduce the risk of errors and/or irregularities.

-1-

LIBERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Cash and Cash Equivalents Revenues/Receivables/Receipts Employee Compensation General Ledger Significant Deficiency None
Previously Reported Corrective Action Plan Implemented

Entity Response:

Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None
Partially Resolved
The School District has reviewed the overall accounting controls of the School Activity accounts and has implemented a monitoring process to ultimately strengthen compensating controls and reduce the risk of errors and/or irregularities.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

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

Financial Statements

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

Unmodified

Internal control over financial reporting:

Material weakness identified?

No

Significant deficiency identified?

Yes

Noncompliance material to financial statements noted:

No

Federal Awards

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

No None Reported

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

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

No

Identification of major programs:

CFDA Numbers

Name of Federal Program or Cluster

84.010 84.041

Title I Grants to Local Education Agencies Impact Aid Cluster

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

$750,000.00

Auditee qualified as low-risk auditee?

No

- 1 -

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

FS 2019-001 Control Categories:
Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding:

Inadequate Accounting Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency None FS 2018-002, FS 2017-002 and FS 2016-002

Description: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts.

Criteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures.

Condition: Revenues/Receivables/Receipts
The deposit preparation function was not separated from the record keeping and cash custody functions.
A review of fifteen receipts revealed the following issues: Three receipts were deposited up to forty days after the handwritten receipt date. Three receipts lacked a deposit form completed by the sponsor. One insignificant receipt could not be traced to the bank statement.

Expenditures/Liabilities/Disbursements The key accounting functions of check preparation, check processing and record keeping were not adequately separated. A review of thirty-three expenditures revealed the following issues: One expenditure was invoiced prior to the purchase order approval. Twenty-two checks were keyed into the accounting system using a date other than the handwritten check date. Sixteen checks were entered into the accounting system up to forty-three days after the handwritten check date. One transaction was for travel and was not reported on the CS-1. Four athletic event change fund requests were cashed more than three days prior to the athletic event and redeposited three or more business days after issuing a handwritten receipt for the return of funds.

Cause: In discussing these issues with the School District, they stated that these deficiencies were a direct result of the time limitations of the school bookkeepers.

Effect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner.

- 2 -

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
Recommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that student activity account transactions are properly processed and reported. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in a timely manner in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures and provide training to employees on proper recordkeeping procedures. Views of Responsible Officials: We concur with this finding.
No matters were reported.
- 3 -

SECTION V MANAGEMENT'S CORRECTIVE ACTION