MADISON COUNTY BOARD OF EDUCATION 
DANIELSVILLE, GEORGIA 
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
(Including Independent Auditor's Reports) 
 
 MADISON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
Page 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S REPORT 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
 
i 
 
EXHIBITS 
 
BASIC FINANCIAL STATEMENTS 
 
GOVERNMENT-WIDE FINANCIAL STATEMENTS 
 
A 
 
STATEMENT OF NET POSITION 
 
1 
 
B 
 
STATEMENT OF ACTIVITIES 
 
2 
 
FUND FINANCIAL STATEMENTS 
 
C 
 
BALANCE SHEET 
 
GOVERNMENTAL FUNDS 
 
3 
 
D 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
 
TO THE STATEMENT OF NET POSITION 
 
4 
 
E 
 
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES 
 
GOVERNMENTAL FUNDS 
 
5 
 
F 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT 
 
OF REVENUES, EXPENDITURES AND CHANGES IN FUND 
 
BALANCES TO THE STATEMENT OF ACTIVITIES 
 
6 
 
G NOTES TO THE BASIC FINANCIAL STATEMENTS 
 
8 
 
SCHEDULES 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
37 
 
2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
38 
 
3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
39 
 
4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 40 
 
5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 
 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 
 
41 
 
6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY 
 
SCHOOL OPEB FUND 
 
42 
 
7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 
 
43 
 
8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 
 
44 
 
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 MADISON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS  
 
SECTION I 
FINANCIAL 
SCHEDULES 
REQUIRED SUPPLEMENTARY INFORMATION 
9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND 
SUPPLEMENTARY INFORMATION 
10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
Page 
45 46 47 49 
 
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 
 
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 SECTION I FINANCIAL 
 
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 Greg S. Griffin 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 
 
INDEPENDENT AUDITOR'S REPORT 
 
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education 
and Superintendent and Members of the Madison County Board of Education 
Report on the Financial Statements 
We have audited the accompanying financial statements of the governmental activities and each major fund of the Madison County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. 
Management's Responsibility for the Financial Statements 
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 
Auditor's Responsibility 
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 
 
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 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 
Opinions 
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. 
Emphasis of Matter 
As described in Note 2 to the financial statements, in 2020, the Madison County Board of Education early adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The cumulative effect of GASB Statement No. 84 is described in the restatement note in the Notes to the Basic Financial Statements. Our opinions are not modified with respect to this matter. 
Other Matters 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 
Other Information 
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. 
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional 
 
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 procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. 
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. 
Respectfully submitted, 
 
March 30, 2021 
 
Greg S. Griffin State Auditor 
 
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 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
INTRODUCTION 
The Madison County Board of Education's (School District) financial statements for the fiscal year ended June 30, 2020 includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. 
FINANCIAL HIGHLIGHTS 
Key financial highlights for fiscal year 2020 are as follows: 
On the government-wide financial statements: 
 The School District's net position at June 30, 2020 was a deficit of ($32.7) million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The deficit net position at June 30, 2020 of ($32.7) million represented a decrease in the deficit of $1.0 million when compared to the prior year without the consideration of the restatement. 
 The School District had $66.1 million in expenses relating to governmental activities; almost $41.1 million of the $66.1 million in expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) and special item of $25.7 million were adequate to provide for these programs. 
 As stated above, general revenues and special item accounted for $25.7 million or about 38.5% of all revenues totaling $66.8 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.) 
 
Source of Revenues 
Program Re ve nue s 
61.5% 
 
General Revenue Property Taxes 21.3% 
General Revenue Sales Taxes 4.1% 
 
General Revenue All Other 13.1% 
 
i 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
On the fund financial statements: 
 Among major funds, the general fund had $64.2 million in revenues and $61.3 million in expenditures. The general fund balance of $8.6 million at June 30, 2020 increased roughly $1.3 million from the prior year. Due to the COVID-19 pandemic and school system closure in mid-March 2020, the fiscal year end June 30, 2020 expenditures decreased which resulted in an increased general fund balance. 
OVERVIEW OF THE FINANCIAL STATEMENTS 
These financial statements consist of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. 
The government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. 
The fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `governmental funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Madison County School District, the general fund, capital projects fund, and debt service fund are all considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. 
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. 
Government-Wide Statements 
Since Madison County School District has no operations that have been classified as "business-type activities", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. 
These two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. 
ii 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
When analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: 
 Capitalize current outlays for capital assets.  Depreciate capital assets.  Report long-term debt, including pension and postemployment obligations, as a liability.  Calculate revenue and expense using the economic resources measurement focus and the 
accrual basis of accounting.  Allocate net position as follows: 
o Net Investment in capital assets, o Restricted net position is amounts with constraints placed on the use by external 
sources such as creditors, grantors, contributors or laws and regulations, o Unrestricted for no specific use. 
Fund Financial Statements 
The School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. 
Governmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. 
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE 
Net position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. 
iii 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
In the case of the Madison County School District, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $32.7 million at June 30, 2020. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the net position of ($32.7), about $3.5 million was restricted for continuation of various Federal programs, debt service and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. 
 
In addition, the School District had $59.6 million (net of related debt) invested in capital assets e.g., 
land, buildings, and equipment). The School District uses these capital assets to provide educational 
services to students within geographic boundaries served by the School District. Because of the very 
nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. 
 
Because of the restrictions on net position as discussed above, the School District had an 
unrestricted deficit of $95.7 million at June 30, 2020. The reader should remember this deficit 
includes pension related charges recorded because of the implementation (fiscal year 2015) of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB No. 68; and also includes charges recorded because of the implementation (fiscal year 2018) of GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The School District believes it is also meaningful to view the School 
District's net position in the following manner: 
 
Net position associated with pension obligations 
 
$ (39,305,993) 
 
Net position associated with postemployment benefits other than pension obligations 
 
(45,055,952) 
 
Net position exclusive of pension obligations and postemployment benefits 
 
51,703,420 
 
Net Position, June 30, 2020 
 
$ (32,658,525) 
 
The above analysis reflects, exclusive of pension obligations and postemployment benefits, the School District's net position is a positive $51.7 million and management believes the School District's financial position is sound. 
 
iv 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
Table 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. 
 
Table 1 Net Position 
 
Assets Current and Other Assets Capital Assets, Net 
 
Governmental Activities 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 (1) 
 
$ 18,413,713 72,500,177 
 
$ 16,607,908 73,497,804 
 
Total Assets 
 
90,913,890 
 
90,105,712 
 
Deferred Outflows of Resources Deferred Charge on Refunding Debt Related to Defined Benefit Pension Plans Related to OPEB Plan 
 
537,537 14,795,821 
3,614,850 
 
412,786 10,434,872 
2,408,836 
 
Total Deferred Outflows of Resources 
 
18,948,208 
 
13,256,494 
 
Total Assets and Deferred Outflows of Resources 
 
109,862,098 
 
103,362,206 
 
Liabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability 
 
6,881,326 32,866,681 52,343,272 38,944,181 
 
7,330,646 34,850,242 45,378,864 39,772,570 
 
Total Liabilities 
 
131,035,460 
 
127,332,322 
 
Deferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan 
 
1,758,542 9,726,621 
 
2,070,353 7,642,335 
 
Total Deferred Inflows of Resources 
 
11,485,163 
 
9,712,688 
 
Total Liabilities and Deferred Inflows of Resources 
 
142,520,623 
 
137,045,010 
 
Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) 
 
59,604,683 3,454,155 
(95,717,363) 
 
57,885,074 3,323,010 
(94,890,888) 
 
Total Net Position 
 
$ (32,658,525) $ (33,682,804) 
 
(1) Fiscal year 2019 balances do not reflect the effect of the restatement of net position. See Note 14 in the Note to the Basic Financial Statements for more information. 
v 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
Total net position increased $1.0 million (the deficit decreased) in fiscal year 2020 from the prior year. In connection with the deficit shown above, management presents the following additional information: 
 
Total unrestricted net position (deficit) 
 
$ (95,717,363) 
 
Add: Unrestricted deficit in net position resulting from recognition of net pension obligations 
 
39,305,993 
 
Unrestricted deficit in net position resulting from recognition of postemployment benefits other than pension obligations 
 
45,055,952 
 
Unrestricted net position, exclusive of the net pension obligation and postemployment benefits effect 
 
$ (11,355,418) 
 
The above analysis shows that except for pension obligations and post employment benefits, the School District's unrestricted net position (deficit) was about $11.4 million. This deficit is primarily attributable to an energy improvement program the School District implemented in fiscal year 2017 by incurring a substantial amount of debt to pay for substantial energy improvement expenditures, of which a large majority, did not meet the School's District's capitalization threshold. 
 
vi 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
Table 2 Change in Net Position 
 
Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions 
Total Program Revenues 
 
Governmental Activities 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 (1) 
 
$ 
 
1,356,616 $ 
 
1,584,275 
 
39,536,969 
 
38,397,209 
 
189,305 
 
154,440 
 
41,082,890 
 
40,135,924 
 
General Revenues and Special Item: Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous 
Special Item Gain or (Loss) on Disposal of Capital Assets 
 
14,211,166 2,745,017 6,844,680 70,147 1,801,300 
60,495 
 
12,566,801 2,579,377 6,322,207 112,569 2,348,918 
(41,275) 
 
Total General Revenues and Special Item 
Total Revenues 
Program Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Expenses 
Increase in Net Position 
 
25,732,805 66,815,695 
 
23,888,597 64,024,521 
 
42,296,097 
 
37,261,428 
 
3,662,609 1,159,704 1,068,413 
964,857 3,899,672 
998,650 3,765,620 2,657,756 
328,587 605,296 
 
3,197,397 1,153,556 
962,314 948,770 3,275,206 940,458 3,263,608 2,717,703 369,385 650,371 
 
400,211 3,367,086 
919,977 
 
482,270 3,380,538 1,246,242 
 
66,094,535 
 
59,849,246 
 
$ 
 
721,160 $ 
 
4,175,275 
 
(1) Fiscal year 2019 balances do not reflect the effect of the restatement of net position. See Note 14 in the Note to the Basic Financial Statements for more information. 
vii 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
Cost of Providing Services 
 
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. 
 
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 
 
Table 3 Cost of Services 
 
Total Cost of Services 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 (1) 
 
Net Cost of Services 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 (1) 
 
$ 42,296,097 $ 37,261,428 $ 11,073,595 $ 6,628,618 
 
3,662,609 1,159,704 1,068,413 
964,857 3,899,672 
998,650 3,765,620 2,657,756 
328,587 605,296 
 
3,197,397 1,153,556 
962,314 948,770 3,275,206 940,458 3,263,608 2,717,703 369,385 650,371 
 
2,983,426 716,506 290,065 699,584 
2,434,140 719,046 
2,084,302 1,550,872 
261,010 557,699 
 
3,014,608 700,389 195,167 637,814 
1,865,844 734,888 
1,801,474 1,672,672 
303,630 574,749 
 
400,211 3,367,086 
919,977 
 
482,270 3,380,538 1,246,242 
 
276,227 445,197 919,977 
 
357,281 (20,054) 1,246,242 
 
$ 66,094,535 $ 59,849,246 $ 25,011,646 $ 19,713,322 
 
(1) Fiscal year 2019 balances do not reflect the effect of the restatement of net position. See Note 14 in the Note to the Basic Financial Statements for more information. 
 
The overall School District expenses increased about $6.2 million from the prior year while the net costs of providing those services only increased by $5.3 million. The higher increase in the total costs of services in fiscal year 2020 versus the increase in the net costs of providing services was primarily attributable to the fact that expenses for pensions and OPEB benefits (combined) increased about $3.9 million from the prior year. 
 
viii 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
The chart below shows a functional summary of the expenses made by the School District during fiscal year 2020. (The percentages are rounded to one decimal place). 
 
Governmental Activities -- Cost of Services 
 
Ins tr uctional 64.0% 
 
Support Services 28.9% 
 
Interest on Debt 1.4% 
 
All Others 0.6% 
Food Services 5.1% 
 
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS 
Information about the School District's governmental funds is presented starting on Exhibit "C" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $66.7 million and total expenditures of $65.0 million in fiscal year 2020. Total governmental fund balances of almost $11.5 million at June 30, 2020, increased roughly $2.4 million from the prior year. 
General Fund Budget Highlights 
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2020, the School District amended its general fund budget as needed. 
The School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. 
For the general fund, the final actual revenues of $64.2 million exceeded the final budgeted revenues by $6.9 million. The primary reason revenues exceeded the budget was property taxes exceeded the final budget by $1.0 million; State funds exceeded the final budgeted amount by $1.5 million and Federal revenues exceeded the budget by almost $2.2 million. Additionally, the School District did not prepare a budget for the various principal's accounts; hence miscellaneous revenues also exceeded the final budget by $1.4 million. 
 
ix 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
The general fund's final actual expenditures of $61.3 million were less than the final budget by $3.4 million. The primary reason expenditures were less than the final budget was expenditures for instruction were less than budgeted by $1.1 million and expenditures for maintenance and operation were less than the final budget by about $0.7 million. 
 
CAPITAL ASSETS AND DEBT ADMINISTRATION 
 
Capital Assets 
 
At fiscal year ended June 30, 2020, the School District had $72.5 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; intangible assets; and instructional food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. 
 
Table 4 Capital Assets at June 30 
(Net of Depreciation) 
 
Governmental Activities 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 
 
Land Construction in Progress Land Improvements Buildings and Improvements Equipment Intangible Assets 
 
$ 
 
1,146,452 $ 
 
1,147,402 
 
- 
 
996,079 
 
965,202 
 
1,013,265 
 
64,902,851 
 
65,086,324 
 
5,194,085 
 
5,254,734 
 
291,587 
 
- 
 
Total 
 
$ 72,500,177 $ 73,497,804 
 
Additional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. 
 
x 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 
 
Long-Term Debt 
 
At June 30, 2020, the School District had almost $32.9 million in total debt outstanding which consisted of $14.1 million in general obligation bond debt, $65,100 in revenue bond debt, $0.4 million in unamortized bond premiums; $18.2 million in financed purchases and capital lease debt and $120,000 in compensated absences debt. Table 5 summarizes the School District's debt as compared to the prior fiscal year. 
 
Table 5 Change in Long-Term Debt 
 
Governmental Activities 
 
Fiscal Year 
 
Fiscal Year 
 
2020 
 
2019 
 
General Obligation Bonds Payable Revenue Bonds - Rutland Center Unamortized Bond Premuims Financed Purchases Capital Lease Debt Compensated Absences 
 
$ 14,102,000 65,100 
403,298 18,102,361 
73,685 120,237 
 
$ 15,175,000 80,755 
450,285 18,913,869 
144,839 85,494 
 
Total 
 
$ 32,866,681 $ 34,850,242 
 
Additional information about the School District's debt can be found in the Notes to the Basic Financial Statements. 
FACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE 
Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: 
 The School District is financially stable. The School District's operating millage for fiscal year 2020 was 16.99 mills, which was unchanged from the prior year, and produced over $834,000 per mill. This amount represented an increase of about $163,000 per mill as compared to the prior year. The School District will construct additional facilities to accommodate the growth at various schools as needed. The School District plans to fund additional capital outlays, in part, with the one percent local sales tax revenue and state capital outlay grants. 
 The local economy continued to improve from the prior year. The School District's revenues from property taxes increased almost $1.5 million or about 11.7% from the prior year. State funds for operating purposes increased by about $2.5 million or about 6.5% from the prior year. The general fund an unassigned fund balance of $5.9 million at June 30, 2020, which is an increase of about $1.6 million from the prior year. The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. 
 
xi 
 
 MADISON COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020  The School District incurred additional expenses during the 2019-2020 school year to keep the students and staff safe as a result of the COVID-19 pandemic. The School District is uncertain of the additional costs the School District may incur in order to provide both "virtual" and "in school" educational services during the school year 2020-2021. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ms. Amanda Wommack, Assistant Superintendent, Madison County Board of Education, 800 Madison Street, Danielsville, Georgia 30633. You may also email your questions to Ms. Wommack at awommack@Madison.k12.ga.us. 
xii 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
 MADISON COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION 
FOR THE YEAR ENDED JUNE 30, 2020 
ASSETS 
Cash and Cash Equivalents Investments Receivables, Net 7D[HV 6WDWH*RYHUQPHQW )HGHUDO*RYHUQPHQW /RFDO 3UHSDLG,WHPV ,QYHQWRULHV 5HVWULFWHG,QYHVWPHQWVKHOGE\7UXVWHH &DSLWDO$VVHWV1RQ'HSUHFLDEOH &DSLWDO$VVHWV'HSUHFLDEOH1HWRI$FFXPXODWHG'HSUHFLDWLRQ  
7RWDO$VVHWV 
DEFERRED OUTFLOWS OF RESOURCES 
'HIHUUHG&KDUJHRQ5HIXQGLQJRI'HEW 5HODWHGWR'HILQHG%HQHILW3HQVLRQ3ODQV 5HODWHGWR23(%3ODQV 
7RWDO'HIHUUHG2XWIORZVRI5HVRXUFHV 
LIABILITIES 
6DODU\DQG%HQHILWV3D\DEOH ,QWHUHVW3D\DEOH 3URSRUWLRQDWH6KDUHRI&ROOHFWLYH1HW3HQVLRQ/LDELOLW\ 3URSRUWLRQDWH6KDUHRI&ROOHFWLYH23(%/LDELOLW\ /RQJ7HUP'HEW 'XH:LWKLQ2QH<HDU 'XHLQ0RUH7KDQ2QH<HDU 
7RWDO/LDELOLWLHV 
DEFERRED INFLOWS OF RESOURCES 
5HODWHGWR'HILQHG%HQHILW3HQVLRQ3ODQV 5HODWHGWR23(%3ODQV 
7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV 
NET POSITION 
1HW,QYHVWPHQWLQ&DSLWDO$VVHWV 5HVWULFWHG &RQWLQXDWLRQRI)HGHUDO3URJUDPV 'HEW6HUYLFH &DSLWDO3URMHFWV 8QUHVWULFWHG'HILFLW  
7RWDO1HW3RVLWLRQ 
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
EXHIBIT "A" 
GOVERNMENTAL ACTIVITIES 
$ 12,073,289.55 2,000.00 
1,109,853.82 4,632,975.93 
362,358.39 6,415.95 
48,634.56 108,962.72 
69,222.32 1,146,452.00 71,353,724.70 90,913,889.94 
537,537.37 14,795,821.00 
3,614,850.00 18,948,208.37 
6,534,692.64 346,633.99 
52,343,272.00 38,944,181.00 
2,410,747.34 30,455,933.21 131,035,460.18 
1,758,542.00 9,726,621.00 11,485,163.00 
59,604,683.00 918,521.72 
2,466,411.49 69,222.32 
  
$    
 
 
 MADISON COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2020 
 
EXHIBIT "B" 
 
GOVERNMENTAL ACTIVITIES 
 
EXPENSES 
 
CHARGES FOR SERVICES 
 
PROGRAM REVENUES OPERATING GRANTS AND 
CONTRIBUTIONS 
 
CAPITAL GRANTS AND CONTRIBUTIONS 
 
1(7(;3(16(6  REVENUES AND 
CHANGES IN NET ASSETS 
 
,QVWUXFWLRQ 6XSSRUW6HUYLFHV 
3XSLO6HUYLFHV ,PSURYHPHQWRI,QVWUXFWLRQDO6HUYLFHV (GXFDWLRQDO0HGLD6HUYLFHV *HQHUDO$GPLQLVWUDWLRQ 6FKRRO$GPLQLVWUDWLRQ %XVLQHVV$GPLQLVWUDWLRQ 0DLQWHQDQFH$QG2SHUDWLRQ2I3ODQW6HUYLFHV 6WXGHQW7UDQVSRUWDWLRQ6HUYLFH 6XSSRUW6HUYLFHV&HQWUDO 2WKHU6XSSRUW6HUYLFHV 2SHUDWLRQVRI1RQ,QVWUXFWLRQDO6HUYLFHV (QWHUSULVH2SHUDWLRQV 6FKRRO1XWULWLRQ3URJUDP ,QWHUHVW2Q6KRUW7HUP$QG/RQJ7HUP'HEW  7RWDO*RYHUQPHQWDO$FWLYLWLHV 
 
$ 42,296,097.00 $ 
 
666,501.31 $ 30,556,000.55 $ 
 
3,662,608.84 1,159,703.60 1,068,412.89 
964,856.52 3,899,672.45 
998,650.22 3,765,620.39 2,657,756.02 
328,586.99 605,296.42 
 
 
 
679,182.70 
 
 
 
443,197.63 
 
 
 
778,347.87 
 
 
 
265,272.38 
 
 
 
1,465,532.00 
 
 
 
279,604.26 
 
 
 
1,681,318.71 
 
 
 
917,579.12 
 
 
 
67,577.19 
 
 
 
47,597.73 
 
400,210.44 3,367,085.98 
919,977.39 
 
123,983.50 566,130.77 
 
 
 2,355,758.47 
 
 
$ 66,094,535.15 $ 1,356,615.58 $ 39,536,968.61 $ 
 
 $ 
       189,304.73   
   
189,304.73 
 
  
        
    
    
    
      
  
 
*HQHUDO5HYHQXHV 7D[HV 
3URSHUW\7D[HV )RU0DLQWHQDQFHDQG2SHUDWLRQV 6DOHV7D[HV 6SHFLDO3XUSRVH/RFDO2SWLRQ6DOHV7D[ )RU&DSLWDO3URMHFWV'HEW6HUYLFHV 2WKHU6DOHV7D[HV *UDQWVDQG&RQWULEXWLRQVQRW5HVWULFWHGWR6SHFLILF3URJUDPV ,QYHVWPHQW(DUQLQJV 0LVFHOODQHRXV 6SHFLDO,WHP *DLQRQ'LVSRVDORI&DSLWDO$VVHWV 
 
$ 2,472,908.06 272,109.28 
 
14,211,166.40 
2,745,017.34 6,844,680.00 
70,147.28 1,801,300.27 
60,494.50 
 
7RWDO*HQHUDO5HYHQXHVDQG6SHFLDO,WHP 
 
25,732,805.79 
 
&KDQJHLQ1HW3RVLWLRQ 
 
721,159.56 
 
1HW3RVLWLRQ%HJLQQLQJRI<HDU5HVWDWHG 
 
  
 
1HW3RVLWLRQ(QGRI<HDU 
 
$   
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
 
 
 MADISON COUNTY BOARD OF EDUCATION BALANCE SHEET 
GOVERNMENTAL FUNDS JUNE 30, 2020 
 
EXHIBIT "C" 
 
ASSETS 
Cash and Cash Equivalents Investments Receivables, Net 
7D[HV 6WDWH*RYHUQPHQW )HGHUDO*RYHUQPHQW /RFDO ,QYHQWRULHV 3UHSDLG,WHPV 5HVWULFWHG ,QYHVWPHQWVZLWKD)LVFDO$JHQWRU7UXVWHH 
7RWDO$VVHWV 
LIABILITIES 
6DODULHVDQG%HQHILWV3D\DEOH 
DEFERRED INFLOWS OF RESOURCES 
8QDYDLODEOH5HYHQXH3URSHUW\7D[HV 
FUND BALANCES 
1RQVSHQGDEOH 5HVWULFWHG &RPPLWWHG $VVLJQHG 8QDVVLJQHG 
7RWDO)XQG%DODQFHV 
 
GENERAL FUND 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 
 
9,492,720.30 $ 
 
2,000.00 
 
877,377.59 4,632,975.93 
362,358.39 6,415.95 
108,962.72 48,634.56 
 
 
 
 $  
      
69,222.32 
 
2,580,569.25 $  
232,476.23      
 
 
12,073,289.55 2,000.00 
1,109,853.82 4,632,975.93 
362,358.39 6,415.95 
108,962.72 48,634.56 
69,222.32 
 
$ 
 
15,531,445.44 $ 
 
69,222.32 $ 
 
2,813,045.48 $ 
 
18,413,713.24 
 
$ 
 
6,534,692.64 $ 
 
 $ 
 
 $ 
 
6,534,692.64 
 
379,021.43 
 
 
 
 
 
379,021.43 
 
157,597.28 815,848.77 746,491.27 970,656.87 5,927,137.18 
8,617,731.37 
 
 69,222.32 
   
69,222.32 
 
 2,813,045.48 
   
2,813,045.48 
 
157,597.28 3,698,116.57 
746,491.27 970,656.87 5,927,137.18 
11,499,999.17 
 
7RWDO/LDELOLWLHV'HIHUUHG,QIORZVRI5HVRXUFHV 
 
and Fund Balances 
 
$ 
 
15,531,445.44 $ 
 
69,222.32 $ 
 
2,813,045.48 $ 
 
18,413,713.24 
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
 
 
 MADISON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
TO THE STATEMENT OF NET POSITION JUNE 30, 2020 
 
EXHIBIT "D" 
 
7RWDOIXQGEDODQFHVJRYHUQPHQWDOIXQGV([KLELW&  
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'HIHUUHGRXWIORZRQUHIXQGLQJRIGHEW 
6RPHOLDELOLWLHVUHSRUWHGLQWKH6WDWHPHQWRI$FWLYLWLHVGRQRWUHTXLUHWKHXVHRIFXUUHQW ILQDQFLDOUHVRXUFHVDQGWKHUHIRUHDUHQRWUHSRUWHGDVOLDELOLWLHVLQWKHJRYHUQPHQWDO IXQGVWDWHPHQWV 
$FFUXHGLQWHUHVWRQORQJWHUPGHEW 
/RQJWHUPOLDELOLWLHVLQFOXGLQJERQGVSD\DEOHDUHQRWGXHDQGSD\DEOHLQWKH FXUUHQWSHULRGDQGWKHUHIRUHDUHQRWUHSRUWHGLQWKHIXQGV /RQJWHUPOLDELOLWLHVDW\HDUHQGFRQVLVWRI 
%RQGVSD\DEOH 8QDPRUWL]HGERQGSUHPLXPV 5XWODQG&HQWHUUHYHQXHERQGV &DSLWDOOHDVHVSD\DEOH )LQDQFHGSXUFKDVHV &RPSHQVDWHGDEVHQFHVSD\DEOH 
 
$ 11,499,999.17 
 
$ 1,146,452.00 2,236,378.00   
86,452,786.32   10,195,740.00 
  323,986.00   
 
72,500,176.70 
 
$     
 
  
 
379,021.43 
 
$ 13,037,279.00   
 
6,925,508.00 
 
537,537.37 
 
  
 
$         
    
 
  
 
1HWSRVLWLRQRIJRYHUQPHQWDODFWLYLWLHV([KLELW$  
 
$   
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
 
 
 MADISON COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 
 
EXHIBIT "E" 
 
REVENUES 
3URSHUW\7D[HV 6DOHV7D[HV State Funds )HGHUDO)XQGV &KDUJHVIRU6HUYLFHV ,QYHVWPHQW(DUQLQJV 0LVFHOODQHRXV 
7RWDO5HYHQXHV 
EXPENDITURES 
&XUUHQW ,QVWUXFWLRQ 6XSSRUW6HUYLFHV 3XSLO6HUYLFHV ,PSURYHPHQWRI,QVWUXFWLRQDO6HUYLFHV (GXFDWLRQDO0HGLD6HUYLFHV *HQHUDO$GPLQLVWUDWLRQ 6FKRRO$GPLQLVWUDWLRQ %XVLQHVV$GPLQLVWUDWLRQ 0DLQWHQDQFHDQG2SHUDWLRQRI3ODQW 6WXGHQW7UDQVSRUWDWLRQ6HUYLFHV &HQWUDO6XSSRUW6HUYLFHV 2WKHU6XSSRUW6HUYLFHV (QWHUSULVH2SHUDWLRQV )RRG6HUYLFHV2SHUDWLRQ 
&DSLWDO2XWOD\ 'HEW6HUYLFH 
3ULQFLSDO Dues and Fees ,QWHUHVW 
7RWDO([SHQGLWXUHV 
5HYHQXHVRYHUXQGHU ([SHQGLWXUHV 
27+(5),1$1&,1*6285&(686(6  
3URFHHGVRI5HIXQGLQJ%RQGV 3D\PHQWWR%RQG5HIXQGLQJ(VFURZ$JHQW 6DOHRI&DSLWDO$VVHWV 7UDQVIHUV,Q 7UDQVIHUV2XW 
7RWDO2WKHU)LQDQFLQJ6RXUFHV8VHV  
1HW&KDQJHLQ)XQG%DODQFHV 
)XQG%DODQFHV%HJLQQLQJ5HVWDWHG*HQHUDO)XQG  
 
GENERAL FUND 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 14,174,137.51 $ 272,109.28 
41,793,553.37 4,758,002.05 1,356,615.58 67,175.27 1,801,300.27 
64,222,893.33 
 
 $     833.91  
833.91 
 
 $ 2,472,908.06 
   2,138.10  
2,475,046.16 
 
14,174,137.51 2,745,017.34 
41,793,553.37 4,758,002.05 1,356,615.58 70,147.28 1,801,300.27 
66,698,773.40 
 
39,039,063.06 
3,597,961.80 1,094,814.10 
991,914.89 856,340.38 3,734,763.06 935,700.56 3,808,528.28 2,717,302.48 306,702.45 603,843.66 400,210.44 3,164,532.70 
1,944.96 
71,154.14  
3,935.14 
61,328,712.10 
2,894,181.23 
 
 
            470,411.25 
827,163.18  
527,696.95 
1,825,271.38 
  
 
 
     58,175.00        
1,299,000.00 3,800.62 
448,624.00 
1,809,599.62 
665,446.54 
 
39,039,063.06 
3,597,961.80 1,094,814.10 
991,914.89 856,340.38 3,734,763.06 993,875.56 3,808,528.28 2,717,302.48 306,702.45 603,843.66 400,210.44 3,164,532.70 472,356.21 
2,197,317.32 3,800.62 
980,256.09 
64,963,583.10 
1,735,190.30 
 
  569,518.35    
  
1,337,637.20 
7,280,094.17 
 
   2,470,607.38  
2,470,607.38 
646,169.91 
  
 
2,211,000.00   
    
  
379,076.54 
2,433,968.94 
 
2,211,000.00   
569,518.35 2,470,607.38   
627,693.35 
2,362,883.65 
9,137,115.52 
 
)XQG%DODQFHV(QGLQJ 
 
$ 
 
8,617,731.37 $ 
 
69,222.32 $ 
 
2,813,045.48 $ 11,499,999.17 
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
 
 
 MADISON COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF 
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 
 
EXHIBIT "F" 
 
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,QWKH6WDWHPHQWRI$FWLYLWLHVWKHGLIIHUHQFHEHWZHHQWKHSURFHHGVIURPDERQGUHIXQGLQJ LVVXHDQGWKHSULQFLSDORIWKHERQGVUHIXQGHGDUHDPRUWL]HGRYHUWKHOLIHRIUHIXQGLQJ ERQGVZKHUHDVLQWKHJRYHUQPHQWDOIXQGVWKLVGLIIHUHQFHLVUHFRJQL]HGLQWKHILVFDO \HDUWKHUHIXQGLQJLVFRPSOHWHG 
8QDPRUWL]HGDPRXQWGHIHUUHGRXWIORZ June 30, 2019 June 30, 2020 
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3HQVLRQH[SHQVH 23(%H[SHQVH 
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V ILVFDO\HDUHQGVWKH\DUHQRWFRQVLGHUHGDYDLODEOHUHVRXUFHV 
8QDYDLODEOHUHYHQXHV 6DOHRIODQG 
June 30, 2019 June 30, 2020 
'HIHUUHGLQIORZVRIUHVRXUFHV 8QDYDLODEOHSURSHUW\WD[ 
June 30, 2019 June 30, 2020 
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$FFUXHGLQWHUHVWH[SHQVH June 30, 2019 June 30, 2020 
&RPSHQVDWHGDEVHQFHV June 30, 2019 June 30, 2020 
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$PRUWL]DWLRQRIERQGSUHPLXP 3D\PHQWRIFDSLWDOOHDVHGHEW 3D\PHQWRIILQDQFHGSXUFKDVHVRIGHEW 3D\PHQWRIUHYHQXHERQGGHEW 5HGHPSWLRQRIERQGGHEW 7RWDOGHEWUHSD\PHQW 
&KDQJHLQQHWSRVLWLRQRIJRYHUQPHQWDODFWLYLWLHV([KLELW%  
 
$ 
 
2,362,883.65 
 
$ 
 
1,098,389.25 
 
  
 
    
 
$ 
 
  
 
537,537.37 
 
124,751.71 
 
  
 
$ 
 
  
 
  
 
  
 
$ 
 
  
 
 
 
$ 
 
  
 
$ 
 
  
 
379,021.43 
 
37,028.89 
 
  
 
$ 
 
406,800.40 
 
  $ 
 
$ 
 
85,494.31 
 
  
 
60,166.41   
 
25,424.37 
 
$ 
 
46,986.20 
 
71,154.14 
 
811,508.18 
 
15,655.00 
 
3,284,000.00 
 
4,229,303.52 
 
$ 
 
721,159.56 
 
7KHQRWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 
 
 
 
 (This page left intentionally blank) 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY 
The Madison County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
Additionally, the School District has been granted Charter System Status by the State of Georgia as provided in Georgia Annotated Code section 20-2-84. This status gives the School District freedom from many State rules and regulations in exchange for the School District's agreement to increase academic achievement by its students. 
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. 
BASIS OF PRESENTATION 
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. 
GOVERNMENT-WIDE STATEMENTS: 
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. 
The Statement of Net Position presents the School District's deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: 
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. 
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. 
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. 
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. 
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 
FUND FINANCIAL STATEMENTS: 
The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental funds as the School District has determined it has no fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. 
The School District reports the following major governmental funds: 
 The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. 
 The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and bond proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. 
 The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. 
BASIS OF ACCOUNTING 
The basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. 
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred except for principal and interest on general long-term debt 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. 
NEW ACCOUNTING PRONOUNCEMENTS 
In fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. 
In fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note. 
In fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. 
CASH AND CASH EQUIVALENTS 
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. 
INVESTMENTS 
The School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. 
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. 
RECEIVABLES 
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
INVENTORIES 
Consumable Supplies Inventory 
On the basic financial statements, inventories of consumable supplies are reported at weighted average cost. The School District uses the consumption method to account for inventories whereby supplies are recorded as an asset when purchased, and expenses/expenditures are recorded as the inventory items are used. 
Food Inventories 
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. 
PREPAID ITEMS 
Payments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. 
RESTRICTED ASSETS 
Certain resources set aside for repayment of debt are classified as restricted assets on the Statement of Net Position because their use is limited by applicable debt statutes, e.g. Rutland Center Revenue Bonds. 
CAPITAL ASSETS 
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. 
Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. 
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: 
 
Capitalization Policy 
 
Estimated Useful Life 
 
Land Land Improvements Buildings and Improvements Equipment Intangible Assets 
 
All $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 100,000.00 
 
N/A 10 to 20 years 20 to 60 years 
5 to 20 years Individually determined 
 
DEFERRED OUTFLOWS/INFLOWS OF RESOURCES 
In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. 
 
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. 
 
COMPENSATED ABSENCES 
Compensated absences payable consists of vacation leave employees earned based on services already rendered. 
 
Vacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 20 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. 
 
Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. 
 
LONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS 
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. 
 
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
PENSIONS 
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) 
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 
FUND BALANCES 
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. 
The School District's fund balances are classified as follows: 
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. 
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. 
Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. 
Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. 
Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. 
USE OF ESTIMATES 
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
PROPERTY TAXES 
The Madison County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on August 27, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 20, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Madison County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $14,174,137.51. 
The tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
16.99 mills 
 
Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in the property taxes shown above, amounted to $1,333,063.75 during fiscal year ended June 30, 2020. 
SALES TAXES 
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,472,908.06 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expires December 31, 2022. 
NOTE 3: BUDGETARY DATA 
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. 
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
The Superintendent is authorized by the Board to approve adjustments of less than 5 % of the amount budgeted for expenditures in any budget function for any fund. The Superintendent will report to the Board concerning adjustments not later than the next regular meeting of the Board. If at any time during the budget year, expenditure of funds in any budget function for any fund is anticipated to exceed by 5% or more the amount budgeted for that function in the Boardapproved budget, the Superintendent is directed to request a budget amendment by the Board to authorize the additional anticipated expenditures. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. 
NOTE 4: DEPOSITS, CASH EQUIVALENTS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS 
O.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  458-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. At June 30, 2020, $986,277.11 of deposits were not secured by surety bond, insurance or collateral as specified above. This situation occurred because the School District made a large deposit on June 30, 2020, that the affected bank did not get collateralized until the next day. The School District is working with the affected financial institution to ensure appropriate levels of collateral are maintained for all the School District's deposits at all times. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
CATEGORIZATION OF DEPOSITS 
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $5,292,448.50, and a bank balance of $7,758,008.74. The bank balances insured by Federal depository insurance were $502,000.00 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $6,254,786.44. 
At June 30, 2020, $14,945.19 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. 
 
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. 
 
At June 30, 2020, $986,277.11 of the School District's bank balance was exposed to custodial credit risk as follows: 
 
Uninsured and Uncollateralized 
 
$ 986,277.11 
 
Uninsured with collateral held by the pledging 
 
financial institution 
 
- 
 
Uninsured with collateral held by the pledging 
 
financial institution's trust department or 
 
agent but not in the School District's name 
 
- 
 
Total 
 
$ 986,277.11 
 
Reconciliation of cash and cash equivalents balances to carrying value of deposits: 
 
Cash and cash equivalents Statement of Net Position 
 
$ 12,073,289.55 
 
Add: Deposits with original maturity of three months or more reported as investments 
 
2,000.00 
 
Less: Investment pools reported as cash and cash equivalents 
Georgia Fund 1 
 
6,782,841.05 
 
Total carrying value of deposits - June 30, 2020 
 
$ 5,292,448.50 
 
CATEGORIZATION OF CASH EQUIVALENTS 
The School District reported cash equivalents of $6,782,841.05 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. 
CATEGORIZATION OF INVESTMENTS 
At June 30, 2020, the School District had $2,000.00 invested in certificates of deposits, which are included in the categorization of deposits as shown above and $69,222.32 in other types of investments. The other types of investments are categorized as follows: 
 
Investment Type 
 
Fair Value 
 
Investment Maturity Less Than 1 Year 
 
Debt Securities Mutual Bond Funds 
 
$ 69,222.32 $ 
 
69,222.32 
 
Fair Value of Investments 
The School District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: 
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. 
At June 30, 2020, The School District has the following investments by fair value level: 
Mutual Bond Funds of $69,222.32 are valued using quoted prices for identical measurements in active markets. (Level 1 inputs) 
Interest Rate Risk 
Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. 
Custodial Credit Risk 
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. 
At June 30, 2020, $69,222.32 of the School District's applicable investments were held by the investment's counterparty, not in the School District's name. 
 
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 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Credit Quality Risk 
Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed O.C.G.A. 36-83-4. The School District does not have a formal policy that would further limit its investment choices or one that addresses credit risk. 
 
As discussed above, the $69,222.32 is invested in Mutual Bond Funds, which are rated AAA for credit quality risks. 
 
NOTE 5: RESTRICTED ASSETS 
 
The restricted assets represent the investment balance, totaling $69,222.32, for retirement of the Rutland Center Revenue Bonds as they mature. 
 
NOTE 6: CAPITAL ASSETS 
 
The following is a summary of changes in the capital assets for governmental activities during the fiscal year: 
 
Balances July 1, 2019 
 
Increases 
 
Decreases 
 
Transfers 
 
Balances June 30, 2020 
 
Governmental Activities Capital Assets, Not Being Depreciated: 
Land Construction in Progress 
 
$ 1,147,402.00 $ 
 
- $ 
 
996,078.80 
 
300,516.25 
 
950.00 $ 
 
- $ 1,146,452.00 
 
- 
 
(1,296,595.05) 
 
- 
 
Total Capital Assets Not Being Depreciated 
 
2,143,480.80 
 
300,516.25 
 
950.00 (1,296,595.05) 
 
1,146,452.00 
 
Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements Intangible Assets 
Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements Intangible Assets 
 
85,156,191.27 9,880,905.00 2,203,078.00 - 
 
440,587.00 
33,300.00 323,986.00 
 
125,752.00 
- 
 
1,296,595.05 - 
 
86,452,786.32 10,195,740.00 
2,236,378.00 323,986.00 
 
20,069,866.62 4,626,171.00 1,189,813.00 - 
 
1,480,069.00 501,236.00 81,363.00 32,399.00 
 
125,752.00 
- 
 
- 
 
21,549,935.62 
 
- 
 
5,001,655.00 
 
- 
 
1,271,176.00 
 
- 
 
32,399.00 
 
Total Capital Assets, Being Depreciated, Net 
 
71,354,323.65 (1,297,194.00) 
 
- 
 
1,296,595.05 71,353,724.70 
 
Governmental Activities Capital Assets - Net $ 73,497,804.45 $ (996,677.75) $ 
 
950.00 $ 
 
- $ 72,500,176.70 
 
Current year depreciation expense by function is as follows: 
 
Instruction Support Services 
Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services 
 
$ 
 
32,914.00 
 
61,132.00 
 
25,654.00 
 
28,086.00 
 
195,262.00 
 
$ 1,582,008.00 
343,048.00 170,011.00 
 
$ 2,095,067.00 
 
- 18 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
NOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2020, consisted of the following: 
 
Transfers to 
 
Transfers From 
 
General Fund 
 
Debt Service Fund 
 
Capital Projects Fund 
 
$ 2,126,062.38 $ 344,545.00 
 
The transfers above were made for the following purposes: 
1) The general fund transferred $2,126,062.38 to the capital projects fund to provide supplemental funding for capital outlay projects. 
 
2) The debt service fund transferred $344,545.00 to the capital projects fund to provide sales tax proceeds for supplemental funding of capital outlay projects. 
 
NOTE 8: LONG-TERM LIABILITIES 
 
The changes in long-term liabilities during the fiscal year for governmental activities were as follows: 
 
Balance July 1, 2019 
 
Additions 
 
Governmental Activities Deductions 
 
Balance June 30, 2020 
 
Due Within One Year 
 
General Obligation (G.O.) Bonds Unamortized Bond Premiums Financed Purchases Capital Leases Rutland Center Revenue Bonds Compensated Absences (1) 
 
$ 15,175,000.00 $ 2,211,000.00 $ 3,284,000.00 $ 14,102,000.00 $ 
 
450,284.40 
 
- 
 
46,986.20 
 
403,298.20 
 
18,913,869.30 
 
- 
 
811,508.18 
 
18,102,361.12 
 
144,839.02 
 
- 
 
71,154.14 
 
73,684.88 
 
80,755.00 
 
- 
 
15,655.00 
 
65,100.00 
 
85,494.31 
 
109,526.63 
 
74,784.59 
 
120,236.35 
 
1,347,000.00 46,986.20 
877,976.26 73,684.88 65,100.00 - 
 
$ 34,850,242.03 $ 2,320,526.63 $ 4,304,088.11 $ 32,866,680.55 $ 2,410,747.34 
 
(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. 
GENERAL OBLIGATION DEBT OUTSTANDING 
The School District's bonded debt consists of various issues of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. 
The School District's outstanding bonds from direct borrowings related to governmental activities of $14,102,000.00 contain a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. 
During fiscal year 2020, the School District issued $2,211,000.00 in general obligation refunding bonds to advance refund $1,985,000.00 of outstanding bonds. The bond issue of $2,211,000.00 less underwriters and bond issue cost of $58,175.00 provided net proceeds of $2,152,825.00. The total net proceeds were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 2011 bond issue. As a result, portions of the 2011 Series Bonds are considered defeased, and the liability for these portions has been removed from the Government-Wide Statement of Net Position. The School District refunded the aforementioned bonds 
 
- 19 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
to reduce its total debt service payments over nine years beginning subsequent to fiscal year 2020 by $168,213.27 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of $162,498.11. 
 
General obligation bonds currently outstanding are as follows: 
 
Description 
 
Interest Rates 
 
Issue Date Maturity Date 
 
Amount Issued 
 
Amount Outstanding 
 
General Government - Series 2011 General Government - Refunding - Series 2017 General Government - Refunding - Series 2020 
 
3.0259% 2.27% 1.34% 
 
10/6/2011 4/26/2017 6/18/2020 
 
2/1/2029 $ 16,000,000.00 $ 
 
2/1/2029 
 
9,970,000.00 
 
2/1/2029 
 
2,211,000.00 
 
2,425,000.00 9,466,000.00 2,211,000.00 
 
$ 28,181,000.00 $ 14,102,000.00 
 
The following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: 
 
Fiscal Year Ended June 30: 
 
General Obligation Debt 
 
Principal 
 
Interest 
 
Unamortized Bond Premium 
 
2021 2022 2023 2024 2025 2026 - 2029 
 
$ 
 
1,347,000.00 $ 
 
345,218.23 
 
$ 
 
46,986.20 
 
1,409,000.00 
 
293,429.20 
 
46,986.20 
 
1,499,000.00 
 
237,112.80 
 
46,986.20 
 
1,523,000.00 
 
203,494.70 
 
46,986.20 
 
1,546,000.00 
 
169,341.10 
 
46,986.20 
 
6,778,000.00 
 
352,142.00 
 
168,367.20 
 
Total Principal and Interest 
 
$ 
 
14,102,000.00 $ 1,600,738.03 
 
$ 
 
403,298.20 
 
REVENUE BONDS 
 
The School District entered into a contract with the Northeast Georgia Regional Educational Service Agency (RESA), in conjunction with other School Districts to provide funding to build the Rutland Center, located in Athens Georgia. This facility was built through the sale of bonds, retirement of which was pledged by funds from various local school districts in the area. Under terms of the agreement, the various school districts pledged funds annually to retire the bonds as they become due. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. 
 
Debt currently outstanding under Revenue Bonds is as follows: 
 
Purpose 
 
Interest Rate 
 
Issue Date Maturity Date Amount Issued 
 
Amount Outstanding 
 
General Government-Rutland Center Revenue Bonds 
 
4.16% 
 
6/1/2006 
 
8/1/2020 $ 
 
713,000.00 $ 
 
65,100.00 
 
The following is a schedule of total revenue bond payments: 
 
Fiscal Year Ended June 30: 
 
Principal 
 
Interest 
 
2021 
 
$ 
 
65,100.00 $ 
 
4,036.00 
 
- 20 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
CAPITAL LEASES 
 
The School District has acquired various copiers under the provisions of a long-term lease agreement classified as capital leases for accounting purposes because it provides for a bargain purchase option or a transfer of ownership by the end of the lease term. 
 
Capital leases currently outstanding are as follows: 
 
Purpose 
 
Interest Rate 
 
Issue Date 
 
Maturity Date 
 
Amount Issued 
 
Amount Outstanding 
 
Ricoh Lease 
 
2.92% 
 
5/25/2017 
 
6/30/2021 $ 
 
279,899.79 $ 
 
73,684.88 
 
The following is a schedule of total capital lease payments: 
 
Fiscal Year Ended June 30: 
 
Principal 
 
2021 
 
$ 
 
73,684.88 $ 
 
Interest 1,404.40 
 
OBLIGATIONS UNDER FINANCED PURCHASES 
An energy efficiency lease agreement dated June 30, 2016 was executed by and between the School District, the lessee, and First Security Finance Incorporated, the lessor. The agreement authorized the borrowing of $19,823,525.48 for the purchase of energy efficiency equipment, machinery, supplies, building modifications and other energy saving items. Payments of the lease shall be made from the School District's general fund. 
The School District's outstanding financed purchases related to governmental activities of $18.102.361.12 contain a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. Additionally, the financed purchases contain a provision that should the School District fail to budget, appropriate, or otherwise make available funds to pay rental payments, the agreement shall be deemed terminated at the end of the renewal term, and the School District shall cease to use the equipment and peaceably remove and deliver the equipment to the lessor at the School District expense to the location(s) specified by the lessor. 
The following assets were acquired through an energy efficiency lease and are reflected in the capital asset note at fiscal year-end: 
Governmental 
Activities 
 
Buildings and Improvements Equipment Less: Accumulated Depreciation 
 
$ 3,215,193.00 2,509,363.00 2,096,801.00 
 
$ 3,627,755.00 
 
Debt currently outstanding is as follows: 
 
Purpose First Security Finance Incorporated 
 
Interest Rate 2.77% 
 
Issue Date 6/30/2016 
 
Maturity Date 
 
Amount Issued 
 
Amount Outstanding 
 
2/1/2033 $ 
 
19,823,525.48 $ 18,102,361.12 
 
- 21 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
The following is a schedule of total finance purchase payments: 
 
EXHIBIT "G" 
 
Fiscal Year Ended June 30: 
 
Principal 
 
Interest 
 
2021 2022 2023 2024 2025 2026 - 2030 2031 - 2033 
 
$ 
 
877,976.26 $ 
 
505,055.88 
 
948,060.79 
 
480,560.34 
 
1,021,931.69 
 
454,109.44 
 
1,099,768.60 
 
425,597.55 
 
1,181,760.12 
 
394,914.00 
 
7,298,221.51 
 
1,429,884.11 
 
5,674,642.15 
 
323,343.25 
 
Total Principal and Interest 
 
$ 
 
18,102,361.12 $ 
 
4,013,464.57 
 
COMPENSATED ABSENCES 
 
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. 
 
NOTE 9: RISK MANAGEMENT 
 
INSURANCE 
 
Commercial Insurance 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 
 
UNEMPLOYMENT COMPENSATION 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and the related liability reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
2019 $ 
 
- 
 
$ 
 
- 
 
$ 
 
- 
 
$ 
 
- 
 
2020 $ 
 
- 
 
$ 
 
761.00 
 
$ 
 
761.00 
 
$ 
 
- 
 
SURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent 
 
$ 1,000,000.00 
 
- 22 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
NOTE 10: FUND BALANCE CLASSIFICATION DETAILS 
 
The School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: 
 
Nonspendable 
 
Inventories 
 
$ 
 
108,962.72 
 
Prepaid Assets 
 
48,634.56 $ 
 
Restricted 
 
Continuation of Federal Programs 
 
$ 
 
796,507.37 
 
Flex Benefit Program 
 
19,341.40 
 
Capital Outlay Projects 
 
69,222.32 
 
Debt Service 
 
2,813,045.48 
 
Committed 
 
School Activity Accounts 
 
Assigned 
 
Various Local Scholarship and Special Programs 
 
Unassigned 
 
157,597.28 
3,698,116.57 746,491.27 970,656.87 
5,927,137.18 
 
Fund Balance, June 30, 2020 
 
$ 
 
11,499,999.17 
 
When multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. 
It is the goal of the School District to achieve and maintain an unassigned fund balance in the general fund at fiscal year-end of not less than 15% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A.  20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. 
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES 
FEDERAL GRANTS 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
LITIGATION 
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. 
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) 
GEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND 
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment 
 
- 23 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. 
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. 
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,085,269.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. 
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB 
At June 30, 2020, the School District reported a liability of $38,944,181.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.317338%, which was an increase of 0.004407% from its proportion measured as of June 30, 2018. 
 
- 24 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
For the year ended June 30, 2020, the School District recognized OPEB expense of $1.135,132.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 
 
Deferred Outflows of Resources 
 
OPEB 
 
Deferred Inflows of Resources 
 
Differences between expected and actual 
 
experience 
 
$ 
 
- $ 4,236,721.00 
 
Changes of assumptions 
 
1,352,455.00 
 
5,489,900.00 
 
Net difference between projected and actual 
 
earnings on OPEB plan investments 
 
84,808.00 
 
- 
 
Changes in proportion and differences 
 
between School District contributions and 
 
proportionate share of contributions 
 
1,092,318.00 
 
- 
 
School District contributions subsequent to 
 
the measurement date 
 
1,085,269.00 
 
- 
 
Total 
 
$ 3,614,850.00 $ 9,726,621.00 
 
School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: 
 
Year Ended June 30: 
 
OPEB 
 
2021 2022 2023 2024 2025 Thereafter 
 
$ (1,651,499.00) $ (1,651,499.00) $ (1,654,760.00) $ (1,399,465.00) $ (702,420.00) $ (137,397.00) 
 
- 25 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Actuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: 
 
OPEB: 
 
Inflation 
 
2.50% 
 
Salary increases 
 
3.00%  8.75%, including inflation 
 
Long-term expected rate of return Healthcare cost trend rate 
Pre-Medicare Eligible Medicare Eligible 
 
7.30%, compounded annually, net of investment expense, and including inflation 
7.250% 5.375% 
 
Ultimate trend rate Pre-Medicare Eligible Medicare Eligible 
 
4.75% 4.75% 
 
Year of Ultimate trend rate 
 
Pre-Medicare Eligible Medicare Eligible 
 
2028 2022 
 
Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: 
 For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection 
scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. 
 For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with 
projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. 
 
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018. 
 
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation. 
 
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. 
 
- 26 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: 
 
Asset class 
 
Target allocation 
 
Long-Term Expected Real Rate of Return* 
 
Fixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives 
 
30.00% 46.20% 
1.30% 12.40% 
5.10% 5.00% 
 
(0.10)% 8.90% 
13.20% 8.90% 
10.90% 12.00% 
 
Total 
 
100.00% 
 
*Net of Inflation 
 
Discount rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. 
Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: 
 
School District's proportionate share of the Net OPEB Liability 
 
1% Decrease (2.58%) 
 
Current Discount Rate (3.58%) 
 
1% Increase (4.58%) 
 
$ 45,265,993.00 $ 
 
38,944,181.00 $ 33,801,672.00 
 
- 27 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: 
 
1% Decrease 
 
Current Healthcare Cost Trend Rate 
 
1% Increase 
 
School District's proportionate share 
 
of the Net OPEB Liability 
 
$ 32,806,347.00 $ 
 
38,944,181.00 $ 46,739,697.00 
 
OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. 
 
NOTE 13: RETIREMENT PLANS 
The School District participates in various retirement plans administered by the State of Georgia, as further explained below. 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers 
Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. 
 
Benefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. 
 
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 21.05% of payroll was required from the School District and 0.09% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $6,518,750.00 and $27,122.08 from the School District and the State, respectively. 
 
- 28 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
EMPLOYEES' RETIREMENT SYSTEM 
Plan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. 
Benefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. 
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. 
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. 
Contributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contribution rate for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $16,850.00 for the current fiscal year. 
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) 
P lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. 
Benefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. 
Upon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon 
- 29 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. 
 
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. 
 
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution by the State of Georgia was $75,078.00. 
 
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions 
 
At June 30, 2020, the School District reported a total pension liability of $52,343,272.00 for its proportionate share of the net pension liability for TRS ($52,236,519.00) and ERS ($106,753.00). 
 
The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: 
 
School District's proportionate share of the net pension liability 
 
$ 52,236,519.00 
 
State of Georgia's proportionate share of the net pension liability associated with the School District 
 
222,983.00 
 
Total 
 
$ 52,459,502.00 
 
The net pension liability for TRS and ERS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2019. 
At June 30, 2019, the School District's TRS proportion was 0.242930%, which was a decrease of 0.000975% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.002587%, which was an increase of 0.000036% from its proportion measured as of June 30, 2018. 
At June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the PSERS net pension liability associated with the School District is $443,796.00. 
 
- 30 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
The PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. 
 
For the year ended June 30, 2020, the School District recognized pension expense of $8,808,894.00 for TRS, $3,092.00 for ERS and $136,861.00 for PSERS and revenue of $15,263.00 for TRS and $136,861.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. 
 
At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 
 
TRS Deferred Outflows of Resources 
 
Deferred Inflows of Resources 
 
ERS 
 
Deferred 
 
Deferred 
 
Outflows of 
 
Inflows of 
 
Resources 
 
Resources 
 
Differences between expected and actual experience 
 
$ 2,944,316.00 $ 15,487.00 $ 
 
3,555.00 $ 
 
- 
 
Changes of assumptions 
 
5,012,776.00 
 
- 
 
1,879.00 
 
- 
 
Net difference between projected and actual earnings on pension plan investments 
 
- 
 
1,243,911.00 
 
- 
 
3,323.00 
 
Changes in proportion and differences between School District contributions and proportionate share of contributions 
 
296,834.00 
 
492,835.00 
 
861.00 
 
2,986.00 
 
School District contributions subsequent to the measurement date 
Total 
 
6,518,750.00 
 
- 
 
$ 14,772,676.00 $ 1,752,233.00 
 
16,850.00 $ 23,145.00 $ 
 
6,309.00 
 
The School District contributions subsequent to the measurement date for TRS and for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 
 
Year Ended June 30: 
 
TRS 
 
ERS 
 
2021 2022 2023 2024 
 
$ 2,696,075.00 $ 2,582.00 $ 415,174.00 $ (2,382.00) $ 1,698,873.00 $ (655.00) $ 1,691,571.00 $ 441.00 
 
- 31 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Actuarial assum ptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods 
included in the measurement: 
 
Teachers Retirement System: 
 
Inflation 
 
2.50% 
 
Salary increases 
 
3.00%  8.75%, average, including inflation 
 
Investment rate of return 
 
7.25%, net of pension plan investment expense, including inflation 
 
Post-retirement benefit increases 1.50% semi-annually 
 
Post-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. 
 
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the longterm assumed rate of return. 
 
Employees' Retirement System: 
 
Inflation 
 
2.75% 
 
Salary increases 
 
3.25%  7.00%, including inflation 
 
Investment rate of return 
 
7.30%, net of pension plan investment expense, including inflation 
 
Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. 
 
- 32 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment of return. 
Public School Employees Retirement System: 
 
Inflation 
 
2.75% 
 
Salary increases 
 
N/A 
 
Investment rate of return 
 
7.30%, net of pension plan investment expense, including inflation 
 
Post-retirement benefit increases 
 
1.50% semi-annually 
 
Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. 
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. 
The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: 
 
Asset class 
Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative 
Total 
* Rates shown are net of assumed rate of inflation. 
 
TRS Target allocation 
30.00% 51.00% 
1.50% 12.40% 
5.10% - 
100.00% 
 
ERS/PSERS Target 
allocation 
30.00% 46.20% 
1.30% 12.40% 
5.10% 5.00% 
100.00% 
 
Long-term expected real rate of return* 
(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% 
 
- 33 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Discount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 
 
Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School 
District's proportionate share of the net pension liability would be if it were calculated using a discount 
rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 
8.30%) than the current rate: 
 
Teachers Retirement System: 
 
1% Decrease (6.25%) 
 
Current Discount Rate (7.25%) 
 
1% Increase (8.25%) 
 
School District's proportionate share of the net pension liability 
 
$ 84,795,159.00 $ 
 
52,236,519.00 $ 25,461,748.00 
 
Employees' Retirement System: 
School District's proportionate share of the net pension liability 
 
1% Decrease (6.30%) 
 
Current Discount Rate (7.30%) 
 
1% Increase (8.30%) 
 
$ 
 
151,706.00 $ 
 
106,753.00 $ 
 
68,432.00 
 
Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. 
DEFINED CONTRIBUTION PLAN 
The Madison County Board of Education participates in an employer paid 403(b) annuity plan for the group of employees covered under the Public School Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement for this group. 
The Board has selected Horace Mann, Inc. as the provider of this plan. For each employee covered under PSERS, the Board contributes to the plan, an amount equal to the employees' contribution up to an amount of $25.00 per pay period. 
The employee becomes vested in the plan with 3 years of experience. Employees who had already achieved 3 years of experience at the time the plan was implemented were vested upon enrollment. 
Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 3 years of service to Madison Board of Education. If an employee terminates employment prior to achieving 3 years of service, funds paid on behalf of the non-vested employee are credited back to the Board. 
 
- 34 - 
 
 MADISON COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2020 
 
EXHIBIT "G" 
 
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Contributed 
 
Contribution 
 
2020 2019 2018 
 
100% 
 
$ 
 
100% 
 
$ 
 
100% 
 
$ 
 
8,550.00 8,550.00 9,575.00 
 
NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE 
For fiscal year 2020, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in "New Accounting Pronouncements," which requires the restatement of the June 30, 2019 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles. 
 
Net Position, July 1, 2019 as previously reported 
 
$ (33,682,804.46) 
 
Prior Period Adjustment - Implementation of GASB No. 84: Agency Funds Reclassification Private Purpose Trust Funds Reclassification 
 
262,627.85 40,492.18 
 
Net Position, July 1, 2019, as restated 
 
$ (33,379,684.43) 
 
Fund Balance (General Fund), July 1, 2019, as previously reported Prior Period Adjustment - Implementation of GASB No. 84: Agency Funds Reclassification Private Purpose Trust Funds Reclassification 
 
$ 6,976,974.14 
262,627.85 40,492.18 
 
Fund Balance (General Fund), July 1, 2019, as restated 
 
$ 7,280,094.17 
 
Net Position (Fiduciary Funds), July 1, 2019 as previously reported 
 
$ 
 
Prior Period Adjustment - Implementation of GASB No. 84: 
 
Restatement for Agency Funds Beginning Net Position 
 
Restatement for Private Purpose Trust Funds Beginning Net Position 
 
303,120.03 
(262,627.85) (40,492.18) 
 
Net Position (Fiduciary Funds), July 1, 2019, as restated 
 
$ 
 
- 
 
NOTE 15: SPECIAL ITEM 
During fiscal year 2020, the School District sold or otherwise disposed of certain capital assets. These items were removed from the capital assets records at their net carrying values and combined with the proceeds received resulting in a net gain of $60,494.50. This amount is reflected as a gain on disposal of capital assets and is reported as a special item on the Statement of Activities. 
 
- 35 - 
 
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 MADISON COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA 
FOR THE YEAR ENDED JUNE 30 
 
SCHEDULE "1" 
 
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222,983.00 176,526.00 347,731.00 493,290.00 371,161.00 322,791.00 
 
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SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA 
FOR THE YEAR ENDED JUNE 30 
 
SCHEDULE "2" 
 
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65(7,5(0(176<67(02)*(25*,$ 
FOR THE YEAR ENDED JUNE 30 
 
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SCHEDULE OF CONTRIBUTIONS (03/2<((6
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FOR THE YEAR ENDED JUNE 30 
 
SCHEDULE "5" 
 
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$ 
 
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SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 
 
SCHEDULE "6" 
 
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SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND 
FOR THE YEAR ENDED JUNE 30 
 
SCHEDULE "7" 
 
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SCHEDULE "8" 
 
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 MADISON COUNTY BOARD OF EDUCATION GENERAL FUND 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL 
YEAR ENDED JUNE 30, 2020 
 
SCHEDULE "9" 
 
REVENUES 
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NONAPPROPRIATED BUDGETS 
 
25,*,1$/  
 
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ACTUAL AMOUNTS 
 
VARIANCE 29(581'(5 
 
$ 13,171,373.00 $ 13,171,373.00 $ 
 
130,000.00 
 
130,000.00 
 
40,168,060.00 
 
40,295,490.00 
 
2,564,232.00 
 
2,564,232.00 
 
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115,000.00 
 
115,000.00 
 
368,000.00 
 
368,000.00 
 
57,190,965.00 
 
57,318,395.00 
 
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64,222,893.33 
 
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1,498,063.37 2,193,770.05 
682,315.58   1,433,300.27 
6,904,498.33 
 
37,041,957.79 
3,535,410.12 1,168,677.00 1,125,849.00 
900,571.57 3,913,554.30 
899,898.00 3,778,339.99 3,364,796.29 
345,380.00 27,730.00  
3,349,032.00 376,430.51  
59,827,626.57 
  
 
40,160,834.62 
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293,380.00 411,729.04 
 3,349,032.00 
376,430.51  
64,743,314.57 
  
 
39,039,063.06 
3,597,961.80 1,094,814.10 
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1,944.96 75,089.28 
61,328,712.10 
2,894,181.23 
 
1,121,771.56 
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3,414,602.47 
10,319,100.80 
 
300,000.00  
300,000.00   10,584,648.69 
  
 
300,000.00  
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 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2020 
 
SCHEDULE "10" 
 
FUNDING AGENCY 352*5$0*5$17 
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621,771.74 2,424,581.38 
3,046,353.12 
 
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$*(1&<)81',1* 
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SCHEDULE "11" 
 
GOVERNMENTAL FUND TYPE GENERAL FUND 
 
$ 
 
596,647.07 
 
1,469,932.00 686,062.00 
3,536,079.00 1,666,085.00 1,719,539.00 1,035,791.00 3,935,567.00 2,809,571.00 1,082,432.00 7,047,289.00 1,573,904.00 
455,930.00 258,873.00 404,630.00 664,957.00 196,338.00 119,546.00 
2,099.00 
1,068,774.00 1,334,498.00 1,329,701.00 
  522,136.00 
765,731.00 104,333.00 
12,168.96 6,844,680.00 
158,681.19 55,279.00 82,506.00 3,848.00 13,397.85 
207,200.05 189,304.73 203,536.60 
27,122.08 
75,078.00 
 
34,929.84 
 
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41,793,553.37 
 
 
 
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 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2020 
 
SCHEDULE "12" 
 
PROJECT 
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V6HULHV*HQHUDO2EOLJDWLRQ%RQGV WKHPD[LPXPDPRXQWRIVXFKSD\PHQWVQRWWRH[FHHG $3,718,537.00, YLLL SD\LQJDSRUWLRQRIWKHGHEWVHUYLFHRQWKH*HQHUDO 2EOLJDWLRQ'HEWRIWKH6FKRRO'LVWULFWWKHPD[LPXP DPRXQWRIVXFKSD\PHQWVQRWWRH[FHHG L[ SD\LQJH[SHQVHVLQFLGHQWWRDFFRPSOLVKLQJWKH IRUHJRLQJ 
 
ORIGINAL ESTIMATED 
&267  
 
CURRENT ESTIMATED &2676  
 
AMOUNT EXPENDED IN CURRENT <($5   
 
AMOUNT EXPENDED IN PRIOR <($56   
 
TOTAL COMPLETION 
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ESTIMATED COMPLETION 
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$ 10,000,000.00 $ 23,094,137.00 $ 
 
 $ 21,753,575.46 $ 
 
 $ 
 
 
 
&RPSOHWHG 
 
14,300,000.00 
 
31,800,807.00 
 
 
 
30,234,212.75 
 
 
 
 
 
 
 
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VRIWZDUHDQGLQIUDVWUXFWXUH 
 
500,000.00 
 
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3,432,000.00 
 
3,432,000.00 
 
289,352.00 
 
995,196.19 
 
 
 
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EXLOGLQJVDQGIDFLOLWLHVXVHIXODQGGHVLUDEOHLQFRQQHFWLRQ 
 
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1,500,000.00 
 
1,500,000.00 
 
 
 
 
 
 
 
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63/2677RWDOV 
 
15,000,000.00 
 
15,000,000.00 
 
289,352.00 
 
995,196.19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 39,300,000.00 $ 69,894,944.00 $ 289,352.00 $ 52,982,984.40 $ 
 
 $ 
 
 
 
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3ULRU<HDUV 
 
$ 7,114,821.98 
 
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448,624.00 
 
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 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
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 Greg S. Griffin 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 
 
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON 
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education 
and Superintendent and Members of the Madison 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 and each major fund of the Madison County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 30, 2021. 
Internal Control Over Financial Reporting 
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. 
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 
 
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 Compliance and Other Matters 
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 
Purpose of this Report 
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 
Respectfully submitted, 
 
March 30, 2021 
 
Greg S. Griffin State Auditor 
 
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 Greg S. Griffin 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 
 
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 
 
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education 
and Superintendent and Members of the Madison County Board of Education 
Report on Compliance for Each Major Federal Program 
We have audited the Madison County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. 
Management's Responsibility 
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. 
Auditor's Responsibility 
Our responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. 
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. 
 
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 Opinion on Each Major Federal Program 
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. 
Report on Internal Control over Compliance 
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. 
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 
Respectfully submitted, 
 
March 30, 2021 
 
Greg S. Griffin State Auditor 
 
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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
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 MADISON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
No matters were reported. 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
No matters were reported. 
 
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 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
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 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2020 
 
I SUMMARY OF AUDITOR'S RESULTS 
 
Financial Statements 
Type of auditor's report issued: Governmental Activities; All Major Funds 
Internal control over financial reporting:  Material weakness identified?  Significant deficiency identified? 
Noncompliance material to financial statements noted: 
 
Unmodified 
No None Reported 
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 
 
10.553, 10.555 
 
Child Nutrition Cluster 
 
Dollar threshold used to distinguish between Type A and Type B programs: 
 
$750,000.00 
 
Auditee qualified as low-risk auditee? 
 
Yes 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. 
 
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.