Annual financial report, 2021 June 30, Marion County Board of Education, Buena Vista, Georgia, including independent auditor's report

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

Marion County Board of Education Table of Contents

Section I

Financial

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Statement of

Revenues, Expenditures and Changes in Fund Balances

of Governmental Funds to the Statement of Activities

6

G

Statement of Fiduciary Net Position

Custodial Fund

7

H

Statement of Change in Fiduciary Net Position

Custodial Fund

8

I Notes to the Basic Financial Statements

9

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

43

2 Schedule of Contributions Teachers Retirement System of Georgia

44

3 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

45

Marion County Board of Education

Table of Contents Section I

Schedules

Required Supplementary Information

4 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

46

5 Schedule of Contributions School OPEB Fund

47

6 Notes to the Required Supplementary Information

48

7 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual

49

Supplementary Information

8 Schedule of Expenditures of Federal Awards

50

9 Schedule of State Revenue

52

10 Schedule of Approved Local Option Sales Tax Projects

53

Section II

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

Section III

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

Findings and Questioned Costs
Schedule of Findings and Questioned Costs

Section I Financial

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. 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 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 24, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
March 24, 2022

MARION COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
The Management's Discussion and Analysis ("MD&A") of the Marion County Board of Education's (the "School District") financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2021. The intent of this MD&A is to look at the School District's financial performance as a whole; readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
Financial Highlights
Key financial highlights for fiscal year 2021 are as follows:
The School District's financial status remained stable during fiscal year 2021. In total, net position increased $763,457 from fiscal year 2020. This total increase was due to governmental activities since the School District has no business-type activities. This increase was due to the increase in General Fund balance.
General revenues accounted for $6.6 million, or 37.0%, of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $11.3 million, or 63.0%, of total revenues. Total revenues were $17.9 million.
The School District had $17.2 million in expenses related to governmental activities; these expenses were offset by $11.3 million in program specific charges for services, grants or contributions. General revenues and taxes of $6.6 million also provided for these programs.
Among major funds, the General Fund had $16.6 million in revenues and other financing sources and $15.5 million in expenditures and other financing uses. The General Fund's fund balance increased from $4.1 million to $5.1 million.
Using the Basic Financial Statements
This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the School District as a financial whole, or as an entire operating entity.
The Statement of Net Position and Statement of Activities provide information about the activities of the whole School District, presenting both an aggregate view of the School District's finances and a long-term view of those finances. The fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the School District's most significant funds with all other nonmajor funds, if any, presented in total in one column. In the case of the School District, the General Fund is by far the most significant fund.
i

MANAGEMENT'S DISCUSSION AND ANALYSIS
Reporting the School District as a Whole
Statement of Net Position and Statement of Activities
While these documents contain the large number of funds used by the School District to provide programs and activities, the view of the School District as a whole looks at all financial transactions and asks the question, "How did we do financially during fiscal year 2021?" The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and all liabilities using 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 changes in net position. This change in net position is important because it tells the reader whether, 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 result of many factors, some financial, some not. Non-financial factors include the School District's property tax base, facility conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity:
Governmental Activities All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, after school program, school activity accounts and various others.
Reporting the School District's Most Significant Funds
Fund Financial Statements
Fund financial statements provide detailed information about the School District's major funds. The School District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the School District's most significant funds. The School District's major governmental funds are the General Fund, the Capital Projects Fund and the Debt Service Fund.
Governmental Funds
All 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 an accounting method called modified accrual 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 you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements.
ii

MANAGEMENT'S DISCUSSION AND ANALYSIS

Fiduciary Funds
The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the school activity accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations.

The School District as a Whole

The perspective of the Statement of Net Position is of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2021, compared to fiscal year 2020.

Table 1 Net Position

Current and other assets Capital assets
Total assets

2021

2020

$

12,863,997 $

10,561,863

30,049,435

30,806,248

42,913,432

41,368,111

Deferred outflows of resources
Long-term liabilities outstanding Other liabilities
Total liabilities
Deferred inflows of resources
Net position: Net investment in capital assets Restricted Unrestricted (deficit)
Total net position

7,266,160
42,954,391 1,787,523
44,741,914
4,175,548

5,560,544
41,191,550 1,494,510 42,686,060
3,743,922

14,229,633

14,827,133

6,122,413

4,825,743

(19,089,916)

(19,154,203)

$

1,262,130 $

498,673

iii

MANAGEMENT'S DISCUSSION AND ANALYSIS

Table 2 shows the changes in net position for fiscal year 2021, compared to fiscal year 2020. The total net position increased $763,457 for fiscal year 2021, compared to $674,265 increase for fiscal year 2020. The increase in fiscal year 2021 was due to the increase in General Fund balance.

Table 2
Changes in Net Position
2021

Re ve nue s

Program revenues: Charges for services Operating grants and contributions Capital grants and contributions

$

99,314 $

10,665,912

575,143

General revenues: Property taxes For maintenance and operations For debt service Sales taxes Other taxes Grants and contributions not restricted to specific programs Investment income Miscellaneous Gain on sale of capital assets Total revenues

3,559,920 346,041 597,382 89,769
1,730,778 125,563 197,762 -
17,987,584

Expe ns e s

Instruction Support services:
Pupil services Improvement of instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services Operations of non-instructional services School nutrition Enterprise operations Interest on long-term debt Total expenses

9,560,136
489,255 702,488 235,919 358,542 1,190,816 237,389 1,574,375 1,116,978 187,531
94,437
817,729 38,731
619,801 17,224,127

Increase in net position Net position, beginning of year Net position, end of year

763,457 498,673 $ 1,262,130 $

2020
269,896 10,512,276
985,878
3,552,491 342,978 521,170 68,577
1,506,418 98,860 306,307 27,949
18,192,800
9,710,648
396,338 842,271 219,373 356,860 917,393 401,580 1,532,283 1,054,748 193,664 83,540
999,829 121,662 688,346 17,518,535 674,265 (175,592) 498,673

iv

MANAGEMENT'S DISCUSSION AND ANALYSIS

Governmental Activities

Direct instruction comprises 55.5% of governmental program expenses.

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted state entitlements. Comparative data from fiscal year 2020 is also presented.

Table 3 Governmental Activities

Instruction Support services
Pupil services Improvement of
instructional services Educational media services General administration School administration Business services Maintenance and operations Student transportation Central support services Other support services School nutrition Enterprise operations Interest on long-term debt Total expenses

Total Cost of Services

Fiscal Year

Fiscal Year

2021

2020

$ 9,560,136 $ 9,710,648

Net Cost of Services

Fiscal Year Fiscal Year

2021

2020

$ (2,031,475) $ (1,426,961)

489,255

396,338

(295,896)

(323,150)

702,488 235,919 358,542 1,190,816 237,389 1,574,375 1,116,978 187,531
94,437 817,729
38,731 619,801 $ 17,224,127

842,271 219,373 356,860 917,393 401,580 1,532,283 1,054,748 193,664 83,540 999,829 121,662 688,346 $ 17,518,535

(483,276) (59,862) 67,715
(592,976) (232,004) (1,015,929) (534,582) (184,539)
(75,749) (162,014)
(38,731) (244,440) $ (5,883,758)

(762,758) (31,526) 140,067 (528,377) (396,175) (1,011,299) (646,009) (192,971) (77,206) (121,662) (168,397) (204,061) $ (5,750,485)

Although program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. Over 21.2% of instruction activities are supported through taxes and other general revenues; for all governmental activities general revenue support is 34.2%.

v

MANAGEMENT'S DISCUSSION AND ANALYSIS
The School District's Funds The School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $18.4 million and expenditures and other financing uses of $16.1 million. There was an increase in fund balance of approximately $390,000 in the Capital Projects Fund. A transfer of $400,000 was made to cover local costs for our fiscal year 2022 State Capital Outlay project. The fund balance of the General Fund had an increase of approximately $1.06 million due to salaries and benefits coming in under budget. There was an increase in fund balance of approximately $849,000 in the Debt Service Fund. This was because Special Purpose Local Option Sales Tax ("SPLOST") III funds are being accumulated for sinking fund payments due annually in January. General Fund Budgeting Highlights The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the General Fund. During the course of fiscal year 2021, the School District amended its General Fund budget as needed. The School District uses function-based budgeting. The budgeting systems are designed to tightly control total function budgets but provide flexibility for site management. For the General Fund, budgeted revenues increased from $14.53 million to $17.93 million, while budgeted expenditures increased from $15.66 million to $18.97 million. The School District had additional grants and an increase in Quality Basic Education ("QBE") funding. This increased budgeted revenues and expenditures. The School District uses a strategic waiver system. One of our waivers is the state's 65% rule for Minimum Direct Classroom Expenditures.
vi

MANAGEMENT'S DISCUSSION AND ANALYSIS

Capital Assets and Debt Administration
Capital Assets
At the end of fiscal year 2021, the School District had $30.05 million invested in capital assets (net of depreciation), all in governmental activities. Table 4 indicates balances at June 30, 2021. Capital asset comparisons to fiscal year 2020 are also included.

Debt

Land Construction in progress Land improvements Buildings and improvements Equipment
Total

Long-Term Liabilities

Table 4 Capital Assets (Net of Depreciation)

Fiscal Year 2021

$

581,159

50,380

691,604

27,669,563

1,056,729

$

30,049,435

Fiscal Year 2020

$

581,159

-

742,242

28,291,374

1,191,473

$

30,806,248

At fiscal year ended June 30, 2021, the School District had $42.95 million in long-term liabilities outstanding. Table 5 summarizes the School District's liabilities as compared to the prior fiscal year.

Table 5 Long-term Liabilities

Governmental activities: Bonds payable Capital leases Financed Purchases Net pension liability Net OPEB liability Governmental activities
Long-term liabilities

Balance July 1, 2020

Additions

Reductions

Balance June 30, 2021

Due Within One Year

$ 15,905,000 $

- $

(60,000) $ 15,845,000 $

346,983

-

(6,932)

340,051

156,136

-

(114,149)

41,987

13,212,336

2,861,264

(2,080,898)

13,992,702

11,364,866

2,719,024

(1,349,239)

12,734,651

80,000 7,108 41,987
-

$ 40,985,321 $ 5,580,288 $ (3,611,218) $ 42,954,391 $ 129,095

vii

MANAGEMENT'S DISCUSSION AND ANALYSIS
Current Issues The School District's current operating millage rate is 14.981 mills. The bond millage rate is 1.761 mills. Management and the Board of Education hope to hold this level for a few years so as not to place a hardship on the property owners in Marion County. SPLOST revenues and school bond ad valorem taxes, along with Federal subsidy payments, are used to service debt for the 2010B, the 2020 bonds, and the sinking fund (for the principal payments of the 2010B Bonds). We experienced increased cost due to CDC regulations in regard to COVID-19. We relentlessly sanitize, deep clean, and use prescribed safety protocols. With our CARES, CRRSAA and ARP funding (fiscal year 2021 and fiscal year 2022), we have been able to purchase student desks (to help with social distancing), new HVAC systems (for air sanitization) at the elementary school, high school, and the central office. We purchased laptop computers for students to use when we implemented virtual learning in the 2020-2021 school year. We have purchased air purification systems for all our school buses. And, of course, we have purchased a significant amount of face masks and hand sanitizer. 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 information, contact Cathy Wiggins, Director of Finance, 1697 Pineville Road, Buena Vista, Georgia 31803. You may also email your questions to cwiggins@marion.k12.ga.us.
viii

Marion County Board of Education

MARION COUNTY BOARD OF EDUCATION
STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS
Cash and cash equivalents Investments Receivables, net of allowances:
Taxes Intergovernmental:
State Federal Inventory Capital assets (nondepreciable) Capital assets (net of accumulated depreciation) Total assets
DEFERRED OUTFLOWS OF RESOURCES
Related to pension plans Deferred loss on refunding Related to OPEB plans
Total deferred outflows of resources
LIABILITIES
Accounts payable Salaries and benefits payable Accrued interest payable Bonds payable due within one year Bonds payable due in more than one year Capital leases due within one year Capital leases due in more than one year Financed purchases due within one year Net pension liability, due in more than one year Net OPEB liability, due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Related to pension plans Related to OPEB plans
Total deferred inflows of resources
NET POSITION
Net investment in capital assets Restricted for:
Continuation of federal programs Capital projects Debt service Unrestricted (deficit)
Total net position

EXHIBIT "A"

Governmental Activities

$

6,184,222

4,744,403

262,089

984,350 657,726
31,207 631,539 29,417,896 42,913,432

3,803,506 407,236
3,055,418 7,266,160

209,750 1,332,320
245,453 80,000
15,765,000 7,108
332,943 41,987
13,992,702 12,734,651 44,741,914

699,258 3,476,290 4,175,548

14,229,633

250,327

570,038

5,302,048

(19,089,916)

$

1,262,130

The accompanying notes are an integral part of these financial statements.

- 1 -

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

EXHIBIT "B"

Functions/Programs Governmental activities: Instruction Support services:
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Central support services Other support services Enterprise operations Food services operations Interest on long-term debt Total governmental activities

Expenses

Program Revenues

Operating

Capital

Charges for Grants and Grants and

Services

Contributions Contributions

Net (Expense) Revenue and
Changes in Net Position
Governmental Activities

$ 9,560,136 $ 56,939 $ 7,471,722 $

- $ (2,031,475)

489,255

-

193,359

-

(295,896)

702,488 235,919 358,542 1,190,816 237,389 1,574,375 1,116,978 187,531
94,437 38,731 817,729 619,801 $ 17,224,127 $

-

219,212

-

176,057

-

426,257

-

597,840

-

5,385

28,776

484,328

-

427,956

-

2,992

-

18,688

-

-

13,599

642,116

-

-

99,314 $ 10,665,912 $

45,342 154,440 375,361 575,143

(483,276) (59,862) 67,715
(592,976) (232,004) (1,015,929) (534,582) (184,539)
(75,749) (38,731) (162,014) (244,440) (5,883,758)

General revenues: Taxes: Property taxes, levied for maintenance and operations Property taxes, levied for debt service Sales taxes, for debt service Intangible taxes Transfer taxes Railroad equipment tax Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous Total general revenues Change in net position
Net position, beginning of year Net position, end of year

3,559,920 346,041 597,382 50,479 19,584 19,706
1,730,778 125,563 197,762
6,647,215 763,457 498,673
$ 1,262,130

The accompanying notes are an integral part of these financial statements.

- 2 -

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

"EXHIBIT "C"

ASSETS
Cash and cash equivalents Investments Receivables net of allowances:
Taxes Intergovernmental:
State Federal Inventory
Total assets
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
LIABILITIES Accounts payable Salaries and benefits payable
Total liabilities
DEFERRED INFLOWS Unavailable revenue - property taxes
Total deferred inflows
FUND BALANCES Nonspendable:
Inventory Restricted:
Federal programs Capital projects Debt service Assigned: Student activities Subsequent years' budget Unassigned
Total fund balances
Total liabilities, deferred inflows and fund balances

General

Capital Projects

Debt Service

Total Governmental
Funds

$ 4,728,917 $ 143,709
189,858
984,350 657,726
31,207 $ 6,735,767 $

570,038 $ -
-
570,038 $

885,267 $ 4,600,694
72,231
5,558,192 $

6,184,222 4,744,403
262,089
984,350 657,726
31,207 12,863,997

$

209,750 $

1,332,320

1,542,070

55,632 55,632

- $ -
-

- $ -

209,750 1,332,320 1,542,070

6,593 6,593

62,225 62,225

31,207
219,120 -
110,148 394,101 4,383,489 5,138,065

-
570,038
-
570,038

-
5,551,599
5,551,599

31,207
219,120 570,038 5,551,599
110,148 394,101 4,383,489 11,259,702

$ 6,735,767 $

570,038 $ 5,558,192 $ 12,863,997

The accompanying notes are an integral part of these financial statements.

- 3 -

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

"EXHIBIT "D"

Total fund balances - governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the funds.
Cost Less accumulated depreciation
Other long-term assets are not available to pay for current period expenditures and are deferred in the funds.
Property taxes
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Bonds Deferred loss on refunding Capital leases Financed purchases Net pension liability Net OPEB liability Deferred outflows - pensions Deferred inflows - pensions Deferred outflows - OPEB Deferred inflows - OPEB Accrued interest
Net position of governmental activities

$ 11,259,702

$ 41,897,818 (11,848,383)

30,049,435

62,225

$ (15,845,000) 407,236 (340,051) (41,987)
(13,992,702) (12,734,651)
3,803,506 (699,258) 3,055,418 (3,476,290) (245,453)
$

(40,109,232) 1,262,130

The accompanying notes are an integral part of these financial statements.

- 4 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "E"

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

REVENUES Property taxes Sales taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous Total revenues
EXPENDITURES Current: Instruction Support Services: Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Central support services Other support services Enterprise operations Food services operations Capital outlay Debt service: Principal retirement Interest and fees Total expenditures
Excess of revenue over expenditures
OTHER FINANCING SOURCES (USES) Transfers in Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES, beginning of year
FUND BALANCES, end of year

General

Capital Projects

Debt Service

Total Governmental
Funds

$ 3,596,274 $ 62,706 19,706
9,891,024 2,699,970
99,314 2,027 197,762 16,568,783

- $ 350,139 $

-

604,739

-

-

-

-

-

375,361

-

-

-

123,536

-

-

-

1,453,775

3,946,413 667,445 19,706
9,891,024 3,075,331
99,314 125,563 197,762 18,022,558

8,321,394
469,299 662,034 221,238 338,732 1,118,910 222,111 1,488,641 1,029,607 174,311
94,437 38,731 752,001 45,342
121,081 14,648
15,112,517
1,456,266
(400,000) (400,000) 1,056,266 4,081,799 $ 5,138,065 $

-
10,854 -
10,854
(10,854)

-
-
60,000 544,161 604,161
849,614

401,064

-

-

(1,064)

401,064

(1,064)

390,210

848,550

179,828

4,703,049

570,038 $ 5,551,599 $

8,321,394
469,299 662,034 221,238 338,732 1,118,910 222,111 1,499,495 1,029,607 174,311 94,437 38,731 752,001 45,342
181,081 558,809 15,727,532
2,295,026
401,064 (401,064)
2,295,026 8,964,676 11,259,702

The accompanying notes are an integral part of these financial statements.

- 5 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "F"

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds

$ 2,295,026

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The net effect of the amount by which depreciation exceeded capital outlay is to decrease net position.
Capital outlay Depreciation expense

$ 171,312 (928,125)

(756,813)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
Property taxes

(40,452)

Issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Principal payments - capital leases Principal payments - financed purchases Principal payments - bonds Adjustments related to pensions Adjustments related to OPEB Amortization of deferred loss on refunding

$ 6,932 114,149 60,000 (636,034) (218,359) (21,768)

(695,080)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Change in accrued interest

(39,224)

$ 763,457

The accompanying notes are an integral part of these financial statements.

- 6 -

MARION COUNTY BOARD OF EDUCATION
STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUND JUNE 30, 2021
ASSETS Cash Investments
Total assets NET POSITION
Restricted for students and student organizations

EXHIBIT "G"

Custodial Fund

$

2,387

30,853

$

33,240

$

33,240

The accompanying notes are an integral part of these financial statements.

- 7 -

MARION COUNTY BOARD OF EDUCATION
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION CUSTODIAL FUND JUNE 30, 2021

ADDITIONS

Local sources Investment earnings
Total additions

Collections disbursed

DEDUCTIONS

Change in net position

NET POSTION

Net position, beginning of year, as restated

Net position, end of year

EXHIBIT "H"

Custodial Fund

$

3,890

169

4,059

4,500 (441)

33,681

$

33,240

The accompanying notes are an integral part of these financial statements.

- 8 -

MARION COUNTY BOARD OF EDUCATION EXHIBIT "I"
NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2021
NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Marion County Board of Education ("School District") was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles ("GAAP") as prescribed by the Governmental Accounting Standards Board ("GASB"). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions.
The Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
- 9 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
Government-Wide Statements (Continued)
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include: a) charges paid by the recipients of goods or services offered by the programs, and b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
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") bond proceeds, and grants from the Georgia State Financing and Investment Commission that are restricted, committed, or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest.
- 10 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
The School District reports the following fiduciary fund type:
Custodial Funds are used to report resources held by the School District in a purely custodial capacity.
Basis of Accounting
The basis of accounting determines when transactions are reported in the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes, and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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 position 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.
- 11 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
Basis of Accounting (Continued)
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education ("QBE") Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally, teachers are contracted for the school year (July 1 June 30) and paid over a 12-month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School System over the same 12-month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in GASB Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
New Accounting Pronouncements
In fiscal year 2021, the School District adopted 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 post-employment 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 Note 14.
Cash and Cash Equivalents
Composition of Deposits 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. The 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.
- 12 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) BASIS OF PRESENTATION (CONTINUED) Investments
Composition of 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. The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value.
For accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. Inventories
Food Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their federally assigned value and purchased foods inventories are reported at cost (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.
- 13 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

BASIS OF PRESENTATION (CONTINUED)

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

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

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

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

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

Capitalization Policy
All All $ 5,000 5,000 5,000 100,000

Estimated Useful Life
N/A N/A 15 to 80 Years 10 to 80 Years 5 to 14 Years 15 to 80 Years

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes 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.

- 14 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of financial position and/or balance sheet will sometimes 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 so will not be recognized as an inflow of resources (revenue) until that time.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as business administration expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions ("OPEB")
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees' Post-Employment Benefit Fund ("School OPEB Fund"), and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
- 15 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF PRESENTATION (CONTINUED)
Fund Balance 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:
Non-spendable consists of resources that cannot be spent, either because they are in a non-spendable 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 to 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 decision-making 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.
- 16 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

BASIS OF PRESENTATION (CONTINUED)

Property Taxes
The Marion County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on October 8, 2020 (levy date), based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Marion 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, 2021, for maintenance and operations and debt service, amounted to $3,197,295 and $350,139, respectively.

Tax millage rates levied for the 2020 tax year (calendar year) for the School District were as follows (one mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds
Total

14.990 mills 1.762 mills 16.752 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations, amounted to $398,979.
Sales Taxes
ESPLOST, at the fund reporting level, during the year amounted to $597,382 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 reauthorized at least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the General, Debt Service, and Capital Projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America.

- 17 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 3: BUDGETARY DATA (CONTINUED)
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 no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $100,000 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstances is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS
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 and not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1), the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance.
- 18 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 4: DEPOSITS (CONTINUED)
Collateralization of Deposits (Continued)
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 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 bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, the School District had deposits with a carrying value of $6,361,171 and bank balances were $6,984,629, including $174,562 classified as certificates as deposit. The bank balances insured by Federal depository insurance were $493,314.
At June 30, 2021, $6,491,315 of the School District's bank balance was exposed to custodial credit risk and included in the State's Secure Deposit Program.
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 the 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 to the amount of up to 125% if economic or financial conditions warrant. The program lists the type of eligible collateral. The OST approves authorized custodians.
- 19 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 4: DEPOSITS (CONTINUED)
Categorization of Deposits (Continued)
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's collateral. If necessary, any remaining losses are to be satisfied by assessment made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

ReconciRliaectioonnciloiafticoansohf caansdh caansdhcaesqhueiqvuailveanletnstsbbaalalanncce to ccaarrryyinigngvavluaeluoef doefpodseitpso: sits:

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

$ 6,184,222 2,387
6,186,609

Add: Deposits with original maturity of three months or more reported as investments Total carrying value of deposits June 30, 2021

Categorization of Investments

At June 30, 2021, the School District had the following investments:

Investment Ameris Bank Certificate of Deposit Ameris Bank Certificate of Deposit Deutsche Bank repurchase Fidelity Institutional Government
(money market mutual fund)

Maturities May 14, 2022 February 1, 2022 January 28, 2027
28-day weighted average

Rating* N/A N/A N/A
AAAm

174,562 $ 6,361,171

Cost - Based

$

30,853

143,709

3,823,079

777,615 $ 4,775,256

*Rating as per Standard & Poor's

- 20 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 4: DEPOSITS (CONTINUED) Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments 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. As of June 30, 2021, $4,600,694 of the School District's applicable investments were held by the investment's counterparty, not in the School District's name. Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed by 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. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in the Fidelity Institutional Government Money Market Mutual Fund and the Deutsche Bank repurchase. The repurchase agreement represents 80% of the School District's total investments and the Money Market Mutual Fund represents 16% of the School District's total investments. NOTE 5: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture ("USDA") for school breakfast and lunch programs. These commodities are recorded at their federally assigned value. See Note 2 Inventories.
- 21 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 6: CAPITAL ASSETS

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

Governmental activities:
Capital assets, not being depreciated: Land Construction in progress Total
Capital assets, being depreciated: Buildings and improvements Equip ment Land improvements Total
Less accumulated depreciation for: Buildings and improvements Equip ment Land improvements Total
Total capital assets, being depreciated, net
Governmental activities capital assets, net

Beginning Balance

Increases

Decreases

$

581,159 $

- $

-

-

50,380

-

581,159

50,380

-

35,708,898

22,561

-

3,675,508

98,371

-

1,760,941

-

-

41,145,347

120,932

-

(7,417,524)

(644,372)

-

(2,484,035)

(233,115)

-

(1,018,699)

(50,638)

-

(10,920,258)

(928,125)

-

30,225,089

(807,193)

-

$ 30,806,248 $ (756,813) $

-

Transfers

Ending Balance

$

- $

581,159

-

50,380

-

631,539

-

35,731,459

-

3,773,879

-

1,760,941

-

41,266,279

-

(8,061,896)

-

(2,717,150)

-

(1,069,337)

-

(11,848,383)

-

29,417,896

$

- $ 30,049,435

Current year depreciation expense by function is as follows:
Instruction Support Services
Improvement of Instructional Services School Administration M aintenance and Operations Student Transportation Food Services
Total Depreciation Expense

$

1,795

10,816

43,910

155,265

$

673,861

211,786 42,478

$

928,125

- 22 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 7: INTERFUND TRANSFERS

Interfund Transfers

Interfund transfers for the year ended June 30, 2021 consisted of the following:

Transfers To Capital Projects Fund

Transfers From

General

Debt Service

Fund

Fund

$ 400,000 $ 1,064

Transfers are used to move property tax revenues collected by the General Fund and the Debt Service Fund to the Capital Projects Fund as a required match or supplemental funding source for capital construction projects.

NOTE 8: LONG-TERM LIABILITIES

Changes in Long-Term Liabilities

The changes in long-term liabilities during the fiscal year ended June 30, 2021, for governmental activities, were as follows:

B e ginning B alance

Incre as e s

De cre as e s

Ending B alance

Due Within One Year

Qualified School

Construction Bonds $ 7,595,000 $

- $

- $ 7,595,000 $

General Obligation Bonds

8,310,000

-

(60,000)

8,250,000

Capital Leases

346,983

-

(6,932)

340,051

Financed Purchases

156,136

-

(114,149)

41,987

Net Pension Liability

13,212,336

2,861,264

(2,080,898) 13,992,702

Net OPEB Liability

11,364,866

2,719,024

(1,349,239) 12,734,651

Total

$ 40,985,321 $ 5,580,288 $ (3,611,218) $ 42,954,391 $

80,000
7,108 41,987
129,095

- 23 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 8: LONG-TERM LIABILITIES (CONTINUED)
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 semi-annually. Bond proceeds primarily pay for acquiring or constructing capital facilities. Bonds have also been issued to advance-refund previously issued bonds. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.

The School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2021. In the event the entity is unable to make the principal and interest payments using proceeds from the ESPLOST, the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service account custodian for the payment of debt.

During fiscal year 2020, the School District issued $8,310,000 in general obligation refunding bonds to advance refund $7,715,000 of the 2010C Series Bonds. The bond issue of $8,310,000 less underwriters and estimated bond issue cost of $165,996, provided net proceeds of $8,144,004. The total net proceeds of $8,144,004 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 2010C bond issues. As a result, the 2010C Series Bonds are considered defeased and the liability has been removed from the Government-wide Statement of Net Position.
General obligation bonds currently outstanding are as follows:

Purpose Refunding Bond Series 2020

Interest Rate

Issue Date

2.45%

April 17, 2020

Maturity Date

Amount Issued

Amount Outstanding

February 1, 2040 $

8,310,000 $ 8,250,000

- 24 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 8: LONG-TERM LIABILITIES (CONTINUED)

General Obligation Debt Outstanding (Continued)

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

Fiscal Year Ending June 30,
2022 2023 2024 2025 2026 2027 2031 2032 2036 2037 2040
Total Principal and Interest

Principal
$ 80,000 80,000 80,000 85,000 85,000
2,260,000 2,975,000 2,605,000
$ 8,250,000

Interest
$ 202,125 200,165 198,205 196,245 194,163 873,670 540,102 160,965
$ 2,565,640

Qualified School Construction Bonds ("QSCB")

Section 1521 of the American Recovery and Reinvestment Act ("ARRA") of 2009 QSCB provides for a source of capital at no or at nominal interest rates for costs incurred by the School Districts in connection with the construction, rehabilitation or repair of a public school facility or for the acquisition of land where a school will be built. Investors receive Federal income tax credits at prescribed tax credit rates in lieu of interest, which essentially allows school districts to borrow without incurring interest costs.
When the stated interest rate on the QSCB results in interest payments that exceed the supplemental interest payments discussed in the preceding paragraph, the School District may apply for a direct cash subsidy payment from the U.S. Treasury which is intended to reduce the stated interest rate to a nominal percentage. To qualify for this subsidy, the School District is required to periodically file appropriate documents with the Internal Revenue Service. These subsidy payments do not include the amount of any supplemental interest paid on a QSCB. The interest subsidy received by the School District in fiscal year 2021 was $375,361, which funded all but $8,187 of interest expense due on the QSCB.
In the event the amount of funds lawfully available is not sufficient to pay the QSCB payments when due in any year, the School District shall levy an ad valorem tax on all taxable property located within the boundaries of the School District subject to taxation for such purposes, at such rate or rates as may be necessary to produce in each calendar year, revenues which shall be sufficient to fulfill the School District's obligations. Additionally, the State Board is authorized and directed to withhold from any state appropriations to which the School District may be entitled and apply so much thereof as shall be necessary to the payment of the principal and interest on such indebtedness then due.

- 25 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 8: LONG-TERM LIABILITIES (CONTINUED)

Qualified School Construction Bonds ("QSCB") (Continued) Debt currently outstanding QSCB are as follows:

Purpose QSCB - Series 2010B

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

5.05%

September 2, 2010 February 1, 2027 $

7,595,000 $ 7,595,000

The following is a schedule of total QSCB payments:
Fiscal Year Ending June 30,
2022 2023 2024 2025 2026 2027
Total Principal and Interest

Principal

$

-

-

-

-

-

7,595,000

$ 7,595,000

Inte re s t $ 383,548
383,548 383,548 383,548 383,548 383,548
$ 2,301,288

Capital Leases
The School District has acquired land improvements under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term.
The following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end:

Land Improvements Less: Accumulated Depreciation

Gove rnme ntal

Activitie s

$

395,820

(59,373)

$

336,447

- 26 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 8: LONG-TERM LIABILITIES (CONTINUED)

Capital Leases (Continued)

Capital leases currently outstanding are as follows:

Purpose Water Tower

Interest Rate
2.50%

Issue Date July 8, 2013

Maturity Date March 1, 2053

Amount Issued
$ 395,820

Amount Outstanding
$ 340,051

The following is a schedule of capital lease payments:
Fiscal Year Ending June 30,
2022 2023 2024 2025 2026 2027 2031 2032 2036 2037 2041 2042 2046 2047 2051 2052 and 2053
Total Principal and Interest

Capital Leases

Principal

Interest

$ 7,108 $ 8,420

7,288

8,240

7,472

8,056

7,661

7,867

7,855

7,673

42,354

35,286

47,988

29,652

54,370

23,270

61,601

16,039

69,794

7,846

26,560

613

$ 340,051 $ 152,962

Obligations under Financed Purchases
Two agreements, one for the purchase of buses dated July 6, 2017 and one dated December 15, 2019, were executed by and between the School District, the lessee, and Blue Bird and Tax-Exempt Leasing Corp., the lessors. The agreements authorized the borrowing of $306,954 for the purchase of buses. Payments of the lease shall be made from the School District's General Fund. During the fiscal year ended June 30, 2021, the School District paid the Blue Bird agreement, dated July 6, 2017, in full.
The School District's outstanding obligations from the bus lease agreements related to governmental activities of $41,987 contain a provision that in an event of default, the lessor has the option of declaring outstanding amounts immediately due and payable or they make take possession of the buses.

- 27 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 8: LONG-TERM LIABILITIES (CONTINUED)

Obligations under Financed Purchases (Continued)

Debt currently outstanding is as follows:

Purpose

Interest Rates

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

Buses

3.14% December 15, 2019 December 15, 2021 $

The following is a schedule of total finance purchase payments:

126,000 $

41,987

Fiscal Year Ending June 30,
2022

Financed Purchases

Principal

Interest

$

41,987 $

1,318

NOTE 9: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; and 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.

The School District has elected to self-insure for all potential losses of property related to natural disasters. The School District has not experienced any losses related to this risk in the past three years.

The School District has purchased additional insurance coverage for all employees and board members in the amount of $250,000 for dishonesty, and $100,000 for forgery, alterations, theft, disappearance, destruction, and robbery.
The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered Superintendent Board Chair

Amount

$

50,000

$

12,000

- 28 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 10: SIGNIFICIANT COMMITMENTS
Operating Leases
The School District leases copiers and a postage meter under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating lease(s) totaled $29,352 for governmental activities for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021:

Fiscal Year Ending June 30,

Governmental Activities

2022 2023 2024 2025

$

29,352

29,352

9,111

2,364

$

70,179

The School District, a lessor, leases excess office space to various private companies and accounts for these leases as operating leases.

Lease terms vary and extend through June 30, 2022. Rental revenues under these operating leases during the year ended June 30, 2021 were $9,600. Minimum future rentals to be received under operating leases are as follows:

Fiscal Year Ending June 30,
2022

Payments

$

9,600

Commitments under Construction Contracts

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2021.

Project
Marion County Middle/High School HVAC Central Office HVAC L.K. Moss Eleementary School HVAC

Unearned

Executed Contracts

$

29,370

55,470

1,220,900

$ 1,305,740

- 29 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
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.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS
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 O.C.G.A. are provided OPEB through the School OPEB Fund a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (the "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 the 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. Medicareeligible 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 pay-as-yougo 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 $311,896 for the year ended June 30, 2021. Active employees are not required to contribute to the School OPEB Fund.
- 30 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

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

Contributions (Continued).

At June 30, 2021, the School District reported a liability of $12,734,651 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020, was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.086703%, which was a decrease of 0.005904% from its proportion measured as of June 30, 2019.

For the year ended June 30, 2021, the School District recognized OPEB expense of $530,255. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on OPEB plan investments Changes in proportion and differences between School District contributions and proportianate share of contributions School District contributions subsequent to the measurement date
Total

OPEB

De fe rre d Outflows of Re s ource s

De fe rre d Inflows of Re s ource s

$

- $ 1,390,229

2,106,029

1,133,110

33,191

-

604,302

952,951

311,896 $ 3,055,418

$ 3,476,290

- 31 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

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

Contributions (Continued).

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

Fiscal Year Ending June 30
2022 2023 2024 2025 2026 2027

OPEB
$ (228,702) (229,593) (222,337) (128,515) 41,683 34,696

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

OPEB:

Inflation Salary increases Long-term expected rate of return
Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible
Ultimate trend rate Pre-Medicare Eligible Medicare Eligible
Year of Ultimate trend rate

2.50% 3.00% 8.75%, including inflation
7.30%, compounded annually, net of investment expense, and including inflation
7.00% 5.25%
4.50% 4.50%

Pre-Medicare Eligible Medicare Eligible

2029 2023

- 32 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
OPEB Liabilities, OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Actuarial assumptions (Continued).
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 Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirement and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirement. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two 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 five years for both males and females) is used for the period after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.
The remaining actuarial assumptions (e.g., initial per capita costs, healthcare cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the longterm perspective of the calculation.
- 33 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

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

Actuarial assumptions (Continued).

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

Asset Class

Target Allocation

Long-Term Expected Real Rate of Return*

Fixed Income Alternatives
Total

30.00% 70.00% 100.00%

0.50% 9.2

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

- 34 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

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

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

School District's proportionate share of the net OPEB liablity

1% De cre as e (1.22%)

Curre nt Discount Rate
(2.22%)

1% Incre as e (3.22%)

$ 14,961,115 $ 12,734,651 $ 10,954,103

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

School District's proportionate share of the net OPEB liablity

1% De cre as e

Curre nt He althcare Cost Trend Rate

1% Incre as e

$ 10,602,877 $ 12,734,651 $ 15,494,680

OPEB plan fiduciary net position. Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

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 47-3-60 of the O.C.G.A. and certain other support personnel as defined by O.C.G.A.47-3-63 are provided a pension through the TRS. TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees ("TRS Board"). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers' Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications.
- 35 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 13: RETIREMENT PLANS (CONTINUED)
Teachers' Retirement System of Georgia ("TRS")(Continued)
Benefits Provided. TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after ten years of service and attainment of age 60. Eligibility for disability and death benefits requires ten years of service. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions. Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2021.The School District's contractually required contribution rate for the year ended June 30, 2021, was 19.06% of annual School District payroll. The current year contribution was $1,400,219.
Public School Employees' Retirement System ("PSERS")
Plan Description. PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the TRS. The ERS Board of Trustees, plus two additional trustees, administer PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided. A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
- 36 -

NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 13: RETIREMENT PLANS (CONTINUED)
Public School Employees' Retirement System ("PSERS") (Continued)
Contributions. The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012, contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012, contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $30,305.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $13,992,702 for its proportionate share of the net pension liability for TRS.
The net pension liability for TRS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020, was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 0.057764%, which was a decrease of 0.003681% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the Net Pension Liability because of a special funding situation with the State of Georgia, which is responsible for the Net Pension Liability of the plan. The amount of the State's proportionate share of the Net Pension Liability associated with the School District is $177,817.
The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020, was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.
- 37 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 13: RETIREMENT PLANS (CONTINUED)
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

For the year ended June 30, 2021, the School District recognized pension expense of $2,036,253 for TRS, $35,783 for PSERS and revenue of $35,783 for PSERS. The revenue is support provided by the State of Georgia.

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

Differences between expected and actual experience Changes in assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between School District contributions and proportionate share of contributions School District contributions subsequent to the measurement date Total

TRS

De fe rre d Outflows of Re s ource s

De fe rre d Inflows of Re s ource s

$ 609,387 $

-

1,441,264

-

337,017

-

15,619 1,400,219 $ 3,803,506

699,258 -
$ 699,258

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

Fiscal Year Ending June 30,
2022 2023 2024 2025 Thereafter

TRS $ 289,964
577,801 617,377 218,887
-

- 38 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 13: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

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

Teachers' Retirement System

Inflation Salary increases Investment rate of return
Post-retirement benefit increases

2.50% 3.00 8.75%, average, including inflation 7.25%, net of pension plan investment expense,
including inflation 1.50% semi-annually

Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018, with the exception of the assumed investment of return.

Public School Employees' Retirement System

Inflation Salary increases Investment rate of return
Post-retirement benefit increases

2.75% N/A 7.30%, net of pension plan investment expense,
including inflation 1.50% semi-annually

- 39 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 13: RETIREMENT PLANS (CONTINUED)
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Post-retirement mortality rates were based on the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two 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 five years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.
The long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Fixed Income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative
Total
* Rates shown are net of the assumed rate of inflation.

TRS Targe t Allocation
30.00% 51.00% 1.50% 12.40% 5.10% 0.00% 100.00%

PSERS Targe t Allocation
30.00% 46.20% 1.30% 12.40% 5.10% 5.00% 100.00%

Long-te rm Expe cte d Real Rate of Return*
(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00%

- 40 -

NOTES TO THE BASIC FINANCIAL STATEMENTS

NOTE 13: RETIREMENT PLANS (CONTINUED)

Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

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

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

School District's proportionate share of the net pension liablity

1% De cre as e (6.25%)

Curre nt Discount Rate
(7.25%)

1% Incre as e (8.25%)

$ 22,189,085 $ 13,992,702 $ 7,274,018

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

NOTE 14: PRIOR PERIOD RESTATEMENT

For fiscal year 2021, 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, 2020 net position in the Custodial Fund. These changes are in accordance with generally accepted accounting principles.

Net Position, Custodial Fund, previously reported

$

-

Prior Period Restatement - Implementation of GASB No. 84

33,681

Net Position, Custodial Fund, as restated

$

33,681

- 41 -

(This page left intentionally blank)

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "1"

2015

2016

2017

Fiscal Year 2018

2019

2020

2021

School District's proportion of the net pension liability

0.068161% 0.065672% 0.062577% 0.062996% 0.062156%

0.061445% 0.057764%

School District's proportionate share of the net pension liability $

8,611,243 $

9,997,910 $ 12,910,333 $ 11,708,001 $ 11,537,485 $ 13,212,336 $ 13,992,702

School District's covered payroll

$ 6,953,819 $ 6,958,471 $ 6,883,616 $ 7,451,451 $ 7,685,229 $ 7,474,359 $ 7,386,887

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

123.83%

143.68%

187.55%

157.12%

150.13%

176.77%

189.43%

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

84.03%

81.44%

76.06%

79.33%

80.27%

78.56%

77.01%

Note: The measurement period for the year ended June 30, 2021, is June 30, 2020. The Schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. The Schedule includes all significant plans and funds administered by the Marion County Board of Education.
- 43 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA
FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "2"

Contractually required contribution

2015

2016

2017

2018

2019

2020

2021

$ 915,039 $ 982,292 $ 1,063,322 $ 1,291,887 $ 1,562,141 $ 1,561,588 $ 1,400,219

Contributions in relation to the contractually required contribution

915,039

982,292 1,063,322 1,291,887 1,562,141 1,561,588

1,400,219

Contribution deficiency

(excess)

$

- $

- $

- $

- $

- $

- $

-

School District's covered payroll

$ 6,958,471 $ 6,883,616 $ 7,451,451 $ 7,685,229 $ 7,474,359 $ 7,386,887 $ 7,346,375

Contributions as a percentage of covered payroll

13.15%

14.27%

14.27%

16.81%

20.90%

21.14%

19.06%

Note: The Schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. - 44 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "3"

2015

2016

2017

2018

2019

2020

2021

School District's proportion of the net pension liability

0.000000%

0.000000%

0.000000%

0.000000%

0.000000% 0.000000% 0.000000%

School District's proportionate

share of the net pension

liability

$

- $

- $

- $

- $

- $

- $

-

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

98,846

107,498

162,208

142,951

158,239

157,477

177,817

$ 98,846 $ 107,498 $ 162,208 $ 142,951 $ 158,239 $ 157,477 $ 177,817

School District's covered payroll

$ 340,799 $ 335,232 $ 371,411 $ 407,062 $ 404,641 $ 427,148 $ 457,481

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

N/A 88.29%

N/A 87.00%

N/A 81.00%

N/A 85.69%

N/A

N/A

85.26%

85.02%

N/A 84.45%

Note: The measurement period for the year ended June 30, 2021, is June 30, 2020. The Schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available.
- 45 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND
FOR THE FISCAL YEAR ENDED JUNE 30,

SCHEDULE "4"

School District's proportion of the net OPEB liability

2018 0.091746%

2019 0.094649%

2020 0.092607%

2021 0.086703.%

School District's proportionate share of the net

$

12,890,276 $ 12,029,598 $ 11,364,866 $ 12,734,651

OPEB liability

School District's covered-employee payroll

$

7,750,486 $ 7,865,573 $

7,933,809 $

7,928,736

School District's proportionate share of the net OPEB liability as a percentage of its coveredemployee payroll
Plan fiduciary net position as a percentage of the total OPEB liability

166.32% 1.61%

152.94% 2.93%

143.25% 4.63%

160.61% 3.99%

Note: The measurement period for the year ended June 30, 2021, is June 30, 2020. The Schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. The Schedule includes all significant plans and funds administered by the Marion County Board of Education.
- 46 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND
FOR THE FISCAL YEAR ENDED JUNE 30

SCHEDULE "5"

Contractually required contribution
Contributions in relation to the contractually required contribution
Contribution deficiency (excess)
School District's covered-employee payroll Contributions as a percentage of coveredemployee payroll

2017

2018

2019

2020

2021

$ 478,372 $ 490,553 $ 498,758 $ 293,209 $ 311,896

478,372

490,553

498,758

293,209

311,896

$

- $

- $

- $

- $

-

$ 7,750,486 $ 7,865,573 $ 7,933,809 $ 7,928,736 $ 8,075,133

6.17%

6.24%

6.29%

3.70%

3.86%

Note: The Schedule above is intended to show information for the last ten fiscal years. Additional years will be displayed as they become available. - 47 -

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

SCHEDULE "6"

Teachers Retirement System
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.
On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
Public School Employees' Retirement System
Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward three years for males and two years for females).
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10%, from 7.40% to 7.30%, as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.
School OPEB Fund
Changes of assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.
- 48 -

MARION COUNTY BOARD OF EDUCATION

SCHEDULE "7"

GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2021

REVENUES Property taxes Sales taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous
Total revenues
EXPENDITURES Current:
Instruction Support services:
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Central support services Other support services Enterprise operations Food services operations Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses)
Net change in fund balances
FUND BALANCE, beginning of year
FUND BALANCE, end of year

Budget

Original (1)

Final (1)

$

3,301,242 $

3,301,242 $

40,000

40,000

-

-

8,891,785

9,330,153

2,267,141

5,222,620

31,000

31,000

50

50

3,500

3,500

14,534,718

17,928,565

Actual
3,596,274 62,706 19,706
9,891,024 2,699,970
99,314 2,027
197,762 16,568,783

Variance With Final Budget

$

295,032

22,706

19,706

560,871

(2,522,650)

68,314

1,977

194,262

(1,359,782)

8,279,196
457,612 680,922 210,096 427,786 1,421,955 224,631 1,539,463 1,188,003 163,527
82,192 -
982,303 -
15,657,686

9,357,759
541,495 913,740 219,804 431,285 1,653,849 226,143 1,638,614 1,326,906 165,536 119,204
999,978 1,380,000
18,974,313

8,321,394
469,299 662,034 221,238 338,732 1,118,910 222,111 1,488,641 1,029,607 174,311
94,437 38,731 752,001 45,342
121,081 14,648
15,112,517

(1,122,968)

(1,045,748)

1,456,266

317,628 (317,628)
-

317,601 (317,601)
-

(1,122,968)

(1,045,748)

4,081,799

4,081,799

$

2,958,831 $

3,036,051 $

(400,000) (400,000)
1,056,266
4,081,799
5,138,065 $

1,036,365
72,196 251,706
(1,434) 92,553 534,939
4,032 149,973 297,299
(8,775) 24,767 (38,731) 247,977 1,334,658
(121,081) (14,648)
3,861,796
2,502,014
(317,601) (82,399)
(400,000)
2,102,014
-
2,102,014

Note to the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
(1) Original and final budget amounts do not include budgeted revenues ($221,027) or expenditures ($248,238) of the various school activity accounts. The accompanying schedule of revenues, expenditures and changes in fund balances, budget and actual, is presented on the modified accrual basis of accounting, which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the Basic Financial Statements.

- 49 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Funding Agency Program/Grant
Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
State Administrative Expenses
Total U.S. Department of Agriculture
Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Supporting Effective Instruction State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States COVID-19 Education Stabilization Funds COVID-19 Education Stabilization Funds Comprehensive Literacy Development
Total U.S. Department of Education
Health and Human Services, U.S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant
Total U.S. Department of Health and Human Services
Total Expenditures of Federal Awards
N/A - Not applicable/available

Assistance Listing Number
10.553 10.555
10.560
84.027 84.173
84.367 84.011 84.011 84.358 84.358 84.010 84.010 84.048 84.048 84.425D 84.425D 84.371
93.575

Pass-Through Entity ID Number

Expenditures In Period

205GA324N1099

$

168,877

205GA324N1099

333,870

502,747

195GA904N2533

878 503,625

H027A200073 H173A200081
S367A200001 S011A190011 S011A200011 S358B190010 S358B200010 S010A200010-20A S010A190010 V048A190010 V048A200010 S425D210012 S425D200012 S371C110049

309,142 7,320
316,462
700 4,788 7,673 3,816 24,593 591,292 77,925 2,086 19,842 929,193 24,960 81,014 1,767,882
2,084,344

N/A

6,087

6,087

$ 2,594,056

See notes to the Basic Financial Statements.

- 50 -

MARION COUNTY BOARD OF EDUCATION
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

The School District did not provide federal assistance to any subrecipient.
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Marion County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Board has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
During the year ended June 30, 2021, $117,601 was transferred to Title I, Grants to Local Educational Agencies from Supporting Effective Instruction State Grants ($72,386) and the Student Support and Academic Enrichment Grant ($45,215). Expenditures of transfers are reflected within the receiving program.
In response to the COVID-19 pandemic, the federal government donated personal protective equipment ("PPE") to the Federal Emergency Management Agency and the Georgia Emergency Management Agency, who then donated PPE with an estimate fair market value of $16,765 and $42,343, respectively to the Marion County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited.

See notes to the Basic Financial Statements.

- 51 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Agency/Funding
Grants Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Program for Intellectually Gifted Students - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages ("ESOL") Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal, Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Bus Replacement Sparsity Nursing Services Mid-Term Hold Harmless Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Preschool Handicapped Hygiene Products in Georgia Schools Math and Science Supplements Pupil transportation - State Bonds Total Grants from Georgia Department of Education Georgia Emergency Management Agency Donations to LEA for COVID-19 Office of the State Treasurer Public School Employees' Retirement
See notes to the Basic Financial Statements.

SCHEDULE "9"

Governmental Fund Type General Fund

$

326,218

422,068 82,276
860,497 330,905 461,576 211,810 852,887 903,200 137,085 868,519 173,790 256,123
66,536 121,554 155,036
49,210 26,714
599
378,926 336,810 329,034

372,579 77,220 34,807 45,000
287,132 6,825
1,730,778 25,152 35,163
(237,577)

5,308 950
6,446 77,220 9,492,158
42,343

30,305

$

9,891,024

- 52 -

MARION COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

Project

Original Estimated Cost (1)

Current Estimated Costs (2)

Expended In Current Year (3) (4)

Expended In Prior Years (3) (4)

Total Completion
Cost

Estimated Completion
Date

To retire a portion of the principal and

interest on the School District's

previously incurred general obligation

Series 2010B and 2010C Bonds coming

due in the years 2018 through 2023.

$ 2,500,000 $ 2,500,000 $

- $

- $

- December 2022

(i) Making system-wide technology improvements, including, but not limited to, the acquisition and installation of instruction technology, security, and information system hardware and associated software accessories, and infrastructure at all schools and selected other facilities; (ii) Improving school facilities, purchasing school buses, school equipment, and acquiring safety and security equipment.

500,000

500,000

$ 3,000,000 $ 3,000,000 $

- $

- $

- December 2022 -

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Marion County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. (4) $544,161 Interest and $60,000 Principal paid on Bonds in fiscal year 2021; $375,361 from Federal Subsidy; $228,800 from property taxes (5) Sinking Fund Payment of $475,143 was paid from sales tax in January 2021.

See notes to the Basic Financial Statements.

- 53 -

Section II Compliance and Internal Control Reports

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mr. Stuart Gibbo, Interim Superintendent and Members of the Marion County Board of Education
We have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the Marion County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 24, 2022. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
March 24, 2022

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

Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin State Auditor
March 24, 2022

Section III Auditee's Response to Prior Year Findings and Questioned Costs

MARION COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021
PRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

Section IV Findings and Questioned Costs

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

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued:
Governmental Activities, Each Major Fund, and Fiduciary Activities

Internal control over financial reporting: Material weakness(es) identified?
Significant deficiency(ies) identified?

Noncompliance material to financial statements noted:

Federal Awards

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

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

All major programs

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

Identification of major programs:

Assistance Listing Number Assistance Listing Program or Cluster Title

84.425

Education Stabilization Fund

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

Auditee qualified as low-risk auditee?

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

Unmodified
No None Reported
No
No None Reported
Unmodified No
$750,000 Yes