{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2020-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2020 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2021-02-02"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2020 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \r\nCORDELE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\ni \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n39 \r\n \r\n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n40 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n41 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 42 \r\n \r\n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n43 \r\n \r\n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSEAD  OPEB 9 SCHEDULE OF CONTRIBUTIONS  SEAD  OPEB 10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 13 SCHEDULE OF STATE REVENUE 14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT 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 \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nSECTION III \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV \r\nFINDINGS AND QUESTIONED COSTS \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nPage \r\n44 45 46 47 48 49 \r\n50 51 53 \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Crisp County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement 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. \r\nAuditor's Responsibility \r\nOur 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. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n 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. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting 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. \r\nOther Information \r\nOur 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. \r\nThe 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. \r\n \r\n Other Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 2, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nFebruary 2, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nINTRODUCTION \r\nThe following discussion and analysis of the Crisp County School System (the School District) provides an introduction to the basic financial statements for the fiscal year ended June 30, 2020. Management prepared this discussion that should be read in conjunction with the basic financial statements, footnotes, and supplementary information found in this report. This information taken collectively is designed to provide readers with an understanding of the School District's finances. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThe Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \r\nGovernment-wide Financial Statements \r\nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole. \r\nThe Statement of Net Position presents information on all of the School District's assets, deferred outflows, liabilities, and deferred inflows, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District's is improving or deteriorating. \r\nThe Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). \r\nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \r\nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and federal grant funds finance most of these activities. \r\nThe government-wide statements includes the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. As a result of implementation of GASB No. 68, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their retirement benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make retirement benefit payments. The contribution is determined by the Teachers Retirement System of Georgia Plan administrators, not the School District. \r\n- i - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe government-wide statements includes the fiscal year 2018 adoption of the Governmental Accounting Standard's Board's (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, which replaced GASB Statement No. 45. The Postemployment Benefits Other than Pensions (OPEB) liability discloses the School District's proportionate share of the collective net OPEB liability related to providing postemployment benefits to its employees. The School District participates in Georgia's State Health Benefit Plan. As a result of implementation of GASB No. 75, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their health benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make postemployment benefit payments. Contributions to the OPEB plan fund current expenditures of the plan for active employees, current administrative fees, and a contribution into the OPEB plan for retirees. The contribution is determined by the Georgia State Health Benefit Plan administrators, not the School District. \r\nFund Financial Statements. \r\nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds, proprietary funds, or fiduciary funds. \r\nGovernmental Funds \r\nGovernmental funds are used to account for essentially the same functions reported as the governmental activities in the governmental-wide financial statements. However, unlike the governmental-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Governmental funds are reported using the modified accrual basis of accounting, which provides a short-term spending focus. \r\nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \r\nThe School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general and capital projects funds, which are considered to be major funds. \r\nFiduciary funds \r\nThese funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the 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. \r\n- ii - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. These schedules are intended to demonstrate the School District's compliance with the legally adopted and amended budgets. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $14,231,867. The largest portion of the School District's net position is $69,705,682, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. The School District reports a restricted net position of $9,340,985, which consist of SPLOST funds to be used for capital projects, debt services funds to be used for debt repayment, and school nutrition funds to be used for student meals. The remaining portion of the net position represents an unrestricted net position deficit of $64,814,800. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively, of the financial statements. \r\n- iii - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nTABLE 1 \r\n \r\nCRISP COUNTY SCHOOL DISTRICT'S NET POSITION \r\n \r\n2020 \r\n \r\nAssets \r\n \r\nCurrent and Other Assets \r\n \r\n$ \r\n \r\n20,860,178 $ \r\n \r\nCapital Assets \r\n \r\n81,858,452 \r\n \r\n2019 \r\n20,467,671 60,018,763 \r\n \r\nDeferred Outflows of Resources \r\n \r\n14,554,684 \r\n \r\n9,339,042 \r\n \r\nTotal Assets and Deferred Outflows of Resources \r\nLiabilities Current and Other Liabilities Long Term Liabilities \r\nDeferred Inflows of Resources \r\n \r\n117,273,314 \r\n7,941,652 82,932,061 12,167,734 \r\n \r\n89,825,476 \r\n4,549,386 70,472,568 10,438,869 \r\n \r\nTotal Liabilities and Deferred Inflows of Resources \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n103,041,447 \r\n \r\n85,460,823 \r\n \r\n69,705,682 9,340,985 (64,814,800) \r\n14,231,867 \r\n \r\n58,855,930 6,063,689 (60,554,966) \r\n$ 4,364,653 \r\n \r\nChange in Net Position \r\nTotal net position (Table 1) increased year over year by 226% largely due to the construction of a new middle school. The change in net position (Table 2) was $9,867,215 which was a 93.95% increase compared to last year's change in net position of $5,087,588. \r\nThe 19.02% increase in total revenues is largely due to an increase of $7,629,712 in capital grants and contributions, which are state funds earned for capital improvement to provide funding for the new middle school. The cost incurred to date for the new middle school is recorded in capital assets as construction in progress. Next year once the school is complete, the building will be capitalized as an asset and will be expensed as depreciation each year for the useful life of the building. \r\nAlso, property tax revenue increased by $1,299,495. This is largely due to the property tax digest values increased which resulted in higher taxes levied for fiscal year 2020 and the taxes received for Title Ad valorem Taxes (TAVT) also increased for fiscal year 2020. \r\n \r\n- iv - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe 10.60% increase in total expenses is largely due to raises for applicable personnel. The fulltime certified staff received a $3,000 raise and the fulltime classified staff received a 2% raise. All applicable staff also received their step raise in accordance with the approved salary schedules. This expense in reflected in all the program expenses. Also, the interest on short-term and long-term debt expenses increased which was due to expenses incurred for the interest payments for the bond debt issuance. \r\n \r\nTABLE 2 CRISP COUNTY SCHOOL DISTRICT'S CHANGE IN NET POSITION \r\n \r\nRevenue Program Revenues: \r\nCharges for Services Operating Grants and Contributions Capital Grants and Contributions \r\nGeneral Revenues: \r\nProperty Taxes Sales Taxes Grants and Contributions not Rstricted to Specfic Programs Miscellaneous and Investment Earnings \r\n \r\nGovernmental Activities \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nPercentage Change \r\n \r\n$ \r\n \r\n459,980 $ \r\n \r\n486,328 \r\n \r\n32,589,615 31,870,055 \r\n \r\n7,706,932 \r\n \r\n77,220 \r\n \r\n11,256,662 4,642,945 3,147,347 \r\n601,555 \r\n \r\n9,957,167 4,191,741 3,320,370 \r\n850,615 \r\n \r\n(5.42%) 2.26% \r\n9880.49% \r\n13.05% 10.76% (5.21%) (29.28%) \r\n \r\nTotal Revenues \r\nProgram Expenses Instruction Support Services \r\nPupil 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 \r\nOperations of Non-Instructional Services \r\nEnterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 60,405,036 $ 50,753,496 \r\n \r\n19.02% \r\n \r\n$ 30,290,188 $ 26,674,499 \r\n \r\n13.55% \r\n \r\n2,414,282 2,210,021 \r\n991,236 892,659 3,083,906 461,045 3,757,172 2,173,701 239,220 550,317 \r\n \r\n2,307,276 2,071,516 \r\n855,021 813,074 2,697,212 457,210 3,676,701 2,332,224 210,260 583,925 \r\n \r\n4.64% 6.69% 15.93% 9.79% 14.34% 0.84% 2.19% (6.80%) 13.77% (5.76%) \r\n \r\n239,241 3,056,177 \r\n178,656 \r\n \r\n161,753 2,852,531 \r\n138 \r\n \r\n47.91% 7.14% 129360.87% \r\n \r\nTotal Expenses \r\nTransfer \r\n \r\n$ 50,537,821 $ 45,693,341 \r\n \r\n- \r\n \r\n27,433 \r\n \r\n10.60% (100%) \r\n \r\nIncrease Net Position \r\n \r\n$ 9,867,215 $ 5,087,588 \r\n \r\n93.95% \r\n \r\n- v - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nRevenues \r\nThe School District's total revenue was $60.4 million for the year. This chart provides a breakdown of the revenue source categories and the percentage of each category. Operating grants and contributions are the largest category at 59.15%. Property taxes accounted for 18.64% of the School District's revenue. \r\n \r\nOperating Grants and Contributions Property Taxes \r\nCapital Grants and Contributions Sales Taxes \r\nMiscellaneous and Investment Earnings Charges for Services \r\n \r\nREVENUES \r\n59.15% 18.64% 12.76% 7.69% 1.00% 0.76% \r\n \r\nExpenditures \r\nThe School Districts total expense were $50.5 million. This chart provides a breakdown of the expense categories and the percentage of each category. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 59.95% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 7.43% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure. \r\n \r\nInstruction Maintenance and Operation of Plant \r\nSchool Administration Food Services Pupil Services \r\nImprovement of Instructional Services Student Transportation Services Educational Media Services General Administration Other Support Services Business Administration Central Support Services Enterprise Operations \r\nInterest on Short-Term and Long-Term Debt \r\n \r\nEXPENSES \r\n \r\n59.95% 7.43% 6.10% 6.05% 4.78% 4.37% 4.30% 1.96% 1.77% 1.09% 0.91% 0.47% 0.47% 0.35% \r\n \r\n- vi - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \r\n \r\nThe focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year. \r\n \r\nAt the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $11,324,110 a decrease in fund balance of $3,560,433. The decrease is largely due to capital outlay expenses incurred for the construction of a new middle school. \r\n \r\nGeneral Fund \r\n \r\nThe general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $7,346,062 representing an unassigned fund balance of $6,948,244 and a restricted, non-spendable and assigned fund balance of $397,819. Fund balance increased by $1,466,595. This is largely due to collecting more property tax revenues and TAVT tax revenue than anticipated. Also, the instructional expenditures incurred was less than projected due to full time positions that weren't filled by full time employees. The School District tries to maintain an unassigned general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an unassigned general fund balance of 14.98% of the $46,369,923 general fund expenditures. \r\n \r\nCapital Projects Fund \r\n \r\nThe capital projects funds accounts for capital projects managed by the School District. During the year capital outlay expenditures was $23,675,229 for the construction of a new middle school. State funds of $7,629,712 were received to supplement the funding for the new middle school. There was transfers out of the capital projects fund to the debt service fund to cover the bond principal and interest payments. After expenditures of $24,169,753, the capital projects fund had a decrease in fund balance of $5,027,028 and ended the year with a fund balance of $3,978,048. \r\n \r\nTABLE 3 CRISP COUNTY SCHOOL DISTRICT'S GOVERNMENTAL FUND BALANCES \r\n \r\nGeneral Fund Capital Projects Fund \r\n \r\nFiscal Year 2020 \r\n \r\nFiscal Year 2019 \r\n \r\n$ 7,346,062 $ 5,879,467 \r\n \r\n3,978,048 \r\n \r\n9,005,076 \r\n \r\nTotal \r\n \r\n$ 11,324,110 $ 14,884,543 \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \r\n \r\n- vii - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nIn the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. For fiscal year 2020, the School District's general fund had a favorable budget variance of $1,460,301. There was $490,974 favorable budget variance for revenues as well as a $1,051,597 favorable budget variance for expenditures. There was a favorable budget variance of $55,970 for other financing sources (uses) and an unfavorable budget variance for extraordinary item of $138,240. \r\nThe $490,974 favorable revenue budget variance is attributed to collecting more title ad valorem taxes than what was budgeted. These are reported as property taxes. Another factor that attributed to the favorable budget variance includes revenues for the various school accounts, which are reported as charges for services and miscellaneous revenues, that are not budgeted. These favorable budget variances were offset by federal grant revenue budgeted and not received in this fiscal year, but these funds will be rolled over and available for use in the next fiscal year. \r\nThe $1,051,597 favorable expenditure budget variance is attributable to a conservative budget approach and reviewing open positions vacated by retirees before filling those positions. This favorable budget variance was offset by other expenditure categories which were over budget for necessary expenditures arising during the year and the expenditures for the various school accounts which were also not included in the budget. \r\nThe $55,970 favorable other financing sources (uses) budget variance is attributed to insurance proceeds received which are not in the budget. \r\nCapital Assets and Debt Administration \r\nCapital Assets \r\nAt fiscal year end June 30, 2020, the School District had $81,858,452 invested in capital assets (net of accumulated depreciation). The capital assets increased by $21,839,690 due to the additions to construction in progress of $23,999,343 for a new middle school. Additional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nLand Construction in Progress Building and Building Improvements Equipment Land Improvements \r\nTotal \r\n \r\nFiscal Year 2020 \r\n \r\nFiscal Year 2019 \r\n \r\n$ 2,222,328 $ 29,740,748 \r\n \r\n2,222,328 5,823,676 \r\n \r\n46,159,590 \r\n \r\n47,837,973 \r\n \r\n2,392,452 1,343,334 \r\n \r\n2,613,984 1,520,802 \r\n \r\n$ 81,858,452 $ 60,018,763 \r\n \r\n- viii - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Long-Term Debt At the end of the fiscal year 2020, the School District had a total debt outstanding of $7,350,001. The voters have authorized $15,000,000 of general obligation debt. The bonds have been issued for the $15,000,000 for the construction of a new middle school. Advancements will be drawn from the bonds issued during the construction project as funds are needed to support the construction cost. CURRENT ISSUES Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: Approximately 84% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2020. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that Crisp County students receive a quality education from effective personnel. The School District's millage rate from fiscal year 2013 to fiscal year 2017 was 17.45 mills. The millage rate for fiscal year 2019 and 2020 was rolled back each year and the fiscal year 2020 millage rate is 16.726 mills. The net digest for fiscal year 2020 was $627.0 billion, which produced approximately $627,000 per mill. As shown in the above revenue chart, property tax and sales tax are responsible for covering 26.33% of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. The School District is currently building a new middle school. This new school is projected to cost approximately $31,000,000. The School District is utilizing local, state and bonds funds for this project. The new school will open in the 2020-2021 school year. REQUESTS FOR INFORMATION This report is designed to provide an overview of the School District's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools,org or send an email to dbeavers@crispschools.org. \r\n- ix - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION \r\n \r\n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable and Accrued Liabilities Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Net OPEB Asset Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n13,995,999.77 \r\n \r\n2,525,122.21 3,339,096.16 \r\n756,042.50 48,487.28 34,007.52 \r\n137,243.36 24,179.00 \r\n31,963,076.36 49,895,375.96 \r\n \r\n102,718,630.12 \r\n \r\n12,429,235.48 2,125,449.00 \r\n14,554,684.48 \r\n \r\n348,798.25 2,596,928.82 \r\n8,040.84 93,355.08 2,023,674.29 2,795,595.63 75,259.22 41,875,954.00 33,521,979.00 \r\n2,965,000.00 4,569,128.12 \r\n90,873,713.25 \r\n \r\n1,909,343.00 10,258,391.00 \r\n12,167,734.00 \r\n \r\n69,705,682.40 \r\n233,987.93 3,023,453.22 6,059,364.56 \r\n24,179.00 (64,814,799.76) \r\n \r\n$ \r\n \r\n14,231,867.35 \r\n \r\n- 1 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 30,290,187.93 $ \r\n2,414,282.04 2,210,020.81 \r\n991,236.13 892,659.39 3,083,905.51 461,044.74 3,757,172.06 2,173,701.31 239,219.98 550,317.02 \r\n239,241.36 3,056,176.92 \r\n178,656.37 \r\n$ 50,537,821.57 $ \r\n \r\n348,100.86 \r\n1,596.43 - \r\n110,282.99 \r\n- \r\n459,980.28 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 23,013,887.82 $ \r\n463,209.13 1,547,160.05 \r\n501,975.00 901,286.18 1,180,622.01 \r\n6,905.40 1,442,641.97 \r\n660,589.04 2,480.14 \r\n66,697.39 \r\n2,802,160.54 \r\n- \r\n$ 32,589,614.67 $ \r\n \r\n5,096,153.67 $ \r\n1,038,927.91 7,061.37 \r\n93,264.05 108,714.97 \r\n84,490.59 - \r\n217,642.83 765,868.02 \r\n- \r\n294,808.79 \r\n- \r\n7,706,932.20 \r\n \r\n(1,832,045.58) \r\n(912,145.00) (655,799.39) (395,997.08) 117,341.76 (1,818,792.91) (454,139.34) (2,095,290.83) (747,244.25) (236,739.84) (483,619.63) \r\n(239,241.36) 151,075.40 (178,656.37) \r\n(9,781,294.42) \r\n \r\n11,180,318.60 76,343.71 \r\n4,545,408.70 97,536.09 \r\n3,147,347.00 178,659.98 422,895.10 \r\n19,648,509.18 \r\n9,867,214.76 \r\n4,364,652.59 \r\n \r\n$ \r\n \r\n14,231,867.35 \r\n \r\n- 3 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 5,603,250.32 $ 8,392,749.45 $ \r\n \r\n1,725,197.80 3,339,096.16 \r\n756,042.50 48,487.28 34,007.52 \r\n137,243.36 \r\n \r\n799,924.41 - \r\n \r\n- $ 13,995,999.77 \r\n \r\n- \r\n \r\n2,525,122.21 \r\n \r\n- \r\n \r\n3,339,096.16 \r\n \r\n- \r\n \r\n756,042.50 \r\n \r\n- \r\n \r\n48,487.28 \r\n \r\n- \r\n \r\n34,007.52 \r\n \r\n- \r\n \r\n137,243.36 \r\n \r\n$ 11,643,324.94 $ 9,192,673.86 $ \r\n \r\n- $ 20,835,998.80 \r\n \r\n$ \r\n \r\n348,798.25 $ \r\n \r\n- $ \r\n \r\n2,596,928.82 \r\n \r\n- \r\n \r\n8,040.84 \r\n \r\n- \r\n \r\n- \r\n \r\n2,023,674.29 \r\n \r\n- \r\n \r\n2,795,595.63 \r\n \r\n75,259.22 \r\n \r\n- \r\n \r\n3,029,027.13 \r\n \r\n4,819,269.92 \r\n \r\n- $ - \r\n- \r\n \r\n348,798.25 2,596,928.82 \r\n8,040.84 2,023,674.29 2,795,595.63 \r\n75,259.22 \r\n7,848,297.05 \r\n \r\n1,268,235.37 - \r\n1,268,235.37 \r\n \r\n395,355.66 \r\n395,355.66 \r\n \r\n- \r\n \r\n1,268,235.37 \r\n \r\n- \r\n \r\n395,355.66 \r\n \r\n- \r\n \r\n1,663,591.03 \r\n \r\n137,243.36 96,744.57 \r\n163,830.84 6,948,243.67 \r\n7,346,062.44 \r\n \r\n3,978,048.28 \r\n- \r\n3,978,048.28 \r\n \r\n- \r\n \r\n137,243.36 \r\n \r\n- \r\n \r\n4,074,792.85 \r\n \r\n- \r\n \r\n163,830.84 \r\n \r\n- \r\n \r\n6,948,243.67 \r\n \r\n- \r\n \r\n11,324,110.72 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 11,643,324.94 $ 9,192,673.86 $ \r\n \r\n- $ 20,835,998.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability Net OPEB asset \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable \r\n \r\n$ 11,324,110.72 \r\n \r\n$ \r\n \r\n2,222,327.89 \r\n \r\n29,740,748.47 \r\n \r\n66,626,182.44 \r\n \r\n8,796,037.73 \r\n \r\n6,412,552.67 \r\n \r\n(31,939,396.88) \r\n \r\n81,858,452.32 \r\n \r\n$ (41,875,954.00) (33,521,979.00) 24,179.00 \r\n \r\n(75,373,754.00) \r\n \r\n$ 10,519,892.48 (8,132,942.00) \r\n \r\n2,386,950.48 1,663,591.03 \r\n \r\n$ (7,350,001.00) (93,355.08) \r\n(184,127.12) \r\n \r\n(7,627,483.20) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 14,231,867.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Bond Issuance Costs Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Insurance Proceeds Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nEXTRAORDIANRY ITEM \r\nDamage from Hurricane Michael \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments Inventory - Net Change in Period \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 10,999,789.29 $ 97,536.09 \r\n29,092,155.28 6,704,659.46 459,980.28 84,381.32 422,895.10 \r\n \r\n- $ 4,150,053.04 7,629,712.20 \r\n94,278.66 - \r\n \r\n47,861,396.82 \r\n \r\n11,874,043.90 \r\n \r\n- $ 10,999,789.29 \r\n \r\n- \r\n \r\n4,247,589.13 \r\n \r\n- \r\n \r\n36,721,867.48 \r\n \r\n- \r\n \r\n6,704,659.46 \r\n \r\n- \r\n \r\n459,980.28 \r\n \r\n- \r\n \r\n178,659.98 \r\n \r\n- \r\n \r\n422,895.10 \r\n \r\n- \r\n \r\n59,735,440.72 \r\n \r\n27,354,359.46 \r\n2,038,284.01 2,116,281.13 \r\n921,602.05 819,151.92 2,921,597.90 409,766.99 3,755,139.36 2,093,151.85 230,401.36 541,900.76 239,241.36 2,929,045.10 \r\n- \r\n- \r\n46,369,923.25 \r\n1,491,473.57 \r\n \r\n- \r\n13,200.00 23,355.82 424,468.57 23,675,228.67 \r\n33,500.00 \r\n- \r\n24,169,753.06 \r\n(12,295,709.16) \r\n \r\n- \r\n- \r\n2,700,000.00 - \r\n85,439.60 \r\n2,785,439.60 \r\n(2,785,439.60) \r\n \r\n27,354,359.46 \r\n2,038,284.01 2,116,281.13 \r\n921,602.05 819,151.92 2,934,797.90 409,766.99 3,778,495.18 2,093,151.85 230,401.36 541,900.76 239,241.36 3,353,513.67 23,675,228.67 \r\n2,700,000.00 33,500.00 85,439.60 \r\n73,325,115.91 \r\n(13,589,675.19) \r\n \r\n138,240.16 \r\n(82,270.00) \r\n55,970.16 \r\n \r\n9,971,851.00 - \r\n82,270.00 (2,785,439.60) \r\n7,268,681.40 \r\n \r\n2,785,439.60 - \r\n2,785,439.60 \r\n \r\n9,971,851.00 138,240.16 \r\n2,867,709.60 (2,867,709.60) \r\n10,110,091.16 \r\n \r\n(138,240.16) 1,409,203.57 5,879,466.69 \r\n57,392.18 \r\n \r\n(5,027,027.76) 9,005,076.04 \r\n- \r\n \r\n- \r\n \r\n(138,240.16) \r\n \r\n- \r\n \r\n(3,617,824.19) \r\n \r\n- \r\n \r\n14,884,542.73 \r\n \r\n- \r\n \r\n57,392.18 \r\n \r\nFund Balances - Ending \r\n \r\n$ 7,346,062.44 $ 3,978,048.28 $ \r\n \r\n- $ 11,324,110.72 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the 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. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nGeneral obligation bonds issued Bond principal retirements \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nFood inventories are expensed on the Statement of Activities using the consumption method while on the fund level food inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\n \r\n$ (3,617,824.19) \r\n \r\n$ 24,238,960.05 (2,320,777.21) \r\n \r\n21,918,182.84 \r\n \r\n(78,493.03) \r\n \r\n652,228.68 \r\n \r\n$ (9,971,851.00) 2,700,000.00 \r\n \r\n(7,271,851.00) \r\n \r\n$ (2,181,192.52) 507,567.00 \r\n \r\n(1,673,625.52) \r\n \r\n57,392.18 \r\n \r\n$ \r\n \r\n(93,216.77) \r\n \r\n(25,578.43) \r\n \r\n(118,795.20) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 9,867,214.76 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments Receivables, Net \r\nInterest and Dividends \r\nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \r\n \r\nCRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n35,947.95 $ \r\n \r\n121,278.82 \r\n \r\n75.61 \r\n \r\n70,595.36 - \r\n- \r\n \r\n$ 157,302.38 $ \r\n \r\n70,595.36 \r\n \r\n$ \r\n \r\n70,595.36 \r\n \r\n$ 157,302.38 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Other Deductions Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n1,438.48 \r\n \r\n107.04 1,331.44 155,970.94 \r\n \r\n$ 157,302.38 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Crisp County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe 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. \r\nBASIS OF PRESENTATION \r\nThe 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. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. 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. \r\n2. 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. \r\n \r\n3. 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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect 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. \r\n- 10 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram 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. \r\nFUND FINANCIAL STATEMENTS: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n 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. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurements of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe 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. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. \r\n- 11 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProperty taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe 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. \r\nInvestments 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. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\n \r\n- 12 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRECEIVABLES \r\n \r\nReceivables 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. \r\nINVENTORIES \r\n \r\nFood Inventories \r\n \r\nOn the government-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in first-out basis). The School District uses the purchase method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received, and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \r\n \r\nThe cost of governmental fund type inventories is reported as expenditures when purchased. CAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital 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. \r\n \r\nDepreciation 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. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nALL $ 10,000.00 $ 25,000.00 $ 5,000.00 $ 50,000.00 \r\n \r\nN/A 10 to 40 years 20 to 80 years \r\n4 to 20 years 10 to 20 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\n- 13 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits, up to 10 days, to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\nFor 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. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (SEAD - OPEB) \r\nFor 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 State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have \r\n \r\n- 14 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nbeen determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund 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. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned 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. \r\nUnassigned 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. \r\nUSE OF ESTIMATES \r\nThe 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. \r\nPROPERTY TAXES \r\nThe Crisp County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on December 10, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on February 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Crisp County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $9,998,933.79. \r\nThe tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n16.726 mills \r\n \r\n- 15 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $924,511.79 during fiscal year ended June 30, 2020. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $4,150,053.04 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe 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, function and object. 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. \r\nThe 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. \r\nThe Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditures in any budgeted fund is anticipated to be more than the budgeted fund total, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee 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. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n- 16 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, School District had deposits with a carrying amount of $7,187,144.65, including a certificate of deposit for $121,278.82, and a bank balance of $8,404,647.55. The bank balances insured by Federal depository insurance were $769,783.29 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $2,422,382.19. \r\nAt June 30, 2020, $7,634,864.26 of the School District's bank balances was exposed to custodial credit risk. $5,212,482.07 of this balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for 3each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\n- 17 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 13,995,999.77 106,543.31 \r\n \r\nTotal cash and cash equivalents \r\n \r\n14,102,543.08 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n121,278.82 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n7,036,677.25 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 7,187,144.65 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $7,036,677.25 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 18 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,222,327.89 $ \r\n \r\n- $ \r\n \r\n- $ 2,222,327.89 \r\n \r\n5,823,675.55 23,999,342.92 \r\n \r\n82,270.00 29,740,748.47 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n8,046,003.44 23,999,342.92 \r\n \r\n82,270.00 31,963,076.36 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n66,626,182.44 9,076,298.70 6,368,682.67 \r\n \r\n239,617.13 \r\n82,270.00 \r\n \r\n519,878.10 \r\n38,400.00 \r\n \r\n66,626,182.44 8,796,037.73 6,412,552.67 \r\n \r\n18,788,209.40 6,462,314.37 4,847,880.97 \r\n \r\n1,678,383.10 382,656.38 259,737.73 \r\n \r\n441,385.07 \r\n38,400.00 \r\n \r\n20,466,592.50 6,403,585.68 5,069,218.70 \r\n \r\nTotal Capital Assets, Being Depreciated, Net 51,972,759.07 \r\n \r\n(1,998,890.08) \r\n \r\n78,493.03 49,895,375.96 \r\n \r\nGovernmental Activities Capital Assets - Net $ 60,018,762.51 $ 22,000,452.84 $ 160,763.03 $ 81,858,452.32 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n316,017.19 \r\n \r\n2,147.90 \r\n \r\n28,368.71 \r\n \r\n33,068.51 \r\n \r\n25,700.03 \r\n \r\n66,201.78 \r\n \r\n209,470.37 \r\n \r\n$ 1,550,128.89 \r\n680,974.49 89,673.83 \r\n$ 2,320,777.21 \r\n \r\n- 19 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2020, consisted of the following: \r\n \r\nTransfers to \r\n \r\nGeneral Fund \r\n \r\nTransfers From Capital Projects \r\nFund \r\n \r\nTotal \r\n \r\nCapital Projects Fund Debt Service Fund \r\n \r\n$ 82,270.00 - \r\n \r\n- \r\n \r\n$ \r\n \r\n2,785,439.60 \r\n \r\n82,270.00 2,785,439.60 \r\n \r\nTotal \r\n \r\n$ 82,270.00 $ 2,785,439.60 $ 2,867,709.60 \r\n \r\nTransfers are used to move funds from the general fund to the capital projects fund to provide supplemental funding for capital construction projects and to transfer funds from the capital projects fund to the debt service fund to provide funding to service the debt. \r\nNOTE 7: LONG-TERM LIABILITIES \r\n \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2019 \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2020 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Sales Tax Bonds $ \r\n \r\n78,150.00 $ \r\n \r\nCompensated Absences(1) \r\n \r\n158,548.69 \r\n \r\n9,971,851.00 $ 32,905.34 \r\n \r\n2,700,000.00 $ 7,326.91 \r\n \r\n7,350,001.00 $ 2,965,000.00 \r\n \r\n184,127.12 \r\n \r\n- \r\n \r\n$ 236,698.69 $ 10,004,756.34 $ 2,707,326.91 $ 7,534,128.12 $ 2,965,000.00 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation sales tax bonds from voter-approved Education Special Purpose Local Option Sales Tax (ESPLOST). General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\nThe School District's outstanding bonds from direct placement related to governmental activities of $7,350,001.00 contain a provision that in the event that proceeds of the Education Special Local Option Sales Tax are insufficient, an ad valorem tax must be levied to pay the debt service on the bonds. \r\nVoters have authorized $15,000,000.00 of general obligation debt of which $15,000,000.00 of the general obligation sale tax bonds have been issued for constructing capital facilities. Advances up to the principal amount of these bonds are made to the School District by the bond purchaser. Currently, $4,949,999.00 remain undrawn by the School District. \r\n \r\n- 20 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date Maturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Available \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2019 General Government - Series 2020 \r\n \r\n3.80% 3.80% \r\n \r\n6/13/2019 2/26/2020 \r\n \r\n9/1/2023 $ 10,000,000.00 $ \r\n \r\n- $ 7,300,000.00 \r\n \r\n9/1/2023 \r\n \r\n5,000,000.00 \r\n \r\n4,949,999.00 \r\n \r\n50,001.00 \r\n \r\n$ 15,000,000.00 $ 4,949,999.00 $ 7,350,001.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2021 2022 2023 \r\n \r\n$ \r\n \r\n2,965,000.00 $ \r\n \r\n234,438.54 \r\n \r\n3,030,000.00 \r\n \r\n109,533.22 \r\n \r\n1,355,001.00 \r\n \r\n25,956.62 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n7,350,001.00 $ \r\n \r\n369,928.38 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \r\nGeorgia School Boards Association Risk Management Fund \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\n \r\n- 21 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nWORKERS' COMPENSATION Georgia Education Workers' Compensation Trust \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 107% of the loss fund and based on the Fund's annual normal premium. \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2019 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,575.00 \r\n \r\n$ \r\n \r\n1,575.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2020 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\n- 22 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n137,243.36 \r\n \r\n$ \r\n \r\n96,744.57 \r\n \r\n861,239.98 \r\n \r\n3,116,808.30 \r\n \r\n4,074,792.85 \r\n \r\n163,830.84 6,948,243.67 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 11,324,110.72 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2020, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2020 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nCrisp County Middle School Facility $ 3,759,458.82 $ 29,831,067.36 $ 847,745.80 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers 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 leases totaled $81,900.00 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 2022 2023 \r\n \r\n$ \r\n \r\n81,900.00 \r\n \r\n81,900.00 \r\n \r\n81,900.00 \r\n \r\nTotal \r\n \r\n$ 245,700.00 \r\n \r\n- 23 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts 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. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $886,483.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\nAt June 30, 2020, the School District reported a liability of $33,521,979.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.273155%, which was an decrease of 0.006914% from its proportion measured as of June 30, 2018. \r\n \r\n- 24 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $379,449.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 3,646,842.00 \r\n \r\nChanges of assumptions \r\n \r\n1,164,153.00 \r\n \r\n4,725,541.00 \r\n \r\nNet difference between projected and \r\n \r\nactual earnings on OPEB plan \r\n \r\ninvestments \r\n \r\n73,001.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n1,883,449.00 \r\n \r\nSchool District contributions subsequent \r\n \r\nto the measurement date \r\n \r\n886,483.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,123,637.00 $ 10,255,832.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $886,483.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 2023 2024 2025 2026 \r\n \r\n$ (2,019,217.00) $ (2,019,217.00) $ (2,022,023.00) $ (1,747,252.00) $ (972,651.00) $ (238,318.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\n- 25 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nHealthcare cost trend rate Pre-Medicare Eligible Medicare Eligible \r\nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \r\nYear of Ultimate trend rate \r\n \r\n7.250% 5.375% \r\n4.75% 4.75% \r\n \r\nPre-Medicare Eligible \r\n \r\n2028 \r\n \r\nMedicare Eligible \r\n \r\n2022 \r\n \r\nMortality 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: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018. \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation. \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\nThe 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 \r\n \r\n- 26 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nadding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\nDiscount Rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\nSchool Distict's proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\n$ 38,963,604.00 $ \r\n \r\n33,521,979.00 $ 29,095,461.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net \r\nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \r\nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \r\npercentage-point higher than the current healthcare cost trend rates: \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\n$ 28,328,716.00 $ 33,521,979.00 $ 40,232,124.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\n- 27 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPOSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS (SEAD  OPEB) \r\nPlan Description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \r\nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \r\nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2020. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2020, the School District reported a asset of $24,179.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2019. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2018. An expected total OPEB asset as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.008551%, which was an increase of 0.000231 % from its proportion measured as of June 30, 2018. \r\n \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of ($533.00). At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nSEAD-OPEB \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of Inflows of \r\n \r\nResources Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 123.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n490.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on OPEB plan investments \r\n \r\n- \r\n \r\n2,222.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n1,199.00 \r\n \r\n337.00 \r\n \r\nTotal \r\n \r\n$ 1,812.00 $ 2,559.00 \r\n \r\n- 28 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThere were no employer contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nSEAD-OPEB \r\n \r\n2021 2022 2023 2024 \r\n \r\n$ 521.00 $ (1,167.00) $ (211.00) $ 110.00 \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nSEAD  OPEB: \r\n \r\nInflation Salary increases: \r\nERS GJRS LRS Investment rate of return \r\n \r\n2.75% \r\n3.25%  7.00% 4.50% N/A 7.30%, net of OPEB plan investment expense, including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nN/A \r\n \r\nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the longterm assumed rate of return. \r\nThe 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 plan 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 \r\n \r\n- 29 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nby weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\nSEAD - OPEB Target \r\nallocation \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n* Rates shown are net of inflation \r\nDiscount rate: The discount rate used to measure the total OPEB 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 State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB asset calculated using the discount rate of 7.30 %, as well as what the School District's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30 %) or 1- percentage-point higher (8.30 %) than the current rate: \r\n \r\n1% Decrease (6.30%) \r\n \r\nCurrent Discount Rate (7.30%) \r\n \r\n1% Increase (8.30%) \r\n \r\nSchool District's proportionate share of the net OPEB asset \r\n \r\n$ (13,380.00) $ \r\n \r\n(24,179.00) $ (33,054.00) \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publicly available at www.ers.ga.gov/financials. \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\n \r\n- 30 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.99% of payroll was required from the School District and 0.15% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,887,814.00 and $34,282.06 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\nBenefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the \r\n- 31 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\ncomputation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $11,931.48 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\nBenefits 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. \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: 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. \r\nIndividuals 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 $108,904.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2020, the School District reported a liability of $41,875,954.00 for its proportionate share of the net pension liability for TRS ($41,697,399.00) and ERS ($178,555.00). \r\n \r\n- 32 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 41,697,399.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n267,279.00 \r\n \r\nTotal \r\n \r\n$ 41,964,678.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2019. \r\nAt June 30, 2019, the School District's TRS proportion was 0.193917%, which was an increase of 0.008301% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.004327%, which was an decrease of 0.000189% from its proportion measured as of June 30, 2018. \r\nAt June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $510,603.00. \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $7,072,041.00 for TRS, $2,131.00 for ERS and $157,464.00 for PSERS and revenue of ($3,089.00) for TRS and $157,464.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 33 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 2,350,278.00 $ \r\n \r\n12,362.00 \r\n \r\n$ 5,946.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n4,001,409.00 \r\n \r\n- \r\n \r\n3,143.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n992,942.00 \r\n \r\n- \r\n \r\n5,558.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n1,168,714.00 \r\n \r\n878,470.00 \r\n \r\n- \r\n \r\n20,011.00 \r\n \r\n4,887,814.00 \r\n \r\n- \r\n \r\n$ 12,408,215.00 $ 1,883,774.00 \r\n \r\n11,931.48 \r\n \r\n- \r\n \r\n$ 21,020.48 $ 25,569.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $4,887,814.00 for TRS and $11,931.48 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2021 \r\n \r\n$ 2,201,972.00 $ (9,902.00) \r\n \r\n2022 \r\n \r\n$ 358,175.00 $ (6,219.00) \r\n \r\n2023 \r\n \r\n$ 1,430,459.00 $ (1,095.00) \r\n \r\n2024 \r\n \r\n$ 1,646,021.00 $ 736.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.25%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases \r\n \r\n1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' \r\n \r\n- 34 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nprojection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the longterm assumed rate of return. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  7.00%, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future \r\n \r\nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \r\n \r\nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \r\n \r\nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \r\n \r\nwas used for death after disability retirement. There is a margin for future mortality improvement in \r\n \r\nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \r\n \r\nactual number of deaths that occurred during the study period for service retirements and \r\n \r\nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment of return. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \r\nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \r\nSystem. 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 \r\nunder 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. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\n- 35 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of assumed rate of inflation. \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.25%) \r\n \r\nCurrent Discount Rate (7.25%) \r\n \r\n1% Increase (8.25%) \r\n \r\n$ 67,687,082.00 $ \r\n \r\n41,697,399.00 $ 20,324,644.00 \r\n \r\nEmployees' Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.30%) \r\n \r\nCurrent Discount Rate (7.30%) \r\n \r\n1% Increase (8.30%) \r\n \r\n$ \r\n \r\n253,743.00 $ \r\n \r\n178,555.00 $ 114,458.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \r\n \r\n- 36 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: TAX ABATEMENTS \r\nCrisp County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Crisp County. \r\nFor the fiscal year ended June 30, 2020, Crisp County abated property taxes due to the School District that were levied on December 10, 2019 and due on February 20, 2020 totaling $18,854.75. Included in that amount abated, the following is the individual tax abatement agreement: \r\n An 80 percent real property tax abatement was granted to a manufacturing plant. The abatement amounted to $18,854.75. \r\nNOTE 15: EXTRAORDINARY ITEM \r\nThe School District has incurred expenses, for the damage to facilities due to Hurricane Michael, in the amount of $138,240.16. The School District has also received insurance proceeds in the amount of $138,240.16 for the damage to facilities due to Hurricane Michael. The majority of the damage was to roofs on several buildings and other structural damages; however, we were able to continue to use the buildings for their intended purposes. The expenditures have been reported as extraordinary items on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \r\n \r\n- 37 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n0.193917% $ 0.185616% $ 0.190510% $ 0.194411% $ 0.196076% $ 0.197751% $ \r\n \r\n41,697,399.00 $ 34,454,305.00 $ 35,406,870.00 $ 40,109,157.00 $ 29,850,624.00 $ 24,983,231.00 $ \r\n \r\n267,279.00 $ 239,080.00 $ 345,687.00 $ 549,613.00 $ 412,571.00 $ 343,636.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n41,964,678.00 $ 34,693,385.00 $ 35,752,557.00 $ 40,658,770.00 $ 30,263,195.00 $ 25,326,867.00 $ \r\n \r\n23,827,909.77 22,262,430.94 22,112,634.26 21,612,594.73 20,992,143.60 20,449,227.39 \r\n \r\n174.99% 154.76% 160.12% 185.58% 142.20% 122.17% \r\n \r\n78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 39 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution (1) \r\n \r\nContribution deficiency (excess) \r\n \r\n2020 \r\n \r\n$ \r\n \r\n4,887,814.00 $ \r\n \r\n4,887,814.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n4,947,044.44 $ \r\n \r\n4,947,044.44 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n3,716,524.20 $ \r\n \r\n3,716,524.20 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n3,124,771.94 $ \r\n \r\n3,124,771.94 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n3,042,418.28 $ \r\n \r\n3,042,418.28 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2,722,853.56 $ \r\n \r\n2,722,853.56 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2,511,165.12 $ \r\n \r\n2,511,165.12 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2,279,559.30 $ \r\n \r\n2,279,559.30 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n2,245,592.98 $ \r\n \r\n2,245,592.98 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2,162,475.36 $ \r\n \r\n2,162,475.36 $ \r\n \r\n- \r\n \r\n(1) The School District has included on behalf payments within the contributions for 2014 and prior years. \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n$ 23,281,622.01 $ 23,827,909.77 $ 22,262,430.94 $ 22,112,634.26 $ 21,612,594.73 $ 20,992,146.30 $ 20,449,227.39 $ 19,978,611.18 $ 21,854,021.11 $ 21,035,754.13 \r\n \r\n20.99% 20.76% 16.69% 14.13% 14.08% 12.97% 12.28% 11.41% 10.28% 10.28% \r\n \r\n- 40 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the \r\nnet pension liability \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a \r\npercentage of covered payroll \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.004327% $ 0.004516% $ 0.006187% $ 0.006516% $ 0.007916% $ 0.008026% $ \r\n \r\n178,555.00 $ 185,654.00 $ 251,275.00 $ 308,234.00 $ 320,709.00 $ 301,025.00 $ \r\n \r\n120,357.23 115,179.70 151,752.46 151,515.54 180,996.28 180,721.38 \r\n \r\n148.35% 161.19% 165.58% 203.43% 177.19% 166.57% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 41 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n11,931.48 $ \r\n \r\n11,931.48 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n29,824.00 $ \r\n \r\n29,824.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,576.10 $ \r\n \r\n28,576.10 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n37,649.78 $ \r\n \r\n37,649.78 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n37,454.64 $ \r\n \r\n37,454.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n39,746.79 $ \r\n \r\n39,746.79 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n33,361.16 $ \r\n \r\n33,361.16 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n30,462.80 $ \r\n \r\n30,462.80 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n23,575.85 $ \r\n \r\n23,575.85 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n15,058.49 $ \r\n \r\n15,058.49 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n48,384.00 \r\n \r\n$ \r\n \r\n120,357.23 \r\n \r\n$ \r\n \r\n115,179.70 \r\n \r\n$ \r\n \r\n151,752.46 \r\n \r\n$ \r\n \r\n151,515.54 \r\n \r\n$ \r\n \r\n180,996.28 \r\n \r\n$ \r\n \r\n180,721.38 \r\n \r\n$ \r\n \r\n204,448.32 \r\n \r\n$ \r\n \r\n202,715.82 \r\n \r\n$ \r\n \r\n144,654.20 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n24.66% 24.78% 24.81% 24.81% 24.72% 21.96% 18.46% 14.90% 11.63% 10.41% \r\n \r\n- 42 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the \r\nnet pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n510,603.00 $ 515,408.00 $ 539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a percentage \r\nof the total pension liability \r\n \r\n510,603.00 $ 515,408.00 $ 539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $ \r\n \r\n1,743,130.69 1,743,663.21 1,788,126.82 1,693,662.41 1,652,417.20 1,643,846.70 \r\n \r\nN/A \r\n \r\n85.02% \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.90% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 43 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n0.273155% $ 0.280069% $ 0.285491% $ \r\n \r\n33,521,979.00 $ 35,595,910.00 $ 40,111,370.00 $ \r\n \r\n- \r\n \r\n$ 33,521,979.00 $ 17,705,824.44 \r\n \r\n- \r\n \r\n$ 35,595,910.00 $ 19,215,391.19 \r\n \r\n- \r\n \r\n$ 40,111,370.00 $ 19,261,608.86 \r\n \r\n189.33% 185.25% 208.25% \r\n \r\n4.63% 2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 44 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n886,483.00 $ \r\n \r\n886,483.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,471,131.00 $ \r\n \r\n1,471,131.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,451,573.00 $ \r\n \r\n1,451,573.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ 20,066,452.48 $ 17,705,824.44 $ 19,215,391.19 \r\n \r\n4.42% 8.31% 7.55% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 45 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSEAD-OPEB FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"8\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability (asset) \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n(asset) \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of covered- \r\nemployee payroll \r\n \r\n0.008551% $ 0.008320% $ 0.010421% $ \r\n \r\n(24,179.00) $ (22,518.00) $ (27,085.00) $ \r\n \r\n120,357.23 115,179.70 151,752.46 \r\n \r\n(20.09%) (19.55%) (17.85%) \r\n \r\nPlan fiduciary net position as a \r\npercentage of total OPEB liability \r\n129.73% 129.46% 130.17% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 46 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SEAD-OPEB \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"9\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nContractually required contribution \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's coveredemployee payroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n48,384.00 \r\n \r\n0.00% \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n120,357.23 \r\n \r\n0.00% \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n115,179.70 \r\n \r\n0.00% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 47 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nTeachers Retirement System \r\nChanges 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. \r\nOn-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). \r\nOn 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%. \r\nEmployees' Retirement System \r\nChanges of benefit terms:  A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. $RQHWLPHSD\\PHQWZDVJUDQWHGWRFHUWDLQUHWLUHHVDQGEHQHILFLDULHVHIIHFWLYH-XO\\ \r\nChanges of assumptions: 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, withdrawal and salary increases. \r\nOn 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. \r\nPublic School Employees Retirement System \r\nChanges 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 H[SHULHQFH \r\nOn 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 3 years for males and 2 years for females). \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.07% as of June 30,2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019. \r\nSEAD-OPEB Employer \r\nChanges of assumptions: On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized E\\WKH3ODQ3ULPDU\\DPRQJWKHFKDQJHVZHUHWKHXSGDWHVWRUDWHVRIPRUWDOLW\\UHWLUHPHQWGLVDELOLW\\ZLWKGUDZDODQGVDODU\\LQFUHDVHV \r\nOn 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. \r\n \r\n- 48 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"11\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Insurnace Proceeds Other Uses \r\nTotal Other Financing Sources (Uses) \r\nExtraordinary item \r\nDamage from Hurricanre Michael \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 10,240,000.00 $ 10,240,000.00 $ 10,999,789.29 $ \r\n \r\n70,000.00 \r\n \r\n70,000.00 \r\n \r\n97,536.09 \r\n \r\n27,451,569.00 \r\n \r\n28,780,585.64 \r\n \r\n29,092,155.28 \r\n \r\n5,369,140.00 \r\n \r\n7,864,498.64 \r\n \r\n6,704,659.46 \r\n \r\n188,000.00 \r\n \r\n188,000.00 \r\n \r\n459,980.28 \r\n \r\n50,150.00 \r\n \r\n50,150.00 \r\n \r\n84,381.32 \r\n \r\n122,255.00 \r\n \r\n177,188.40 \r\n \r\n422,895.10 \r\n \r\n43,491,114.00 \r\n \r\n47,370,422.68 \r\n \r\n47,861,396.82 \r\n \r\n759,789.29 27,536.09 \r\n311,569.64 (1,159,839.18) \r\n271,980.28 34,231.32 \r\n245,706.70 \r\n490,974.14 \r\n \r\n26,683,072.00 \r\n1,938,982.00 1,436,707.00 \r\n890,754.00 817,220.00 2,927,677.89 422,130.00 3,706,415.00 1,939,623.00 235,130.00 284,941.11 \r\n2,689,925.00 \r\n43,972,577.00 \r\n(481,463.00) \r\n \r\n28,659,659.87 \r\n2,270,760.22 1,996,104.46 \r\n890,754.00 843,768.72 2,913,483.89 427,796.67 3,928,170.23 2,176,444.36 237,063.82 351,561.51 \r\n2,725,952.58 \r\n47,421,520.33 \r\n(51,097.65) \r\n \r\n27,354,359.46 \r\n2,038,284.01 2,116,281.13 \r\n921,602.05 819,151.92 2,921,597.90 409,766.99 3,755,139.36 2,093,151.85 230,401.36 541,900.76 239,241.36 2,929,045.10 \r\n46,369,923.25 \r\n1,491,473.57 \r\n \r\n1,305,300.41 \r\n232,476.21 (120,176.67) \r\n(30,848.05) 24,616.80 (8,114.01) 18,029.68 173,030.87 83,292.51 \r\n6,662.46 (190,339.25) (239,241.36) (203,092.52) \r\n1,051,597.08 \r\n1,542,571.22 \r\n \r\n532,250.00 - \r\n(532,250.00) \r\n- \r\n \r\n940,939.00 - \r\n(940,939.00) \r\n- \r\n \r\n138,240.16 (82,270.00) \r\n55,970.16 \r\n \r\n(940,939.00) 138,240.16 858,669.00 \r\n55,970.16 \r\n \r\n(481,463.00) 6,525,448.72 \r\n- \r\n \r\n(51,097.65) 5,856,098.86 \r\n- \r\n \r\n(138,240.16) 1,409,203.57 5,879,466.69 \r\n57,392.18 \r\n \r\n(138,240.16) 1,460,301.22 \r\n23,367.83 57,392.18 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n6,043,985.72 $ \r\n \r\n5,805,001.21 $ \r\n \r\n7,346,062.44 $ \r\n \r\n1,541,061.23 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $506,072.55 and $469,657.19, respectively. \r\nThe 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 49 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"12\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n205GA324N1099 $ 205GA324N1099 \r\n \r\n695,629.00 2,069,467.92 \r\n2,765,096.92 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A180073 H027A190073 H173A180081 H173A190081 \r\n \r\n236,486.00 728,036.57 \r\n8,229.00 16,906.11 \r\n989,657.68 \r\n \r\n84.048 84.011 84.011 84.358 84.358 84.371 84.367 84.010 84.010 \r\n \r\nV048A190010 S011A180011 S011A190011 S365B180010 S358B190010 S371C110049 S367A190001 S010A180010 S010A190010 \r\n \r\n67,140.25 5,542.00 \r\n29,380.25 7,060.28 \r\n60,146.46 96,925.64 \r\n193.00 442,590.92 2,266,421.16 \r\n2,975,399.96 \r\n3,965,057.64 \r\n \r\n12.UNKNOWN \r\n \r\n51,052.63 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 6,781,207.19 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Crisp County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 50 - \r\n \r\n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"13\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services GNETS State Grant Hygene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Security Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nGovernor's Office of Student Achievement Innovation Fund \r\nOffice of the State Treasurer Public School Employees Retirement \r\nHuman Resources, Georgia Department of Family Connection Emergency Relief - Crisp COVID Crisis \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,343,660.19 $ \r\n \r\n- $ 1,343,660.19 \r\n \r\n790,569.00 617,683.00 1,595,865.00 2,012,783.00 248,684.00 2,348,348.00 2,507,652.00 1,840,010.00 877,168.00 4,701,047.00 506,820.00 725,275.00 174,662.00 129,515.00 439,535.00 131,801.00 \r\n90,934.00 \r\n784,671.00 877,443.00 962,478.00 (346,945.00) \r\n553,473.00 79,556.00 \r\n3,147,347.00 \r\n73,214.00 833,234.00 \r\n4,800.80 28,637.06 103,265.00 77,220.00 166,465.78 34,282.06 151,320.83 \r\n \r\n- \r\n \r\n790,569.00 \r\n \r\n- \r\n \r\n617,683.00 \r\n \r\n- \r\n \r\n1,595,865.00 \r\n \r\n- \r\n \r\n2,012,783.00 \r\n \r\n- \r\n \r\n248,684.00 \r\n \r\n- \r\n \r\n2,348,348.00 \r\n \r\n- \r\n \r\n2,507,652.00 \r\n \r\n- \r\n \r\n1,840,010.00 \r\n \r\n- \r\n \r\n877,168.00 \r\n \r\n- \r\n \r\n4,701,047.00 \r\n \r\n- \r\n \r\n506,820.00 \r\n \r\n- \r\n \r\n725,275.00 \r\n \r\n- \r\n \r\n174,662.00 \r\n \r\n- \r\n \r\n129,515.00 \r\n \r\n- \r\n \r\n439,535.00 \r\n \r\n- \r\n \r\n131,801.00 \r\n \r\n- \r\n \r\n90,934.00 \r\n \r\n- \r\n \r\n784,671.00 \r\n \r\n- \r\n \r\n877,443.00 \r\n \r\n- \r\n \r\n962,478.00 \r\n \r\n- \r\n \r\n(346,945.00) \r\n \r\n- \r\n \r\n553,473.00 \r\n \r\n- \r\n \r\n79,556.00 \r\n \r\n- \r\n \r\n3,147,347.00 \r\n \r\n- \r\n \r\n73,214.00 \r\n \r\n- \r\n \r\n833,234.00 \r\n \r\n- \r\n \r\n4,800.80 \r\n \r\n- \r\n \r\n28,637.06 \r\n \r\n- \r\n \r\n103,265.00 \r\n \r\n- \r\n \r\n77,220.00 \r\n \r\n- \r\n \r\n166,465.78 \r\n \r\n- \r\n \r\n34,282.06 \r\n \r\n- \r\n \r\n151,320.83 \r\n \r\n- \r\n \r\n7,629,712.20 \r\n \r\n312,777.56 \r\n \r\n- \r\n \r\n108,904.00 \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n- \r\n \r\n8,000.00 \r\n \r\n- \r\n \r\n7,629,712.20 \r\n312,777.56 \r\n108,904.00 \r\n50,000.00 8,000.00 \r\n \r\n$ 29,092,155.28 $ 7,629,712.20 $ 36,721,867.48 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 51 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"14\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\n \r\nCURRENT ESTIMATED \r\n \r\nAMOUNT EXPENDED IN CURRENT (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n2012 ISSUE - SPLOST IV \r\n \r\n1. Constructing and equipping a new school to include \r\n \r\nfurniture, fixtures and equipment \r\n \r\n$ 5,000,000.00 $ 10,011,716.63 $ \r\n \r\n- $ 10,011,716.63 $ 10,011,716.63 $ \r\n \r\n- \r\n \r\n2. Renovating, repairing, improving, and equipping \r\n \r\nexisting schools and related facilities, including \r\n \r\nwithout limitation, roof replacements and repairs, \r\n \r\nmechanical system repairs and replacements, parking \r\n \r\nlot repairs and renovations, improvements and \r\n \r\nrenovations to physical education and athletic \r\n \r\nfacilities \r\n \r\n12,000,000.00 \r\n \r\n11,651,859.24 \r\n \r\n- \r\n \r\n11,651,859.24 \r\n \r\n11,651,859.24 \r\n \r\n- \r\n \r\n3. Acquiring and installing systemwide instructional \r\n \r\nand administrative technology, safety and security \r\n \r\nequipment \r\n \r\n3,000,000.00 \r\n \r\n418,657.70 \r\n \r\n- \r\n \r\n418,657.70 \r\n \r\n418,657.70 \r\n \r\n- \r\n \r\n4. Acquisition of school buses, vehicles and \r\n \r\ntransportation equipment \r\n \r\n2,000,000.00 \r\n \r\n810,382.00 \r\n \r\n- \r\n \r\n810,382.00 \r\n \r\n810,382.00 \r\n \r\n- \r\n \r\n5. Acquiring any necessary property, and paying costs incident to accomplishing the foregoing \r\n \r\n1,000,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nCompleted \r\nCompleted Completed Completed Completed \r\n \r\n$ 23,000,000.00 $ 22,892,615.57 $ \r\n \r\n- $ 22,892,615.57 $ 22,892,615.57 $ \r\n \r\n- \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\n \r\nCURRENT ESTIMATED \r\n \r\nAMOUNT EXPENDED IN CURRENT (3) \r\n \r\n2017 ISSUE - SPLOST V \r\n \r\n1. Acquiring, constructing, repairing, improving, \r\n \r\nrenovating, adding to, extending, upgraiding, and \r\n \r\nequipping school buildings, athletic facilities, and \r\n \r\nsupport facilities, including acquiring any necessary \r\n \r\nproperty therefor, both real and personal, specifically \r\n \r\nincluding the following: \r\n \r\n$ \r\n \r\n2,000,000.00 $ \r\n \r\n89,126.00 $ \r\n \r\n89,125.82 $ \r\n \r\n2. Acquiring, constructing, and equipping a new middle school to include furniture, fixtures and equipment \r\n \r\n20,000,000.00 \r\n \r\n25,296,039.25 \r\n \r\n24,033,927.24 \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n1,262,112.01 \r\n \r\n- \r\n \r\n- \r\n \r\n3. Roof replacements and repairs, mechanical system \r\n \r\nrepairs and replacements, parking lot repairs and \r\n \r\nrenovations, improvements and renovations to \r\n \r\nphysical education and athletic facilities \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n4. Acquiring and installing systemwide instructional \r\n \r\nand administrative technology, safety and security \r\n \r\nequipment \r\n \r\n1,000,000.00 \r\n \r\n13,200.00 \r\n \r\n13,200.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n5. Acquisition of school buses, vehicles and transportation equipment \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n6.Paying costs incident to accomplishing the foregoing \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n7.Issuance of general obligation debt in the principal \r\n \r\namount of up to $15,000,000.00, repayable from the \r\n \r\nproceeds of the aforesaid sales and use tax, for the \r\n \r\npupose of funding such portions of the above projects \r\n \r\nas may be acquired, constructed and equipped with \r\n \r\nthe proceeds of general obligation debt. \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n12/31/2022 12/31/2022 \r\n12/31/2022 \r\n \r\n$ 23,000,000.00 $ 25,398,365.25 $ 24,136,253.06 $ 1,262,112.01 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(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 Crisp County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include \r\nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n(4) In addition to the expenditures above, the School District has incurred issuance cost of $111,650.00 for the above projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 53 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Crisp County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated February 2, 2021. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur 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. \r\n \r\n Compliance and Other Matters \r\nAs 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. \r\nPurpose of this Report \r\nThe 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. \r\nRespectfully submitted, \r\n \r\nFebruary 2, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Crisp County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Crisp County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur 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. \r\nWe 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. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. \r\nReport on Internal Control over Compliance \r\nManagement 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. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur 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. \r\nThe 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. \r\nRespectfully submitted, \r\n \r\nFebruary 2, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nUnmodified \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Number \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nYes \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2019-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2020-03-13"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SEAD  OPEB \n \nPage \ni \n1 2 \n4 5 6 7 8 9 10 \n39 40 41 42 43 \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n6 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA ...44 \n \n7 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 45 \n \n8 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n46 \n \n9 SCHEDULE OF CONTRIBUTIONS  SEAD  OPEB \n \n47 \n \n10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n48 \n \n11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n49 \n \nSUPPLEMENTARY INFORMATION \n \n12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n50 \n \n13 SCHEDULE OF STATE REVENUE \n \n51 \n \n14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n53 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \nManagement 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. \nAuditor's Responsibility \nOur 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. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nOther Matters \nRequired Supplementary Information \nAccounting 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. \nOther Information \nOur 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. \nThe 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. \n \n Other Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 13, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nMarch 13, 2020 \n \nGreg S. Griffin State Auditor \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nINTRODUCTION \nThe following discussion and analysis of the Crisp County School System (School District) provides an introduction to the basic financial statements for the fiscal year ended June 30, 2019. Management prepared this discussion that should be read in conjunction with the basic financial statements, footnotes, and supplementary information found in this report. This information taken collectively is designed to provide readers with an understanding of the School District's finances. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThe Management's Discussion and Analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \nGovernment-wide financial statements. \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide financial statements provide short-term and long-term information about the School District's financial status as a whole. \nThe Statement of Net Position presents information on all of the School District's assets, deferred outflows, liabilities, and deferred inflows, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District's is improving or deteriorating. \nThe Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes, state grants, and Federal grant funds finance most of these activities. \nThe government-wide statements include the fiscal year 2015 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. As a result of implementation of GASB No. 68, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their retirement benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make retirement benefit payments. The contribution is determined by the Teachers Retirement System of Georgia Plan administrators, not the School District. \ni \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe government-wide statements include the fiscal year 2018 adoption of the Governmental Accounting Standard's Board's (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, which replaced GASB Statement No. 45. The Postemployment Benefits Other than Pensions (OPEB) liability discloses the School District's proportionate share of the collective net OPEB liability related to providing postemployment benefits to its employees. The School District participates in Georgia's State Health Benefit Plan. As a result of implementation of GASB No. 75, the School District is presenting a more significant deficit balance in unrestricted net position. This is a reflection of the School District's future responsibility and liability to its employees for their health benefits when those employees retire. The School District makes the required contributions to the plan to ensure sufficient resources are available to make postemployment benefit payments. Contributions to the OPEB plan fund current expenditures of the plan for active employees, current administrative fees, and a contribution into the OPEB plan for retirees. The contribution is determined by the Georgia State Health Benefit Plan administrators, not the School District. \nFund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds, proprietary funds, or fiduciary funds. \nGovernmental funds. Governmental funds are used to account for essentially the same functions reported as the governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Governmental funds are reported using the modified accrual basis of accounting, which provides a short-term spending focus. \nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \nThe School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general and capital projects funds, which are considered to be major funds. \nFiduciary funds. These funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the 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. \nNotes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. \nii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. These schedules are intended to demonstrate the School District's compliance with the legally adopted and amended budgets. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $4,364,653. The largest portion of the School District's net position of $58,855,930, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. The School District reports a restricted net position of $6,063,689, which consists of SPLOST funds to be used for capital projects and debt repayment, and school nutrition funds to be used for student meals. \niii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe remaining portion of the net position represents an unrestricted net position deficit of $60,554,966. The unrestricted net position deficit is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively, of the financial statements. \n \nTABLE 1 CRISP COUNTY SCHOOL DISTRICT'S NET POSITION \n \nAssets Current and Other Assets Capital Assets \nDeferred Outflows of Resources \n \n2019 \n \n2018 \n \n$ \n \n20,467,671 \n \n$ \n \n21,611,877 \n \n60,018,763 \n \n56,457,487 \n \n9,339,042 \n \n7,393,597 \n \nTotal Assets and Deferred Outflows of Resources \n \n$ \n \nLiabilities \n \nCurrent and Other Liabilities \n \n$ \n \nLong-Term Liabilities \n \nDeferred Inflows of Resources \n \n89,825,476 \n \n$ \n \n85,462,961 \n \n4,549,386 70,472,568 \n10,438,869 \n \n$ \n \n5,304,502 \n \n75,923,282 \n \n4,958,112 \n \nTotal Liabilities and Deferred Inflows of Resources $ \n \nNet Position \n \nNet Investment in Capital Assets \n \n$ \n \nRestricted \n \nUnrestricted (Deficit) \n \nTotal Net Position \n \n$ \n \n85,460,823 \n \n$ \n \n86,185,896 \n \n58,855,930 6,063,689 \n(60,554,966) \n4,364,653 \n \n$ \n \n56,457,487 \n \n7,744,951 \n \n(64,925,373) \n \n$ \n \n(722,935) \n \nChange in net position. \nThe change in net position was $5,087,588 which was a 196.98% increase. \nThe 1.39% increase in total revenues is largely due to an increase of $936,923 in general revenues for grants and contributions not restricted to specific programs, which are funds earned through the State Quality Basic Education (QBE) funding formula. \n \niv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe 4.96% decrease in total expenses is largely due to the decrease of OPEB expense and pension expense of $1,993,767 which is a result of the fiscal year 2018 adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and Note 13 of the financial statements. Also, the support services, business administration expenses increased by 19.62% which was due to expenses of $78,150 incurred for bond issuance costs for the new bond issuance. \n \nTABLE 2 CRISP COUNTY SCHOOL DISTRICT'S CHANGE IN NET POSITION \n \nRevenue \n \nProgram Revenues: \n \nCharges for Services \n \n$ \n \nOperating Grants and Contributions \n \nCapital Grants and Contributions \n \nGeneral Revenues: \n \nProperty Taxes \n \nSales Taxes \n \nGrants and Contributions not Restricted to Specific Programs \n \nMiscellaneous and Investment Earnings \n \nGovernmental Activities \n \n2019 \n \n2018 \n \n486,328 $ 450,058 \n \n31,870,055 31,498,671 \n \n77,220 \n \n- \n \n9,957,167 4,191,741 3,320,370 \n850,615 \n \n10,976,853 4,023,150 2,383,447 \n727,750 \n \nPercentage Change \n8.06% 1.18% 100.00% \n(9.29%) 4.19% 39.31% 16.88% \n \nTotal Revenues \n \n$ 50,753,496 $ 50,059,929 \n \n1.39% \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ 26,674,499 $ 28,418,014 \n \n2,307,276 2,071,516 \n855,021 813,074 2,697,212 457,210 3,676,701 2,332,224 210,260 583,925 \n \n2,200,066 1,989,216 \n913,282 854,576 2,895,047 382,233 3,616,721 2,468,877 202,985 555,042 \n \n161,753 2,852,531 \n138 \n \n227,742 3,354,240 \n- \n \n(6.14%) \n4.87% 4.14% (6.38%) (4.86%) (6.83%) 19.62% 1.66% (5.54%) 3.58% 5.20% \n(28.98%) (14.96%) 100.00% \n \nTotal Expenses \n \n$ 45,693,341 $ 48,078,041 \n \n(4.96%) \n \nTransfer Special Items \n \n27,433 - \n \n- (268,775) \n \n100.00% (100.00%) \n \nIncrease Net Position \n \n$ 5,087,588 $ 1,713,113 \n \n196.98% \n \nv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nRevenues \nThe School District's total revenue was $50.8 million for the year. This chart provides a breakdown of the revenue source categories and the percentage of each category. Grants and contributions are the largest category at 69.48%. Property taxes accounted for 19.62% of the School District's revenue. \n \nREVENUES \nGrants and Contributions Property Taxes Sales Taxes \nMiscellaneous and Investment Earnings Charges for Services \n \n69.48% 19.62% 8.26% 1.68% 0.96% \n \nExpenditures \nThe School District's total expense were $45.7 million. This chart provides a breakdown of the expense categories and the percentage of each category. The School District's expenses are predominantly accounted for in the instructional category, which accounts for 58.38% of the total cost. This cost is directly related to educating the students. Maintenance and operations accounted for 8.05% of the total cost, which is the cost to keep the facilities comfortable, safe, and secure. \n \nInstruction Maintenance and Operation of Plant \nFood Services School Administration Student Transportation Services \nPupil Services Improvement of Instructional Services \nEducational Media Services General Administration Other Support Services \nBusiness Administration Central Support Services \nEnterprise Operations Interest on Short-Term and Long-Term Debt \n \nEXPENSES \n \n58.38% 8.05% 6.24% 5.90% 5.10% 5.05% 4.53% 1.87% 1.78% 1.28% 1.00% 0.47% 0.35% 0.00% \n \nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \nThe focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the year. \nAt the end of the current fiscal year, the School District's governmental funds reported a combined ending fund balance of $14,884,543, an increase in fund balance of $272,819. \nvi \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nGeneral fund. The general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $5,879,467, representing an unassigned fund balance of $5,615,818 and a restricted, non-spendable and assigned fund balance of $263,649. Fund balance decreased by $671,463 as a result of funds transferred into the capital projects fund. The District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 12.42% of the $45,214,585 in general fund expenditures. \nCapital projects fund. The capital projects funds account for capital projects managed by the School District. During the year $2,600,000 was transferred into the capital projects fund from the general fund to supplement the funding for the new middle school. After expenditures of $6,044,952, the capital projects fund had an increase in fund balance of $918,960 and ended the year with a fund balance of $9,005,076. \nTABLE 3 CRISP COUNTY SCHOOL DISTRICT'S GOVERNMENTAL FUND BALANCES \n \nGeneral Fund \n \n$ \n \nCapital Projects Fund \n \nFiscal Year 2019 \n5,879,467 $ 9,005,076 \n \nFiscal Year 2018 \n6,525,608 8,086,116 \n \nTotal \n \n$ \n \n14,884,543 $ \n \n14,611,724 \n \nGeneral Fund Budgeting Highlights \n \nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was given to ensure financial stability and long-term stability while providing revenue enhancement, financial priorities, and discipline. The budget is a legally adopted document that incorporates input from the citizens of the School District and input from the management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \nIn the current year, the School District revised its budget periodically to recognize new funding amounts from external sources and state and federal grants. For fiscal year 2019, the School District's general fund had an unfavorable budget variance of $671,463. There was $569,183 favorable budget variance for revenues as well as a $1,331,921 favorable budget variance for expenditures. However, there was an unfavorable budget variance of $2,181,438 for other financing sources (uses). \nThe $569,183 favorable revenue budget variance is attributed to more title ad valorem taxes collected than what was budgeted. These are reported as property taxes. Another factor that attributed to a favorable budget variance includes revenues for the various school accounts, which are reported as charges for services and miscellaneous revenues, that are not budgeted. These favorable budget variances were offset by federal grant revenue budgeted and not received in this fiscal year, but these funds will be rolled over and available for use in the next fiscal year. \n \nvii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe $1,331,921 favorable expenditure budget variance is attributable to a conservative budget approach and reviewing open positions vacated by retirees before filling those positions. This favorable budget variance was offset by other expenditure categories which were over budget for necessary expenditures arising during the year and the expenditures for the various school accounts which were also not included in the budget. \nThe $2,181,438 unfavorable other financing sources (uses) budget variance is attributable to a transfer of $2,600,000 to the capital projects funds that was not budgeted. \nCapital Assets and Debt Administration \nCapital assets. At fiscal year ended June 30, 2019, the School District had $60,018,763 invested in capital assets (net of accumulated depreciation). The capital assets increased by $3,561,276 due to the additions to construction in progress of $5,823,676 for the new middle school. Additional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nLand Construction in Progress Building and Building Improvements Equipment Land Improvements \nTotal \n \nFiscal Year 2019 \n \n$ \n \n2,222,328 $ \n \n5,823,676 \n \n47,837,973 \n \n2,613,984 \n \n1,520,802 \n \n$ \n \n60,018,763 $ \n \nFiscal Year 2018 \n2,222,328 11,998 \n49,736,803 2,741,072 1,745,286 \n56,457,487 \n \nLong-Term Debt. At the end of the fiscal year 2019, the School District had a total debt outstanding of $78,150. The debt outstanding represents bonds issued for $10,000,000 in the current fiscal year for the construction of the new middle school. Advancements will be drawn from the bonds issued during the construction project as funds are needed to support the construction cost. The voters have authorized $15,000,000 of general obligation debt. Of the total amount originally authorized, $5,000,000 remains unissued. \n \nviii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 CURRENT ISSUES Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: Approximately 83% of general fund expenses, the main operating fund for the Board, were related to salaries and employee benefits for the year ended June 30, 2019. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS. The Board consistently evaluates how funds can be spent smarter and more effectively to ensure that Crisp County students receive a quality education from effective personnel. The Board's millage rate from fiscal year 2013 to fiscal year 2017 was 17.45. The millage rate for fiscal year 2019 was rolled back to 17.388 mills. The net digest for fiscal year 2019 was $583.0 billion, which produced approximately $583,000 per mill. As shown in the above revenue chart, property tax and sales tax are responsible for covering 28% of the Board's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. The School District is currently building a new middle school. This new school is projected to cost approximately $31,000,000. The School District is utilizing local, state and bond funds for this project. The new school will open in the 2020-2021 school year. REQUESTS FOR INFORMATION This report is designed to provide an overview of the Board's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools,org or send an email to dbeavers@crispschools.org. \nix \n \n CRISP COUNTY BOARD OF EDUCATION \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Net OPEB Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Interest Payable Payroll Withholdings Payable Deposits and Unearned Revenue Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Capital Projects Debt Service Net OPEB Asset Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n13,883,632.50 \n \n1,597,064.44 3,476,003.43 \n966,773.21 61,479.26 \n380,349.32 79,851.18 22,518.00 \n8,046,003.44 51,972,759.07 \n \n80,486,433.85 \n \n7,815,434.00 1,523,608.00 \n9,339,042.00 \n \n528,608.67 2,667,632.98 \n138.31 96,353.49 93,820.86 878,896.91 283,935.35 34,639,959.00 35,595,910.00 \n78,150.00 158,548.69 \n75,021,954.26 \n \n2,350,344.00 8,088,525.00 \n10,438,869.00 \n \n58,855,930.25 \n136,232.93 3,200,958.75 2,703,978.98 \n22,518.00 (60,554,966.32) \n \n$ \n \n4,364,652.59 \n \n- 1 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nTransfers \nTotal General Revenues and Transfers \nChange in Net Position \nNet Position - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUE \n \n$ 26,674,499.37 $ \n2,307,276.44 2,071,515.84 \n855,021.21 813,074.29 2,697,211.95 457,209.91 3,676,701.37 2,332,223.71 210,259.74 583,924.99 \n161,752.87 2,852,531.06 \n138.31 \n$ 45,693,341.06 $ \n \n330,071.86 \n240.00 - \n156,015.79 \n- \n486,327.65 \n \nNet Position - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 22,737,159.57 $ \n368,596.78 1,784,009.30 \n495,306.00 676,125.38 1,150,115.34 \n5,599.65 1,287,931.61 \n661,670.99 5,118.22 \n57,742.21 \n2,640,680.52 \n- \n$ 31,870,055.57 $ \n \n- $ \n77,220.00 - \n- \n77,220.00 \n \n(3,607,267.94) \n(1,938,679.66) (287,506.54) (359,715.21) (136,948.91) \n(1,547,096.61) (451,610.26) \n(2,388,529.76) (1,593,332.72) \n(205,141.52) (526,182.78) \n(161,752.87) (55,834.75) (138.31) \n(13,259,737.84) \n \n9,882,045.52 75,121.32 \n4,107,596.66 84,144.16 \n3,320,370.00 323,883.67 526,731.06 \n18,319,892.39 \n27,433.50 \n18,347,325.89 \n5,087,588.05 \n(722,935.46) \n \n$ \n \n4,364,652.59 \n \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2019 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 4,078,343.46 $ 9,805,289.04 $ 13,883,632.50 \n \n1,234,445.18 3,476,003.43 \n966,773.21 61,479.26 \n380,349.32 79,851.18 \n \n362,619.26 - \n \n1,597,064.44 3,476,003.43 \n966,773.21 61,479.26 \n380,349.32 79,851.18 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue Contracts Payable Retainages Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ 10,277,245.04 $ 10,167,908.30 $ 20,445,153.34 \n \n$ \n \n528,608.67 $ \n \n2,667,632.98 \n \n96,353.49 \n \n93,820.86 \n \n- \n \n- \n \n- $ 878,896.91 283,935.35 \n \n528,608.67 2,667,632.98 \n96,353.49 93,820.86 878,896.91 283,935.35 \n \n3,386,416.00 \n \n1,162,832.26 \n \n4,549,248.26 \n \n1,011,362.35 \n \n- \n \n1,011,362.35 \n \n79,851.18 56,381.75 127,415.48 5,615,818.28 \n5,879,466.69 \n \n5,905,076.04 3,100,000.00 \n- \n9,005,076.04 \n \n79,851.18 5,961,457.79 3,227,415.48 5,615,818.28 \n14,884,542.73 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 10,277,245.04 $ 10,167,908.30 $ 20,445,153.34 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Land improvements Buildings Equipment Accumulated depreciation \nSome liabilities are not due and payable in the current period, and, therefore, are not reported in the funds. \nNet pension liability Net OPEB liability Net OPEB Asset \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \nRelated to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \nBonds payable Accrued interest payable Compensated absences payable \n \n$ 14,884,542.73 \n \n$ \n \n2,222,327.89 \n \n5,823,675.55 \n \n6,368,682.67 \n \n66,626,182.44 \n \n9,076,298.70 \n \n(30,098,404.74) \n \n60,018,762.51 \n \n$ (34,639,959.00) (35,595,910.00) 22,518.00 \n \n(70,213,351.00) \n \n$ \n \n5,465,090.00 \n \n(6,564,917.00) \n \n(1,099,827.00) 1,011,362.35 \n \n$ \n \n(78,150.00) \n \n(138.31) \n \n(158,548.69) \n \n(236,837.00) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n4,364,652.59 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCIANG SOURCES (USES) \nProceeds from Issuance of Bonds Transfers In Insurance Proceeds Transfers Out \nTotal Other Financing Sources (Uses) \nEXTRAORDINARY ITEM \nDamage from Hurricane Michael \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments Inventory - Net Change in Period \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n10,614,370.01 $ \n \n84,144.16 \n \n28,453,535.18 \n \n6,804,862.57 \n \n486,327.65 \n \n145,718.23 \n \n526,731.03 \n \n47,115,688.83 \n \n- $ 4,107,596.66 \n178,165.44 0.03 \n4,285,762.13 \n \n10,614,370.01 4,191,740.82 \n28,453,535.18 6,804,862.57 486,327.65 323,883.67 526,731.06 \n51,401,450.96 \n \n26,347,991.32 \n2,052,709.54 2,152,710.52 \n868,753.47 811,742.84 2,782,561.51 395,907.37 3,576,793.95 2,404,450.59 219,116.34 596,491.96 161,752.87 2,843,603.19 \n- \n45,214,585.47 \n1,901,103.36 \n \n41,473.98 \n26,227.05 78,150.00 67,585.39 5,831,515.55 \n6,044,951.97 \n(1,759,189.84) \n \n26,389,465.30 \n2,052,709.54 2,152,710.52 \n868,753.47 837,969.89 2,782,561.51 474,057.37 3,644,379.34 2,404,450.59 219,116.34 596,491.96 161,752.87 2,843,603.19 5,831,515.55 \n51,259,537.44 \n141,913.52 \n \n27,680.98 391,128.40 (2,600,247.48) \n(2,181,438.10) \n \n78,150.00 2,600,000.00 \n- \n2,678,150.00 \n \n78,150.00 2,627,680.98 \n391,128.40 (2,600,247.48) \n496,711.90 \n \n(391,128.40) (671,463.14) 6,525,608.24 \n25,321.59 \n \n918,960.16 8,086,115.88 \n- \n \n(391,128.40) 247,497.02 14,611,724.12 \n25,321.59 \n \nFund Balances - Ending \n \n$ \n \n5,879,466.69 $ \n \n9,005,076.04 $ 14,884,542.73 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \nCapital outlay Depreciation expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nThe issuance of long-term debt provides current financial resources to governmental funds, while the 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. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \nGeneral Obligation Bonds Issued \nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \nPension expense OPEB expense \nFood inventories are expensed on the Statement of Activities using the consumption method while on the fund level food inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on issuance of debt Compensated Absences \n \n$ \n \n247,497.02 \n \n$ \n \n6,200,505.06 \n \n(2,487,877.57) \n \n3,712,627.49 (151,352.01) (657,203.17) \n \n(78,150.00) \n \n$ \n \n1,780,639.70 \n \n213,127.00 \n \n1,993,766.70 \n \n25,321.59 \n \n$ \n \n(138.31) \n \n(4,781.26) \n \n(4,919.57) \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 5,087,588.05 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n ASSETS Cash and Cash Equivalents Investments Receivables, Net \nInterest and Dividends \nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \n \nCRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2019 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 36,054.99 $ 119,468.34 \n \n68,258.69 - \n \n447.61 \n \n- \n \n$ 155,970.94 $ 68,258.69 \n \n$ 68,258.69 \n \n$ 155,970.94 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n626.84 \n \n134.38 492.46 155,478.48 \n \n$ 155,970.94 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 9 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe 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. \nBASIS OF PRESENTATION \nThe 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. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe 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: \n1. 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. \n2. 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. \n3. 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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect 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. \n \n- 10 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nProgram 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. \nFUND FINANCIAL STATEMENTS \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n 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. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \nThe School District reports the following fiduciary fund types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statements. \nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The School District included additional information in the Long-term Liabilities note disclosure. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nThe 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. \nInvestments 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. \nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \nRECEIVABLES \nReceivables 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. \n \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nINVENTORIES \n \nFood Inventories \nOn the government-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the purchase method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \nThe cost of governmental fund type inventories is reported as expenditures when purchased. \nCAPITAL ASSETS \n \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital 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. \n \nDepreciation 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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nALL 10,000.00 25,000.00 \n5,000.00 50,000.00 \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \n \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years 10 to 20 years \n \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \nCOMPENSATED ABSENCES \nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nVacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits, up to 10 days, to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nLONG-TERM LIABILITIES \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \nPENSIONS \nFor 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. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (SEAD - OPEB) \nFor 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 State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have been determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFUND BALANCES \nFund 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. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned 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. \nUnassigned 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. \nUSE OF ESTIMATES \n \nThe 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. \nPROPERTY TAXES \n \nThe Crisp Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on November 1, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 20, 2018 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. The Crisp Board of Commissioners 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, 2019, for maintenance and operations amounted to $9,804,043.31. \nThe tax millage rate levied for the 2018 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.388 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $735,205.38 during fiscal year ended June 30, 2019. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $4,107,596.66 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 3: BUDGETARY DATA \nThe 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. 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. \nThe 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. \nThe Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditures in any budgeted fund is anticipated to be more than the budgeted fund total, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \nSee 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. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $8,901,283.65, including a certificate of deposit for $119,468.34, and a bank balance of $11,354,329.69. The bank balances insured by Federal depository insurance were $810,526.50 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $10,206,280.62. \nAt June 30, 2019, $18,118.27 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized \n \n$ \n \n- \n \nUninsured with collateral held by the pledging financial institution \n \n18,118.27 \n \nUninsured with collateral held by the pledging \n \nfinancial institution's trust department or \n \nagent but not in the School District's name \n \n- \n \nTotal \n \n$ \n \n18,118.27 \n \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered Deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to amount of up to 125% if economic or financial conditions warrants. The program lists the type of eligible collateral. The OST approves authorized custodians. \nIn 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 assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nAt June 30, 2019, the School district had $319,404.30 in the State's Secure Deposit Program (SDP). \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 13,883,632.50 104,313.68 \n \nTotal cash and cash equivalents \nAdd: Deposits with original maturity of three months or more reported as investments \n \n13,987,946.18 119,468.34 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n5,206,130.87 \n \nTotal carrying value of deposits - June 30, 2019 \n \n$ 8,901,283.65 \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $5,206,130.87 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2018 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2019 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,222,327.89 $ \n \n- $ \n \n- $ 2,222,327.89 \n \n11,997.64 \n \n5,844,596.55 \n \n32,918.64 \n \n5,823,675.55 \n \nTotal Capital Assets Not Being Depreciated \n \n2,234,325.53 \n \n5,844,596.55 \n \n32,918.64 \n \n8,046,003.44 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n66,768,014.44 8,819,928.70 6,331,711.52 \n \n351,856.00 \n36,971.15 \n \n141,832.00 95,486.00 - \n \n66,626,182.44 9,076,298.70 6,368,682.67 \n \n17,031,211.76 6,078,856.10 4,586,425.30 \n \n1,778,437.37 447,984.53 261,455.67 \n \n21,439.73 64,526.26 \n- \n \n18,788,209.40 6,462,314.37 4,847,880.97 \n \nTotal Capital Assets, Being Depreciated, Net \n \n54,223,161.50 \n \n(2,099,050.42) 151,352.01 \n \n51,972,759.07 \n \nGovernmental Activities Capital Assets - Net $ 56,457,487.03 $ 3,745,546.13 $ 184,270.65 $ 60,018,762.51 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ \n \n316,696.28 \n \n2,147.90 \n \n28,368.71 \n \n30,718.61 \n \n59,095.91 \n \n60,446.40 \n \n250,020.91 \n \n$ 1,648,488.05 \n747,494.72 91,894.80 \n$ 2,487,877.57 \n \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2019, consisted of the following: \n \nTransfers From \n \nTransfers to \n \nGeneral Fund \n \nAgency Fund \n \nGeneral Fund \n \n$ \n \n- $ \n \nCapital Projects Fund \n \n2,600,000.00 \n \nAgency Fund \n \n247.48 \n \n27,680.98 - \n \nEXHIBIT \"I\" \n \nTotal \n \n$ 2,600,247.48 $ 27,680.98 \n \nTransfers are used to move funds from the general fund to the capital projects fund to provide supplemental funding for capital construction projects and to transfer funds between the governmental fund and the agency fund to provide supplemental funding to the student activity accounts. \nNOTE 7: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2018 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions June 30, 2019 \n \nDue Within One Year \n \nGeneral Obligation Sales Tax Bonds Compensated Absences (1) \n \n$ \n \n- $ 78,150.00 $ \n \n- $ 78,150.00 $ 78,150.00 \n \n153,767.43 \n \n29,134.55 \n \n24,353.29 \n \n158,548.69 \n \n- \n \n$ 153,767.43 $ 107,284.55 $ 24,353.29 $ 236,698.69 $ 78,150.00 \n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financials statements. GENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation sales tax bonds from voter-approved Education Special Purpose Local Option Sales Tax (ESPLOST). General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nThe School District's outstanding bonds from direct placement related to governmental activities of $78,150.00 contain a provision that in the event that proceeds of the Education Special Local Option Sales Tax are insufficient, an ad valorem tax must be levied to pay the debt service on the bonds. \nVoters have authorized $15,000,000.00 of general obligation debt of which $10,000,000.00 of the general obligation sale tax bonds has been issued for constructing capital facilities. Advances up to the principal amount of these bonds are made to the School district by the bond purchaser. Currently, $9,921,850.00 remain undrawn by the School District. \n \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Available \n \nAmount Issued \n \nGeneral Government - Series 2019 \n \n3.80% \n \n6/13/2019 \n \n9/1/2023 $ 10,000,000.00 $ \n \n78,150.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \n2020 \n \n$ \n \n78,150.00 $ \n \n138.31 \n \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nNOTE 8: RISK MANAGEMENT \nINSURANCE \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \nGeorgia School Boards Association Risk and Insurance Management System \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \nWORKERS' COMPENSATION \nGeorgia Education Workers' Compensation Trust \nThe School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \na $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \nUNEMPLOYMENT COMPENSATION \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2018 $ \n \n- \n \n$ \n \n2,453.00 $ \n \n2,453.00 $ \n \n- \n \n2019 $ \n \n- \n \n$ \n \n1,575.00 $ \n \n1,575.00 $ \n \n- \n \nSURETY BOND \n \nThe School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 100,000.00 \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS The School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \nFUND BALANCES \n \nNonspendable \n \nInventories \n \n$ \n \nRestricted \n \nContinuation of Federal Programs $ \n \n56,381.75 \n \nCapital Projects \n \n3,200,820.44 \n \nDebt Service \n \n2,704,255.60 \n \nAssigned \n \nLocal Capital Outlay Projects \n \n$ 3,100,000.00 \n \nSchool Activity Accounts \n \n127,415.48 \n \nUnassigned \n \n79,851.18 \n5,961,457.79 3,227,415.48 5,615,818.28 \n \nFund Balance, June 30, 2019 \n \n$ 14,884,542.73 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 10: SIGNIFICANT COMMITMENTS COMMITMENTS UNDER CONSTRUCTION CONTRACTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2019, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2019 (2) \n \nFunding Available From State (1) \n \nCrisp County Middle School Facility \n \n$ 27,105,323.00 $ 5,807,175.55 $ 8,477,458.00 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end. \n \nOPERATING LEASES \nThe School District leases copiers 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 leases totaled $81,900.00 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \n \nYear Ending \n \nGovernmental Funds \n \n2020 \n \n$ \n \n81,900.00 \n \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts 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. \nLITIGATION \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \n \n- 23 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,471,131.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2019, the School District reported a liability of $35,595,910.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2017. An expected total OPEB liability as of June 30, 2018 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, 2018. At June 30, 2018, the School District's proportion was 0.280069%, which was an decrease of 0.005422% from its proportion measured as of June 30, 2017. \n \n- 24 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2019, the School District recognized OPEB expense of $1,258,379.00. \n \nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 809,667.00 \n \nChanges of assumptions \n \n- \n \n6,030,118.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n48,161.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n1,244,805.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n1,471,131.00 \n \n- \n \nTotal \n \n$ 1,519,292.00 $ 8,084,590.00 \n \nSchool District contributions subsequent to the measurement date of $1,471,131.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2020 2021 2022 2023 2024 2025 \n \n$ (1,564,906.00) $ (1,564,906.00) $ (1,564,906.00) $ (1,567,783.00) $ (1,287,403.00) $ (486,525.00) \n \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 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, 2018: \nOPEB: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25% - 9.00%, including inflation \n \nLong-term expected rate of return \n \n7.30%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate \n \nPre-Medicare Eligible \n \n7.50% \n \nMedicare Eligible \n \n5.50% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.75% \n \nMedicare Eligible \n \n4.75% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2028 \n \nMedicare Eligible \n \n2022 \n \nMortality 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: \n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation. \n \n- 26 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTarget allocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Mid Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% \n12.00% 13.50% \n8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n*Net of Inflation \n \nDiscount rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \n \n1% Decrease (2.87%) \n \nCurrent Discount Rate (3.87%) \n \n1% Increase (4.87%) \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 41,564,863.00 $ 35,595,910.00 $ 30,782,575.00 \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net \nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \npercentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost \nTrend Rate \n \n1% Increase \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 29,925,768.00 $ 35,595,910.00 $ 42,842,143.00 \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \nPOSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS (SEAD  OPEB) \nPlan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2019. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2019, the Employer reported an asset of $22,518.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2018. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2017. An expected total OPEB asset as of June 30, 2018 was determined using standard roll-forward techniques. The Employer's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2018. At June 30, 2018, the Employer's proportion was 0.008320%, which was a decrease of 0.002101% from its proportion measured as of June 30, 2017. \n \n- 28 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2019, the Employer recognized OPEB expense of ($375.00). At June 30, 2019, the Employer reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nSEAD-OPEB \n \nDeferred \n \nDeferred \n \nOutflows of Inflows of \n \nResources Resources \n \nDifferences between expected and actual experience \nChanges of assumptions \n \n$ 246.00 $ \n \n- \n \n1,157.00 \n \n- \n \nNet difference between projected and actual earnings on OPEB plan investments \n \n- \n \n3,723.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n2,913.00 \n \n212.00 \n \nTotal \n \n$ 4,316.00 $ 3,935.00 \n \nThere were no employer contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nSEAD-OPEB \n \n2020 2021 2022 2023 \n \n$ 1,190.00 $ 639.00 $ (1,137.00) $ (311.00) \n \n- 29 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nActuarial assumptions: The total OPEB asset as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017. Based on the funding policy adopted by the Board on March 15, 2018, the investment rate of return assumption will be changed to 7.30% in the June 30, 2018 actuarial valuation. Therefore, the investment rate of return used in the roll-forward of the total pension liability is 7.30% using the following actuarial assumptions, applied to all periods included in the measurement: \nSEAD  OPEB: \n \nInflation \n \n2.75% \n \nSalary increases: \n \nERS GJRS LRS Investment rate of return \n \n3.25%  7.00% 4.50% N/A 7.30%, net of OPEB plan investment expense, including inflation \n \nHealthcare cost trend rate \n \nN/A \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nThe 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 plan 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 asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nSEAD - OPEB Target \nallocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount rate: The discount rate used to measure the total OPEB 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 State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the \n \n- 30 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nmember rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the School District's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the employer's proportionate share of the net OPEB asset calculated using the discount rate of 7.30%, as well as what the employer's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.30 %) or 1- percentage-point higher (8.30 %) than the current rate: \n \n1% Decrease (6.30%) \n \nCurrent Discount Rate (7.30%) \n \n1% Increase (8.30%) \n \nNet OPEB Asset \n \n$ (12,132.00) $ \n \n(22,518.00) $ (31,030.00) \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publically available at www.ers.ga.gov/financials. \nNOTE 13: RETIREMENT PLANS \n \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual School District payroll, of which 20.76% of payroll was required from the School District and 0.14% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,947,044.00 and $31,247.18 from the School District and the State, respectively. \n \n- 31 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll of new and old plan members and 21.66% of GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $29,824.00 for the current fiscal year. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \n \n- 32 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nBenefits 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. \n \nUpon retirement, the member will receive a monthly benefit of $15.00, 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. \nContributions: 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. \n \nIndividuals 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 $99,460.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2019, the School District reported a liability of $34,639,959.00 for its proportionate share of the net pension liability for TRS ($34,454,305.00) and ERS ($185,654.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 34,454,305.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n239,080.00 \n \nTotal \n \n$ 34,693,385.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2018. \nAt June 30, 2018, the School District's TRS proportion was 0.185616%, which was a decrease of 0.004894% from its proportion measured as of June 30, 2017. At June 30, 2018, the School District's ERS proportion was 0.004516%, which was a decrease of 0.001671% from its proportion measured as of June 30, 2017. \n \n- 33 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nAt June 30, 2019, 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 $515,408.00. \n \nThe PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 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, 2018. \n \nFor the year ended June 30, 2019, the School District recognized pension expense of $3,212,692.00 for TRS, ($2,719.00) for ERS and $119,336.00 for PSERS and revenue of $20,691.00 for TRS and $119,336.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 2,280,924.00 $ 71,011.00 \n \n$ \n \n5,774.00 $ \n \n- \n \nChanges of assumptions \n \n519,903.00 \n \n- \n \n8,747.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n942,048.00 \n \n- \n \n4,278.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \nTotal \n \n23,218.00 \n \n1,288,488.00 \n \n- \n \n44,519.00 \n \n4,947,044.00 \n \n- \n \n$ 7,771,089.00 $ 2,301,547.00 \n \n29,824.00 \n \n- \n \n$ 44,345.00 $ 48,797.00 \n \nThe School District contributions subsequent to the measurement date of $4,947,044.00 for TRS and $29,824.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2020 2021 2022 2023 2024 \n \n$ 1,401,720.00 $ (15,070.00) \n \n$ 532,802.00 $ (10,183.00) \n \n$ (1,229,773.00) $ (7,112.00) \n \n$ (197,841.00) $ (1,911.00) \n \n$ \n \n15,590.00 $ \n \n- \n \n- 34 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nActuarial assumptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25%  9.00%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nEmployees' Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25% - 7.00%, including inflation \n \nInvestment rate of return \n \n7.30%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future \nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \nwas used for death after disability retirement. There is a margin for future mortality improvement in \nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \nactual number of deaths that occurred during the study period for service retirements and \nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nPublic School Employees Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.30%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \n- 35 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nERS/PSERS Target \nallocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of the 2.75% assumed rate of inflation \nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.50%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 36 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"I\" \n \nSensitivity 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 \npension liability calculated using the discount rate of 7.50% and 7.30%, as well as what the School \nDistrict's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50% and 6.30%) or 1-percentage-point higher (8.50% \nand 8.30%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease \n(6.5%) \n \nCurrent Discount Rate \n(7.5%) \n \n1% Increase (8.5%) \n \nSchool District's proportionate share of the net \n \npension liability \n \n$ 57,514,101.00 $ 34,454,305.00 $ 15,451,860.00 \n \nEmployers Retirement System: \n \n1% Decrease \n(6.3%) \n \nCurrent Discount Rate \n(7.3%) \n \n1% Increase (8.3%) \n \nEmployer's proportionate share of the net pension liability \n \n$ 264,066.00 $ 185,654.00 $ 118,845.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nNOTE 14: TAX ABATEMENTS \n \nCrisp County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Crisp County. \n \nFor the fiscal year ended June 30, 2019, Crisp County abated property taxes due to the School District that were levied on November 01, 2018 and due on December 20, 2018 totaling $12,898.14. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10.00% percent of the total amount abated: \n \n A 100% real property tax abatement was granted for a logistics provider. The \nabatement amounted to $4,516.71.  A 80% percent real property tax abatement was granted to a manufacturing \nplant. The abatement amounted to 8,381.43. \n \nNOTE 15: EXTRAORDINARY ITEM \n \nThe School District has incurred expenses, for the damage to facilities due to Hurricane Michael, in the amount of $391,128.40. The School District has also received insurance proceeds in the amount of $391,128.40 for the damage to facilities due to Hurricane Michael. The majority of the damage was to roofs on several buildings and other structural damages; however, we were able to continue to use the buildings for their intended purposes. The expenditures have been reported as extraordinary items on the Statement of Revenues, Expenditures and Changes in Fund Balances. \n \nNOTE 16: SUBSEQUENT EVENT \nThe School District issued $5,000,000.00 of general obligation sale tax bonds for constructing capital facilities. The School District has not drawn down any of the $5,000,000.00. \n \n- 37 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \n0.185616% $ 0.190510% $ 0.194411% $ 0.196076% $ 0.197751% $ \n \n34,454,305.00 $ 35,406,870.00 $ 40,109,157.00 $ 29,850,624.00 $ 24,983,231.00 $ \n \n239,080.00 $ 345,687.00 $ 549,613.00 $ 412,571.00 $ 343,636.00 $ \n \nTotal \n34,693,385.00 35,752,557.00 40,658,770.00 30,263,195.00 25,326,867.00 \n \nSchool District's covered payroll \n \n$ \n \n22,262,430.94 \n \n$ \n \n22,112,634.26 \n \n$ \n \n21,612,594.73 \n \n$ \n \n20,992,143.60 \n \n$ \n \n20,449,227.39 \n \nSchool District's proportionate share of the net pension \nliability as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n154.76% 160.12% 185.58% 142.20% 122.17% \n \n80.27% 79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension liability \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n \nPlan fiduciary net position as a percentage of total pension liability \n \n2019 2018 2017 2016 2015 \n \n0.004516% $ 0.006187% $ 0.006516% $ 0.007916% $ 0.008026% $ \n \n185,654.00 $ 251,275.00 $ 308,234.00 $ 320,709.00 $ 301,025.00 $ \n \n115,179.70 151,752.46 151,515.54 180,996.28 180,721.38 \n \n161.19% 165.58% 203.43% 177.19% 166.57% \n \n76.68% 76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 40 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the net pension liability \n \nState of Georgia's proportionate share of the \nnet pension liaibility associated with the School \nDistrict \n \n2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n515,408.00 $ 539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its \ncovered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n515,408.00 539,126.00 692,084.00 440,393.00 389,393.00 \n \n$ 1,743,663.21 $ 1,788,126.82 $ 1,693,662.41 $ 1,652,417.20 $ 1,643,846.70 \n \nN/A \n \n85.26% \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.90% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 41 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n \nSchool District's proportion of the net OPEB liability \n \nSchool District's proportionate share of the net OPEB liability \n \nState of Georgia's proportionate share of the net OPEB liability associated with the School District \n \n2019 \n \n0.280069% $ 35,595,910.00 $ \n \n- \n \n2018 \n \n0.285491% $ 40,111,370.00 $ \n \n- \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net OPEB liability as a percentage of its covered-employee \npayroll \n \nPlan fiduciary net position as a percentage of the total OPEB liability \n \n$ 35,595,910.00 $ 19,215,391.19 $ 40,111,370.00 $ 19,261,608.86 \n \n185.25% 208.25% \n \n2.93% 1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 42 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB ASSET \nSEAD-OPEB FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n \nSchool District's proportion of the net OPEB liability (asset) \n \nSchool District's proportionate share of the net OPEB liability \n(asset) \n \nSchool District's coveredemployee payroll \n \nSchool District's proportionate share of the net OPEB liability as \na percentage of its covered-employee \npayroll \n \n2019 2018 \n \n0.008320% $ 0.010421% $ \n \n(22,518.00) $ (27,085.00) $ \n \n115,179.70 151,752.46 \n \n(19.55%) (17.85%) \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n129.46% 130.17% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 43 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution (1) \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n2014 \n \n$ \n \n2013 \n \n$ \n \n2012 \n \n$ \n \n2011 \n \n$ \n \n2010 \n \n$ \n \n4,947,044.00 $ 3,716,524.20 $ 3,124,771.94 $ 3,042,418.28 $ 2,722,853.56 $ 2,511,165.12 $ 2,279,559.30 $ 2,245,592.98 $ 2,162,475.36 $ 2,248,372.05 $ \n \n4,947,044.00 $ 3,716,524.20 $ 3,124,771.94 $ 3,042,418.28 $ 2,722,853.56 $ 2,511,165.12 $ 2,279,559.30 $ 2,245,592.98 $ 2,162,475.36 $ 2,248,372.05 $ \n \n- \n \n$ 23,827,909.77 \n \n- \n \n$ 22,262,430.94 \n \n- \n \n$ 22,112,634.26 \n \n- \n \n$ 21,612,594.73 \n \n- \n \n$ 20,992,146.30 \n \n- \n \n$ 20,449,227.39 \n \n- \n \n$ 19,978,611.18 \n \n- \n \n$ 21,854,021.11 \n \n- \n \n$ 21,035,754.13 \n \n- \n \n$ 23,083,713.45 \n \n(1) The School District has included on behalf payments within the contributions for 2014 and prior years. \n \nContribution as a percentage of covered \npayroll \n20.76% 16.69% 14.13% 14.08% 12.97% 12.28% 11.41% 10.28% 10.28% \n9.74% \n \n- 44 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2019 \n \n$ \n \n29,824.00 $ \n \n29,824.00 $ \n \n- \n \n2018 \n \n$ \n \n28,576.10 $ \n \n28,576.10 $ \n \n- \n \n2017 \n \n$ \n \n37,649.78 $ \n \n37,649.78 $ \n \n- \n \n2016 \n \n$ \n \n37,454.64 $ \n \n37,454.64 $ \n \n- \n \n2015 \n \n$ \n \n39,746.79 $ \n \n39,746.79 $ \n \n- \n \n2014 \n \n$ \n \n33,361.16 $ \n \n33,361.16 $ \n \n- \n \n2013 \n \n$ \n \n30,462.80 $ \n \n30,462.80 $ \n \n- \n \n2012 \n \n$ \n \n23,575.85 $ \n \n23,575.85 $ \n \n- \n \n2011 \n \n$ \n \n15,058.49 $ \n \n15,058.49 $ \n \n- \n \n2010 \n \n$ \n \n11,712.92 $ \n \n11,712.92 $ \n \n- \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n$ 120,357.23 $ 115,179.70 $ 151,752.46 $ 151,515.54 $ 180,996.28 $ 180,721.38 $ 204,448.32 $ 202,715.82 $ 144,654.20 $ 112,516.36 \n \n24.78% 24.81% 24.69% 24.72% 21.96% 18.46% 14.90% 11.63% 10.41% 10.41% \n \n- 45 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"8\" \n \nYear Ended \n2019 2018 \n \nContractually required \ncontribution \n \nContributions in relation to the contractually \nrequired contribution \n \nContribution deficiency (excess) \n \n$ 1,471,131.00 $ \n \n1,471,131.00 $ \n \n- \n \n$ 1,451,573.00 $ \n \n1,451,573.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n \n$ \n \n17,705,824.44 \n \n$ \n \n19,215,391.19 \n \nContributions as a percentage of covered-employee \npayroll \n8.31% 7.55% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 46 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SEAD-OPEB \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"9\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ 120,357.23 \n \n- \n \n$ 115,179.70 \n \nContribution as a percentage of covered- \nemployee payroll \n0.00% 0.00% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 47 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"10\" \n \nTeachers Retirement System \nChanges of assumptions: 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). \nIn 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. \nEmployees' Retirement System \nChanges of benefit terms: - A new benefit tier was added for members joining the System on and after July 1, 2009. - A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. - A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. \nChanges of assumptions: 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. \nOn 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, disability, withdrawal and salary increases. \nPublic School Employees Retirement System \nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \nOn 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 3 years for males and 2 years for females). \nIn 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. \nSchool OPEB Fund \nChanges of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: June 30, 2017 valuation: 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 the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \nSEAD-OPEB Employer \nChanges of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: June 30, 2017 valuation: 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 the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \nThe discount rate was updated from 3.60% as of June 30, 2017 to 5.22% as of June 30, 2018. \n \n- 48 - \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"11\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over Expenditures \nOTHER FINANCING SOURCES (USES) \nInsurance Proceeds Other Sources Other Uses \nTotal Other Financing Sources (Uses) \nEXTRAORDINARY ITEMS \nDamage from Hurricane Michael \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,890,000.00 $ \n \n9,890,000.00 $ 10,614,370.01 $ \n \n80,000.00 \n \n80,000.00 \n \n84,144.16 \n \n27,626,930.99 \n \n28,464,084.99 \n \n28,453,535.18 \n \n5,603,147.01 \n \n7,778,531.14 \n \n6,804,862.57 \n \n145,600.00 \n \n145,600.00 \n \n486,327.65 \n \n150.00 \n \n150.00 \n \n145,718.23 \n \n188,140.00 \n \n188,140.00 \n \n526,731.03 \n \n43,533,968.00 \n \n46,546,506.13 \n \n47,115,688.83 \n \n724,370.01 4,144.16 \n(10,549.81) (973,668.57) 340,727.65 145,568.23 338,591.03 \n569,182.70 \n \n26,097,684.00 \n1,836,805.00 1,498,039.00 \n841,828.00 792,061.00 2,896,063.00 403,999.00 3,543,194.00 2,164,189.00 230,686.00 261,420.00 \n2,968,000.00 \n43,533,968.00 \n- \n \n28,041,635.97 \n2,114,967.28 2,135,456.88 \n841,828.00 820,261.00 2,896,063.00 403,999.00 3,546,194.00 2,284,695.00 231,986.00 261,420.00 \n2,968,000.00 \n46,546,506.13 \n- \n \n26,347,991.32 \n2,052,709.54 2,152,710.52 \n868,753.47 811,742.84 2,782,561.51 395,907.37 3,576,793.95 2,404,450.59 219,116.34 596,491.96 161,752.87 2,843,603.19 \n45,214,585.47 \n1,901,103.36 \n \n1,693,644.65 \n62,257.74 (17,253.64) (26,925.47) \n8,518.16 113,501.49 \n8,091.63 (30,599.95) (119,755.59) 12,869.66 (335,071.96) (161,752.87) 124,396.81 \n1,331,920.66 \n1,901,103.36 \n \n532,250.00 (532,250.00) \n- \n \n1,019,869.00 (1,019,869.00) \n- \n \n391,128.40 27,680.98 \n(2,600,247.48) \n(2,181,438.10) \n \n391,128.40 (992,188.02) (1,580,378.48) \n(2,181,438.10) \n \n6,307,237.91 - \n \n6,525,448.72 - \n \n(391,128.40) (671,463.14) 6,525,608.24 \n25,321.59 \n \n(391,128.40) (671,463.14) \n159.52 25,321.59 \n \n$ \n \n6,307,237.91 $ \n \n6,525,448.72 $ \n \n5,879,466.69 $ \n \n(645,982.03) \n \nNotes 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 or expenditures of the various principal accounts \nThe actual revenues and expenditures of the various principal accounts are $478,853.62 and $461,469.91, respectively. 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. \nSee notes to the basic financial statements. \n \n- 49 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"12\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education School Improvement Grants Striving Readers Supporting Effective Instruction State Grant Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n195GA324N1099 $ 195GA324N1099 \n \n600,171.66 2,032,161.94 \n2,632,333.60 \n \n84.027 84.027 84.173 \n \nH027A170073 H027A180073 H173A180081 \n \n84.048 84.011 84.011 84.358 84.358 84.377A 84.371 84.367 84.367 84.010 84.010 \n \nV048A180010 S011A170011 S011A180011 S365B170010 S365B180010 S377A160011 S371C170002 S367A170001 S367A180001 S010A170010 S010A180010 \n \n194,123.00 888,566.90 \n27,611.65 \n1,110,301.55 \n72,480.50 20,260.16 72,060.19 40,202.61 69,082.14 \n2,886.00 211,710.96 \n64,432.10 34,415.85 258,896.97 2,261,349.47 \n3,107,776.95 \n4,218,078.50 \n \n12.UNKNOWN \n \n55,104.48 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n6,905,516.58 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Crisp County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \nNote 2. Summary of Significant Accounting Policies \nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \nNote 3. Indirect Cost Rate \nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 50 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-Term Adjustment Hold Harmless One-Time QBE Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Bus Purchases - State Allotment Food Services GNETS State Grant Math and Science Supplements Preschool Handicapped Program Teachers Retirement Vocational Education \nGovernor's Office of Student Achievement Innovation Fund \nOffice of the State Treasurer Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Family Connections \nSee notes to the basic financial statements. \n \nSCHEDULE \"13\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,211,159.47 \n \n799,844.00 501,534.00 1,778,786.00 1,695,700.00 862,659.00 1,516,522.00 2,292,507.00 1,763,322.00 872,418.00 4,460,185.00 529,110.00 825,668.00 164,674.00 128,710.00 436,834.00 130,588.00 \n84,608.00 \n589,343.00 858,408.00 982,369.00 685,681.00 (228,690.00) \n540,492.00 80,765.00 \n3,320,370.00 \n77,220.00 73,080.00 761,826.04 28,894.82 70,923.69 31,247.18 136,422.00 \n240,894.98 \n99,460.00 \n \n50,000.00 \n \n$ \n \n28,453,535.18 \n \n- 51 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"14\" \n \nPROJECT 2012 ISSUE - SPLOST IV \n \nORIGINAL ESTIMATED \n \nCURRENT ESTIMATED \n \nAMOUNT EXPENDED IN CURRENT (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n1. Constructing and equipping a new school to include furniture, \n \nfixtures and equipment \n \n$ 5,000,000.00 $ 10,011,716.63 $ 4,554,816.97 $ 5,456,899.66 $ \n \n- $ \n \n- \n \n2. Renovating, repairing, improving, and equipping existing \n \nschools and related facilities, including without limitation, roof \n \nreplacements and repairs, mechanical system repairs and \n \nreplacements, parking lot repairs and renovations, improvements \n \nand renovations to physical education and athletic facilities \n \n12,000,000.00 \n \n14,343,100.36 \n \n48,699.96 \n \n11,603,159.28 \n \n- \n \n- \n \n3. Acquiring and installing systemwide instructional and \n \nadministrative technology, safety and security equipment \n \n3,000,000.00 \n \n1,000,000.00 \n \n84,673.03 \n \n333,984.67 \n \n- \n \n- \n \n4. Acquisition of school buses, vehicles and transportation \n \nequipment \n \n2,000,000.00 \n \n2,000,000.00 \n \n- \n \n810,382.00 \n \n- \n \n- \n \n5. Acquiring any necessary property, and paying costs incident to \n \naccomplishing the foregoing \n \n1,000,000.00 \n \n200,000.00 \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \n12/31/2020 \n12/31/2020 12/31/2020 12/31/2019 12/31/2019 \n \n$ 23,000,000.00 $ 27,554,816.99 $ 4,688,189.96 $ 18,204,425.61 $ \n \n- $ \n \n- \n \nPROJECT 2017 ISSUE - SPLOST V \n \nORIGINAL ESTIMATED \n \nCURRENT ESTIMATED \n \nAMOUNT EXPENDED IN CURRENT (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n1. Acquiring, constructing, repairing, improving, renovating, adding \n \nto, extending, upgraiding, and equipping school buildings, athletic \n \nfacilities, and support facilities, including acquiring any necessary \n \nproperty therefor, both real and personal, specifically including \n \nthe following: \n \n$ \n \n2,000,000.00 $ \n \n2,000,000.00 $ \n \n- $ \n \n2. Acquiring, constructing, and equipping a new middle school to include furniture, fixtures and equipment \n \n20,000,000.00 \n \n20,000,000.00 \n \n1,262,112.01 \n \n3. Roof replacements and repairs, mechanical system repairs and \n \nreplacements, parking lot repairs and renovations, improvements \n \nand renovations to physical education and athletic facilities \n \n- \n \n- \n \n- \n \n4. Acquiring and installing systemwide instructional and \n \nadministrative technology, safety and security equipment \n \n1,000,000.00 \n \n1,000,000.00 \n \n- \n \n5. Acquisition of school buses, vehicles and transportation equipment \n \n- \n \n- \n \n- \n \n6.Paying costs incident to accomplishing the foregoing \n \n- \n \n- \n \n- \n \n7.Issuance of general obligation debt in the principal amount of \n \nup to $15,000,000, repayable from the proceeds of the aforesaid \n \nsales and use tax, for the pupose of funding such portions of the \n \nabove projects as may be acquired, constructed and equipped \n \nwith the proceeds of general obligation debt. \n \n- \n \n- \n \n- \n \n- $ \n \n- $ \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \n12/31/2022 \n \n$ 23,000,000.00 $ 23,000,000.00 $ 1,262,112.01 $ \n \n- $ \n \n- $ \n \n- \n \n(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 Crisp County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include \nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n(4) In addition to the expenditures above, the School District has incurred issuance cost of $78,150 for the above projects. \n \nSee notes to the basic financial statements. \n \n- 53 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 13, 2020. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur 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. \n \n Compliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nPurpose of this Report \nThe 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. \nRespectfully submitted, \n \nMarch 13, 2020 \n \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \n \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Crisp 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, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \nOur 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. \nWe 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. \n \n Opinion on Each Major Federal Program \nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \nReport on Internal Control over Compliance \nManagement 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. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur 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. \nThe 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. \nRespectfully submitted, \n \nMarch 13, 2020 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2019 \nI SUMMARY OF AUDITOR'S RESULTS \nFinancial Statements \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \nNoncompliance material to financial statements noted: \nFederal Awards \nInternal Control over major program:  Material weakness identified?  Significant deficiency identified? \nType of auditor's report issued on compliance for major program: All major programs \n \nUnmodified \nNo None Reported \nNo \nNo None Reported \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major program: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.027, 84.173 \n \nTitle I Grants to Local Educational Agencies Special Education Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n$750,000.00 Yes \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2018-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2019-03-22"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \n \nPage \ni \n1 2 3 4 5 6 7 8 9 \n37 38 39 40 \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SEAD  OPEB \n6 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 7 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 8 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 9 SCHEDULE OF CONTRIBUTIONS  SEAD  OPEB 10 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 11 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n12 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 13 SCHEDULE OF STATE REVENUE 14 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n41 42 43 44 45 46 \n47 \n48 49 51 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 22, 2019 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2018, 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. \nManagement's Responsibility for the Financial Statements \nManagement 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. \nAuditor's Responsibility \nOur 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. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \n \n 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. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2018, 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. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2018, the Crisp County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement No. 85, Omnibus 2017. Our opinions are not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting 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. \nOther Information \nOur 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. \n \n 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. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 22, 2019 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. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nINTRODUCTION \nThe following discussion and analysis of the Crisp County Board of Education (the School District) introduces the basic financial statements for the fiscal year ended June 30, 2018. Management prepared this discussion that should be read in conjunction with the basic financial statements, footnotes, and supplementary information found in this report. This information taken collectively is designed to provide readers with an understanding of the School District's finances. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThe School District's basic financial statements consist of three components government-wide financial statements, fund financial statements, and notes to the financial statements. The basic financial statements present two different views of the School District through the use of governmentwide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplementary information that will enhance the reader's understanding of the financial condition of the School District. \nTable 1 Required Components of Annual Financial Report \n \nRequired Supplementary Information \n \nBasic Financial Statements \n \nGovernment-wide Financial Statements \n \nFund Financial Statements \n \nNotes to the Basic Financial Statements \n \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2018 are as follows:  The School District's net position decreased by 101.84% over the course of the year and was a negative $0.7 million at June 30, 2018. This was directly related to the adoption of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB). \n During the year, the School District's expenses were $48.1 million and its revenues were $50.1 million. Revenues increased by $0.5 million from the prior year. \n The general fund reported an unassigned fund balance of $6.3 million. \n \ni \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nBasic Financial Statements \nThe first two statements (exhibits A and B) of the basic financial statements are the government-wide financial statements. They provide both short-term and long-term information about the School District's financial status. \nThe remaining statements are the fund financial statements that focus on the activities of the individual parts of the School District, reporting the School District's operations in more detail than the government-wide statements. \nThe governmental fund statements tells how basic services such as regular and special education were financed in the short term as well as what remains for future spending. \nGovernment-Wide Financial Statements \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide statements provide short-term and long-term information about the School District's financial status as a whole. \nThe Statement of Net Position presents information on all of the School District's assets, deferred outflows liabilities, and deferred inflows, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District's is improving or deteriorating. \nThe Statement of Activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes and state and Federal grant funds finance most of these activities. \nGovernmental Funds \nA fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into governmental funds, proprietary funds, or fiduciary funds. Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Board's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using the modified accrual method of accounting, which provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are \nii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nmore or fewer financial resources available to finance the School District's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reflected in a reconciliation, which is part of the fund financial statements. \nBecause the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. \nThe School District maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general and capital projects funds, which are considered to be major funds. \nFiduciary Funds \nThese funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the 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. \nNotes to the financial statements \nThe notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. \nOther information \nIn addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information such as the budgetary comparison schedules for the general fund as presented on a generally accepted accounting principles basis in this section. These schedules are intended to demonstrate the School District's compliance with the legally adopted and amended budgets. \nGOVERNMENT-WIDE FINANCIAL ANALYSIS \nAs noted earlier, net position (Table 2) may serve over time as a useful indicator of a government's financial position. In the case of the School District, liabilities exceeded assets by $0.7 million which is a result of the adoption of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB). \nThe largest portion of the School District's net position of $56.5 million, reflects the School District's investment in capital assets (property, plant, and equipment) less any related debt used to acquire those assets that is still outstanding. The School District uses its assets to provide safe and secure facilities to the students, these assets are not available for future spending. Although the School District investment in its capital assets is reported net of related debt, it should be noted, currently the School District has no debt. \niii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 The School District reports a restricted net position of $7.7 million, which consist of SPLOST funds to be used for capital projects, USDA food inventory to be used for student meals, and bus replacement grant funds to be used for purchase of buses. The remaining portion of the School District's net position represents an unrestricted net position deficit of $64.9 million. The unrestricted net position deficit is a result of the current year adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) and the fiscal year 2015 adoption the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. More information about these reported liabilities can be found in Note 12 and 13, respectively of the financial statements. Change in Net Position The change in net position (Table 3) was $1.7 million which was a 746.84% increase. The increase is largely attributed to the increase in the capital projects fund balance of $2.5 million. This is due to the saving of the SPLOST collections for the future construction of a new middle school. However, this was offset by an increase in OPEB expense of $0.8 million which is a result of the adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting Postemployment Benefits Other than Pensions (OPEB). More information about this can be found in Note 12 of the notes. \niv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nThe change in accounting principle causes a restatement of beginning net position in the amount of $41.6 million which is a result of the adoption of the Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB). More information about this can be found in Note 12 of the Notes to the Basic Financial Statements. \nTable 2 \nNet Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2018 Year 2017 (1) \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 21,611,877 $ 18,366,306 56,457,487 57,200,020 \n \nTotal Assets \n \n78,069,364 75,566,326 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans and OPEB Plan \n \n7,393,597 10,046,758 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n5,304,502 75,923,282 \n \n5,234,383 40,586,120 \n \nTotal Liabilities \n \n81,227,784 45,820,503 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans and OPEB Plan \n \n4,958,112 \n \n634,136 \n \nNet Position Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n56,457,487 7,744,951 \n(64,925,373) \n \n56,997,539 5,869,115 \n(23,708,209) \n \nTotal Net Position \n \n$ (722,935) $ 39,158,445 \n \n(1) Fiscal year 2017 balances do not reflect the effects of the restatement of net postion. See Note 14 in the Notes to the Basic Financial Statements for additional information. \n \nv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nTable 3 Change in Net Position \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2018 \n \n2017 (1) \n \n$ \n \n450,058 $ \n \n526,934 \n \n31,498,671 \n \n32,012,891 \n \n- \n \n310,659 \n \nTotal Program Revenues \n \n31,948,729 \n \n32,850,484 \n \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted to a Specific Program Micellaneous and Investment Earnings \nTotal General Revenues \n \n10,976,853 4,023,150 2,383,447 727,750 \n18,111,200 \n \n10,006,850 3,902,921 2,244,565 544,044 \n16,698,380 \n \nTotal Revenues \n \n50,059,929 \n \n49,548,864 \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enteprise Operations Food Services \n \n28,418,014 \n2,200,066 1,989,216 \n913,282 854,576 2,895,047 382,233 3,616,721 2,468,877 202,985 555,042 \n227,742 3,354,240 \n \n29,198,371 \n2,121,337 2,092,703 \n891,498 746,382 2,846,062 321,080 3,639,861 2,386,314 188,645 557,329 \n295,928 3,435,089 \n \nTotal Expenses \n \n48,078,041 \n \n48,720,599 \n \nSpecial Items Loss on Sale of Buildings \n \n(268,775) \n \n(625,970) \n \nChange in Net Position \n \n1,713,113 \n \n202,295 \n \nBeginning Net Position \n \n(2,436,048) \n \n38,956,150 \n \nEnding Net Position \n \n$ \n \n(722,935) $ 39,158,445 \n \n(1) Fiscal year 2017 balances do not reflect the effects of the retatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \nvi \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nRevenues \nThe School District's total revenue was $50.1 million for the year. This chart provides a breakdown of the revenue source categories and the percentage of each category. Operating Grants and contributions is the largest category at 67.68%. Property taxes accounted for 21.93% of the District's revenue. \n \nREVENUES \n \nMiscellaneous and Investment Earnings \n \n1.45% \n \nCharges for Services 0.90% \n \nOperating Grants and Contributions \n \nSales Taxes \n \n8.04% \n \nProperty Taxes \n \n21.93% \n \n67.68% \n \nExpenses \n \nThe School Districts total expense was $48.1 million. This chart provides a breakdown of the expense \n \ncategories and the percentage of each category. The School District's expenses are predominantly \n \naccounted for in the instructional category which accounts for 59.11% of the total cost which is the \n \ncost directly related to educating \n \nthe students. Maintenance and operations accounted for 7.52% \n \nEXPENSES \n \nof the total cost which is the cost \n \nto keep the facilities comfortable, safe, and secure. \nFINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS \nThe focus of the School District's governmental funds is to provide information on near-term inflows \n \nFood Services Enterprise Operations Other Support Services Central Support Services Student Transportation Services Maintenance and Operation of Plant Business Administration School Administration General Administration Educational Media Services Improvement of Instructional Services \nPupil Services Instruction \n \n6.98% 0.47% 1.15% 0.42% \n5.13% 7.52% \n0.80% 6.02% \n1.78% 1.90% \n4.14% 4.58% \n \n59.11% \n \nand outflows, and balances \n \nof spendable resources. Such \n \ninformation is useful in assessing \n \nthe School District's financing requirements. In particular, unassigned fund balance may serve as a \n \nuseful measure of the School District's net resources available for spending at the end of the year. \n \nAt June 30, 2018, the School District's governmental funds reported a combined fund balance of approximately $14.6 million (Table 4), which represents a net increase in fund balance of $2.6 million. This increase is primarily due to the saving of SPLOST collections for the construction of a new middle school in the near future. \n \nGeneral Fund \n \nThe general fund is the primary operating fund of the School District. At the end of the fiscal year the total fund balance was $6.5 million, representing an unassigned fund balance of $6.3 million, and a restricted, non-spendable, and assigned fund balance of $0.2 million. \n \nvii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nThe School District tries to maintain an available general fund balance of 15% of general fund expenditures for unforeseen needs or other opportunities that might arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 14.58% of general fund expenditures of $44.8 million, \nCapital Projects Fund \nThe capital projects funds accounts for capital projects managed by the School District. During the year $0.5 million was transferred into the capital projects fund from the general fund to supplement the funding for the new middle school. After expenditures of $2.1 million, the capital projects fund had an increase in fund balance of $2.5 million and ended the year with a $8.1 million fund balance. \n \nTable 4 Governmental Fund Balance \n \nFiscal Year 2018 \n \nFiscal Year 2017 \n \nGeneral Fund Capital Projects Fund \n \n$ 6,525,608 $ 6,368,716 \n \n8,086,116 \n \n5,599,957 \n \nTotal \n \n$ 14,611,724 $ 11,968,673 \n \nGeneral Fund Budgeting Highlights \nThe School District's budget utilized a conservative approach based on limited information available. Emphasis was giving to ensure financial stability and long term stability while providing revenue enhancement, financial priorities, and discipline. \nIn the current year, the School District revised its budget periodically during the year to recognize new funding amounts from external sources, for state and federal grants. For fiscal year 2018, the School District's general fund had a favorable budget variance of $1.0 million. \nThe $0.8 million favorable revenue budget variance is attributable to more title ad valorem taxes collected, which is reported as property taxes and the revenues for the various school accounts are not include in the budget. These favorable variance was offset by federal grant revenue budgeted but not received in this fiscal year but these funds will be rolled over and available for use in the next fiscal year. \nThe $1.08 million favorable expenditure variance is attributable to a conservative budget approach and reviewing open positions vacated by retires before filling these positons. This was offset by other expenditure categories, which were over budget for necessary expenditures arising during the year. Also the expenditures for the various school accounts is not include in the budget. \nThe budget is a legally adopted document that incorporates input from the citizens of the School District and input from management of the School District, and the decisions of the School District regarding how to pay for the services that are provided to the students. \n \nviii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nCapital Assets \n \nAt fiscal year ended June 30, 2018, the School District had $56.5 million invested in capital assets, net of accumulated depreciation (Table 5). These assets include the buildings, property, and equipment owned by the School District. The capital assets decreased by $0.7 million due to the recognition of the additions to improve the buildings and facilities during the normal course of business throughout the year which was offset by the disposal of a building (referred to as the Dialysis building) due to a sale transaction. In fiscal year 2011 the building was donated to the School District. This transaction has been reported as a special item in the financial statements. \n \nAdditional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. \nTable 5 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2018 \n \nYear 2017 \n \nLand Construction In Progress Building and Improvements Equipment Land Improvements \n \n$ 2,222,328 $ 2,224,328 \n \n11,998 \n \n2,188,020 \n \n49,736,803 \n \n47,801,154 \n \n2,741,072 \n \n2,981,626 \n \n1,745,286 \n \n2,004,893 \n \nTotal \n \n$ 56,457,487 $ 57,200,021 \n \nCURRENT ISSUES \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The School District is in the initial phase for the construction of a new middle school. The School District will use the capital projects funds, state funds, and will issue $15 million in bonds for this project. \nREQUESTS FOR INFORMATION \nThis report is designed to provide an overview of the Board's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools,org or send an email to dbeavers@crispschools.org. \n \nix \n \n CRISP COUNTY BOARD OF EDUCATION \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Net Other Postemployment Benefits Asset Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities Due in More Than One Year Total Liabilities DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan Total Deferred Inflows of Resources NET POSITION Investment in Capital Assets Restricted for Bus Replacement Continuation of Federal Programs Capital Projects Net OPEB Asset Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ 14,731,216.58 \n2,207,344.96 3,550,008.22 \n934,565.06 811.82 \n106,315.44 54,529.59 27,085.00 \n2,234,325.53 54,223,161.50 \n78,069,363.70 \n \n5,930,292.30 1,463,305.00 \n7,393,597.30 \n \n130,686.77 4,919,478.76 \n107,983.36 146,353.14 35,658,145.00 40,111,370.00 \n153,767.43 \n81,227,784.46 \n \n1,227,656.00 3,730,456.00 \n4,958,112.00 \n \n56,457,487.03 \n77,220.00 54,529.59 7,586,115.88 27,085.00 (64,925,372.96) \n \n$ \n \n(722,935.46) \n \n- 1 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2018 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Sale of Building \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year, Restated \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 28,418,014.25 $ \n2,200,065.51 1,989,216.29 \n913,282.37 854,576.32 2,895,047.45 382,232.96 3,616,720.99 2,468,877.07 202,984.79 555,041.67 \n227,742.28 3,354,239.48 \n$ 48,078,041.43 $ \n \n336,211.96 $ 22,681,978.92 $ \n \n5,216.60 - \n \n264,290.55 1,283,756.01 \n494,478.00 723,402.16 1,121,930.88 \n3,929.73 1,312,657.10 \n656,731.38 2,274.10 \n54,780.40 \n \n108,629.89 \n \n2,898,461.68 \n \n450,058.45 $ 31,498,670.91 \n \n(5,399,823.37) \n(1,935,774.96) (705,460.28) (418,804.37) (131,174.16) \n(1,773,116.57) (378,303.23) \n(2,298,847.29) (1,812,145.69) \n(200,710.69) (500,261.27) \n(227,742.28) (347,147.91) \n(16,129,312.07) \n \n10,908,167.78 68,684.74 \n3,929,302.87 93,846.73 \n2,383,447.00 153,100.51 574,649.49 \n(268,775.00) \n17,842,424.12 \n1,713,112.05 \n(2,436,047.51) \n \nNet Position - End of Year \n \n$ \n \n(722,935.46) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2018 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 6,979,044.04 $ 7,752,172.54 $ 14,731,216.58 \n \n1,865,253.98 3,550,008.22 \n934,565.06 811.82 \n106,315.44 54,529.59 \n \n342,090.98 - \n \n2,207,344.96 3,550,008.22 \n934,565.06 811.82 \n106,315.44 54,529.59 \n \n$ 13,490,528.15 $ 8,094,263.52 $ 21,584,791.67 \n \n$ \n \n122,539.13 $ \n \n4,919,478.76 \n \n107,983.36 \n \n146,353.14 \n \n5,296,354.39 \n \n8,147.64 $ - \n \n130,686.77 4,919,478.76 \n107,983.36 146,353.14 \n \n8,147.64 \n \n5,304,502.03 \n \n1,668,565.52 \n \n- \n \n1,668,565.52 \n \n54,529.59 77,220.00 110,031.77 6,283,826.88 \n6,525,608.24 \n \n7,586,115.88 \n500,000.00 - \n8,086,115.88 \n \n54,529.59 7,663,335.88 \n610,031.77 6,283,826.88 \n14,611,724.12 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 13,490,528.15 $ 8,094,263.52 $ 21,584,791.67 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \nSome liabilities are not due and payable in the current period and some assets are applicable to future periods; therefore, are not reported in the funds. \nNet pension liability Net OPEB asset Net OPEB liability \nDeferred outflows and inflows of resources related to pensions and OPEB are applicable to future periods and, therefore, are not reported in the funds. \nRelated to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities are not due and payable in the current period and therefore are not reported in the funds. \nCompensated absences payable \n \n$ 14,611,724.12 \n \n$ \n \n2,222,327.89 \n \n11,997.64 \n \n66,768,014.44 \n \n8,819,928.70 \n \n6,331,711.52 \n \n(27,696,493.16) \n \n56,457,487.03 \n \n$ (35,658,145.00) 27,085.00 \n(40,111,370.00) \n \n(75,742,430.00) \n \n$ \n \n4,702,636.30 \n \n(2,267,151.00) \n \n2,435,485.30 \n \n1,668,565.52 \n \n(153,767.43) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n(722,935.46) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 10,471,536.85 $ 93,846.73 \n27,066,492.08 6,818,830.76 450,058.45 72,144.77 579,749.49 \n \n- $ 3,929,302.87 \n80,955.74 - \n \n10,471,536.85 4,023,149.60 \n27,066,492.08 6,818,830.76 450,058.45 153,100.51 579,749.49 \n \n45,552,659.13 \n \n4,010,258.61 \n \n49,562,917.74 \n \n26,304,364.98 \n1,818,889.72 1,967,345.93 \n871,138.04 812,674.19 2,778,917.96 376,238.09 3,437,294.70 2,229,465.05 200,350.54 561,396.54 227,742.28 3,166,717.50 \n- \n44,752,535.52 \n800,123.61 \n \n- \n257,125.94 - \n7,120.00 - \n2,004.38 127,639.85 \n1,712,087.90 \n2,105,978.07 \n1,904,280.54 \n \n26,304,364.98 \n2,076,015.66 1,967,345.93 \n871,138.04 819,794.19 2,778,917.96 378,242.47 3,564,934.55 2,229,465.05 200,350.54 561,396.54 227,742.28 3,166,717.50 1,712,087.90 \n46,858,513.59 \n2,704,404.15 \n \n125.00 (581,878.28) (581,753.28) 218,370.33 6,368,715.92 \n(61,478.01) \n \n581,878.28 - \n581,878.28 2,486,158.82 5,599,957.06 \n- \n \n582,003.28 (581,878.28) \n125.00 2,704,529.15 11,968,672.98 \n(61,478.01) \n \nFund Balances - Ending \n \n$ 6,525,608.24 $ 8,086,115.88 $ 14,611,724.12 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \nCapital outlay Depreciation expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \nPension expense OPEB expense \nFood inventories are expensed on the Statement of Activities using the consumption method while on the fund level food inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nCompensated absences \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 2,704,529.15 \n \n$ 1,980,879.72 (2,449,538.63) \n \n(468,658.91) (273,875.00) 505,315.67 \n \n$ \n \n49,260.58 \n \n(756,943.00) \n \n(707,682.42) \n \n(61,478.01) \n \n14,961.57 $ 1,713,112.05 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ASSETS Cash and Cash Equivalents Investments Receivables, Net \nInterest and Dividends \nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \n \nCRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2018 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 36,189.37 $ 119,229.64 \n \n82,723.78 - \n \n59.47 \n \n- \n \n$ 155,478.48 $ 82,723.78 \n \n$ 82,723.78 \n \n$ 155,478.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Other Deductions \nChange in Net Position Net Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n238.34 \n \n141.04 \n97.30 155,381.18 \n \n$ 155,478.48 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe 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. \nBASIS OF PRESENTATION \nThe 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. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe 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: \n1. 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. \n2. 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. \n3. 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. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect 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. \n \n- 9 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nProgram 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. \nFUND FINANCIAL STATEMENTS \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n 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. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \nThe School District reports the following fiduciary fund types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \n- 10 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The adoption of this statement has a significant impact on the School District's financial statements. As noted in the Restatement of Net Position note disclosure, the School District restated beginning net position for the cumulative effect of this accounting change. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. The objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits OPEB). The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statements. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nINVESTMENTS \nThe 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. \nInvestments 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. \nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \nRECEIVABLES \nReceivables 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. \nINVENTORIES \nFood Inventories \nOn the government-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the purchase method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \nThe cost of governmental fund type inventories are reported as expenditures when purchased. \nCAPITAL ASSETS \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \nCapital 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. \nDepreciation 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. \n \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nALL 10,000.00 25,000.00 \n5,000.00 50,000.00 \n \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years 10 to 20 years \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \nCOMPENSATED ABSENCES \nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays up to 10 days of unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nPENSIONS \nFor 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. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nto/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. \nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (SEAD - OPEB) \nFor 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 State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund (SEADOPEB) plan (the Plan) and additions to/deductions from the SEAD-OPEB's fiduciary net position have been determined on the same basis as they are reported by SEAD-OPEB. For this purpose, death benefits are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFUND BALANCES \nFund 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. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned 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. \nUnassigned 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. \nUSE OF ESTIMATES \nThe 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. \nPROPERTY TAXES \nThe Crisp County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on November 01, 2017 (levy date) based on property values as of January 01, 2017. Taxes were due on December 20, 2017 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2017 tax digest are reported as revenue in the governmental \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nfunds for fiscal year 2018. The Crisp County Board of Commissioners 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, 2018, for maintenance and operations amounted to $9,735,665.72. \nThe tax millage rate levied for the 2017 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.45 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $667,186.39 during fiscal year ended June 30, 2018. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,929,302.87 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nNOTE 3: BUDGETARY DATA \nThe 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 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, function and object. 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. \nThe 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. \nThe Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditures in any budgeted fund is anticipated to be more than the budgeted fund total, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \nSee 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. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2018, the School District had deposits with a carrying amount of $1,859,867.70, and a bank balance of $3,956,557.12. The bank balances insured by Federal depository insurance were $572,688.84 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $3,255,703.37. \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nAt June 30, 2018, $128,164.91 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized \n \n$ \n \n- \n \nUninsured with collateral held by the pledging \n \nfinancial institution \n \n- \n \nUninsured with collateral held by the pledging financial institution's trust department or agent but not in the School District's name \n \n128,164.91 \n \nTotal \n \n$ 128,164.91 \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 14,731,216.58 118,913.15 \n \nTotal cash and cash equivalents \n \n14,850,129.73 \n \nAdd: Deposits with original maturity of three months or more reported as investments \n \n119,229.64 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n13,109,491.67 \n \nTotal carrying value of deposits - June 30, 2018 \n \n$ 1,859,867.70 \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $13,109,491.67 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2017 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2018 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,224,327.89 $ 2,188,020.22 \n \n- $ \n \n2,000.00 $ \n \n11,997.64 2,188,020.22 \n \n2,222,327.89 11,997.64 \n \nTotal Capital Assets Not Being Depreciated \n \n4,412,348.11 \n \n11,997.64 2,190,020.22 \n \n2,234,325.53 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n63,251,053.96 8,554,986.88 6,331,711.52 \n \n3,891,960.48 264,941.82 - \n \n15,449,899.97 5,573,361.37 4,326,818.19 \n \n1,684,436.79 505,494.73 259,607.11 \n \n375,000.00 - \n \n66,768,014.44 8,819,928.70 6,331,711.52 \n \n103,125.00 - \n \n17,031,211.76 6,078,856.10 4,586,425.30 \n \nTotal Capital Assets, Being Depreciated, Net \n \n52,787,672.83 1,707,363.67 \n \n271,875.00 \n \n54,223,161.50 \n \nGovernmental Activity Capital Assets - Net $ 57,200,020.94 $ 1,719,361.31 $ 2,461,895.22 $ 56,457,487.03 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ \n \nImprovements of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n212,310.03 2,147.90 \n28,368.71 28,998.71 69,431.76 58,161.59 276,311.82 \n \n$ 1,679,758.52 \n675,730.52 94,049.59 \n \n$ 2,449,538.63 \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2018, consisted of the following: \n \nTransfers to \n \nTransfers From General Fund Agency Fund \n \nCapital Projects Fund General Fund \n \n$ 581,878.28 $ - \n \n125.00 \n \nTotal \n \n$ 581,878.28 $ \n \n125.00 \n \nTransfers are used to move funds from the general fund to the capital projects funds to provide supplemental funding for capital construction projects and to move funds from the general agency to the general fund to provide supplemental funding to the student activity accounts. \nNOTE 7: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2017 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions June 30, 2018 \n \nDue Within One Year \n \nCompensated Absences(1) \n \n$ 168,729.00 $ 19,538.23 $ 34,499.80 $ 153,767.43 $ \n \n- \n \n(1) The portion of compensated absences due within one year has been determined to be immaterial to the \nbasic financial statements. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nNOTE 8: RISK MANAGEMENT \nINSURANCE \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \nGeorgia School Boards Association Risk and Insurance Management System \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \ncoverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \n \nWORKERS' COMPENSATION \nGeorgia Education Workers' Compensation Trust \nThe School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \n \nUNEMPLOYMENT COMPENSATION \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2017 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n2018 $ \n \n- \n \n$ \n \n2,453.00 \n \n$ \n \n2,453.00 \n \n$ \n \n- \n \nSURETY BOND \nThe School District a purchased surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 100,000.00 \n \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \n \nNonspendable Inventories \nRestricted Capital Projects Bus Replacement \nAssigned Local Capital Outlay Projects School Activity Accounts \nUnassigned \n \n$ \n \n54,529.59 \n \n$ 7,586,115.88 77,220.00 \n \n7,663,335.88 \n \n$ 500,000.00 110,031.77 \n \n610,031.77 6,283,826.88 \n \nFund Balance, June 30, 2018 \n \n$ 14,611,724.12 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nNOTE 10: SIGNIFICANT COMMITMENTS \n \nOPERATING LEASES \nThe School District leases copiers 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 leases(s) totaled $84,794.28 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \n \nYear Ending \n \nGovernmental Funds \n \n2019 2020 \n \n$ 81,900.00 81,900.00 \n \nTotal \n \n$ 163,800.00 \n \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts 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. \nLITIGATION \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits P rovided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,451,573.00 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2018, the School District reported a liability of $40,111,370.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 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, 2017. At June 30, 2017, the School District's proportion was 0.285491%, which was an decrease of 0.005346% from its proportion measured as of June 30, 2016. \n \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2018, the School District recognized OPEB expense of $2,211,231.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nChanges of assumptions \n \n$ \n \n- $ 3,054,379.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n11,732.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n671,516.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n1,451,573.00 \n \n- \n \nTotal \n \n$ 1,463,305.00 $ 3,725,895.00 \n \nSchool District contributions subsequent to the measurement date of $1,451,573.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2019 2020 2021 2022 2023 2024 \n \n$ (667,192.00) $ (667,192.00) $ (667,192.00) $ (667,192.00) $ (670,124.00) $ (375,271.00) \n \nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 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, 2017: \nOPEB: \n \nInflation \n \n2.75% \n \nSalary increases \n \nERS \n \n3.25% - 7.00%, including inflation \n \nJRS \n \n4.50%, including inflation \n \nLRS \n \nNone \n \n- 23 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nTRS PSERS 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 \n \n3.25 -- 9.00%, including inflation N/A 3.88%, compounded annually, net of investment expense, and including inflation \n7.75% 5.75% \n5.00% 5.00% 2022 \n \nMortality 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: \n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \nAdditionally, there was a change of assumptions that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \n- 24 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nThe 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: \n \nAsset Class \n \nTarget Allocation \n \nLong-Term Expected Real Rate of Return* \n \nLocal Government Investment Pool \n \n100.00% \n \n1.13% \n \n* Rate shown is net of the 2.75% assumed rate of inflation \n \nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \n \n1% Decrease (2.58%) \n \nCurrent Discount Rate (3.58%) \n \n1% Increase (4.58%) \n \nNet OPEB Liability \n \n$ 47,625,068.00 $ \n \n40,111,370.00 $ 34,181,542.00 \n \nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nNet OPEB Liability \n \n$ 33,247,757.00 $ \n \n40,111,370.00 $ 49,047,786.00 \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \nPOSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS (SEAD  OPEB) \nP lan description: SEAD-OPEB was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nThe plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments. \n \nBenefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree. \n \nContributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable \ncompensation. There were no employer contributions required for the fiscal year ended June 30, 2018. \n \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2018, the Employer reported an asset of $27,085.00 for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2017. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2016. An expected total OPEB asset as of June 30, 2017 was determined using standard roll-forward techniques. The Employer's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2017. At June 30 2017, the Employer's proportion was 0.010421%, which was an increase of 0.000323% from its proportion measured as of June 30, 2016. \n \nFor the year ended June 30, 2018, the Employer recognized OPEB expense of $2,714.00. At June 30, 2018, the Employer reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nSEAD-OPEB \n \nDeferred \n \nDeferred \n \nOutflows of Inflows of \n \nResources Resources \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n$ \n \n- $ 4,138.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n423.00 \n \nTotal \n \n$ \n \n- $ 4,561.00 \n \n- 26 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nOther amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nSEAD-OPEB \n \n2019 2020 2021 2022 \n \n$ (1,246.00) $ (1,247.00) $ (1,035.00) $ (1,033.00) \n \nActuarial assum ptions: The total OPEB asset as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods \nincluded in the measurement: \n \nSEAD  OPEB: \n \nInflation \n \n2.75% \n \nSalary increases: \n \nIncludes Inflation \n \nERS \n \n3.25%  7.00% \n \nGJRS \n \n4.50% \n \nLRS \n \nN/A \n \nInvestment rate of return \n \n7.50%, net of OPEB plan investment expense, including inflation \n \nPostretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal \n \ndistribution analysis in which best-estimate ranges of expected future real rates of return (expected \n \nnominal returns, net of plan investment expense and the assumed rate of inflation) are developed for \n \neach major asset class. These ranges are combined to produce the long-term expected rate of return \n \nby weighting the expected future real rates of return by the target asset allocation percentage and by \n \nadding expected inflation. The target asset allocation and estimates of arithmetic real rates of return \n \nfor each major asset class are summarized in the following table: \n \nSEAD-OPEB \n \nLong-term \n \nTarget \n \nexpected real \n \nAsset class \n \nallocation \n \nrate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nDiscount rate: The discount rate used to measure the total OPEB liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. \n \nSensitivity of the School District's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the Employer's proportionate share of the net OPEB asset calculated using the discount rate of 7.50 %, as well as what the Employer's proportionate share of \nthe net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower \n(6.50 %) or 1- percentage-point higher (8.50 %) than the current rate: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nNet OPEB Asset \n \n$ 14,825.00 $ \n \n27,085.00 $ 37,132.00 \n \nOP EB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publically available at www.ers.ga.gov/financials. \nNOTE 13: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.69% of payroll \n \n- 28 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nwas required from the School District and 0.12% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,716,524.20 and $25,072.92 from the School District and the State, respectively. \nEMPLOYEES' RETIREMENT SYSTEM \nP lan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.81% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSPES members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3.00% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $28,576.10 for the current fiscal year. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. \n \n- 29 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nassigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \n \nBenefits 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 \nto receive reduced benefits after age 60 and upon completion of ten years of service. \n \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \n \nContributions: 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. \n \nIndividuals 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 $99,178.00. \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2018, the School District reported a liability of $35,658,145.00 for its proportionate share of the net pension liability for TRS ($35,406,870.00) and ERS ($251,275.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 35,406,870.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n345,687.00 \n \nTotal \n \n$ 35,752,557.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2017. \nAt June 30, 2017, the School District's TRS proportion was 0.190510%, which was a decrease of 0.003901% from its proportion measured as of June 30, 2016. At June 30, 2017, the School District's ERS proportion was 0.006187%, which was a decrease of 0.000329% from its proportion measured as of June 30, 2016. \n \n- 30 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nAt June 30, 2018, 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 $539,126.00. \n \nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 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, 2017. \n \nFor the year ended June 30, 2018, the School District recognized pension expense of $3,712,903.00 for TRS, ($7,888.00) for ERS and $108,655.00 for PSERS and revenue of $12,391.00 for TRS and $108,655.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience $ 1,324,435.00 $ 133,622.00 $ \n \n2,753.00 $ \n \n2.00 \n \nChanges of assumptions \n \n776,163.00 \n \n- \n \n572.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n243,658.00 \n \n- \n \n626.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n81,269.00 \n \n833,212.00 \n \n- \n \n16,536.00 \n \nSchool District contributions subsequent to the measurement date \n \n3,716,524.20 \n \n- \n \n28,576.10 \n \n- \n \nTotal \n \n$ 5,898,391.20 $ 1,210,492.00 $ \n \n31,901.10 $ 17,164.00 \n \nThe School District contributions subsequent to the measurement date of $3,716,524.20 for TRS and $28,576.10 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2019 2020 2021 2022 2023 \n \n$ (407,550.00) $ \n \n$ 1,655,310.00 $ \n \n$ 762,936.00 $ \n \n$ (1,047,524.00) $ \n \n$ \n \n8,203.00 $ \n \n(16,282.00) 6,747.00 2,821.00 (7,125.00) - \n \n- 31 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nActuarial assum ptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \nInflation Salary increases \n \n2.75% 3.25%  9.00%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nEmployees' Retirement System: \n \nInflation \n \n2.75% \n \nSalary increases \n \n3.25% - 7.00%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \n \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \n \nPublic School Employees Retirement System: \n \nInflation Salary increases Investment rate of return \n \n2.75% \nN/A \n7.50%, net of pension plan investment expense, including inflation \n \nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \n- 32 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nafter 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. \nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nERS/PSERS Target \nallocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 39.80% \n3.70% 1.50% 19.40% 5.60% \n- \n \n30.00% 37.20% \n3.40% 1.40% 17.80% 5.20% 5.00% \n \n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of the 2.75% assumed rate of inflation \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 33 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's \nproportionate share of the net pension liability would be if it were calculated using a discount rate that \nis 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ 58,106,828.00 $ \n \n35,406,870.00 $ 16,707,207.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ \n \n354,662.00 $ \n \n251,275.00 $ 163,082.00 \n \nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically \navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \nFor fiscal year 2018, the School District made prior period adjustments due to the adoption of GASB Statement No. 75, as described in \"New Accounting Pronouncements\", which require the restatement of the June 30, 2017, net position in Governmental Activities. The result is a decrease in net position at July 1, 2017 of $41,594,493.00. This change is in accordance with generally accepted accounting procedures. \n \nNet Position, July 1, 2017 as previously reported \n \n$ 39,158,445.49 \n \nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \n \n(43,083,065.00) \n \nDeferred Outflows - School District's Contributions made during fiscal year 2017 \n \n1,488,572.00 \n \nNet Position, July 1, 2017, as restated \n \n$ (2,436,047.51) \n \nNOTE 15: TAX ABATEMENTS \nCrisp County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Crisp County. \nFor the fiscal year ended June 30, 2018, Crisp County abated property taxes due to the School District that were levied on November 01, 2017 and due on December 20, 2017 totaling $12,861.35. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10.00% percent of the total amount abated: \n A 100% real property tax abatement to a logistics provider. The abatement amounted to $2,839.12. \n A 100% real property tax abatement to a manufacturing plant. The abatement amounted to $10,022.23. \n \n- 34 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"I\" \n \nNOTE 16: SPECIAL ITEMS \nThe School District sold a vacant building, referred to as the dialysis building, at a loss of $268,775.00. It had been donated to the School District in fiscal year 2011. This activity has been reported as a special item on the Statement of Activities. \n \n- 35 - \n \n (This page left intentionally blank) \n \n CRISP COUUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"1\" \n \nYear Ended \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \n2018 2017 2016 2015 \n \n0.190510% $ 0.194411% $ 0.196076% $ 0.197751% $ \n \n35,406,870.00 $ 40,109,157.00 $ 29,850,624.00 $ 24,983,231.00 $ \n \n345,687.00 $ 549,613.00 $ 412,571.00 $ 343,636.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n35,752,557.00 40,658,770.00 30,263,195.00 25,326,867.00 \n \n$ 22,112,634.26 $ 21,612,594.73 $ 20,992,143.60 $ 20,449,227.39 \n \n160.12% 185.58% 142.20% 122.17% \n \n79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a \npercentage of covered payroll \n \n2018 2017 2016 2015 \n \n0.006187% $ 0.006516% $ 0.007916% $ 0.008026% $ \n \n251,275.00 $ 308,234.00 $ 320,709.00 $ 301,025.00 $ \n \n151,752.46 151,515.54 180,996.28 180,721.38 \n \n165.58% 203.43% 177.19% 166.57% \n \nPlan fiduciary net position as a \npercentage of total net pension liability \n76.33% 72.34% 76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 38 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"3\" \n \nYear Ended \n2018 2017 2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \nState of Georgia's proprotionate share of the \nnet pension liaibility associated with the \nSchool District \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n539,126.00 $ 692,084.00 $ 440,393.00 $ 389,393.00 $ \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension \nliability as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n539,126.00 $ 1,788,126.82 692,084.00 $ 1,693,662.41 440,393.00 $ 1,652,417.20 389,393.00 $ 1,643,846.70 \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.90% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n \nSchool District's proportion of the net \nOPEB liability \n \nSchool District's proportionate share of the \nnet OPEB liability \n \nState of Georgia's proprotionate share of the net OPEB liaibility \nassociated with the School District \n \n2018 \n \n0.285491% $ \n \n40,111,370.00 $ \n \n- \n \n$ \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net OPEB liability as \na percentage of its covered-employee payroll \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n \n40,111,370.00 $ 19,261,608.86 \n \n208.25% \n \n1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 40 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB ASSET \nSEAD-OPEB FOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n \nSchool District's proportion of the net OPEB asset \n \nSchool District's proportionate share \nof the net OPEB liability \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of covered- \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of total OPEB liability \n \n2018 \n \n0.010421% $ (27,085.00) $ \n \n151,752.46 \n \n17.85% \n \n130.17% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 41 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n3,716,524.20 $ \n \n3,716,524.20 $ \n \n- \n \n2017 \n \n$ \n \n3,124,771.94 $ \n \n3,124,771.94 $ \n \n- \n \n2016 \n \n$ \n \n3,042,418.28 $ \n \n3,042,418.28 $ \n \n- \n \n2015 \n \n$ \n \n2,722,853.56 $ \n \n2,722,853.56 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n22,262,430.94 \n \n$ \n \n22,112,634.26 \n \n$ \n \n21,612,594.73 \n \n$ \n \n20,992,146.30 \n \nContribution as a percentage of covered \npayroll \n16.69% 14.14% 14.08% 12.97% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 42 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n28,576.10 $ \n \n28,576.10 $ \n \n- \n \n2017 \n \n$ \n \n37,649.78 $ \n \n37,649.78 $ \n \n- \n \n2016 \n \n$ \n \n37,454.64 $ \n \n37,454.64 $ \n \n- \n \n2015 \n \n$ \n \n39,746.79 $ \n \n39,746.79 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n115,179.70 \n \n$ \n \n151,752.46 \n \n$ \n \n151,515.54 \n \n$ \n \n180,996.28 \n \nContribution as a percentage of covered \npayroll \n24.81% 24.69% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 43 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"8\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2018 \n \n$ \n \n1,451,573.00 $ \n \n1,451,573.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of covered- \nemployee payroll \n \n$ 19,215,391.19 \n \n7.55% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 44 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SEAD-OPEB \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"9\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \n2018 \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n151,752.46 \n \nContribution as a percentage of covered- \nemployee payroll \n0.00% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 45 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"10\" \n \nTeachers Retirement System \nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \nEmployees' Retirement System \nChanges of assumptions: 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, disability, withdrawal and salary increases. \nPublic School Employees Retirement System \nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \nSchool OPEB Fund \nChanges of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \nChanges in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there were changes to the discount rate and an increase in the investment rate of return due to a longer-term investment strategy. \nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \nSEAD-OPEB Employer \nChanges of assumptions: On December 17, 2015, the Board of Trustees adopted recommended changes to the economic and demographic assumptions utilized by the Plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \n \n- 46 - \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"11\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,890,000.00 $ \n \n9,890,000.00 $ 10,471,536.85 $ \n \n80,000.00 \n \n80,000.00 \n \n93,846.73 \n \n25,731,497.00 \n \n26,611,000.91 \n \n27,066,492.08 \n \n6,339,011.90 \n \n7,711,468.62 \n \n6,818,830.76 \n \n165,200.10 \n \n165,200.10 \n \n450,058.45 \n \n200.00 \n \n200.00 \n \n72,144.77 \n \n273,846.00 \n \n273,856.00 \n \n579,749.49 \n \n42,479,755.00 \n \n44,731,725.63 \n \n45,552,659.13 \n \n581,536.85 13,846.73 \n455,491.17 (892,637.86) 284,858.35 \n71,944.77 305,893.49 \n820,933.50 \n \n25,982,384.00 \n1,756,672.00 1,575,470.00 \n839,909.00 731,802.00 2,834,198.00 372,937.00 3,554,245.00 2,128,640.00 203,433.00 247,193.00 \n3,135,177.00 \n43,362,060.00 \n(882,305.00) \n \n27,210,771.67 \n1,937,460.42 2,370,641.75 \n839,909.00 764,988.00 2,842,572.00 372,937.00 3,559,988.74 2,117,904.05 205,333.00 247,193.00 \n3,135,177.00 \n45,604,875.63 \n(873,150.00) \n \n26,304,364.98 \n1,818,889.72 1,967,345.93 \n871,138.04 812,674.19 2,778,917.96 376,238.09 3,437,294.70 2,229,465.05 200,350.54 561,396.54 227,742.28 3,166,717.50 \n44,752,535.52 \n800,123.61 \n \n906,406.69 \n118,570.70 403,295.82 (31,229.04) (47,686.19) \n63,654.04 (3,301.09) 122,694.04 (111,561.00) 4,982.46 (314,203.54) (227,742.28) (31,540.50) \n852,340.11 \n1,673,273.61 \n \n532,250.00 (532,250.00) \n(882,305.00) 6,224,385.58 \n- \n \n532,250.00 (532,250.00) \n(873,150.00) 6,338,184.31 \n- \n \n125.00 (581,878.28) (581,753.28) 218,370.33 6,368,715.92 \n(61,478.01) \n \n(532,125.00) (49,628.28) \n(581,753.28) 1,091,520.33 \n30,531.61 (61,478.01) \n \nFund Balances - Ending \n \n$ \n \n5,342,080.58 $ \n \n5,465,034.31 $ \n \n6,525,608.24 $ \n \n1,060,573.93 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $454,789.42 and $487,573.42, respectively. \nThe 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. \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"12\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Child Nutrition Discretionary Grants Limited Availability \nTotal Other Programs \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Supporting Effective Instruction State Grant Supporting Effective Instruction State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n18185GA324N1099 $ 18185GA324N1100 \n \n679,421.45 2,198,743.52 \n \n2,878,164.97 \n \n10.579 10.579 \n \n16165GA350N8103 185GA350N8103 \n \n10,258.90 19,984.92 \n30,243.82 \n2,908,408.79 \n \n84.027 84.027 84.173 \n84.048 84.367 84.367 84.011 84.011 84.358 84.358 84.371 84.010 84.010 \n \nH027A160073 H027A170073 H173A170081 \nV048A170010 S367A160001 S367A170001 S011A160011 S011A170011 S358B160010 S365B170010 S371C110049 S010A160010 S010A170010 \n \n168,620.00 931,939.28 \n34,817.00 \n1,135,376.28 \n63,177.85 58,802.26 101,960.23 \n1,153.05 65,344.24 \n8,505.92 29,896.84 64,739.52 225,354.05 2,238,393.92 \n2,857,327.88 \n3,992,704.16 \n \n12.UNKNOWN \n \n36,789.94 \n \nTotal Expenditures of Federal Awards \n \n$ 6,937,902.89 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Crisp County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \n \nNote 2. Summary of Significant Accounting Policies \nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \n \nSee notes to the basic financial statements. \n \n- 48 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services GNETS State Grant Math and Science Supplements Preschool Disability Services Teacher of the Year Teachers Retirement \nGovernor's Office of Student Achievement Connections for Classrooms Grant Innovation Fund \nOffice of the State Treasurer Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Family Connection \nSee notes to the basic financial statements. \n \nSCHEDULE \"13\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ 1,365,414.08 \n789,002.00 548,537.00 1,594,364.00 2,126,922.00 249,205.00 2,693,067.00 2,107,161.00 1,714,594.00 987,415.00 4,223,161.00 535,628.00 847,544.00 157,174.00 104,450.00 432,477.00 128,696.00 \n88,093.00 94.00 \n622,348.00 827,775.00 999,716.00 \n74,751.00 (356,917.00) \n550,450.00 80,222.00 \n2,383,447.00 \n74,682.00 803,456.10 \n22,607.77 56,481.00 \n507.25 25,072.92 \n27,473.24 33,743.72 \n99,178.00 \n48,500.00 \n$ 27,066,492.08 \n- 49 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"14\" \n \nPROJECT 2012 ISSUE - SPLOST IV \n \nORIGINAL ESTIMATED \n \nCURRENT ESTIMATED \n \nAMOUNT EXPENDED IN CURRENT (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n1. Renovating, repairing, improving, and equipping existing \n \nschools and related facilities, including without limitation, \n \nroof replacements and repairs, mechanical system repairs \n \nand replacements, parking lot repairs and renovations, \n \nimprovements and renovations to physical education and \n \nathletic facilities \n \n$ \n \n12,000,000.00 $ \n \n14,343,100.36 $ \n \n2,005,173.75 $ 9,597,985.53 $ \n \n2. Acquiring and installing systemwide instructional and administrative technology, safety and security equipment \n3. Acquisition of school buses, vehicles and transportation equipment \n4. Acquiring any necessary property, and paying costs incident to accomplishing the foregoing \n \n3,000,000.00 \n \n1,000,000.00 \n \n2,000,000.00 1,000,000.00 \n \n2,000,000.00 200,000.00 \n \n41,815.00 - \n \n292,169.67 810,382.00 \n- \n \n- $ - \n \n- \n \n12/31/2020 \n \n- \n \n12/31/2020 \n \n- \n \n12/31/2019 \n \n- \n \n12/31/2019 \n \n$ 18,000,000.00 $ 17,543,100.36 $ \n \n2,046,988.75 $ 10,700,537.20 $ \n \n- $ \n \n- \n \nPROJECT 2017 ISSUE - SPLOST V \n \nORIGINAL ESTIMATED \n \nCURRENT ESTIMATED \n \nAMOUNT EXPENDED IN CURRENT (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n1. Acquiring, constructing, and equipping a new middle school to include furniture, fixtures and equipment \n \n$ 23,000,000.00 $ 23,000,000.00 $ \n \n- $ \n \n- $ \n \n- $ \n \n- \n \n2. Roof replacements and repairs, mechanical system \n \nrepairs and replacements, parking lot repairs and \n \nrenovations, improvements and renovations to physical \n \neducation and athletic facilities \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n3. Acquiring and installing systemwide instructional and \n \nadministrative technology, safety and security equipment \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n4. Acquisition of school buses, vehicles and transportation \n \nequipment \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n5.Paying costs incident to accomplishing the foregoing \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \n12/31/2022 \n \n6.Issuance of general obligation debt in the principal \n \namount of up to $15,000,000.00, repayable from the \n \nproceeds of the aforesaid sales and use tax, for the pupose \n \nof funding such portions of the above projects as may be \n \nacquired, constructed and equipped with the proceedsof \n \ngeneral obligation debt. \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n$ 23,000,000.00 $ 23,000,000.00 $ \n \n- $ \n \n- $ \n \n$ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(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 Crisp County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n- 51 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 22, 2019 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2018, 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 22, 2019. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur 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. \n \n Compliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nPurpose of this Report \nThe 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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 22, 2019 \n \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nReport on Compliance for Each Major Federal Program \nWe have audited the Crisp County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. The School District's major federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for the School District's major federal program 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. \nWe 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. \n \n Opinion on Each Major Federal Program \nIn 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 its major federal program for the year ended June 30, 2018. \nReport on Internal Control over Compliance \nManagement 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 the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the 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. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur 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. \nThe 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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 \nI SUMMARY OF AUDITOR'S RESULTS \nFinancial Statements \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \nNoncompliance material to financial statements noted: \nFederal Awards \nInternal Control over major program:  Material weakness identified?  Significant deficiency identified? \nType of auditor's report issued on compliance for major program: All major programs \n \nUnmodified \nNo None Reported \nNo \nNo None Reported \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major program: \n \nCFDA Number \n \nName of Federal Program or Cluster \n \n84.010 \n \nTitle I Grants to Local Educational Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n$750,000.00 Yes \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2016-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-02-15"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nGOVERNMENT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n9 \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n33 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n34 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 37 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n38 \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n39 40 41 43 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n SECTION I FINANCIAL \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 15, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education (School District), as of and for the year ended June 30, 2016, 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. \nManagement's Responsibility for the Financial Statements \nManagement 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. \nAuditor's Responsibility \nOur 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. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \n \n (This page left intentionally blank) \n \n 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. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District, as of June 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2016, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68 and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through ix and pages 33 through 39, respectively, 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 regarding 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. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 8 through 10, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The \n \n (This page left intentionally blank) \n \n 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 not a required part of the basic financial statements. \nThe 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 as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated February 15, 2017, 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 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 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. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nINTRODUCTION \n \nAs management of the Crisp County Board of Education (School District), we offer readers of the Crisp County Board of Education's financial statements this narrative overview and analysis of the financial activities of the Crisp County Board of Education for the fiscal year ended June 30, 2016. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the School District's financial statements, which follow this narrative. \n \nFINANCIAL HIGHLIGHTS \n \nKey financial highlights for fiscal year 2016 are as follows: \n \n \n \nThe government-wide net position at June 30, 2016 was approximately $39.0 million. Net \n \nposition reflects the difference between all assets, deferred outflows of resources, liabilities \n \nand deferred inflows of resources. The net position at June 30, 2016 of $39.0 million \n \nrepresented an increase of approximately $5.4 million when compared to the prior year net \n \nposition of $33.6 million. \n \n \n \nThe School District had over $44.1 million in expenses relating to governmental activities; \n \nonly $32.8 million of these expenses were offset by program specific revenues charges \n \nfor services, operating and capital grants and contributions. However, the general revenues \n \n(primarily property and sales taxes) of approximately $16.7 million provided additional \n \nfunding of these expenses. \n \n \n \nThe governmental funds ending fund balance at June 30, 2016 was approximately $10.9 \n \nmillion, with a net increase of $2.7 million. Included in the governmental fund balance was \n \n$4.9 million unassigned fund balance and $6.0 million restricted, assigned, and \n \nnonspendable fund balance. \n \n \n \nThe $4.9 million unassigned fund balance for the General Fund was 11.39% of total general \n \nfund expenditures for the fiscal year. \n \nOVERVIEW OF THE FINANCIAL STATEMENTS \n \nThis discussion and analysis is intended to serve as an introduction to Crisp County Board of Education's basic financial statements. The School District's basic financial statements consist of three components: (1) Government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements (see Table 1). The basic financial statements present two different views of the School District through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplementary information that will enhance the reader's understanding of the financial condition of the Crisp County Board of Education. \n \ni \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nTable 1 Required Components of Annual Financial Report \n \nRequired Supplementary Information \n \nBasic Financial Statements \n \nGovernment-wide Financial Statements \n \nFund Financial Statements \n \nNotes to the Basic Financial Statements \n \nBasic Financial Statements \nThe first two statements (Exhibits A and B) of the basic financial statements are the governmentwide financial statements. They provide both short-term and long-term information about the School District's financial status. \nThe next statements (Exhibits C through H) are the fund financial statements. These statements focus on the activities of the individual parts of the School District's government and provide more detail than the government-wide statements. There are two types of funds presented in the fund financial statements: (1) Governmental funds and (2) fiduciary funds. \nThe next section (Exhibit I) of the basic financial statements reflects the notes to the basic financial statements. The notes explain in detail some of the data contained in the government-wide and fund financial statements. \nGovernment-wide Financial Statements \nThe government-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide statements provide short-term and long-term information about the School District's financial status as a whole. \nThe two government-wide statements report the School District's net position and how it has changed. Net position is the difference between the School District's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the School District's financial condition. \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \n \nii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nThe government-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes and state and Federal grant funds finance most of these activities. \nFund Financial Statements \nThe fund financial statements provide a more detailed look at the School District's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Crisp County Board of Education, like other governmental entities in Georgia, uses fund accounting to ensure and reflect compliance (or non-compliance) with legal, grant, etc. requirements. \nThe School District has two kinds of funds as discussed below: \nGovernmental Funds  Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Board's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using the modified accrual method of accounting, which provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or fewer financial resources available to finance the School District's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reflected in a reconciliation, which is part of the fund financial statements. \nFiduciary Funds  Fiduciary funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the 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. \nGOVERNMENT-WIDE FINANCIAL ANALYSIS \nThe total assets and deferred outflows of the Crisp County Board of Education exceeded the total liabilities and deferred inflows by over $38.9 million (net position) at June 30, 2016. The largest portion of net position is the School District's investment in capital assets (net of related debt) of approximately $56.8 million. The School District uses these capital assets (e.g., land, buildings, and equipment) to provide services to the students. Consequently, this net position is not available for future spending. An additional portion of the School District's net position totaling approximately $4.9 million represents resources that are subject to external restrictions regarding how they may be used. The remaining portion of the Board's net position is the unrestricted deficit balance of over $22.8 million. This deficit balance is primarily due to the School District's proportionate share of the Teachers Retirement System and Employees' Retirement System net pension liability. \niii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nAs noted above, net position may serve, over time, as one useful indicator of a government's financial condition. Table 2 below provides a summary of the School District's net position for the current year and the prior fiscal year. \n \nTable 2 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nCurrent and Other Assets Capital Assets Deferred Outflows of Resources \n \n$ \n \n17,818,040 $ \n \n15,708,051 \n \n56,842,564 \n \n55,419,506 \n \n3,277,244 \n \n3,018,022 \n \nTotal Assets and Deferred Outflows of Resources \n \n77,937,848 \n \n74,145,579 \n \nCurrent and Other Liabilities Long Term Liabilities Deferred Inflows of Resources \n \n5,604,819 30,326,569 \n3,050,310 \n \n6,289,283 25,440,254 \n8,811,256 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n38,981,698 \n \n40,540,793 \n \nNet Position Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n56,842,564 4,923,729 \n(22,810,143) \n \n55,419,506 2,590,629 \n(24,405,349) \n \nTotal Net Position \n \n$ \n \n38,956,150 $ \n \n33,604,786 \n \nCurrent year net position increased by approximately $5.4 million and the prior year net position increased by approximately $827.6 thousand. The school system financial position as a whole \nimproved as compared to last year's financial position. \n \nThe $5.3 million net increase was primarily due to the receipt of $2.1 million of state GSFIC funds for two construction projects. These renovations will be capitalized and the cost of these assets will be depreciated over their useful life. However the revenue is recognized in the year received. In the prior year, there was a reported loss of $2.6 million on the impairment of buildings. The net position also increased because the net effect of the School District's proportionate share of the Teachers Retirement System and Employees' Retirement System net pension liability, deferred outflows of resources, and deferred inflows of resources decreased. \n \nIn addition, the School District's government-wide net position was positively influenced by the following: \n \n \n \nIncreased state revenues of approximately $711 thousand primarily due to a reduction of the \n \namended formula adjustment. \n \n \n \nThe School District's ability to operate with no debt. \n \niv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nFurther, the School District's government-wide expenses increased due largely to these influences: \n \n \n \nEliminations of 4 furlough days. \n \n \n \nEmployer cost for Teachers Retirement increased from 13.28 % to 14.27%. \n \n \n \nEmployer monthly cost for noncertified employee state health increased from $596.20 to \n \n$746.20. \n \nv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 3 below provides a summary of the School District's change of net position for the current year and the change of net position for the prior fiscal year. \n \nTable 3 \n \nChange in Net Position \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 \n \nRevenue Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \n$ \n \n362,074 $ \n \n30,324,414 \n \n2,145,947 \n \n332,855 29,510,780 \n \nTotal Program Revenues \n \n32,832,435 \n \n29,843,635 \n \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Other \n \n10,016,263 3,927,521 \n2,100,515 635,735 \n \n10,262,889 4,085,731 \n2,187,047 571,606 \n \nTotal General Revenues \n \n16,680,034 \n \n17,107,273 \n \nTotal Revenues \n \n49,512,469 \n \n46,950,908 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \n \n26,310,364 \n1,601,770 1,903,818 \n806,784 716,149 2,575,456 278,078 3,592,049 2,213,956 165,234 660,451 \n112,397 3,224,600 \n \n26,046,113 \n1,532,336 1,922,831 \n797,615 689,400 2,457,210 326,756 3,585,682 2,056,330 158,878 600,582 \n118,341 3,275,144 \n \nTotal Expenses \n \n44,161,106 \n \n43,567,218 \n \nSpecial Items Loss on Impairment of Buildings \n \n- \n \n(2,556,071) \n \nChange in Net Position \n \n$ \n \n5,351,363 $ \n \n827,619 \n \nvi \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nThe focus of the Crisp County Board of Education's governmental funds is to provide information on near-term inflows and outflows, and balances of usable resources. Such information is useful in assessing the Crisp County Board of Education's financing requirements. \nAt June 30, 2016, the governmental funds of Crisp County Board of Education reported a combined fund balance of approximately $10.9 million, which represents a net increase in fund balance of $2.7 million. The fund balance available in the general fund was approximately $6.0 million and the capital projects was $4.9 million. The Crisp County Board of Education has determined that the School District should maintain an available fund balance of 10% of general fund expenditures in case unforeseen needs or opportunities arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 13.93% of general fund expenditures, and total governmental fund balance represents 23.32% of total governmental expenditures. \nTable 4 below provides a summary of the School District's governmental fund balances for this fiscal year as compared to the prior fiscal year. \nTable 4 Governmental Fund Balances \n \nGovernmental Funds \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 \n \nGeneral Fund Capital Projects Fund \n \n$ \n \n6,010,175 $ \n \n5,640,817 \n \n4,924,319 \n \n2,597,679 \n \nTotal \n \n$ \n \n10,934,494 $ \n \n8,238,496 \n \nGeneral Fund Budgeting Highlights \nThe Crisp County Board of Education adopts an annual budget for its general fund, as required by Georgia Law. The budget is a legally adopted document that incorporates input from the citizens of the School District, the management of the School District, and the decisions of the School District regarding the services to provide and how to pay for them. It also authorizes the School District to obtain funds from identified sources to finance these current period activities. The Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget and Actual provided for the general fund demonstrates how well the School District complied with the budget policy and whether or not the School District succeeded in providing the services planned when the budget was adopted. The schedule shows four columns: (1) The original budget as adopted by the School District; (2) the final budget as amended by the School District; (3) the actual revenues, expenditures and ending fund balances in the general fund; and 4) the difference or variance between the final budget and the actual revenues and expenditures. \nGenerally, budget amendments fall into one of three categories: (1) Amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; (2) amendments made to recognize new funding amounts from external sources, such as \n \nvii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nFederal and state grants; and (3) increases in appropriations that become necessary to maintain services. In the current year, the School District revised its budget periodically to recognize new funding amounts from external sources. \n \nFor the general fund, the final actual revenues of $43.5 million were more than the final budgeted amount of $42.8 million by approximately $682,000. This can be attributed to receiving more revenue than originally expected from the Georgia Department of Community Health for Medicaid reimbursements for occupational and physical therapy services provided to certain students. In addition, the school activity account revenues are not included in the budget. \n \nThe general fund's final actual expenditures of $43.2 million were less than the final budget amount of $43.7 million by approximately $521,000. The School District believes it effectively managed its budget during the fiscal year. Additionally, the School District did not include expenditures for school activity accounts in the final budget. \n \nCAPITAL ASSETS \nAt fiscal year ended June 30, 2016, the School District had $56.8 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 5 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nTable 5 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 \n \nLand Construction in Progress Building and Building Improvements Equipment Land Improvements \nTotal \n \n$ \n \n2,229,138 $ \n \n2,238,317 \n \n5,227,185 \n \n1,894,832 \n \n44,322,063 \n \n45,779,881 \n \n2,947,378 \n \n3,251,556 \n \n2,116,800 \n \n2,254,920 \n \n$ \n \n56,842,564 $ \n \n55,419,506 \n \nviii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nMajor capital asset transactions during the year include the following: \n \n \n \nConstruction in progress includes new HVAC units and renovations for the high school and \n \nrenovations and installing a bus canopy for the elementary school. \n \n \n \nBuildings disposals included A.S. Clark Elementary School due to a sale transaction. In fiscal \n \nyear 2015, the school had a valuation reduction which was the result of an impairment \n \nrelated to the fact that the building was vacant due to the construction of the new primary \n \nschool in March 2014. \n \nAdditional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. \n \nCURRENT ISSUES \n \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n \n \n \nOn November 3, 2015, the voters of Crisp County passed the continuance of the 1% \n \nEducation Special Purpose Local Option Sales Tax for capital improvements and the issuance \n \nof up to $15.0 million in general obligation debt. \n \nREQUESTS FOR INFORMATION \n \nThis report is designed to provide an overview of the Board's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools.org or send an email to dbeavers@crispschools.org. \n \nix \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n          (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe 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. \nBASIS OF PRESENTATION \nThe 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. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe 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: \n1. 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. \n2. 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. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net positon often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect 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. \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nProgram 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. \nFUND FINANCIAL STATEMENTS \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n 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. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \nThe School District reports the following fiduciary fund types: \n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. 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 and grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, claims and judgments, and compensated absences, which are recognized as expenditures \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nto 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. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The School District participates in an external investment pool, the State of Georgia local government investment pool (Georgia Fund 1), which does not meet the criteria of this statement. Therefore, the investment in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended. \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nINVESTMENTS \nThe 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. \nInvestments 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. \nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \nRECEIVABLES \nReceivables 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. \nINVENTORIES \nFood Inventories \nOn the government-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the purchase method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \nThe cost of governmental fund type inventories are reported as expenditures when purchased. \nCAPITAL ASSETS \nOn 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. \nCapital 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. \nDepreciation 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. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nALL 10,000.00 25,000.00 \n5,000.00 50,000.00 \n \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years 10 to 20 years \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \n \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \n \nCOMPENSATED ABSENCES \nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \n \nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \n \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \n \nPENSIONS \nFor 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. \n \nFUND BALANCES \nFund 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. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned 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. \nUnassigned 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. \nUSE OF ESTIMATES \nThe 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. \nPROPERTY TAXES \nThe Crisp County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on September 17, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on December 20, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Crisp County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $9,287,882.70. \nThe tax millage rate levied for the 2015 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.45 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $578,855.34 during fiscal year ended June 30, 2016. \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,831,386.60 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nNOTE 3: BUDGETARY DATA \nThe 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 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, function and object. 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. \nThe 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. \nThe Superintendent is authorized by the Board to approve adjustments for expenditures in any budget function for any fund. If expenditures in any budgeted fund is anticipated to be more than the budgeted fund total, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \nSee 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. \nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2016, the School District had deposits with a carrying amount of $1,716,070.59, which includes $118.753.68 in Certificates of Deposits that are recorded as investments, and a bank balance of $3,724,777.39. The bank balances insured by Federal depository insurance were $557,860.41. \nAt June 30, 2016, $3,166,916.98 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured with collateral held by the pledging financial institution \nUninsured with collateral held by the pledging financial institution's trust department or agent but not in the School District's name \n \n$ 2,845,233.49 321,683.49 \n \nTotal \n \n$ 3,166,916.98 \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $10,089,308.16 in Georgia Fund 1, a local government investment pool. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ \n \n2,238,317.21 $ \n \n- $ \n \n1,894,832.20 \n \n3,332,353.22 \n \n9,179.24 $ - \n \n2,229,137.97 5,227,185.42 \n \nTotal Capital Assets Not Being Depreciated \n \n4,133,149.41 \n \n3,332,353.22 \n \n9,179.24 \n \n7,456,323.39 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n59,066,993.84 8,352,278.04 6,187,733.65 \n13,287,112.61 5,100,722.00 3,932,814.03 \n \n186,829.75 107,505.00 \n1,372,887.14 491,007.36 245,620.38 \n \n122,761.67 27,738.57 463.59 \n37,830.96 27,738.57 \n458.53 \n \n58,944,232.17 8,511,369.22 6,294,775.06 \n14,622,168.79 5,563,990.79 4,177,975.88 \n \nTotal Capital Assets, Being Depreciated, Net \n \n51,286,356.89 \n \n(1,815,180.13) \n \n84,935.77 \n \n49,386,240.99 \n \nGovernmental Activity Capital Assets - Net \n \n$ 55,419,506.30 $ 1,517,173.09 $ \n \n94,115.01 $ 56,842,564.38 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ \n \n$ \n \n72,014.74 \n \n2,147.90 \n \n28,368.71 \n \n29,628.71 \n \n78,832.76 \n \n4,280.49 \n \n59,035.11 \n \n257,678.19 \n \n1,482,251.51 \n531,986.61 95,276.76 \n \n$ \n \n2,109,514.88 \n \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral Fund \n \nAgency Fund \n \nEXHIBIT \"I\" \n \nGeneral Fund Capital Projects Fund \n \n$ \n \n- \n \n$ \n \n75,000.00 \n \n593.52 - \n \nTotal \n \n$ \n \n75,000.00 $ \n \n593.52 \n \nTransfers are used to move property tax revenues collected by the general fund to the governmentwide capital projects fund as supplemental funding source for capital construction projects and to move school activity account funds between the governmental and agency accounts. \nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nCompensated Absences(1) \n \nBalance July 1, 2015 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2016 \n \nDue Within One Year \n \n$ 155,997.63 $ \n \n24,597.17 $ \n \n25,358.54 $ 155,236.26 $ \n \n- \n \n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \n \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nNOTE 8: RISK MANAGEMENT \nINSURANCE \nCommercial Insurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. The School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \n \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nGeorgia School Boards Association Risk and Insurance Management System \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \n \nWORKERS' COMPENSATION \nGeorgia School Boards Association Workers' Compensation Fund \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \n \nUNEMPLOYMENT COMPENSATION \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2015 $ \n \n- \n \n$ 12,036.88 $ 12,036.88 $ \n \n- \n \n2016 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \nSURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 100,000.00 \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects \nAssigned Local Capital Outlay Projects Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ \n \n44,417.38 \n \n$ \n \n85,089.87 \n \n4,794,222.16 \n \n4,879,312.03 \n \n$ 130,096.63 849,870.00 114,493.03 \n \n1,094,459.66 4,916,304.97 \n \nFund Balance, June 30, 2016 \n \n$ 10,934,494.04 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nNOTE 10: SIGNIFICANT COMMITMENTS \nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2016, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2016 (2) \n \nFunding Available From State (1) \n \nCrisp County School Modifications \n \n$ \n \n163,990.09 $ \n \n5,227,185.42 $ \n \n238,438.60 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include Contracts and Retainages Payable at year end. \n \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nOPERATING LEASES \nThe School District leases copiers 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 leases(s) totaled $84,314.89 for governmental activities for the year ended June 30, 2016. The following future minimum lease payments were required under operating leases at June 30, 2016: \n \nYear Ending \n \nGovernmental Funds \n \n2017 2018 \n \n$ \n \n41,445.29 \n \n290.70 \n \nTotal \n \n$ \n \n41,735.99 \n \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts 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. \nNOTE 12: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n- 23 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2016: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2015  June 30, 2016 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2015  December 31, 2015 $596.20 per member per month \n \nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n4,966,754.00 4,748,166.20 4,571,666.20 \n \nNOTE 13: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple- employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for \n- 24 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \ndisability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2016. The School District's contractually required contribution rate for the year ended June 30, 2016 was 14.27% of annual School District payroll, of which 14.08% of payroll was required from the School District and 0.19% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,042,418.28 and $41,698.98 from the School District and the State, respectively. \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nyear ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $37,454.64 for the current fiscal year. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits 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. \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: 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. \nIndividuals 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 $98,681.00. \n \n- 26 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2016, the School District reported a liability of $30,171,333.00 for its proportionate share of the net pension liability for TRS ($29,850,624.00) and ERS ($320,709.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 29,850,624.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n412,571.00 \n \nTotal \n \n$ 30,263,195.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2015. \nAt June 30, 2015, the School District's TRS proportion was 0.196076%, which was a decrease of 0.001675% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.007916%, which was a decrease of 0.000110% from its proportion measured as of June 30, 2014. \nAt June 30, 2016, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $440,393.00. \nThe PSERS net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2015. \nFor the year ended June 30, 2016, the School District recognized pension expense of $1,978,477.00 for TRS, ($2,821.00) for ERS and $26,263.00 for PSERS and revenue of $30,072.00 for TRS and $26,263.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDeferred Outflows of Resources \n \nERS Deferred Inflows of Resources \n \nDifferences between expected and actual experience $ \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n$ \n \n262,552.00 \n \n- \n \n2,517,932.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n197,371.00 \n \n230,506.00 \n \nSchool District contributions subsequent to the \n \nmeasurement date \n \n3,042,418.28 \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n37,454.64 \n \n2,562.00 23,140.00 \n13,618.00 - \n \nTotal \n \n$ 3,239,789.28 $ 3,010,990.00 \n \n$ 37,454.64 $ \n \n39,320.00 \n \nThe School District contributions subsequent to the measurement date of $3,042,418.28 for TRS and $37,454.64 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2017 2018 2019 2020 2021 \n \n$ (1,228,571.00) $ (24,613.00) \n \n$ (1,228,571.00) $ (12,195.00) \n \n$ (1,228,573.00) $ (10,314.00) \n \n$ \n \n894,574.00 $ \n \n7,802.00 \n \n$ \n \n(22,478.00) \n \n- 28 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nActuarial assum ptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \nInflation Salary increases Investment rate of return \n \n3.00% \n3.75%  7.00%, average, including inflation \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nEmployees' Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \n5.45%  9.25%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nPublic School Employees Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases Investment rate of return \n \nN/A \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \n- 29 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was \n \ndetermined using a log-normal distribution analysis in which best-estimate ranges of expected future \n \nreal rates of return (expected returns, net of pension plan investment expense and inflation) are \n \ndeveloped for each major asset class. These ranges are combined to produce the long-term expected \n \nrate of return by weighting the expected future real rates of return by the target asset allocation \n \npercentage and by adding expected inflation. The target asset allocation and best estimates of \n \narithmetic real rates of return for each major asset class are summarized in the following table: \n \nLong-term \n \nTarget \n \nexpected real \n \nAsset class \n \nallocation \n \nrate of return* \n \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \n \n30.00% 39.70% \n3.70% 1.60% 18.90% 6.10% \n \n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \n \nTotal \n \n100.00% \n \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \n \nTeachers Retirement System: \nSchool District's proportionate share of the Net Pension Liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ 51,296,040.00 $ \n \n29,850,624.00 $ 12,174,498.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the Net Pension Liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n$ 454,616.00 $ \n \n320,709.00 $ \n \n1% Increase (8.50%) \n206,547.00 \n \n- 30 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"I\" \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically \navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \n- 31 - \n \n (This page left intentionally blank) \n \n          (This page left intentionally blank) \n \n  (This page left intentionally blank) \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 15, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \nGOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education (School District) as of and for the year ended June 30, 2016, 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 February 15, 2017. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \n \n (This page left intentionally blank) \n \n 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. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, 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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 15, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nREPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Crisp 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, 2016. 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. \nManagement's Responsibility \nManagement is responsible for compliance with the federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \nAuditor's Responsibility \nOur 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. \n \n (This page left intentionally blank) \n \n 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. \nOpinion on Each Major Federal Program \nIn 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, 2016. \nReport on Internal Control over Compliance \nManagement 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. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur 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. \nThe 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. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported \n \n (This page left intentionally blank) \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2016 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nUnmodified \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a) \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.027, 84.173 \n \nTitle I Grants to Local Educational Agencies Special Education Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$750,000.00 \n \nAuditee qualified as low-risk auditee? \n \nYes \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2015-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-03-25"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n3 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \n4 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n5 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n6 \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n7 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n8 \n \nI NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \n30 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n31 \n \n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \n32 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 34 \n \n5 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n36 \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n6 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n7 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 8 SCHEDULE OF STATE REVENUE 9 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 10 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n37 38 40 41 43 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n SECTION I FINANCIAL \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 25, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements (Exhibits A through I), which collectively comprise the Board's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \nManagement 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. \nAuditor's Responsibility \nOur 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. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that \n \n2015ARL-11 \n \n (This page left intentionally blank) \n \n are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2015, the Crisp County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions  an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB Statement No. 68. The School District restated beginning Net Position for the cumulative effect of these accounting changes. Our opinion is not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through ix and pages 30 through 37, respectively, 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 regarding 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. \n2015ARL-11 \n \n (This page left intentionally blank) \n \n Other Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 7 through 10, 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 U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \nThe 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 as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 25, 2016, on our consideration of the Crisp County Board of Education'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 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 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 Crisp County Board of Education's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:kt 2015ARL-11 March 25, 2016 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nINTRODUCTION \nAs management of the Crisp County Board of Education (School District), we offer readers of the Crisp County Board of Education's financial statements this narrative overview and analysis of the financial activities of the Crisp County Board of Education for the fiscal year ended June 30, 2015. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the School District's financial statements, which follow this narrative. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2015 are as follows: \n District-wide beginning net position at July 1, 2014 was restated to $32.8 million. This reflects a decrease of $32.1 million, due to the implementation of GASB Statement 68 and Statement 71, as described in Note 2 of the Notes to the Basic Financial Statements. \n The District-wide net position at June 30, 2015 was approximately $33.6 million. Net position reflects the difference between all assets, deferred outflows of resources, liabilities and deferred inflows of resources. The net position at June 30, 2015 of $33.6 million represented an increase of approximately $800 thousand when compared to the prior year restated balance. \n The School District had over $43.6 million in expenses relating to governmental activities; only $29.8 million of these expenses were offset by program specific charges for services, operating and capital grants and contributions. However, the general revenues (primarily property and sales taxes) of approximately $17.1 million provided additional funding of these expenses. \n The District-wide special item of approximately -$2.6 million resulted from the reduction of the carrying value of A.S Clark Elementary and Blackshear Trail Elementary as these assets were considered impaired. These schools became vacant due to the completion of a new Primary school. \n The governmental funds ending fund balance at June 30, 2015 was approximately $8.2 million, with a net increase of $.2 million. \n At the end of the current fiscal year, unassigned fund balance for the General Fund was approximately $4.7 million, or 11.16% of total general fund expenditures for the fiscal year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis discussion and analysis is intended to serve as an introduction to Crisp County Board of Education's basic financial statements. The School District's basic financial statements consist of three components: (1) District-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements (see Table 1). The basic financial statements present two different views of the School District through the use of District-wide statements and fund financial statements. In addition to the basic financial statements, this report contains the management discussion and analysis (this section), required supplementary information and supplementary information that will enhance the reader's understanding of the financial condition of the Crisp County Board of Education. \ni \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nTable 1 Required Components of Annual Financial Report \n \nRequired Supplementary Information \n \nBasic Financial Statements \n \nDistrict-Wide Financial Statements \n \nFund Financial Statements \n \nNotes to the Basic Financial Statements \n \nBasic Financial Statements \nThe first two statements (Exhibits A and B) of the basic financial statements are the District-wide financial statements. They provide both short term and long term information about the School District's financial status. \nThe next statements (Exhibits C through H) are the fund financial statements. These statements focus on the activities of the individual parts of the School District's government and provide more detail than the District-wide statements. There are two types of funds presented in the fund financial statements: (1) Governmental funds and (2) fiduciary funds. \nThe next section (Exhibit I) of the basic financial statements reflects the notes to the basic financial statements. The notes explain in detail some of the data contained in the District-wide and fund financial statements. \nDistrict-wide Financial Statements \nThe District-wide financial statements are designed to provide the reader with a broad overview of the School District's finances in a format similar to the financial statements of a private-sector business. The government-wide statements provide short-term and long-term information about the School District's financial status as a whole. \nThe two District-wide statements report the School District's net position and how it has changed. Net position is the difference between the School District's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the School District's financial condition. \nThese statements are presented using the economic resources measurement focus (accrual accounting), which is similar to the accounting used by most private-sector businesses. This basis of accounting includes all of the current year's revenues and expenditures regardless of when cash is received or paid. \n \nii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nThe District-wide statements include the School District's basic services such as instruction, support services, food services, and enterprise operations. Property taxes and state and Federal grant funds finance most of these activities. \nFund Financial Statements \nThe fund financial statements provide a more detailed look at the School District's most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Crisp County Board of Education, like other governmental entities in Georgia, uses fund accounting to ensure and reflect compliance (or non-compliance) with legal, grant, etc. requirements. \nThe School District has two kinds of funds as discussed below: \nGovernmental Funds  Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Board's basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using the modified accrual method of accounting, which provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or fewer financial resources available to finance the School District's programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reflected in a reconciliation, which is part of the fund financial statements. \nFiduciary Funds  Fiduciary funds are used to account for resources held for clubs, organizations and others within the principals' accounts for which the School District is the trustee, or fiduciary. The School District is responsible for ensuring that the assets reported in the funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \nDISTRICT-WIDE FINANCIAL ANALYSIS \nThe total assets and deferred outflows of the Crisp County Board of Education exceeded the total liabilities and deferred inflows by over $33.6 million (net position) at June 30, 2015. Current year net position decreased by approximately $31.2 million from the prior year, primarily due to the implementation of GASB Statements No. 68 and No. 71. With the new reporting requirements of GASB 68 and GASB 71, the School District has recorded its proportionate share of the Teachers' Retirement System and Employees' Retirement System in net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense. Decisions regarding the allocations were made by the administrators of the pension plans, not by Crisp County Board of Education's management. \nThe largest portion of net position is the School District's investment in capital assets (net of related debt) of approximately $55.4 million. The School District uses these capital assets (e.g., land, buildings, and equipment) to provide services to the students. Consequently, this net position is not available for future spending. An additional portion of the School District's net position totaling approximately $2.6 million, represents resources that are subject to external restrictions regarding how they may be used. The remaining portion of the Board's net position is the unrestricted deficit \niii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nbalance of over $24.4 million. This deficit balance is due to the implementation of GASB Statement 68 and GASB Statement 71, as described above. \n \nAs noted above, net position may serve, over time, as one useful indicator of a government's financial condition. Table 2 provides a summary of the School District's net position for the current year as compared to the prior fiscal year. \nTable 2 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal (1) \n \nYear 2015 \n \nYear 2014 \n \nCurrent and Other Assets Capital Assets Deferred Outflows of Resources \n \n$ \n \n15,708,051 $ \n \n13,460,010 \n \n55,419,506 \n \n56,114,975 \n \n3,018,022 \n \nTotal Assets and Deferred Outflows of Resources \n \n74,145,579 \n \n69,574,985 \n \nCurrent and Other Liabilities Long Term Liabilities Deferred Inflows of Resources \n \n6,289,283 25,440,254 \n8,811,256 \n \n4,592,867 136,206 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n40,540,793 \n \n4,729,073 \n \nNet Position Investment in Capital Assets Restricted Unrestricted \n \n55,419,506 2,590,629 \n-24,405,349 \n \n56,114,975 2,861,988 5,868,949 \n \nTotal Net Position \n \n$ \n \n33,604,786 $ \n \n64,845,912 \n \n(1) Though this is not reflected in the analysis above, net position at July 1, 2014 has been restated to approximately $32.8 million due to the implementation of GASB Statements 68 and 71. Based on this restated beginning net position, total net position increased by $827.6 thousand from the prior year. This change in net position is detailed in Table 3 as presented on the following page. \n \niv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nTable 3 Change in Net Position \n \nRevenue \n \nProgram Revenues: \n \nCharges for Services \n \n$ \n \nOperating Grants and Contributions \n \nCapital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 (1) \n \n332,855 $ 29,510,780 \n \n356,589 28,569,601 \n606,250 \n \nTotal Program Revenues \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Other \n \n29,843,635 \n10,262,889 4,085,731 \n2,187,047 571,606 \n \n29,532,440 \n9,389,873 3,992,470 \n1,961,732 406,871 \n \nTotal General Revenues \n \n17,107,273 \n \n15,750,946 \n \nTotal Revenues \n \n46,950,908 \n \n45,283,386 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \n \n26,046,113 \n1,532,336 1,922,831 \n797,615 689,400 2,457,210 326,756 3,585,682 2,056,330 158,878 600,582 \n118,341 3,275,144 \n \n27,623,519 \n1,397,471 1,767,986 \n783,878 912,262 2,688,913 332,334 3,487,425 2,018,043 157,334 614,079 \n135,391 3,148,998 \n \nTotal Expenses \n \n43,567,218 \n \n45,067,633 \n \nSpecial Items Loss on Impairment \n \n-2,556,071 \n \n0 \n \nChange in Net Position \n \n$ \n \n827,619 $ \n \n215,753 \n \n(1) Fiscal Year 2014 balances do not reflect the effects of the Restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \n \nv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nThe increase in net position of $827.6 thousand was the result of a concerted effort to control costs and manage expenditures. The School District's management acknowledges that fiscal year 2015 was a successful year and plans on improving upon these approaches as a long-term strategy to realize continued fiscal health. \nSeveral particular aspects of the School District's financial operations positively influenced the total unrestricted governmental net position: \n \n Increased state revenues of approximately $1.0 million primarily due to a reduction of the amended formula adjustment. \n \n The School District's ability to operate with no debt. \n \n The addition of the Striving Readers Federal grants for the High School, Middle School, Elementary School and the Pre-Kindergarten Programs. \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 4 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net costs reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \nTable 4 \nGovernmental Activities \n \nInstruction \n \n$ \n \nSupport Services: \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services: \n \nEnterprise Operations \n \nFood Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2013 \n \n2014 (1) \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2013 \n \n2014 (1) \n \n26,046,112 $ 27,623,519 $ 5,253,779 $ 7,238,688 \n \n1,532,336 1,922,831 \n797,615 689,400 2,457,210 326,756 3,585,682 2,056,330 158,878 600,582 \n \n1,397,471 1,767,986 \n783,878 912,262 2,688,913 332,334 3,487,425 2,018,043 157,334 614,079 \n \n1,179,205 519,670 298,288 -8,500 \n1,398,439 324,654 \n2,235,462 1,439,156 \n155,517 440,659 \n \n1,074,907 488,055 294,730 267,180 \n1,561,421 312,758 \n2,108,468 1,271,171 \n153,085 399,288 \n \n118,341 3,275,144 \n \n135,391 3,148,998 \n \n118,341 368,913 \n \n135,391 230,051 \n \nTotal Expenses \n \n$ \n \n43,567,217 $ 45,067,633 $ 13,723,583 $ 15,535,193 \n \n(1) Fiscal Year 2014 balances do not reflect the effects of the Restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \n \nvi \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nThe focus of the Crisp County Board of Education's governmental funds is to provide information on near-term inflows and outflows, and balances of usable resources. Such information is useful in assessing the Crisp County Board of Education's financing requirements. \nAt June 30, 2015, the governmental funds of Crisp County Board of Education reported a combined fund balance of approximately $8.2 million, which represents a net increase in fund balance of $159,640. The fund balance available in the general fund was approximately $5.6 million and the Capital Projects was $2.6 million. The Crisp County Board of Education has determined that the School District should maintain an available fund balance of 10% of general fund expenditures in case unforeseen needs or opportunities arise in addition to meeting the cash flow needs of the School District. The School District currently has an available general fund balance of 13.27% of general fund expenditures, and total governmental fund balance represents 17.73% of total governmental expenditures. \nTable 5 provides a summary of the School District's governmental fund balances for this fiscal year as compared to the prior fiscal year. \n \nTable 5 Governmental Fund Balances \n \nGovernmental Funds \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 \n \nGeneral Fund Capital Projects Fund \n \n$ \n \n5,640,817 $ 5,511,019 \n \n2,597,679 \n \n2,570,346 \n \nTotal \n \n$ \n \n8,238,496 $ 8,081,365 \n \nGeneral Fund Budgeting Highlights \nThe Crisp County Board of Education adopts an annual budget for its general fund, as required by Georgia Law. The budget is a legally adopted document that incorporates input from the citizens of the School District, the management of the School District, and the decisions of the School District regarding the services to provide and how to pay for them. It also authorizes the School District to obtain funds from identified sources to finance these current period activities. The Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget and Actual provided for the general fund demonstrates how well the School District complied with the budget policy and whether or not the School District succeeded in providing the services planned when the budget was adopted. The schedule shows four columns: (1) The original budget as adopted by the School District; (2) the final budget as amended by the School District; (3) the actual revenues, expenditures and ending fund balances in the general fund; and 4) the difference or variance between the final budget and the actual revenues and expenditures. \nDuring the fiscal year, the School District revised the budget on one occasion. Generally, budget amendments fall into one of three categories: (1) Amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; (2) \nvii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \namendments made to recognize new funding amounts from external sources, such as Federal and state grants; and (3) increases in appropriations that become necessary to maintain services. In the current year, the School District revised its budget to move funds from one category to a different category due to the transition of employees from two elementary schools and two primary schools to one elementary school and one primary school. The amended budget total remained close to the same level as the original budget total. \n \nFor the general fund, the final actual revenues of $42.6 million were more than the final budgeted amount of $42.1 million by approximately $.5 million. This can be attributed to receiving more property taxes than originally expected. \n \nThe general fund's final actual expenditures of $42.5 million were less than the final budget amount of $42.7 million by approximately $.2 million. The District believes it effectively managed its budget during the fiscal year. Additionally, the School District did not include revenues and expenditures for school activity accounts in the final budget. \n \nCAPITAL ASSETS \n \nAt fiscal year ended June 30, 2015, the School District had $55.4 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 6 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 6 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 \n \nLand Construction in Progress Building and Building Improvements Equipment Land Improvements \n \n$ \n \n2,238,317 $ \n \n2,238,317 \n \n1,894,832 \n \n25,427 \n \n45,779,881 \n \n48,701,786 \n \n3,251,556 \n \n2,649,916 \n \n2,254,920 \n \n2,499,528 \n \nTotal \n \n$ \n \n55,419,506 $ 56,114,974 \n \nMajor capital asset transactions during the year include the following: \n Construction in progress includes renovations for the high school and the elementary school. \n The net book values of all assets associated with A.S. Clark Elementary School and Blackshear Trail Elementary School have been reduced by $1,908,823 and $647,248, respectively. This reduction is the result of an impairment related to the fact that the building was vacant due to the construction of the new primary school in March 2014. \n \nviii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Additional information about the School District's capital assets can be found in the Notes of the Basic Financial Statements. CURRENT ISSUES Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows:  Bids have been opened for the sale of A.S. Clark Elementary School, and a sale is pending for this property.  On November 3, 2015, the voters of Crisp County passed the continuance of the 1% Education Special Local Option Sales Tax for capital improvements and the issuance of up to $15.0 million in general obligation debt. REQUESTS FOR INFORMATION This report is designed to provide an overview of the Board's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to Donna Beavers, Director of Finance, Crisp County Board of Education, 201 7th Street South, Cordele, GA 31015. One may also call (229) 276-3400, visit our website www.crispschools,org or send an email to dbeavers@crispschools.org. \nix \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Long-Term Liabilities \nDue in More Than One Year Net Pension Liability \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nNET POSITION \nInvestment in Capital Assets Restricted for \nContinuation of Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n2,221,151.03 \n \n7,372,387.32 \n \n177.74 1,807,114.38 2,972,143.88 1,167,413.40 \n17,007.95 102,886.36 \n47,768.42 4,133,149.41 51,286,356.89 \n \n71,127,556.78 \n \n3,018,022.35 \n \n278,055.98 4,470,915.58 \n5,398.89 1,324,097.10 \n167,636.70 43,178.62 \n155,997.63 25,284,256.00 \n31,729,536.50 \n \n8,811,256.00 \n \n55,419,506.30 \n65,766.99 2,524,862.12 -24,405,348.78 \n \n$ \n \n33,604,786.63 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Loss on Impairment \nTotal General Revenues and Special Items \nChange in Net Position \nNet Position - Beginning of Year, Restated \nNet Position - End of Year \n \nEXPENSES \n \nPROGRAM REVENUES \n \nCHARGES FOR SERVICES \n \nOPERATING GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 26,046,112.35 $ \n1,532,335.46 1,922,831.38 \n797,614.91 689,400.20 2,457,209.78 326,755.91 3,585,682.49 2,056,329.93 158,877.76 600,582.12 \n118,341.26 3,275,143.96 \n$ 43,567,217.51 $ \n \n243,337.67 $ 20,548,995.41 $ \n \n4,785.40 \n \n353,130.58 1,403,161.50 \n499,327.00 697,899.82 1,058,770.65 \n2,102.14 1,345,435.25 \n617,174.22 3,360.45 \n159,923.24 \n \n84,731.50 \n \n2,821,499.75 \n \n332,854.57 $ 29,510,780.01 \n \n-5,253,779.27 \n-1,179,204.88 -519,669.88 -298,287.91 8,499.62 \n-1,398,439.13 -324,653.77 \n-2,235,461.84 -1,439,155.71 \n-155,517.31 -440,658.88 \n-118,341.26 -368,912.71 \n-13,723,582.93 \n \n10,208,929.05 53,959.59 \n \n3,976,653.07 109,077.62 \n2,187,047.00 11,553.33 \n560,052.61 \n-2,556,070.99 \n14,551,201.28 \n827,618.35 \n32,777,168.28 \n \n$ \n \n33,604,786.63 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2015 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 2,148,334.40 $ \n \n72,816.63 $ 2,221,151.03 \n \n3,719,234.71 \n \n3,653,152.61 \n \n7,372,387.32 \n \n177.74 1,440,126.36 2,972,143.88 1,167,413.40 \n17,007.95 102,886.36 \n47,768.42 \n \n366,988.02 \n \n177.74 1,807,114.38 2,972,143.88 1,167,413.40 \n17,007.95 102,886.36 \n47,768.42 \n \n$ 11,615,093.22 $ 4,092,957.26 $ 15,708,050.48 \n \n$ \n \n274,511.27 $ \n \n3,544.71 $ \n \n278,055.98 \n \n4,470,915.58 \n \n4,470,915.58 \n \n5,398.89 \n \n5,398.89 \n \n1,324,097.10 \n \n1,324,097.10 \n \n167,636.70 \n \n167,636.70 \n \n43,178.62 \n \n43,178.62 \n \n4,794,004.36 \n \n1,495,278.51 \n \n6,289,282.87 \n \n1,180,272.01 \n \n1,180,272.01 \n \n47,768.42 17,998.57 829,792.85 4,745,257.01 \n5,640,816.85 \n \n2,524,862.12 72,816.63 \n2,597,678.75 \n \n47,768.42 2,542,860.69 \n902,609.48 4,745,257.01 \n8,238,495.60 \n \n$ 11,615,093.22 $ 4,092,957.26 $ 15,708,050.48 \n \nThe notes to the basic financial statements are an integral part of this statement. - 3 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2015 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds. \nNet Pension Liability \nDeferred Outflows and Inflows of Resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds. \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nProperty Taxes \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities consisted of: \nCompensated Absences Payable \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 8,238,495.60 \n \n$ 2,238,317.21 1,894,832.20 6,187,733.65 \n59,066,993.84 8,352,278.04 \n-22,320,648.64 \n \n55,419,506.30 \n \n-25,284,256.00 -5,793,233.65 \n \n1,180,272.01 \n \n-155,997.63 $ 33,604,786.63 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nTransfers In \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n9,868,394.21 \n \n109,077.62 $ \n \n24,329,561.26 \n \n7,438,633.77 \n \n332,854.57 \n \n7,312.92 \n \n558,978.57 \n \n42,644,812.92 \n \n$ 3,976,653.07 \n4,240.41 3,980,893.48 \n \n9,868,394.21 4,085,730.69 24,329,561.26 7,438,633.77 \n332,854.57 11,553.33 \n558,978.57 \n46,625,706.40 \n \n25,346,197.20 \n1,469,047.87 1,992,961.66 \n780,588.64 666,484.58 2,468,127.30 315,761.56 3,501,052.24 1,850,399.10 165,179.97 621,252.72 118,341.26 3,218,186.28 \n42,513,580.38 \n131,232.54 \n1,074.04 \n132,306.58 \n5,511,018.95 \n-2,508.68 \n \n141,974.16 35,034.00 \n3,663.54 39,466.21 \n1,287.00 422,124.71 488,920.00 \n450.00 \n2,820,640.69 3,953,560.31 \n27,333.17 \n \n25,488,171.36 \n1,504,081.87 1,992,961.66 \n780,588.64 670,148.12 2,507,593.51 317,048.56 3,923,176.95 2,339,319.10 165,179.97 621,702.72 118,341.26 3,218,186.28 2,820,640.69 \n46,467,140.69 \n158,565.71 \n \n27,333.17 2,570,345.58 \n \n1,074.04 159,639.75 8,081,364.53 \n-2,508.68 \n \nFund Balances - Ending \n \n$ \n \n5,640,816.85 $ \n \n2,597,678.75 $ \n \n8,238,495.60 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2015 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nFood Inventories are expensed on the District-wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These net adjustments consist of: \nCompensated Absences Pension Expense \nTotal Additional Expenditures \n \n$ \n \n159,639.75 \n \n$ 3,939,062.28 -2,078,459.82 \n \n1,860,602.46 \n \n-2,556,070.99 \n \n394,494.43 \n \n-2,508.68 \n \n$ \n \n-19,791.97 \n \n991,253.35 \n \n971,461.38 \n \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ \n \n827,618.35 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nInterest and Dividends \nTotal Assets \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nCRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2015 \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n46,554.38 $ \n \n118,515.75 \n \n59.10 \n \n74,675.59 \n \n$ 165,129.23 $ \n \n74,675.59 \n \n$ \n \n74,675.59 \n \n$ 165,129.23 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2015 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Other Deductions Total Deductions Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n414.49 \n \n5,000.00 122.16 \n5,122.16 -4,707.67 169,836.90 \n \n$ 165,129.23 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Crisp County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n 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. \n 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. \nFund Financial Statements: \nThe 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 for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n 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. \n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n \n- 9 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal and income benefit may be expended for the purpose of refreshments at the Superintendent's discretion, and to fund scholarships awarded to graduating seniors of Crisp County High School. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary 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, and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are 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. \nRESTATEMENT OF PRIOR YEAR NET POSITION \nFor fiscal year 2015, the School District made several prior period adjustments due to the adoption of GASB Statement No. 68 and GASB Statement No. 71, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2014, net position in Governmental Activities. The result is a decrease in Net Position at July 1, 2014 of $32,068,743.00. This change is in accordance with generally accepted accounting principles. \n \n- 10 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nNet Position, July 1, 2014, as previously reported \nPrior Period adjustment - Implementation of GASB 68: Net Pension Liability (measurement date) TRS ERS \nDeferred Outflows - School District's contribution made during fiscal year 2014 \nTRS ERS \n \n$ 64,845,911.28 \n \n$ -34,144,401.00 -435,137.00 -34,579,538.00 \n \n2,477,434.00 33,361.00 \n \n2,510,795.00 \n \nNet Position, July 1, 2014, as restated \n \n$ 32,777,168.28 \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. The adoption of this statement has a significant impact on the School District's financial statements. As noted above the School District restated beginning Fund Balance and/or beginning Net Position for the cumulative effect of this accounting change. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The School District did not have any activities of this type during the fiscal year and the adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. The adoption of this statement has a significant impact on the School District's financial statements. As noted above the School District restated beginning Net Position for the cumulative effect of this accounting change. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 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. \n \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nINVESTMENTS \nComposition of Investments \nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \nReceivables 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. \nPROPERTY TAXES \nThe Crisp County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on July 28, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on December 20, 2014 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2014 tax digest are reported as revenue in the governmental funds for fiscal year 2015. The Crisp 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, 2015, for maintenance and operations amounted to $9,348,919.48. \nThe tax millage rate levied for the 2014 tax year (calendar year) for the Crisp County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.45 mills \n \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $465,515.14 during fiscal year ended June 30, 2015. \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,976,653.07 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFood Inventories \nOn the District-wide 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). The School District uses the purchases method to account for inventories whereby expenditures are recorded at the time of purchase or when received. To conform to generally accepted accounting principles, all food inventories should be accounted for using the consumption method whereby an asset is recorded when foods are purchased/received and expenses are recorded at the time the food items are consumed. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \n \nOn the fund statements, inventories of governmental funds are reported at cost (first-in, first-out). The School District uses the purchases method to account for inventories whereby expenditures are recorded at the time of purchase or when received. \n \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. As indicated in Note 12, the School District recognized impaired assets. The impairment is reflected as a special item on Exhibit B. During the fiscal year under review, no other events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements \n \n$ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nALL 10,000.00 25,000.00 5,000.00 50,000.00 \n \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of net position and/or the balance sheet will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. Under the full accrual method of accounting, the School District has reported deferred outflows of resources related to a defined benefit pension plan, as discussed in Note 17  Retirement Plans. \nIn addition to liabilities, the statement of net position and/or the balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. Under the full accrual method of accounting, the School District has reported deferred inflows of resources related to a defined benefit pension plan, as discussed in Note 17  Retirement Plans. This item is reported only in the District-wide Statement of Net Position. Additionally, the School District has one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and this amount is deferred and will be recognized as an inflow of resources in the period in which the amount becomes available. \nCOMPENSATED ABSENCES \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nVacation leave of 10 days is awarded on a basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. \nPENSIONS \nFor 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 fiduciary net position of the Teachers' Retirement System of Georgia (TRS), the Employees' Retirement System of Georgia (ERS) and the Public School Employees' Retirement System (PSERS) and additions to/deductions from TRS/ERS/PSERS's fiduciary net position have been determined on the same basis as they are reported by TRS/ERS/PSERS. 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. See Note 17 - Retirement Plans. \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nInvestment in Capital Assets - This represents the School District's total investment in capital assets, net of 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 investment in capital assets. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nRestricted Net Position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted Net Position - Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of Net Investment of Capital Assets and Restricted Net Position. Included in the net deficit reported is the School District's Net Pension Liability of $25,284,256.00 which is required for financial reporting. \n \nFUND BALANCES \nThe School District's fund balances are classified as follows: \n \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \n \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education 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. \n \nAssigned  Amounts that are 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 of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \n \nFund Balances of the Governmental Funds at June 30, 2015, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects \nAssigned Local Capital Outlay Projects Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ \n \n47,768.42 \n \n$ \n \n17,998.57 \n \n2,524,862.12 \n \n2,542,860.69 \n \n72,816.63 765,635.00 \n64,157.85 \n \n902,609.48 4,745,257.01 \n \nFund Balance, June 30, 2015 \n \n$ 8,238,495.60 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nUSE OF ESTIMATES \nThe 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. \nNOTE 3: BUDGETARY DATA \nThe 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds 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. \nThe 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. 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 Official Code of Georgia Annotated section 20-2167(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. \nSee Schedule 6  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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. Section 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 percent of the daily pool balance. \nAt June 30, 2015, $558,620.74 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \n5. 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, \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2015, the School District had deposits with a carrying amount of $2,666,192.99, which includes $323,811.99 in Certificates of Deposit that are reported as Investments, and a bank balance of $3,485,698.78. The bank balances insured by Federal depository insurance were $554,046.88. \n \nThe amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2015, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n558,620.74 \n \n2 \n \n2,172,662.79 \n \n3 \n \n200,368.37 \n \nTotal \n \n$ 2,931,651.90 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2015, the carrying value of the School District's total investments was $7,490,903.07, which is materially the same as fair value. This includes $323,811.99 invested in Certificates of Deposit, which are collateralized in the same manner as other cash deposits. This investment consisted entirely of funds invested in the Georgia Fund 1 (local government investment pool) administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nshare. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2015, was 56 days. \n \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \n \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \nBalances July 1, 2014 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2015 \n \n$ 2,238,317.21 \n \n$ \n \n25,427.42 $ 3,210,020.56 \n \n0.00 \n \n$ 2,238,317.21 \n \n$ -1,340,615.78 \n \n1,894,832.20 \n \nTotal Capital Assets Not Being Depreciated \n \n2,263,744.63 3,210,020.56 \n \n0.00 -1,340,615.78 \n \n4,133,149.41 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n62,482,860.66 7,391,002.65 6,314,479.00 \n \n717,941.72 11,100.00 \n \n4,391,069.69 122,079.24 137,845.35 \n \n975,202.87 365,412.91 \n \n59,066,993.84 8,352,278.04 6,187,733.65 \n \n13,781,074.65 4,741,086.94 3,814,950.52 \n \n1,348,286.21 476,957.55 253,216.06 \n \n1,842,248.25 117,322.49 135,352.55 \n \n13,287,112.61 5,100,722.00 3,932,814.03 \n \nTotal Capital Assets, Being Depreciated, Net \n \n53,851,230.20 -1,349,418.10 2,556,070.99 1,340,615.78 51,286,356.89 \n \nGovernmental Activity Capital Assets - Net $ 56,114,974.83 $ 1,860,602.46 $ 2,556,070.99 $ \n \n0.00 $ 55,419,506.30 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 1,487,848.55 \n \n$ \n \n70,427.61 \n \n2,147.90 \n \n28,368.71 \n \n29,628.71 \n \n54,452.69 \n \n20,184.35 \n \n49,072.86 \n \n240,014.81 \n \n494,297.64 96,313.63 \n \n$ 2,078,459.82 \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nNOTE 7: INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2015, consisted of the following: \n \nTransfer to \n \nTransfer From \nAgency Fund \n \nGeneral Fund \n \n$ 1,074.04 \n \nTransfers are used to move school activity account funds between governmental and agency accounts. \n \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nFor claims prior to fiscal year 2010, the School District has designated an independent contractor to operate a risk management program for Workers' compensation. The school District General fund reimburses claims paid by the contractor. During fiscal year 2014 and the year under review, the School District's General fund incurred no expenditures. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2014 $ 2015 $ \n \n0.00 $ 11,277.00 $ 11,277.00 $ 0.00 $ 12,036.88 $ 12,036.88 $ \n \n0.00 0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nthousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $200,000 per year corridor retention. \n \nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n100,000.00 \n \nNOTE 9: OPERATING LEASES \nCrisp County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2015, for governmental funds amounted to $87,650.55. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2016 2017 2018 \n \n$ \n \n85,305.96 \n \n41,445.29 \n \n290.70 \n \nTotal \n \n$ \n \n127,041.95 \n \nNOTE 10: LONG-TERM LIABILITIES \n \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \n \nBalance July 1, 2014 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2015 \n \nDue Within One Year \n \nCompensated Absences (1) \n \n$ 136,205.66 $ \n \n36,098.45 $ \n \n16,306.48 $ 155,997.63 $ \n \n0.00 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \nNOTE 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $131,255.01 for retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $37,008.01 \n \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $94,247.00 \nFunds paid on behalf of the School District are reported in governmental funds. See Note 17 Retirement Plans for the State support related to the Net Pension Liability. \nNOTE 12: SPECIAL ITEM \nIn fiscal year 2015, the Crisp County Board of Education closed two schools. The School District intended to sell one school and determined that the other school would not be used for any purpose at this time. Therefore, the buildings and all associated assets were no longer being used for their intended service utility and were considered impaired. The buildings were written down to their determined fair market value resulting in a loss of $2,556,070.99. This activity is reported as a Special Item on the Statement of Activities. \nNOTE 13: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2015, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nCrisp County School Modifications $ \n \n3,358,798.82 $ 2,384,386.00 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 14: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 15: SUBSEQUENT EVENTS \nOn November 3, 2015, the voters of Crisp County approved the continuation of the Education Special Purpose Local Option Sales Tax of one percent to be imposed on all sales and uses in Crisp County for a period of time not to exceed 20 calendar quarters to raise not more than $23,000,000.00. The proceeds are to be used as stated on the Official Ballot of Crisp County as follows: \n\"For the purposes of acquiring, constructing, repairing, improving, renovating, adding to, extending, upgrading, and equipping school buildings, athletic facilities, and support facilities in the Crisp County School District useful or desirable in connection therewith, including acquiring any necessary property therefor, both real and personal, specifically including the following: (i) acquiring, constructing and equipping a new middle school to include furniture, fixtures and equipment; (ii) roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, and improvements and renovations to physical education and athletic facilities; (iii) acquiring and installing system wide instructional and administrative technology, safety and security equipment; (iv) acquisition \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nof school buses, vehicles and transportation equipment; and (v) paying costs incident to accomplishing the foregoing.\" \n \nThis vote also approved the issuance of general obligation debt of the Crisp County School District in the principal amount of $15,000,000.00 for the above capital outlay purposes. \n \nNOTE 16: POST-EMPLOYMENT BENEFITS \n \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2015: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2014  June 30, 2015 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2014  June 30, 2015 \n \n$596.20 per member per month \n \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n4,748,166.20 \n \n$ \n \n4,571,666.20 \n \n$ \n \n4,053,834.28 \n \nNOTE 17: RETIREMENT PLANS \nCrisp County Board of Education participates in various retirement plans administered by the State of Georgia, as further explained below. \n \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided pension through the Teachers' Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers' Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \n \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \n \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00 % of their annual pay during fiscal year 2015. The school district's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual school district payroll. \n \n- 23 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n2,760,467.22 \n \n$ \n \n2,511,165.12 \n \n$ \n \n2,279,559.30 \n \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \n \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \n \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \n \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members and 18.87% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \n \n- 24 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n39,746.79 \n \n$ \n \n33,361.17 \n \n$ \n \n31,615.67 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers' Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \n \nBenefits 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. \n \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: 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. \nIndividuals 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. \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension \nAt June 30, 2015, the School District reported a liability of $25,284,256.00 for its proportionate share of the Net Pension Liability for TRS $24,983,231.00 and ERS $301,025.00. \nThe TRS Net Pension Liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the Net Pension Liability, the related State of Georgia support, and the total portion of the Net Pension Liability that was associated with the School District were as follows: \n \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nSchool District's proportionate share of the Net Pension Liability State of Georgia's proportionate share of the Net Pension Liability associated with the School District \n \n$ 24,983,231.00 343,636.00 \n \nTotal \n \n$ 25,326,867.00 \n \nThe Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The School District's proportion of the Net Pension Liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2014. \n \nAt June 30, 2014, the School District's TRS proportion was 0.197751%, which was an increase of 0.001799% from its proportion measured as of June 30, 2013. At June 30, 2014, the School District's ERS proportion was 0.008026%, which was a decrease of 0.000941% from its proportion measured as of June 30, 2013. \n \nAt June 30, 2015, 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 $389,393.00. \n \nThe PSERS Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 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, 2014. \n \nFor the year ended June 30, 2015, the School District recognized pension expense of $1,770,526.00 for TRS, $821.00 for ERS and $33,816.00 for PSERS. Revenue of $27,071.00 for TRS and $33,816.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nNet difference between projected and actual earnings on pension plan investments \n \n$ \n \n8,709,684.00 \n \n$ \n \n73,471.00 \n \nChanges in proportion and differences between \n \nSchool District contributions and proportionate \n \nshare of contributions \n \n$ \n \n255,422.00 \n \n28,101.00 \n \nSchool District contributions subsequent to the measurement date \n \n2,722,853.56 \n \n$ \n \n39,746.79 \n \nTotal \n \n$ 2,978,275.56 $ \n \n8,709,684.00 $ \n \n39,746.79 $ \n \n101,572.00 \n \n- 26 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nCrisp County Board of Education contributions subsequent to the measurement date of June 30, 2014 for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2016 2017 2018 2019 2020 \n \n$ -2,119,370.00 $ -35,931.00 \n \n$ -2,119,370.00 $ -28,906.00 \n \n$ -2,119,370.00 $ -18,368.00 \n \n$ -2,119,372.00 $ -18,367.00 \n \n$ \n \n23,220.00 \n \nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers' Retirement System: Inflation Salary increases Investment rate of return \n \n3.00% 3.75  7.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nEmployees' Retirement System \n \nInflation Salary increases Investment rate of return \n \n3.00% \n5.45  9.25%, average, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nPublic School Employees' Retirement System \n \nInflation Salary increases Investment rate of return \n \n3.00% \nN/A 7.50%, net of pension plan investment expense, including inflation \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nTarget allocation \n30.00% 39.70% 3.70% 1.60% 18.90% 6.10% \n100.00% \n \nLong-term expected real rate of return* \n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS, and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \n- 28 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"I\" \n \nSensitivity of the Crisp County Board of Education's proportionate share of the Net Pension Liability to changes in the discount rate: The following presents the School District's proportionate share of the Net Pension Liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the Net Pension Liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \n \nTeachers' Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the Net Pension Liability \n \n$ 46,040,742.00 $ 24,983,231.00 $ 7,642,807.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the Net Pension Liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ \n \n438,954.00 $ \n \n301,025.00 $ \n \n183,615.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs. \n \n- 29 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"1\" \n \nSchool District's proportion of the net pension liability School District's proportionate share of the net pension liability State of Georgia's proprotionate share of the net pension liaibility \nassociated with the School District Total \nSchool District's covered-employee payroll School District's proportionate share of the net pension liability \nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \n \n2015 \n \n0.197751% \n \n$ \n \n24,983,231.00 \n \n343,636.00 \n \n$ \n \n25,326,867.00 \n \n$ \n \n20,449,227.39 \n \n122.17% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Schedule includes all significant plans and funds administered by Crisp County Board of Education \n- 30 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"2\" \n \nSchool District's proportion of the net pension liability School District's proportionate share of the net pension liability School District's covered-employee payroll School District's proportionate share of the net pension liability \nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \n \n2015 0.008026% $ 301,025.00 $ 180,721.38 \n166.57% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Schedule includes all significant plans and funds administered by Crisp County Board of Education \n- 31 - \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nContractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) School District's covered-employee payroll Contributions as a percentage of covered-employee payroll \n \n2015 \n \n2014 \n \n2013 \n \n$ 2,760,467.22 $ 2,511,165.12 $ 2,279,559.30 \n \n$ 2,760,467.22 $ 2,511,165.12 $ 2,279,559.30 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 20,992,146.30 $ 20,449,227.39 $ 19,978,611.18 \n \n13.15% \n \n12.28% \n \n11.41% \n \nThis schedule is intended to show information for 10 years. Due to the retention policy of the Crisp County Board of Education, the School District is only able to display six years of information. Additional years will be displayed as they become available. \n- 32 - \n \n SCHEDULE \"3\" \n \n2012 \n \n2011 \n \n$ 2,246,592.98 $ 2,162,475.36 $ \n \n$ 2,246,592.98 $ 2,162,475.36 $ \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ 21,854,024.11 $ 21,035,754.13 $ \n \n10.28% \n \n10.28% \n \n2010 2,248,372.05 2,248,372.05 \n0.00 23,083,713.45 \n9.74% \n \n33 \n \n CRISP COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nContractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) School District's covered-employee payroll Contributions as a percentage of covered-employee payroll \n \n2015 \n \n2014 \n \n2013 \n \n$ \n \n39,746.79 $ 33,361.17 $ 31,615.67 \n \n$ \n \n39,746.79 $ 33,361.17 $ 31,615.67 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 180,996.28 $ 180,721.38 $ 212,130.24 \n \n21.96% \n \n18.46% \n \n14.90% \n \nThis schedule is intended to show information for 10 years. Due to the retention policy of the Crisp County Board of Education, the School District is only able to display six years of information. Additional years will be displayed as they become available. \n- 34 - \n \n SCHEDULE \"4\" \n \n2012 \n \n2011 \n \n$ 23,575.85 $ 15,058.49 $ \n \n$ 23,575.85 $ 15,058.49 $ \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ 202,670.53 $ 144,654.02 $ \n \n11.63% \n \n10.41% \n \n2010 11,712.92 11,712.92 \n0.00 112,516.36 \n10.41% \n \n35 \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"5\" \n \nTeachers' Retirement System \n \nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \n \nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2015 reported in that schedule: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \n \nJune 30, 2012 Entry age Level percentage of payroll, open 30 years Seven-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \nexpense, including inflation \n \nEmployees' Retirement System \n \nChanges of assumptions: There were no changes in assumptions or benefits that affect the measurement of the total pension liability since the prior measurement date. \n \nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2015 reported in that schedule: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases \nInvestment rate of return \n \nJune 30, 2012 Entry age Level dollar, open 30 years Seven-year smoothed market 3.00% 2.725%  4.625% for FY 2012-2013, 5.45% - 9.25% for FY2014+ 7.50%, net of pension plan investment \nexpense, including inflation \n \n- 36 - \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \" 6 \" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 9,271,881.00 $ 9,309,686.00 $ 9,868,394.21 $ \n \n90,000.00 \n \n80,000.00 \n \n109,077.62 \n \n22,183,874.00 \n \n24,109,140.65 \n \n24,329,561.26 \n \n8,675,433.77 \n \n8,377,842.00 \n \n7,438,633.77 \n \n199,756.67 \n \n180,000.00 \n \n332,854.57 \n \n10,219.00 \n \n150.00 \n \n7,312.92 \n \n69,950.89 \n \n53,270.00 \n \n558,978.57 \n \n40,501,115.33 \n \n42,110,088.65 \n \n42,644,812.92 \n \n558,708.21 29,077.62 \n220,420.61 -939,208.23 152,854.57 \n7,162.92 505,708.57 \n534,724.27 \n \n26,439,131.80 \n1,367,377.00 2,052,370.74 \n696,253.00 699,151.00 2,282,042.00 265,627.00 3,141,390.00 1,701,647.00 151,793.00 436,128.89 \n2,717,067.90 \n41,949,979.33 \n-1,448,864.00 \n \n25,889,896.29 \n1,428,660.36 2,189,885.00 \n637,959.00 726,272.01 2,558,858.00 338,378.95 3,601,165.41 1,811,848.73 171,147.94 444,905.47 \n2,938,103.49 \n42,737,080.65 \n-626,992.00 \n \n25,346,197.20 \n1,469,047.87 1,992,961.66 \n780,588.64 666,484.58 2,468,127.30 315,761.56 3,501,052.24 1,850,399.10 165,179.97 621,252.72 118,341.26 3,218,186.28 \n42,513,580.38 \n131,232.54 \n \n543,699.09 \n-40,387.51 196,923.34 -142,629.64 \n59,787.43 90,730.70 22,617.39 100,113.17 -38,550.37 \n5,967.97 -176,347.25 -118,341.26 -280,082.79 \n223,500.27 \n758,224.54 \n \n400,000.00 -400,000.00 \n0.00 -1,448,864.00 5,797,107.08 \n \n400,000.00 -400,000.00 \n0.00 -626,992.00 5,509,940.58 \n \n1,074.04 \n1,074.04 132,306.58 5,511,018.95 \n-2,508.68 \n \n-398,925.96 400,000.00 \n1,074.04 759,298.58 \n1,078.37 -2,508.68 \n \nFund Balances - Ending \n \n$ 4,348,243.08 $ 4,882,948.58 $ 5,640,816.85 $ \n \n757,868.27 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $351,372.51 and $365,071.38, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 37 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"7 \" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Impact Aid Cluster Direct Impact Aid \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ 3,049,437.10 (1) \n \n3,049,437.10 \n \n10.579 \n \nN/A \n \n18,500.00 3,067,937.10 \n \n84.041 \n \n(3) \n \n84.027 \n \nN/A \n \n84.173 \n \nN/A \n \n84.048 \n \nN/A \n \n84.367 \n \nN/A \n \n84.011 \n \nN/A \n \n84.358 \n \nN/A \n \n* 84.371 \n \nN/A \n \n84.010 \n \nN/A \n \n84.287 \n \nN/A \n \n1,235,983.51 31,142.92 \n1,267,126.43 \n62,597.45 251,432.65 \n99,041.03 79,881.45 593,522.18 2,301,234.09 \n6,475.22 \n3,394,184.07 \n4,661,310.50 \n \n40,485.69 $ 7,769,733.29 \n \n- 38 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"7 \" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $161,705.52. \n(2) Expenditures for the funds earned on the School Breakfast Program ($653,009.54) were not maintained separately and are included in the 2015 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $1,273.94, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Crisp County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 39 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2015 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Dual Enrollment Funding Food Services GNETS State Grant Math and Science Supplements Preschool Handicapped Program Teacher of the Year Teachers' Retirement Vocational Education \nHuman Resources, Georgia Department of Family Connection \nOffice of the State Treasurer Public School Employees Retirement \nCONTRACT Governor's Office of Student Achivement Connections to Classrooms State Grant \nSee notes to the basic financial statements. \n40 \n \nSCHEDULE \"8 \" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,216,731.27 \n \n698,181.00 878,130.00 2,226,617.00 1,619,897.00 745,505.00 1,403,824.00 2,265,458.00 1,686,871.00 840,185.00 3,759,537.00 676,649.00 399,878.00 157,845.00 \n73,478.00 433,482.00 127,914.00 \n86,191.00 \n551,221.00 810,197.00 1,033,952.00 161,212.00 -1,871,686.00 \n525,904.00 75,958.00 \n2,187,047.00 \n69,025.93 960,625.00 \n28,231.60 109,649.00 \n1,014.25 37,008.01 142,378.00 \n45,000.00 \n94,247.00 \n \n72,204.20 \n \n$ \n \n24,329,561.26 \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"9 \" \n \nPROJECT \nSPLOST II 3. Acquiring new school equipment, including school buses and other school vehicles 5. Acquiring any property necessary or desirable therefore, both real and personal, including computer technology system-wide, the maximum amount of the projects to be paid with sales and use tax proceeds will be $18,000,000 \nSPLOST III 1. Funding for the purpose of the securing General Obligation bonds of $15,000,000 and acquiring, constructing, and equipping a new K-1 Elementary school to include land, furniture, fixtures, and equipment 2. Acquiring, constructing and equipping additional classrooms for Blackshear Trail Elementary School and Southwestern Elementary School 3. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities 4. Acquiring and installing systemwide instructional and administrative technology, safety, and security equipment 5. Acquisition of school buses, vehicles and transportation equipment 6. Acquiring any necessary property, both real and personal, and paying cost incident to accomplishing the foregoing \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \n$ \n \n2,351,990.14 \n \n$ \n \n$ 18,000,000.00 18,000,000.00 \n \n3,615,423.89 $ 5,967,414.03 \n \n0.00 0.00 \n \n23,816,847.00 \n \n25,451,405.16 \n \n183,153.00 \n \n144,894.34 \n \n144,894.34 \n \n183,153.00 \n \n24,000,000.00 \n \nSPLOST IV \n \n1. Constructing, and equipping a new school to include furniture, fixtures and equipment 2. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities 3. Acquiring and installing systemwide instructional and administrative technology, safety and security equipment 4. Acquisition of school buses, vehicles and transportation equipment \n5. Acquiring any necessary property, and paying costs incident to accomplishing the foregoing \n \n5,000,000.00 \n12,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 \n \n23,000,000.00 \n \n$ 65,000,000.00 $ \n \n25,779,452.50 \n \n144,894.34 \n \n5,456,899.64 \n \n449,897.64 \n \n14,343,100.36 \n \n2,792,887.97 \n \n1,000,000.00 2,000,000.00 \n \n70,330.67 488,920.00 \n \n200,000.00 \n \n23,000,000.00 \n \n3,802,036.28 \n \n54,746,866.53 $ 3,946,930.62 $ \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n2,351,990.14 $ 2,351,990.14 \n \n3,615,423.89 5,967,414.03 \n \n3,615,423.89 $ 5,967,414.03 \n \n0.00 0.00 \n \n25,451,405.16 \n \n25,451,405.16 \n \n144,894.34 \n \n183,153.00 \n \n183,153.00 \n \n25,634,558.16 \n \n25,779,452.50 \n \n5,007,002.02 \n \n0.00 0.00 \n \n218,788.00 \n \n5,225,790.02 \n \n0.00 \n \n36,827,762.21 $ 31,746,866.53 $ \n \n0.00 0.00 \n \nESTIMATED COMPLETION \nDATE Completed Completed \nCompleted \nCompleted Completed \n6/30/2015 12/31/2017 12/31/2017 12/31/2017 12/31/2017 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimated cost for the projects includes all costs from project inception to completion. \n(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"10 \" \n \nDESCRIPTION \nDirect Instructional Programs 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 Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n810,750.00 $ 1,263,369.71 $ \n \n1,036,296.00 \n \n513,081.41 \n \n2,493,308.00 \n \n3,044,094.00 \n \n1,926,000.00 \n \n733,112.91 \n \n859,685.00 \n \n897,006.60 \n \n1,603,107.00 2,598,862.00 1,924,088.00 \n952,986.00 4,304,556.00 \n \n1,099,249.78 3,093,925.33 2,666,222.71 \n782,614.11 \n573,675.32 487,248.32 1,982,054.80 449,594.04 \n \n780,913.00 492,339.00 180,433.00 \n82,844.00 \n \n826,822.11 118,640.50 463,219.80 \n91,883.09 \n \n20,046,167.00 \n \n19,085,814.54 \n \n497,844.00 97,238.00 \n \n708,220.09 4,462.33 \n \n17,729.06 $ 8,300.93 \n40,676.47 10,028.88 13,033.07 \n \n1,281,098.77 521,382.34 \n3,084,770.47 743,141.79 910,039.67 \n \n8,073.21 43,626.94 116,670.87 59,861.20 \n \n1,107,322.99 3,137,552.27 2,782,893.58 \n842,475.31 \n \n2,139.66 2,634.01 44,867.63 3,658.67 2,775.10 3,066.58 \n19,052.41 \n \n575,814.98 489,882.33 2,026,922.43 453,252.71 \n2,775.10 829,888.69 118,640.50 482,272.21 \n91,883.09 \n \n396,194.69 \n \n19,482,009.23 \n \n51,129.59 54,958.47 \n \n759,349.68 59,420.80 \n \nTOTAL QBE FORMULA FUNDS \n \n$ 20,641,249.00 $ 19,798,496.96 $ \n \n502,282.75 $ 20,300,779.71 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 25, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT 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 \nLadies and Gentlemen: \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise Crisp County Board of Education's basic financial statements and have issued our report thereon dated March 25, 2016. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Crisp County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Crisp County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \n \n2015YB-10 \n \n (This page left intentionally blank) \n \n 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. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Crisp County Board of Education in a separate letter dated March 25, 2016. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, not to provide an opinion on the effectiveness of the Crisp County Board of Education'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 Crisp County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:kt 2015YB-10 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 25, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Crisp County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. Crisp County Board of Education's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Crisp County Board of Education'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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Crisp County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \nWe 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 Crisp County Board of Education's compliance. \n2015SA-10 \n \n (This page left intentionally blank) \n \n Opinion on Each Major Federal Program \nIn our opinion, the Crisp County Board of Education 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, 2015. \nReport on Internal Control over Compliance \nManagement of Crisp County Board of Education 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 Crisp County Board of Education'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 OMB Circular A-133, 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 Crisp County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur 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. \nThe 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:kt 2015SA-10 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported \n \n (This page left intentionally blank) \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: CFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.371 \n \nChild Nutrition Cluster Striving Readers \n \nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \n \n$300,000.00 Yes \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2014-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2014 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2015-03-27"],"dcterms_description":["Annual financial report for the Crisp County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended 2014 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \ni \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \n1 2 4 5 6 7 8 9 11 \n27 \n \n  CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS  \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n29 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \n \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \n \nINDEPENDENT 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 \n \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 27, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Crisp County Board of Education, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \nManagement 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. \nAuditor's Responsibility \nOur 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 of material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that \n2014ARL-11 \n \n  are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of June 30, 2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2014 the Crisp County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively, 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 regarding 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. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, 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 U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \n2014ARL-11 \n \n  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 as a whole. \nOther Reporting Required by Governm ent Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 27, 2015, on our consideration of the Crisp County Board of Education'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 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 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 Crisp County Board of Education's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:sr 2014ARL-11 \n \nGreg S. Griffin State Auditor \n \n  CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \n \nINTRODUCTION \n \nThe District's financial statements for the fiscal year ended June 30, 2014 includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \n \nFINANCIAL HIGHLIGHTS \n \nKey financial highlights for fiscal year 2014 are as follows: \n \nOn the District-wide financial statements: \n \n District-wide net position at June 30, 2014 was approximately $64.8 million. Net position reflects the difference between all assets of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net position at June 30, 2014 of $64.8 million represented an increase of approximately $200 thousand when compared to the prior year. \n \n The School District had over $45 million in expenses relating to governmental activities; only $29.5 million of these expenses were offset by program specific charges for services, operating and capital grants and contributions. However, the general revenues (primarily property and sales taxes) of approximately $15.7 provided additional funding of these expenses. \n \n As stated above, general revenues accounted for $15.7 million or about 35% of all revenues totaling approximately $45.2 million. Program specific revenues in the form of charges for services, operating and capital grants, and contributions accounted for the balance of these revenues. \n \nGeneral Source of Revenues \n \nRevenue- Equalization \n4% General Revenue- \n \nGeneral Revenue- All Other 1% \n \nSales Taxes \n \n9% \n \nGeneral Revenue- Property Taxes 21% \n \nProgram Revenues 65% \n \ni \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \nOn the fund financial statements: \n Among major funds, the General Fund had over $41.3 million in revenues and $41.6 million in expenditures. The General Fund balance of approximately $5.5 million at June 30, 2014 decreased by approximately $320,000 from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements, including notes to the financial statements, and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Position' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Crisp County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The District has no nonmajor funds as defined by GASB Statement 34 for purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nDistrict-wide Statements \nSince Crisp County School District has no operations that have been classified as \"Business Activities\", the District-wide financial statements are basically a consolidation of the entire District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Position' and the 'Statement of Activities' provide the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into accounts all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change \nii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \nmay be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. When analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position is that with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted net position is net position that does not meet any of the above \nrestrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the District has no nonmajor Funds as defined by generally accepted accounting principles. \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the District. When revenues exceed expenses, the result is an increase in net \niii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the District's operating results. The District's net position, as measured in the Statement of Net Position, can be one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District. In the case of the Crisp County School District, assets exceeded liabilities by over $64.8 million at June 30, 2014. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $64.8 million of net position, about $2.8 million was restricted for continuation of Federal programs, a n d ongoing capital projects. Accordingly, these funds were not available to meet the District's ongoing obligations to citizens and creditors. In addition, the District had over $56.1 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. The remaining balance of unrestricted net position of approximately $5.8 million may be used to meet the District's ongoing obligations to citizens and creditors. Table 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \niv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \n \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \n$ 13,460,010 $ 19,032,623 \n \n56,114,975 \n \n52,960,308 \n \nTotal Assets \n \n$ 69,574,985 $ 71,992,931 \n \nLiabilities Current and Other Liabilities Long Term Liabilities \n \n$ \n \n4,592,867 $ \n \n7,225,537 \n \n136,206 \n \n137,235 \n \nTotal Liabilities \n \n$ \n \n4,729,073 $ \n \n7,362,772 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted \n \n$ 56,114,975 $ 52,960,308 \n \n2,861,988 \n \n4,888,549 \n \n5,868,949 \n \n6,781,302 \n \nTotal Net Position \n \n$ 64,845,912 $ 64,630,159 \n \nTotal net position increased by $215,753 in fiscal year 2014 from the prior year. This change in net position is detailed in Table 2 as presented below. \n \nv \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \n \nTable 2 Change in Net Position \n \nRevenue Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2014 \n \n2013 \n \n$ \n \n356,589 $ \n \n518,727 \n \n28,569,601 \n \n27,802,134 \n \n606,250 \n \n3,410,199 \n \nTotal Program Revenues \n \n$ \n \n29,532,440 $ \n \n31,731,060 \n \nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n$ \n \n9,389,873 $ \n \n9,261,081 \n \n3,992,470 \n \n4,128,484 \n \n1,961,732 10,285 \n396,586 \n \n1,558,075 22,219 \n331,562 \n \nTotal General Revenues \n \n$ \n \n15,750,946 $ \n \n15,301,421 \n \nTotal Revenues \n \n$ \n \n45,283,386 $ \n \n47,032,481 \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Service Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \n \n27,623,519 \n1,397,471 1,767,986 \n783,878 912,262 2,688,913 332,334 3,487,425 2,018,043 157,334 614,079 \n135,391 3,148,998 \n \n25,225,921 \n1,408,184 1,613,675 \n696,039 638,990 2,279,238 281,795 2,957,599 1,785,198 118,624 454,975 \n124,210 2,662,362 \n \nTotal Expenses \n \n$ \n \n45,067,633 $ \n \n40,246,810 \n \nChange in Net Position \n \n$ \n \n215,753 $ \n \n6,785,671 \n \nvi \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \nCost of Providing Services \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services \nTotal Expenses \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \n$ \n \n27,623,519 $ \n \n25,225,921 $ \n \n7,238,688 $ \n \n3,418,837 \n \n1,397,472 1,767,986 \n783,878 912,262 2,688,913 332,334 3,487,425 2,018,043 157,333 614,079 \n \n1,408,184 1,613,675 \n696,039 638,990 2,279,238 281,795 2,957,599 1,785,198 118,624 454,975 \n \n1,074,907 488,055 294,730 267,180 \n1,561,421 312,758 \n2,108,468 1,271,171 \n153085 399,288 \n \n818,487 506,364 144,178 -109,990 952,105 163,740 1,431,712 539,226 116,501 347,129 \n \n135,391 3,148,998 \n \n124,210 2,662,362 \n \n135,391 230,051 \n \n124,210 63,252 \n \n$ \n \n45,067,633 $ \n \n40,246,810 $ \n \n15,535,193 $ \n \n8,515,751 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues over $45.9 million and total expenditures of $48.2 million in fiscal year 2014. Total governmental fund balances of a p p r o x i m a t e l y $8.1 million at June 30, 2014, decreased approximately $2.3 million from the prior year. \nGeneral Fund Budget Highlights \nThe 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 2014, the School District amended its general fund budget as needed. \nvii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the General Fund, the final actual revenues of $41.3 million were more than the final budgeted amount of $40.5 million by approximately $800,000. This can be attributed to receiving more Federal Funds, Charges for Services, and miscellaneous income than originally expected. \nThe General Fund's final actual expenditures of $41.7 million were less than the final budget amount of $41.9 by approximately $200,000. The District believes it effectively managed its budget during the fiscal year. Additionally, the District did not include revenues and expenditures for school activity accounts in the final budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2014, the School District had $56 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ \n \n2,238,317 $ \n \n2,238,317 \n \n25,427 \n \n24,412,067.00 \n \n48,701,786 \n \n21,238,338 \n \n2,649,916 \n \n2,406,969 \n \n2,499,528 \n \n2,664,617 \n \nTotal \n \n$ \n \n56,114,974 $ \n \n52,960,308 \n \nviii \n \n CRISP COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 20, 2014 \nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. FACTORS BEARING ON THE DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The District is financially stable. The School District's operating millage for fiscal year 2014 was 17.45, which produced approximately $568,238 per mill. The District plans to fund additional capital outlays with the one percent local sales tax revenue. \n The School District is financially challenged by the State's continuing reduction of state revenue appropriations to local school districts. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ms. Donna Beavers, Director of Finance, Crisp County School District, P.O. Box 729, Cordele, Georgia 31010. You may also email your questions to Mrs. Beavers at dbeavers@crispschools.org. \nix \n \n  CRISP COUNTY BOARD OF EDUCATION \n \n  CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Retainages Payable Deposits and Unearned Revenues Long-Term Liabilities \nDue in More Than One Year \nTotal Liabilities \nNET POSITION \nInvestment in Capital Assets Restricted for \nContinuation of Federal Programs Capital Projects Unrestricted \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,167,128.38 \n \n5,947,536.15 \n \n179.27 1,862,780.68 3,435,550.87 \n969,511.01 12,884.47 14,161.61 50,277.10 \n2,263,744.63 53,851,230.20 \n \n$ \n \n69,574,984.37 \n \n$ \n \n258,969.35 \n \n4,155,154.69 \n \n2,572.11 \n \n154,268.79 \n \n21,902.49 \n \n136,205.66 \n \n$ \n \n4,729,073.09 \n \n$ \n \n56,114,974.83 \n \n291,641.96 2,570,345.58 5,868,948.91 \n \n$ \n \n64,845,911.28 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2014 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil 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 \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n27,623,519.25 $ \n \n1,397,471.41 1,767,986.35 \n783,878.07 912,262.13 2,688,913.33 332,333.64 3,487,425.35 2,018,042.48 157,333.34 614,079.04 135,390.74 3,148,998.18 \n \n$ \n \n45,067,633.31 $ \n \n218,213.68 \n12,857.71 125,517.34 356,588.73 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 19,741,631.06 $ \n296,955.38 1,279,111.54 \n486,443.00 641,106.48 1,118,435.12 \n4,175.59 1,347,388.44 \n662,863.10 4,247.86 \n214,791.41 \n2,772,452.47 \n$ 28,569,601.45 $ \n \n424,986.92 $ \n25,609.12 819.38 \n2,705.51 3,975.97 9,057.28 15,399.75 18,710.95 84,008.13 \n20,977.30 \n606,250.31 $ \n \n-7,238,687.59 \n-1,074,906.91 -488,055.43 -294,729.56 -267,179.68 \n-1,561,420.93 -312,758.30 \n-2,108,468.25 -1,271,171.25 \n-153,085.48 -399,287.63 -135,390.74 -230,051.07 \n-15,535,192.82 \n \n$ \n \n9,340,106.06 \n \n49,767.29 \n \n3,911,838.94 80,630.52 \n1,961,732.00 10,284.93 \n396,585.81 \n \n$ \n \n15,750,945.55 \n \n$ \n \n215,752.73 \n \n64,630,158.55 \n \n$ \n \n64,845,911.28 \n \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2014 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n988,351.34 $ \n \n4,312,114.75 \n \n179.27 1,514,256.69 2,829,300.57 \n969,511.01 7,012.32 \n14,161.61 50,277.10 \n \n178,777.04 $ 1,635,421.40 \n348,523.99 606,250.30 \n5,872.15 \n \n1,167,128.38 5,947,536.15 \n179.27 1,862,780.68 3,435,550.87 \n969,511.01 12,884.47 14,161.61 50,277.10 \n \nTotal Assets \nLIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ 10,685,164.66 $ \n \n2,774,844.88 $ \n \n$ \n \n208,738.84 $ \n \n4,155,154.69 \n \n2,572.11 \n \n21,902.49 \n \n$ 4,388,368.13 $ \n \n50,230.51 $ 154,268.79 204,499.30 $ \n \n$ \n \n785,777.58 \n \n$ \n \n$ \n \n50,277.10 \n \n241,364.86 $ \n \n653,871.72 \n \n4,565,505.27 \n \n$ 5,511,018.95 $ \n \n$ 2,486,787.61 \n83,557.97 \n2,570,345.58 $ \n \n13,460,009.54 \n258,969.35 4,155,154.69 \n2,572.11 154,268.79 \n21,902.49 4,592,867.43 \n785,777.58 \n50,277.10 2,728,152.47 \n737,429.69 4,565,505.27 8,081,364.53 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 10,685,164.66 $ \n \n2,774,844.88 $ \n \n13,460,009.54 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. Property Taxes \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences Payable \n \n$ 8,081,364.53 \n \n$ 2,238,317.21 25,427.42 \n6,314,479.00 62,482,860.66 \n7,391,002.65 -22,337,112.11 \n \n56,114,974.83 \n \n785,777.58 \n \n-136,205.66 \n \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 64,845,911.28 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CRISP COUNTY BOARD OF EDUCATION \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS \nYEAR ENDED JUNE 30, 2014 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nTransfers In \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 10,002,496.43 80,630.52 $ \n22,685,330.56 7,846,002.89 356,588.73 5,457.00 396,482.77 \n41,372,988.90 \n \n$ 3,911,838.94 \n606,250.30 \n4,827.93 \n4,522,917.17 \n \n10,002,496.43 3,992,469.46 \n23,291,580.86 7,846,002.89 356,588.73 10,284.93 396,482.77 \n45,895,906.07 \n \n$ 25,298,423.35 $ \n1,300,760.68 1,765,631.38 \n682,579.29 899,716.80 2,470,506.77 274,421.36 3,338,048.82 1,776,594.62 155,223.39 612,729.04 135,390.74 2,983,089.28 \n$ 41,693,115.52 $ \n$ -320,126.62 $ \n \n1,258,920.70 $ \n23,107.54 \n93,522.88 1,118.00 \n192,375.01 26,493.31 \n239,661.65 68,396.00 2,109.95 1,350.00 \n206,773.06 4,373,753.63 \n6,487,581.73 $ \n-1,964,664.56 $ \n \n26,557,344.05 \n1,323,868.22 1,765,631.38 \n776,102.17 900,834.80 2,662,881.78 300,914.67 3,577,710.47 1,844,990.62 157,333.34 614,079.04 135,390.74 3,189,862.34 4,373,753.63 \n48,180,697.25 \n-2,284,791.18 \n \n103.04 $ -320,023.58 $ \n5,873,674.52 -42,631.99 \n \n-1,964,664.56 $ 4,535,010.14 \n \n103.04 -2,284,688.14 10,408,684.66 \n-42,631.99 \n \nFund Balances - Ending \n \n$ 5,511,018.95 $ 2,570,345.58 $ \n \n8,081,364.53 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2014 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nDecrease in Compensated Absences \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ -2,284,688.14 \n \n$ 4,794,681.80 -1,589,216.52 \n \n3,205,465.28 \n \n-50,798.57 \n \n-612,623.08 \n \n-42,631.99 \n \n1,029.23 $ 215,752.73 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2014 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nInterest and Dividends \nTotal Assets \nLIABILITIES Funds Held for Others \nNET POSITION Held in Trust for Private Purposes \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n51,676.54 $ \n \n118,042.64 \n \n117.72 \n \n73,244.45 \n \n$ 169,836.90 $ \n \n73,244.45 \n \n$ \n \n73,244.45 \n \n$ 169,836.90 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2014 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Position \nNet Position - Beginning \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n471.64 \n \n$ \n \n10,000.00 \n \n$ \n \n-9,528.36 \n \n179,365.26 \n \n$ 169,836.90 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Crisp County Board Of Education. \nDistrict-wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n 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. \n 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. \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds \nThe School District reports the following major governmental funds: \n 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. \n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal and income benefit may be expended for the purpose of refreshments at the Superintendent's discretion, and to fund scholarships awarded to graduating seniors of Crisp County High School. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary 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, and grants. 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 grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are 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. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2014, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this Statement establish accounting and financial reporting standards that reclassify, as deferred outflows or inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows or inflows of resources, certain items that were previously reported as assets and liabilities. \n \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nFUTURE ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2015, the School District will adopt Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this Statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Actuarial estimates are currently being made to determine the School District's liability, the effects of which are believed to be material. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 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. \nINVESTMENTS \nComposition of Investments \nInvestments 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. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \nReceivables 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. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nPROPERTY TAXES \nThe Crisp County Board of Commissioners County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on 8/13/2013 (levy date) based on property values as of January 1, 2013. Taxes were due on 12/20/2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The Crisp County Board of Commissioners 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, 2014, for maintenance and operations amounted to $9,546,114.85. \nThe tax millage rate levied for the 2013 tax year (calendar year) for the Crisp County Board Of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n17.45 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $406,614.29 during fiscal year ended June 30, 2014. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,911,838.94 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories \nOn 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 (FIFO)). 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. \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nCapitalization Policy \n \nALL \n \n$ \n \n10,000.00 \n \n$ \n \n25,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n50,000.00 \n \nEstimated Useful Life \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of net position and/or the 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. The School District did not have any items that qualified for reporting in this category for the year ended June 30, 2014. \nIn addition to liabilities, the statement of net position and/or the 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 therefore will not be recognized as an inflow of resources (revenue) until that time. The School District has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reporting only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and grants and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. \nCOMPENSATED ABSENCES \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nVacation leave of 10 days is awarded on a basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the may be carried over to the next, providing such vacation leave does not exceed 10 days. \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nInvestment in capital assets - This represents the School District's total investment in capital assets, net of 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. \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education 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. \nAssigned  Amounts that are 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 of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects \nAssigned School Activity Accounts Subsequent Period Expenditures Local Capital Outlay Projects \nUnassigned \n \n$ \n \n50,277.10 \n \n$ \n \n241,364.86 \n \n2,486,787.61 \n \n2,728,152.47 \n \n$ \n \n77,856.72 \n \n576,015.00 \n \n83,557.97 \n \n737,429.69 4,565,505.27 \n \nFund Balance, June 30, 2014 \n \n$ 8,081,364.53 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nUSE OF ESTIMATES \nThe 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. \nNOTE 3: BUDGETARY DATA \nThe 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds 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. \nThe 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. 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 Official Code of Georgia Annotated section 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. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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. Section 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 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. 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, \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2014, the School District had deposits with a carrying amount of $1,614,568.71, which includes $322,519.34 in Certificates of Deposit that are reported as Investments, and a bank balance of $2,853,949.93. The bank balances insured by Federal depository insurance were $539,873.55. \nThe amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, \nor Category 3 - Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2014, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n2 \n \n2,045,203.01 \n \n3 \n \n268,873.37 \n \nTotal \n \n$ 2,314,076.38 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2014, the carrying value of the School District's total investments was $5,743,059.45, which is materially the same as fair value. This includes $322,519.34 invested in Certificates of Deposits, which are collateralized in the same manner as other cash deposits. This investment consisted entirely of funds invested in the Georgia Fund 1 (local government investment pool) administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at \nhttp://www.audits.ga.gov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity for Georgia Fund 1 on June 30, 2014, was 62 days. \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \nBalances July 1, 2013 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2014 \n \n$ 2,238,317.21 24,412,066.75 $ 3,982,061.99 $ \n \n$ 2,238,317.21 \n \n0.00 $ -28,368,701.32 \n \n25,427.42 \n \nTotal Capital Assets Not Being Depreciated \n \n$ 26,650,383.96 $ 3,982,061.99 $ \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n$ 34,114,159.34 7,198,723.54 $ 6,231,319.09 \n \n713,619.90 $ 98,999.91 \n \n12,875,821.20 4,791,754.58 3,566,702.03 \n \n905,253.45 432,282.58 251,680.49 \n \nTotal Capital Assets, Being Depreciated, Net $ 26,309,924.16 $ -776,596.71 $ \n \n0.00 $ -28,368,701.32 $ 2,263,744.63 \n \n$ 521,340.79 \n15,840.00 \n \n28,368,701.32 \n \n$ 62,482,860.66 7,391,002.65 6,314,479.00 \n \n482,950.22 3,432.00 \n \n13,781,074.65 4,741,086.94 3,814,950.52 \n \n50,798.57 $ 28,368,701.32 $ 53,851,230.20 \n \nGovernmental Activity Capital Assets - Net \n \n$ 52,960,308.12 $ 3,205,465.28 $ \n \n50,798.57 $ \n \n0.00 $ 56,114,974.83 \n \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \nCurrent year depreciation expense by function is as follows: \n \nEXHIBIT \"I\" \n \nInstruction \n \n$ 1,114,055.10 \n \nSupport Services \n \n$ \n \nPupil Services \n \n67,131.40 \n \nImprovements of Instructional Services \n \n2,147.90 \n \nEducational Media Services \n \n7,092.18 \n \nGeneral Administration \n \n10,422.55 \n \nSchool Administration \n \n23,742.64 \n \nBusiness Administration \n \n40,368.71 \n \nMaintenance and Operation of Plant \n \n49,048.63 \n \nStudent Transportation Services \n \n220,217.79 \n \nCommunity Services \n \n420,171.80 \n \nFood Services \n \n54,989.62 \n \n$ 1,589,216.52 \n \nNOTE 7 : INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2014, consisted of the following: \n \nTransfers to \n \nTransfers From Agency Fund \n \nGeneral Fund \n \n$ 103.04 \n \nTotal \n \n$ 103.04 \n \nTransfers from the Agency fund to the General fund were performed to support a project for the General Fund \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nFor claims prior to fiscal year 2010, the School District has designated an independent contractor to operate a risk management program for Workers' compensation. The school District General fund reimburses claims paid by the contractor. During fiscal year 2013 and the year under review, the School District's General fund incurred no expenditures. \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2013 $ 2014 $ \n \n0.00 $ 52,318.49 $ 52,318.49 $ 0.00 $ 11,277.00 $ 11,277.00 $ \n \n0.00 0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $150,000 per year corridor retention. \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n100,000.00 \n \nNOTE 9: OPERATING LEASES \nCrisp County Board Of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2014, for governmental funds amounted to $94,317.54. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2015 2016 2017 2018 \n \n85,590.66 85,305.96 41,445.29 \n290.70 \n \nTotal \n \n$ \n \n212,632.61 \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nNOTE 10: LONG-TERM LIABILITIES \n \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \n \nBalance \n \nAdditions \n \nGovernmental Activities Deductions \n \nBalance \n \nDue Within One \n \nCompensated Absences (1) \n \n$ \n \n137,234.89 $ \n \n20,448.48 $ \n \n21,477.71 $ \n \n136,205.66 $ \n \n0.00 \n \n(1) The portion of Compensated Absences due within one year has been determined to immaterial to the basic financial statements. \n \nNOTE 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $1,735,553.10 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,609,368.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $33,458.10 \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $92,727.00 \nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \nNOTE 12: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nCrisp County School Modifications \n \n$ \n \n884,912.16 \n \nThe amounts described in this note are not reflected in the basic financial statements. - 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nNOTE 13: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 14: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2014: \n \n- 23 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2013  June 30, 2014 \n \n$945 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2013  June 30,2014 \n \n$596.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% 100% 100% \n \n$ \n \n4,571,666.20 \n \n$ \n \n4,053,834.28 \n \n$ \n \n3,762,398.36 \n \nNOTE 15: RETIREMENT PLANS \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \n- 24 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"I\" \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2014, were 6.00% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% 100% 100% \n \n$ \n \n2,511,165.12 \n \n$ \n \n2,279,559.30 \n \n$ \n \n2,162,475.36 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \n- 25 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n9,271,881.00 $ \n \n9,271,881.00 $ \n \n10,002,496.43 $ \n \n90,000.00 \n \n90,000.00 \n \n80,630.52 \n \n21,222,318.00 \n \n22,183,874.00 \n \n22,685,330.56 \n \n4,775,756.90 \n \n8,675,433.77 \n \n7,846,002.89 \n \n452,368.00 \n \n199,756.67 \n \n356,588.73 \n \n10,219.00 \n \n10,219.00 \n \n5,457.00 \n \n60,300.00 \n \n69,950.89 \n \n396,482.77 \n \n$ \n \n35,882,842.90 $ \n \n40,501,115.33 $ \n \n41,372,988.90 $ \n \n730,615.43 -9,369.48 \n501,456.56 -829,430.88 156,832.06 \n-4,762.00 326,531.88 \n871,873.57 \n \n$ \n \n23,300,362.00 $ \n \n26,439,131.80 $ \n \n25,298,423.35 $ \n \n1,119,256.00 1,126,310.00 \n696,253.00 630,405.00 2,279,379.00 265,627.00 3,102,922.00 1,578,201.00 151,793.00 240,487.00 \n2,717,067.90 \n \n1,367,377.00 2,052,370.74 \n696,253.00 699,151.00 2,282,042.00 265,627.00 3,141,390.00 1,701,647.00 151,793.00 436,128.89 \n2,717,067.90 \n \n1,300,760.68 1,765,631.38 \n682,579.29 899,716.80 2,470,506.77 274,421.36 3,338,048.82 1,776,594.62 155,223.39 612,729.04 135,390.74 2,983,089.28 \n \n$ \n \n37,208,062.90 $ \n \n41,949,979.33 $ \n \n41,693,115.52 $ \n \n$ \n \n-1,325,220.00 $ \n \n-1,448,864.00 $ \n \n-320,126.62 $ \n \n1,140,708.45 \n66,616.32 286,739.36 \n13,673.71 -200,565.80 -188,464.77 \n-8,794.36 -196,658.82 \n-74,947.62 -3,430.39 \n-176,600.15 -135,390.74 -266,021.38 \n256,863.81 \n1,128,737.38 \n \n$ \n \n400,000.00 $ \n \n400,000.00 $ \n \n-400,000.00 \n \n-400,000.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ \n \n-1,325,220.00 $ \n \n-1,448,864.00 $ \n \n5,868,430.15 \n \n5,797,107.08 \n \n103.04 $ \n103.04 $ -320,023.58 $ 5,873,674.52 \n-42,631.99 \n \n-399,896.96 400,000.00 \n103.04 1,128,840.42 \n76,567.44 -42,631.99 \n \nFund Balances - Ending \n \n$ \n \n4,543,210.15 $ \n \n4,348,243.08 $ \n \n5,511,018.95 $ \n \n1,162,775.87 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $328,492.86 and $333,763.51, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nEducation, U. S. Department of Direct Impact Aid \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 2,953,908.88 (1) \n2,953,908.88 \n \n84.041 \n \n(3) \n \n84.027 84.173 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n1,308,717.77 23,483.05 \n1,332,200.82 \n \n84.048 84.367 84.011 84.358 84.371 * 84.010 84.287 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n54,637.15 356,127.55 141,141.35 123,541.75 107,383.23 2,630,925.33 364,846.66 \n3,778,603.02 \n5,110,803.84 \n \n$ \n \n53,411.97 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n8,118,124.69 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $174,047.79 (2) Expenditures for the funds earned on the School Breakfast Program ($625,216.97) were not maintained separately and are included in the 2014 National School Lunch Program. \n(3) Funds earned on the Impact Aid program, in the amount of $12,186.37, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Crisp Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. -28- \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education (1) 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services GNETS State Grant Math and Science Supplements Preschool Handicapped Program Teachers' Retirement Vocational Education Technology to Support Digital Learning Bonds \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of the State Treasurer Public School Employees Retirement \nHuman Resources, Georgia Department of Family Connection \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,287,480.09 \n \n$ 1,287,480.09 \n \n710,785.00 1,050,576.00 1,833,287.00 1,917,484.00 \n704,703.00 1,397,785.00 2,178,565.00 1,566,112.00 \n737,816.00 3,628,067.00 \n674,817.00 600,692.00 145,382.00 \n59,643.00 423,558.00 124,491.00 \n96,823.00 \n533,266.00 854,356.00 1,035,159.00 -2,794,068.00 \n530,338.00 77,760.00 \n1,961,732.00 \n68,302.00 854,079.00 \n22,765.33 80,077.00 33,458.10 138,827.00 13,486.04 \n \n710,785.00 1,050,576.00 1,833,287.00 1,917,484.00 \n704,703.00 1,397,785.00 2,178,565.00 1,566,112.00 \n737,816.00 3,628,067.00 \n674,817.00 600,692.00 145,382.00 \n59,643.00 423,558.00 124,491.00 \n96,823.00 \n533,266.00 854,356.00 1,035,159.00 -2,794,068.00 \n530,338.00 77,760.00 \n1,961,732.00 \n68,302.00 854,079.00 \n22,765.33 80,077.00 33,458.10 138,827.00 13,486.04 \n \n606,250.30 92,727.00 45,000.00 \n \n606,250.30 92,727.00 45,000.00 \n \n$ 22,685,330.56 $ 606,250.30 $ 23,291,580.86 \n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $1,609,368.00 are included as part of the Quality Basic Education revenue allotments. above. See notes to the basic financial statements. \n- 29 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"4\" \n \nProject \n \nOriginal Estimated \nCost (1) \n \nCurrent Estimated \nCost (2) \n \nAmount Expended In Current Year (3) \n \nAmount Expended \nIn Prior Years (3) \n \nTotal Completion \nCost \n \nExcess Proceeds Not Expended \n \nSPLOST II 1.Renovating and modernizing the auditoriums of the Crisp County Middle School and A. S. Clark Elementary School 2. Adding to. renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable in connection therewith, including parking areas, present football stadium, playgrounds, and physical education fields 3. Acquiring new school equipment, including school buses and other school vehicles 4. Acquiring, constructing, and equipping new additional classrooms, athletic and storage facilities \n \n$ 4,224,186.76 \n \n$ 4,224,186.76 $ 4,224,186.76 \n \n9,838,782.15 $ 120,774.17 \n \n2,351,990.14 \n \n135,299.10 \n \n879,409.33 \n \n9,718,007.98 2,216,691.04 \n879,409.33 \n \n9,838,782.15 2,351,990.14 \n879,409.33 \n \n5. Acquiring any property necessary or desirable therefor, both real and personal, including computer technology system-wide, the maximum amount of the projects to be paid with sales and use tax proceeds will be $18,000,000 \n \n3,615,423.89 \n \n3,615,423.89 \n \n3,615,423.89 \n \n$ 18,000,000.00 $ 20,909,792.27 $ 256,073.27 $ 20,653,719.00 $ 20,909,792.27 $ \n \n0.00 \n \nSPLOST III \n \n1. Funding for the purpose of the securing General Obligation bonds of $15,000,000 and acquiring, constructing, and equipping a new K-1 Elementary school to include land, furniture, fixtures, and equipment 2. Acquiring, constructing and equipping additional classrooms for Blackshear Trail Elementary School and Southwestern Elementary School \n3. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities 4. Acquiring and installing systemwide instructional and administrative technology, safety, and security equipment \n \n$ 23,816,847.00 \n \n$ 27,781,013.20 $ 1,136,680.91 $ 24,314,724.25 \n \n$ 27,781,013.20 \n \n5. Acquisition of school buses, vehicles and transportation equipment 6. Acquiring any necessary property, both real and personal, and paying cost incident to accomplishing the foregoing \n \n183,153.00 \n \n183,153.00 \n \n183,153.00 \n \n183,153.00 \n \nEstimated Completion \nDate Completed Completed 9/30/2014 Completed 9/30/2014 \n6/30/2014 \nCompleted \n \n$ 24,000,000.00 $ 27,964,166.20 $ 1,136,680.91 $ 24,497,877.25 $ 27,964,166.20 $ \n \nSPLOST IV 1. Constructing, and equipping a new school to include furniture, fixtures and equipment \n2. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities \n \n$ 5,000,000.00 $ 5,000,000.00 $ 5,007,002.02 12,000,000.00 12,000,000.00 \n \n3. Acquiring and installing systemwide instructional and administrative technology, safety and security equipment 4. Acquisition of school buses, vehicles and transportation equipment 5. Acquiring any necessary property, and paying costs incident to accomplishing the foregoing \n \n3,000,000.00 2,000,000.00 \n1,000,000.00 \n \n3,000,000.00 2,000,000.00 \n1,000,000.00 \n \n$ 218,788.00 \n \n$ 23,000,000.00 $ 23,000,000.00 $ 5,007,002.02 $ 218,788.00 $ \n \n0.00 $ \n \n65,000,000.00 71,873,958.47 6,399,756.20 45,370,384.25 48,873,958.47 \n \n0.00 12/31/2014 \n \n6/30/2016 \n \n6/30/2016 6/30/2016 \n \n0.00 0.00 \n \n6/30/2016 \n \n(1) The School District's original estimated cost above is as specified in the resolution calling for the imposition of the Local Option Sales Tax. This estimate can not exceed the total amount expected to be received by that SPLOST. \n(2) The School District's current estimated cost for the projects includes all cost from project inception to completion. \n(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. -30- \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs 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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n850,597.00 $ \n \n1,061,928.63 $ \n \n11,110.86 $ \n \n1,073,039.49 \n \n1,187,027.00 \n \n767,169.26 \n \n6,245.08 \n \n773,414.34 \n \n2,054,710.00 \n \n2,314,121.76 \n \n30,649.44 \n \n2,344,771.20 \n \n2,292,262.00 \n \n1,222,630.56 \n \n16,702.20 \n \n1,239,332.76 \n \n865,708.00 \n \n1,014,275.32 \n \n19,938.05 \n \n1,034,213.37 \n \n1,518,208.00 \n \n981,627.51 \n \n3,829.42 \n \n985,456.93 \n \n2,533,677.00 1,806,586.00 \n856,938.00 4,140,572.00 \n \n3,419,404.69 2,248,269.95 \n689,884.84 \n \n49,962.31 196,156.45 \n69,765.73 \n \n3,469,367.00 2,444,426.40 \n759,650.57 \n \n790,141.00 685,702.00 171,975.00 \n71,972.00 \n \n37,666.38 569,616.19 1,980,360.29 497,520.33 1,045,827.68 229,002.66 \n45,608.06 43,168.89 \n \n56.56 136.06 51,428.60 \n1,420.18 \n418,653.46 \n \n37,722.94 569,752.25 2,031,788.89 497,520.33 1,047,247.86 229,002.66 464,261.52 \n43,168.89 \n \n$ \n \n19,826,075.00 $ \n \n18,168,083.00 $ \n \n876,054.40 $ 19,044,137.40 \n \n488,941.00 109,127.00 \n \n611,877.44 23,984.27 \n \n47,598.76 36,417.68 \n \n659,476.20 60,401.95 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n20,424,143.00 $ \n \n18,803,944.71 $ \n \n960,070.84 $ 19,764,015.55 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 27, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT 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 \nLadies and Gentlemen: \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Crisp County Board of Education's basic financial statements and have issued our report thereon dated March 27, 2015. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Crisp County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Crisp County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \n \n2014YB-10 \n \n  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. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Crisp County Board of Education in a separate letter dated March 27, 2015. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, not to provide an opinion on the effectiveness of the Crisp County Board of Education'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 Crisp County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:sr 2014YB-10 \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 27, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Crisp County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on its major federal programs for the year ended June 30, 2014. Crisp County Board of Education's major federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Crisp County Board of Education'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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Crisp County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \nWe believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of Crisp County Board of Education's compliance. \n2014SA-10 \n \n  Opinion on Each Major Federal Program \nIn our opinion, the Crisp County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect its major federal program for the year ended June 30, 2014. \nReport on Internal Control over Compliance \nManagement of Crisp County Board of Education 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 Crisp County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Crisp County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur 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. \nThe 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:sr 2014SA-10 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 \n \nTitle I Grants to Local Educational Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000 \n \nAuditee qualified as low-risk auditee? \n \nYes \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2012-h2013-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \nPage \n1 2 4 5 6 7 8 9 11 \n25 26 28 \n \n  CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n29 31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Crisp County Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Crisp County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nManagement has omitted Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an \n2012ARL-11 \n \n  essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \nIn accordance with Government Auditing Standards, we have also issued our report dated March 12, 2013, on our consideration of the Crisp County Board of Education'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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. 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 regarding 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the 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 financial statements. The 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 financial statements or to the 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 as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:as 2012ARL-11 \n \nGreg S. Griffin State Auditor \n \n  CRISP COUNTY BOARD OF EDUCATION \n \n  CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets Restricted for \nContinuation of Federal Programs Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,466,555.25 \n \n16,646,393.60 \n \n370.70 1,861,364.59 3,276,231.20 \n934,042.19 33,470.07 21,036.46 \n136,910.98 11,880,631.60 27,422,672.24 \n \n$ 63,679,678.88 \n \n$ \n \n135,995.64 \n \n4,259,114.45 \n \n227.92 \n \n664,968.15 \n \n641,052.19 \n \n133,832.46 \n \n$ \n \n5,835,190.81 \n \n$ 39,303,303.84 \n405,138.24 12,136,355.48 \n5,999,690.51 \n$ 57,844,488.07 \n \n$ 63,679,678.88 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2012 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n25,492,123.19 $ \n \n1,318,162.37 1,255,286.72 \n662,997.38 525,778.18 2,344,018.21 298,349.95 2,985,883.43 1,729,961.43 \n42,108.74 493,951.98 \n \n106,621.54 2,642,305.72 \n \n$ \n \n39,897,548.84 $ \n \n206,526.83 \n12,678.49 352,563.24 571,768.56 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n18,096,716.29 $ \n \n398,942.10 795,530.61 517,413.89 673,713.17 1,227,960.29 \n26,827.42 1,418,404.54 \n677,383.49 83.12 \n119,523.61 \n \n2,316,640.43 \n \n$ \n \n26,269,138.96 $ \n \n1,365,874.71 $ 98,726.98 3,016.33 2,622.24 30,432.45 56,714.01 97,316.42 \n516,885.59 \n56,369.70 2,227,958.43 $ \n \n-5,823,005.36 \n-820,493.29 -456,739.78 -145,583.49 150,557.23 -1,085,625.47 -214,808.52 -1,457,483.98 -535,692.35 \n-42,025.62 -374,428.37 \n-106,621.54 83,267.65 \n-10,828,682.89 \n \n$ \n \n9,138,251.87 \n \n41,395.18 \n \n3,952,828.19 91,528.25 \n1,844,671.00 25,773.45 \n438,322.61 \n \n$ \n \n15,532,770.55 \n \n$ \n \n4,704,087.66 \n \n53,140,400.41 \n \n$ \n \n57,844,488.07 \n \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2012 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n778,424.23 $ \n \n688,131.02 $ 1,466,555.25 \n \n4,661,711.96 \n \n11,984,681.64 \n \n16,646,393.60 \n \n370.70 1,493,959.48 2,874,073.15 \n934,042.19 33,470.07 21,036.46 \n136,910.98 \n \n367,405.11 402,158.05 \n \n370.70 1,861,364.59 3,276,231.20 \n934,042.19 33,470.07 21,036.46 \n136,910.98 \n \n$ 10,933,999.22 $ 13,442,375.82 $ 24,376,375.04 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n135,995.64 \n \n4,259,114.45 \n \n227.92 \n \n$ \n \n1,173,511.98 \n \n$ \n664,968.15 641,052.19 \n \n135,995.64 4,259,114.45 \n227.92 664,968.15 641,052.19 1,173,511.98 \n \n$ 5,568,849.99 $ 1,306,020.34 $ 6,874,870.33 \n \n$ \n \n136,910.98 \n \n$ \n \n136,910.98 \n \n268,227.26 $ 12,136,355.48 \n \n12,404,582.74 \n \n1,745,872.39 \n \n1,745,872.39 \n \n3,214,138.60 \n \n3,214,138.60 \n \n$ 5,365,149.23 $ 12,136,355.48 $ 17,501,504.71 \n \n$ 10,933,999.22 $ 13,442,375.82 $ 24,376,375.04 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nLong-Term Liabilities, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences Payable \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 17,501,504.71 \n \n$ 2,238,317.21 9,642,314.39 6,231,319.09 \n34,079,401.34 6,906,399.99 \n-19,794,448.18 \n \n39,303,303.84 \n \n1,173,511.98 \n \n-133,832.46 $ 57,844,488.07 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n8,626,677.89 \n \n91,528.25 $ \n \n21,651,170.24 \n \n6,615,078.72 \n \n571,768.56 \n \n8,945.38 \n \n438,322.61 \n \n$ \n \n38,003,491.65 $ \n \n$ 3,952,828.19 2,046,053.83 \n16,828.07 \n6,015,710.09 $ \n \n8,626,677.89 4,044,356.44 23,697,224.07 6,615,078.72 \n571,768.56 25,773.45 \n438,322.61 \n44,019,201.74 \n \n$ \n \n24,894,447.39 \n \n$ \n \n24,894,447.39 \n \n1,273,548.15 1,253,952.86 \n662,997.38 524,618.95 2,330,567.74 273,280.65 2,848,384.01 $ 1,808,800.20 \n42,108.74 493,951.98 106,621.54 2,723,065.56 \n \n48,279.41 33,565.13 \n9,061,573.79 \n \n1,273,548.15 1,253,952.86 \n662,997.38 524,618.95 2,330,567.74 273,280.65 2,896,663.42 1,842,365.33 \n42,108.74 493,951.98 106,621.54 2,723,065.56 9,061,573.79 \n \n$ \n \n39,236,345.15 $ \n \n9,143,418.33 $ \n \n48,379,763.48 \n \n$ \n \n-1,232,853.50 $ \n \n-3,127,708.24 $ \n \n-4,360,561.74 \n \n6,492,328.89 \n \n15,264,063.72 \n \n21,756,392.61 \n \n105,673.84 \n \n105,673.84 \n \n$ \n \n5,365,149.23 $ \n \n12,136,355.48 $ \n \n17,501,504.71 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENTS OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nCapital Assets purchased with Universal Service Fund (e-rate) proceeds are not reported in Governmental Funds. However, in the Statement of Activities, the e-rate proceeds are shown as Capital Grants and Contributions. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nDecrease in Compensated Absences \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ -4,360,561.74 \n \n$ \n \n9,772,902.20 \n \n-1,456,183.40 \n \n8,316,718.80 \n \n71,465.60 552,969.16 105,673.84 \n \n17,822.00 $ 4,704,087.66 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2012 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nInterest and Dividends \nTotal Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 66,676.54 $ 116,692.94 \n213.40 \n \n68,029.30 \n \n$ 183,582.88 $ 68,029.30 \n \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \n$ 68,029.30 $ 183,582.88 $ 183,582.88 $ 68,029.30 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2012 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n489.33 \n \n$ 10,000.00 \n \n$ \n \n-9,510.67 \n \n193,093.55 \n \n$ 183,582.88 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Crisp County Board of Education. \nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n 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. \n 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. \nFund Financial Statements: The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \n 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. \n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports trust arrangements under which principal and income benefit may be expended for the purpose of refreshments at the Superintendent's discretion, and to fund scholarships awarded to graduating seniors of Crisp County High School. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary 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, and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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 compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 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. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are \n \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nreported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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. Funds may be invested in the following: \n \n1. Obligations issued by the State of Georgia or by other states, \n \n2. Obligations issued by the United States government, \n \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n4. Obligations of any corporation of the United States government, \n \n5. Prime banker's acceptances, \n \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n \n7. Repurchase agreements, and \n \n8. Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \n \nReceivables 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. \nPROPERTY TAXES \n \nThe Crisp County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on August 29, 2011 (levy date). Taxes were due on December 20, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Crisp 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, 2012, for maintenance and operations amounted to $8,585,282.71. \n \nThe tax millage rate levied for the 2011 tax year (calendar year) for the Crisp County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n16.45 mills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,952,828.19 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nINVENTORIES \n \nFood Inventories On the District-wide 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). 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. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress Intangible Assets \n \nAll $ 10,000.00 $ 25,000.00 $ 5,000.00 \nAll $ 50,000.00 \n \nN/A 10 to 40 years 20 to 80 years \n4 to 20 years N/A \n10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nCOMPENSATED ABSENCES \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nVacation leave of ten days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year providing such vacation leave does not exceed ten days. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2010 \n \n$ \n \n168,013.08 $ \n \n2011 \n \n$ \n \n170,710.43 $ \n \n2012 \n \n$ \n \n151,654.46 $ \n \n27,756.48 $ 14,942.89 $ 14,086.90 $ \n \n25,059.13 $ 33,998.86 $ 31,908.90 $ \n \n170,710.43 151,654.46 133,832.46 \n \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of 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 invested in capital assets, net of related debt. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education 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. \nAssigned  Amounts that are 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 of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects \nAssigned Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ \n \n136,910.98 \n \n$ \n \n268,227.26 \n \n12,136,355.48 \n \n12,404,582.74 \n \n$ 1,652,083.00 93,789.39 \n \n1,745,872.39 3,214,138.60 \n \nFund Balance, June 30, 2012 \n \n$ 17,501,504.71 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe 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. \nNOTE 3: BUDGETARY DATA \nThe 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds 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. \nThe 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. 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 Official Code of Georgia Annotated section 20-2167(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. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \n110 percent 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. Section 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 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. 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, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $2,865,582.79. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution in the School District's name. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2012, the carrying value of the School District's total investments was $16,444,003.31, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nNOTE 5: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,236,317.21 $ \n \n2,000.00 \n \n633,240.60 \n \n9,061,573.79 $ \n \n$ 52,500.00 \n \n2,238,317.21 9,642,314.39 \n \nTotal Capital Assets Not Being Depreciated \n \n$ 2,869,557.81 $ 9,063,573.79 $ \n \n52,500.00 $ 11,880,631.60 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 33,562,569.34 $ 6,938,761.33 6,231,319.09 \n \n516,832.00 316,462.01 $ \n \n$ 34,079,401.34 \n \n348,823.35 \n \n6,906,399.99 \n \n6,231,319.09 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n11,350,725.92 4,277,066.37 3,059,295.84 \n \n758,585.48 442,479.57 255,118.35 \n \n348,823.35 \n \n12,109,311.40 4,370,722.59 3,314,414.19 \n \nTotal Capital Assets, Being Depreciated, Net $ 28,045,561.63 $ -622,889.39 $ \n \n0.00 $ 27,422,672.24 \n \nGovernmental Activity Capital Assets - Net \n \n$ 30,915,119.44 $ 8,440,684.40 $ \n \n52,500.00 $ 39,303,303.84 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ \n \nImprovements of Instructional Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n70,264.43 2,147.90 1,866.70 \n21,659.08 40,368.71 48,289.87 259,378.34 \n \n972,089.74 \n443,975.03 40,118.63 \n \n$ 1,456,183.40 \n \nNOTE 7: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nFor claims prior to fiscal year 2010, the School District has designated an independent contractor to operate a risk management program for Workers' Compensation. The School District's General Fund reimburses claims paid by the contractor. During the year under review, the School District's General Fund incurred expenditures of $12,713.29 for claims and related expenses incurred by the contractor. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaim s and Changes in Estim ates \n \nClaim s Paid \n \nEnd of Year Liability \n \n2011 $ 2012 $ \n \n9 ,5 0 5 .6 7 $ 0.00 $ \n \n26,547.80 $ 12,713.29 $ \n \n36,053.47 $ 12,713.29 $ \n \n0 .0 0 0 .0 0 \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2011 $ 2012 $ \n \n0.00 $ 0.00 $ \n \n54,575.00 $ 39,643.36 $ \n \n54,575.00 $ 39,643.36 $ \n \n0.00 0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. \n \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n100,000.00 \n \nNOTE 8: OPERATING LEASES \nCrisp County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2012, for governmental funds amounted to $106,017.13. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2013 \n \n$ \n \n79,513.02 \n \nNOTE 9: LONG-TERM DEBT \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2012, were as follows: \n \nBalance July 1, 2011 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2012 \n \nDue Within One Year \n \nCompensated Absences (1) $ \n \n151,654.46 $ \n \n14,086.90 $ \n \n31,908.90 $ 133,832.46 $ \n \n0.00 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $2,781,444.86 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $2,701,670.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $25,367.86 \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $54,407.00 \n \n- 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2012, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nCrisp County Elementary School \n \n$ 17,913,202.40 $ 4,016,449.17 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2012: \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \n \n1.429% of covered payroll for July coverage 18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \n3.958% of covered payroll for May - July coverage \n \nFor non-certificated school personnel: \n \nJuly 2011 - August 2011 \n \n$246.20 per member per month \n \nSeptember 2011 - June 2012 $296.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ \n \n3,762,398.36 \n \n$ \n \n3,700,491.11 \n \n$ \n \n3,639,162.05 \n \nNOTE 14: RETIREMENT PLANS \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The \n \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"I\" \n \npurpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \n \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ \n \n2,162,475.36 \n \n$ \n \n2,241,457.68 \n \n$ \n \n2,248,372.05 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \n- 23 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 8,271,880.00 $ 8,271,880.00 $ 8,626,677.89 $ 354,797.89 \n \n45,000.00 \n \n45,000.00 \n \n91,528.25 \n \n46,528.25 \n \n20,269,752.00 \n \n21,292,382.55 \n \n21,651,170.24 \n \n358,787.69 \n \n5,324,727.33 \n \n8,022,452.30 \n \n6,615,078.72 \n \n-1,407,373.58 \n \n405,277.57 \n \n427,539.94 \n \n571,768.56 \n \n144,228.62 \n \n21,000.00 \n \n21,000.00 \n \n8,945.38 \n \n-12,054.62 \n \n20,682.45 \n \n20,788.56 \n \n438,322.61 \n \n417,534.05 \n \n$ 34,358,319.35 $ 38,101,043.35 $ 38,003,491.65 $ \n \n-97,551.70 \n \n$ 23,218,177.74 $ 25,623,109.74 $ 24,894,447.39 $ \n \n1,025,077.66 1,143,533.40 \n625,984.00 507,420.00 2,527,307.20 270,505.00 2,947,641.00 1,347,154.00 \n22,512.00 222,046.00 \n2,488,781.35 \n \n1,545,944.66 1,787,465.00 \n625,984.00 529,414.00 2,414,974.20 270,505.00 2,990,343.00 1,438,193.00 \n22,512.00 234,797.00 \n2,488,781.35 \n \n1,273,548.15 1,253,952.86 \n662,997.38 524,618.95 2,330,567.74 273,280.65 2,848,384.01 1,808,800.20 \n42,108.74 493,951.98 106,621.54 2,723,065.56 \n \n$ 36,346,139.35 $ 39,972,022.95 $ 39,236,345.15 $ \n \n$ -1,987,820.00 $ -1,870,979.60 $ -1,232,853.50 $ \n \n728,662.35 \n272,396.51 533,512.14 -37,013.38 \n4,795.05 84,406.46 -2,775.65 141,958.99 -370,607.20 -19,596.74 -259,154.98 -106,621.54 -234,284.21 \n735,677.80 \n638,126.10 \n \n$ \n \n300,000.00 $ \n \n300,000.00 \n \n$ \n \n-300,000.00 \n \n-300,000.00 \n \n$ \n \n0.00 $ \n \n0.00 \n \n$ \n \n$ -1,987,820.00 $ -1,870,979.60 $ -1,232,853.50 $ \n \n6,510,670.07 \n \n6,423,194.20 \n \n6,492,328.89 \n \n105,673.84 \n \n-300,000.00 300,000.00 \n0.00 638,126.10 \n69,134.69 105,673.84 \n \n$ 4,522,850.07 $ 4,552,214.60 $ 5,365,149.23 $ 812,934.63 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues ($276,440.38) or expenditures ($264,397.93) of the various principal accounts. \nThe 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. \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Impact Aid Cluster Direct Impact Aid \nEducational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Other Programs Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and Communities - State Grants \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A $ 2,610,244.37 (1) \n \n$ 2,610,244.37 \n \n84.041 \n \n(3) \n \n84.318 \n \nN/A $ \n \n18,950.28 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n \nN/A $ \n \n9,892.93 \n \nN/A \n \n650.86 \n \nN/A \n \n1,088,174.99 \n \nN/A \n \n58,273.68 \n \n$ 1,156,992.46 \n \n84.389 84.010 \n \nN/A \n \n$ \n \n110,303.24 \n \nN/A \n \n2,328,113.65 \n \n$ 2,438,416.89 \n \n84.048 84.410 84.367 84.011 84.358 84.287 \n \nN/A $ \n \n73,767.00 \n \nN/A \n \n10,030.00 \n \nN/A \n \n248,499.35 \n \nN/A \n \n60,778.16 \n \nN/A \n \n65,507.42 \n \nN/A \n \n246,475.71 \n \n$ \n \n705,057.64 \n \n$ 4,319,417.27 \n \n84.186 \n \nN/A $ \n \n1,991.49 \n \n$ \n \n181,832.93 \n \nTotal Expenditures of Federal Awards N/A = Not Available \n \n$ 7,113,486.06 \n \n- 26 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $261,607.63. \n(2) Expenditures for the funds earned on the School Breakfast Program ($516,357.63) were not maintained separately and are included in the 2012 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $11,027.96, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Crisp County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Education Equalization Funding Grant Food Services Nursing Services Other State Programs Dual Enrollment Funding GNETS State Grant Health Insurance Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Virtual Schools Grant Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nHuman Resources, Georgia Department of Family Connection \nOffice of the State Treasurer Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,159,663.03 \n \n$ 1,159,663.03 \n \n1,233,334.00 290,571.00 \n2,516,687.00 343,309.00 \n1,221,277.00 210,947.00 \n2,201,661.00 1,415,555.00 \n685,193.00 2,837,753.00 \n594,985.00 419,821.00 156,966.00 \n66,587.00 389,284.00 114,976.00 \n85,243.00 \n525,513.00 785,352.00 1,021,539.00 -3,265,635.00 \n525,370.00 1,844,671.00 \n69,372.00 73,920.00 \n20,102.00 900,584.00 2,701,670.00 \n8,416.35 63,376.00 152,439.00 25,367.86 \n400.00 156,494.00 \n \n1,233,334.00 290,571.00 \n2,516,687.00 343,309.00 \n1,221,277.00 210,947.00 \n2,201,661.00 1,415,555.00 \n685,193.00 2,837,753.00 \n594,985.00 419,821.00 156,966.00 \n66,587.00 389,284.00 114,976.00 \n85,243.00 \n525,513.00 785,352.00 1,021,539.00 -3,265,635.00 \n525,370.00 1,844,671.00 \n69,372.00 73,920.00 \n20,102.00 900,584.00 2,701,670.00 \n8,416.35 63,376.00 152,439.00 25,367.86 \n400.00 156,494.00 \n \n$ 2,046,053.83 44,000.00 54,407.00 \n \n2,046,053.83 44,000.00 54,407.00 \n \n$ 21,651,170.24 $ 2,046,053.83 $ 23,697,224.07 \n \nSee notes to the basic financial statements. \n \n- 28 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"4\" \n \nPROJECT \nSPLOST II \n1. Renovating and modernizing the auditoriums of the Crisp County Middle School and A. S. Clark Elementary School. \n2. Adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable in connection therewith, including parking areas, present football stadium, playgrounds, and physical education fields. \n3. Acquiring new school equipment, including school buses and other school vehicles. \n4. Acquiring, constructing, and equipping new additional classrooms, athletic and storage facilities. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ 4,224,186.76 \n \n$ 4,224,186.76 $ 4,224,186.76 \n \n9,718,007.98 $ \n \n48,279.41 \n \n9,669,728.57 \n \n9,718,007.98 \n \n2,164,264.48 \n \n33,565.13 \n \n2,130,699.35 \n \n2,164,264.48 \n \n879,409.33 \n \n879,409.33 \n \n879,409.33 \n \nESTIMATED COMPLETION \nDATE \nCompleted \n6/30/2014 6/30/2014 6/30/2014 \n \n5. Acquiring any property necessary or desirable therefor, both real and personal, including computer technology system-wide, the maximum amount of the projects to be paid with sales and use tax proceeds will be $18,000,000. \n \n3,615,423.89 \n \n$ 18,000,000.00 $ 20,601,292.44 $ \n \nSPLOST III \n \n3,615,423.89 \n \n3,615,423.89 \n \n81,844.54 $ 20,519,447.90 $ 20,601,292.44 $ \n \n1. Funding for the purpose of the securing General Obligation bonds of $15,000,000 and acquiring, constructing, and equipping a new K-1 Elementary school to include land, furniture, fixtures, and equipment. \n \n$ 24,000,000.00 $ 9,061,573.79 $ \n \n483,398.10 $ 9,544,971.89 \n \n2. Acquiring, constructing and equipping additional classrooms for Blackshear Trail Elementary School and Southwestern Elementary School. \n \n3. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities. \n \n4. Acquiring and installing system-wide instructional and administrative technology, safety, and security equipment. \n5. Acquisition of school buses, vehicles and transportation equipment. \n6. Acquiring any necessary property, both real and personal, and paying cost incident to accomplishing the foregoing. \n$ 24,000,000.00 $ 24,000,000.00 $ 9,061,573.79 $ \n \n483,398.10 \n \n9,544,971.89 $ \n \n0.00 \n \n6/30/2014 \n \n12/31/2013 \n \n0.00 \n \n$ 42,000,000.00 $ 44,601,292.44 $ 9,143,418.33 $ 21,002,846.00 $ 30,146,264.33 $ \n \n0.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs 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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,431,242.00 $ 1,549,872.76 $ 19,244.85 $ 1,569,117.61 \n \n337,794.00 \n \n499,184.96 \n \n3,016.01 \n \n502,200.97 \n \n2,941,792.00 \n \n3,014,957.03 \n \n185,817.42 \n \n3,200,774.45 \n \n409,660.00 \n \n647,671.09 \n \n9,205.58 \n \n656,876.67 \n \n1,424,241.00 \n \n1,383,604.69 \n \n18,178.23 \n \n1,401,782.92 \n \n268,622.00 2,569,635.00 1,667,746.00 \n808,138.00 3,251,780.00 \n \n335,719.34 3,143,071.47 2,233,160.79 \n812,876.64 \n \n1,882.03 111,341.66 186,168.20 \n62,412.64 \n \n337,601.37 3,254,413.13 2,419,328.99 \n875,289.28 \n \n691,504.00 476,707.00 184,098.00 \n74,392.00 \n \n237,493.28 481,237.86 2,188,595.73 199,028.39 \n899,523.29 262,229.75 307,225.41 \n13,376.74 \n \n1,098.08 6,126.96 47,538.76 \n658.29 185.60 2,123.49 \n14,399.02 \n \n238,591.36 487,364.82 2,236,134.49 199,686.68 \n185.60 901,646.78 262,229.75 321,624.43 \n13,376.74 \n \n$ 16,537,351.00 $ 18,208,829.22 $ 669,396.82 $ 18,878,226.04 \n \n454,419.00 99,144.00 \n \n583,183.21 5,942.90 \n \n51,679.42 11,986.80 \n \n634,862.63 17,929.70 \n \n$ 17,090,914.00 $ 18,797,955.33 $ 733,063.04 $ 19,531,018.37 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT 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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Crisp County Board of Education's basic financial statements and have issued our report thereon dated March 12, 2013. 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. \nInternal Control Over Financial Reporting \nManagement of Crisp County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Crisp County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \n \n2012YB-10 \n \n  Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Crisp County Board of Education in a separate letter dated March 12, 2013. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nGSG:as 2012YB-10 \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMarch 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited Crisp County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. Crisp County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Crisp County Board of Education's management. Our responsibility is to express an opinion on Crisp County Board of Education's compliance based on our audit. \nWe 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Crisp County Board of Education'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. Our audit does not provide a legal determination on Crisp County Board of Education's compliance with those requirements. \nIn our opinion, the Crisp County Board of Education complied, in all material respects, with the 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, 2012. \n \n2012SA-10 \n \n  Internal Control Over Compliance \nManagement of Crisp County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Crisp County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Crisp County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \nOur 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nGSG:as 2012SA-10 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nUnqualified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnqualified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: CFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.027, 84.173, 84.391, 84.392 \n \nChild Nutrition Cluster Special Education Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \n \n$300,000.00 No \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2010-h2011-belec-p-btext","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009; ceased with fiscal year ended June 30, 2020.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed January 4, 2023).","Fiscal year ended June 30, 2020 (Georgia Government Publications database, viewed January 4, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2010-h2011-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \nPage \n1 2 4 5 6 7 8 9 10 \n25 26 28 \n \n  CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n29 31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT 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 \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 2, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Crisp County Board of Education, as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Crisp County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n2011ARL-11 \n \n  The Crisp County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated February 2, 2012, on our consideration of the Crisp County Board of Education'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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. 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, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nRWH:as 2011ARL-11 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  CRISP COUNTY BOARD OF EDUCATION \n \n  CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \nASSETS \nInvestments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Capital Projects Bus Replacement Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n21,306,388.46 \n \n101.49 1,219,339.06 3,087,091.51 1,738,452.56 \n29,753.19 28,579.70 31,237.14 2,869,557.81 28,045,561.63 \n \n$ \n \n58,356,062.55 \n \n$ \n \n431,068.02 \n \n356,980.79 \n \n4,147,184.80 \n \n124.78 \n \n68,625.00 \n \n7,625.00 \n \n52,399.29 \n \n151,654.46 \n \n$ \n \n5,215,662.14 \n \n$ \n \n30,915,119.44 \n \n316,789.31 15,264,063.72 \n87,475.87 6,556,952.07 \n \n$ \n \n53,140,400.41 \n \n$ \n \n58,356,062.55 \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2011 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n27,299,894.98 $ \n \n1,422,744.31 1,531,242.66 \n686,798.73 583,012.56 2,398,196.89 293,151.46 2,998,576.92 1,614,317.23 \n22,462.00 656,607.00 \n \n2,552,834.30 \n \n$ \n \n42,059,839.04 $ \n \n200,883.04 \n5,895.00 330,277.57 537,055.61 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 21,730,686.79 \n457,158.33 986,297.91 526,702.29 826,913.50 1,143,376.29 \n2,427.76 1,296,594.14 $ \n611,472.19 109.59 \n166,760.89 \n2,125,627.93 \n$ 29,874,127.61 $ \n \n$ \n42,000.00 228,876.00 270,876.00 $ \n \n-5,368,325.15 \n-965,585.98 -544,944.75 -160,096.44 243,900.94 -1,254,820.60 -290,723.70 -1,654,087.78 -773,969.04 \n-22,352.41 -489,846.11 \n-96,928.80 \n-11,377,779.82 \n \n$ \n \n7,423,540.46 \n \n41,362.92 \n \n3,754,261.30 86,798.51 \n1,922,707.00 37,092.58 \n371,853.24 \n \n$ \n \n13,637,616.01 \n \n$ \n \n2,259,836.19 \n \n50,880,564.22 \n \n$ \n \n53,140,400.41 \n \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2011 \n \nEXHIBIT \"C\" \n \nASSETS \nInvestments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 5,892,579.38 $ 15,413,809.08 $ \n \n101.49 862,523.92 3,087,091.51 1,738,452.56 \n29,753.19 28,579.70 31,237.14 \n \n356,815.14 \n \n21,306,388.46 \n101.49 1,219,339.06 3,087,091.51 1,738,452.56 \n29,753.19 28,579.70 31,237.14 \n \n$ 11,670,318.89 $ 15,770,624.22 $ \n \n27,440,943.11 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n757.52 $ \n \n356,980.79 \n \n4,147,184.80 \n \n124.78 \n \n672,942.11 $ 5,177,990.00 $ \n \n430,310.50 $ \n68,625.00 7,625.00 \n506,560.50 $ \n \n431,068.02 356,980.79 4,147,184.80 \n124.78 68,625.00 \n7,625.00 672,942.11 \n5,684,550.50 \n \n$ \n \n31,237.14 \n \n$ \n \n373,028.04 $ 15,264,063.72 \n \n2,069,981.83 \n \n4,018,081.88 \n \n$ 6,492,328.89 $ 15,264,063.72 $ \n \n31,237.14 15,637,091.76 \n2,069,981.83 4,018,081.88 \n21,756,392.61 \n \n$ 11,670,318.89 $ 15,770,624.22 $ \n \n27,440,943.11 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences Payable \n \n$ 21,756,392.61 \n \n$ 2,236,317.21 633,240.60 \n6,231,319.09 33,562,569.34 \n6,938,761.33 -18,687,088.13 \n \n30,915,119.44 \n \n620,542.82 \n \n-151,654.46 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 53,140,400.41 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 8,416,346.32 86,798.51 $ \n23,212,634.85 8,813,075.76 537,055.61 13,534.16 371,853.24 \n \n$ 3,754,261.30 \n23,558.42 \n \n8,416,346.32 3,841,059.81 23,212,634.85 8,813,075.76 \n537,055.61 37,092.58 \n371,853.24 \n \n$ 41,451,298.45 $ 3,777,819.72 $ 45,229,118.17 \n \n$ 26,360,871.03 $ \n \n20,010.00 $ 26,380,881.03 \n \n1,338,573.45 1,529,122.56 \n686,798.73 579,327.49 2,378,374.18 249,730.31 2,922,474.32 1,637,258.91 \n22,462.00 656,607.00 2,509,694.21 \n \n47,247.00 \n3,575.00 54,846.50 \n483,398.10 \n \n1,385,820.45 1,529,122.56 \n686,798.73 579,327.49 2,378,374.18 253,305.31 2,977,320.82 1,637,258.91 \n22,462.00 656,607.00 2,509,694.21 483,398.10 \n \n$ 40,871,294.19 $ 609,076.60 $ 41,480,370.79 \n \n$ 580,004.26 $ 3,168,743.12 $ 3,748,747.38 \n \n5,915,063.96 12,095,320.60 18,010,384.56 \n \n-2,739.33 \n \n-2,739.33 \n \n$ 6,492,328.89 $ 15,264,063.72 $ 21,756,392.61 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lifes as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nCapital Assets purchased with Universal Service Fund (e-rate) proceeds are not reported in Governmental Funds. However, in the Statement of Activities, the e-rate proceeds are shown as Capital Grants and Contributions \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to increase/decrease net assets. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nFood Inventories are expensed on the District-Wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nDecrease in Compensated Absences \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 3,748,747.38 \n \n$ 924,302.34 -1,471,115.49 \n \n-546,813.15 \n \n42,000.00 -48,971.74 -951,442.94 \n-2,739.33 \n \n19,055.97 $ 2,259,836.19 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2011 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nInterest and Dividends \nTotal Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n76,676.54 $ \n \n116,386.88 \n \n30.13 \n \n46,535.14 \n \n$ 193,093.55 $ \n \n46,535.14 \n \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \n$ \n \n46,535.14 \n \n$ 193,093.55 \n \n$ 193,093.55 $ \n \n46,535.14 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2011 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nEXHIBIT \"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n523.65 \n \n$ 20,000.00 $ -19,476.35 \n212,569.90 \n \n$ 193,093.55 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Crisp County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n 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. \n 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. \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \n 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. \n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n \n- 10 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust funds report trust arrangements under which principal and income benefit may be expended for the purpose of refreshments at the Superintendent's discretion, and to fund scholarships awarded to graduating seniors of Crisp County High School. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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 compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nThe State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1  June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \n \n- 11 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \nCASH AND CASH EQUIVALENTS Composition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 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. \nINVESTMENTS Composition of Investments \nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. 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. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \nReceivables 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. \n- 12 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nPROPERTY TAXES \n \nThe Crisp County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on July 23, 2010 (levy date). Taxes were due on December 20, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The Crisp 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, 2011, for maintenance and operations amounted to $8,374,983.40. \n \nThe tax millage rate levied for the 2010 tax year (calendar year) for the Crisp County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations SALES TAXES \n \n16.45 mills \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,754,261.30 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories \n \nOn the District-wide 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). 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. \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \n- 13 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nN/A \n \n$ \n \n10,000.00 10 to 40 years \n \n$ \n \n25,000.00 20 to 80 years \n \n$ \n \n5,000.00 4 to 20 years \n \n$ \n \nAll \n \nN/A \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nCOMPENSATED ABSENCES \n \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \n \nVacation leave of ten days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed ten days. \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2009 $ 2010 $ 2011 $ \n \n181,355.20 $ 168,013.08 $ 170,710.43 $ \n \n19,531.17 $ 27,756.48 $ 14,942.89 $ \n \n32,873.29 $ 25,059.13 $ 33,998.86 $ \n \n1 6 8 ,0 1 3 .0 8 1 7 0 ,7 1 0 .4 3 1 5 1 ,6 5 4 .4 6 \n \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of 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 invested in capital assets, net of related debt. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal Programs, and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \n- 14 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFUND BALANCES \n \nThe School District's fund balances are classified as follows: \n \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \n \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education 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. \n \nAssigned  Amounts that are 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 of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \n \nNonspendable Inventories \nRestricted Bus Replacement Continuation of Federal Programs Capital Projects \nAssigned Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ \n \n$ \n \n87,475.87 \n \n285,552.17 \n \n15,264,063.72 \n \n1,987,820.00 82,161.83 \n \n31,237.14 \n15,637,091.76 2,069,981.83 4,018,081.88 \n \nFund Balance, June 30, 2011 \n \n$ \n \n21,756,392.61 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe 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. \n \n- 15 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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. Section 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 percent of the daily pool balance. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n5. 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, \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. At June 30, 2011, the bank balances were $2,161,757.32. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 16 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30, 2011, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n285,500.23 \n \nTotal \n \n$ \n \n285,500.23 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2011, the carrying value of the School District's total investments was $21,028,900.67, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \nNOTE 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 17 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,236,317.21 $ 97,342.50 \n \n$ 535,898.10 \n \n0.00 $ 2,236,317.21 633,240.60 \n \nTotal Capital Assets Not Being Depreciated \n \n$ 2,333,659.71 $ 535,898.10 $ \n \n0.00 $ 2,869,557.81 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 33,546,319.34 $ 6,622,550.57 6,182,347.35 \n \n16,250.00 365,182.50 $ \n48,971.74 \n \n$ 48,971.74 \n \n33,562,569.34 6,938,761.33 6,231,319.09 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n10,603,706.31 3,821,269.03 2,790,997.30 \n \n747,019.61 455,797.34 268,298.54 \n \n11,350,725.92 4,277,066.37 3,059,295.84 \n \nTotal Capital Assets, Being Depreciated, Net $ 29,135,244.62 $ -1,040,711.25 $ \n \n48,971.74 $ 28,045,561.63 \n \nGovernmental Activity Capital Assets - Net $ 31,468,904.33 $ -504,813.15 $ \n \n48,971.74 $ 30,915,119.44 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ \n \n$ \n \n85,287.57 \n \n2,147.90 \n \n3,733.40 \n \n20,082.68 \n \n40,368.71 \n \n53,130.36 \n \n249,736.10 \n \n968,793.80 \n454,486.72 47,834.97 \n \n$ 1,471,115.49 \n \nNOTE 6: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 18 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nFor claims prior to fiscal year 2010, the School District has designated an independent contractor to operate a risk management program for Workers' Compensation. The School District's General Fund reimburses claims paid by the contractor. During the year under review, the School District's General Fund incurred expenditures of $36,053.47 for claims and related expenses incurred by the contractor. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2010 $ 2011 $ \n \n3,201.84 $ 14,404.44 $ 8,100.61 $ 9,505.67 $ 26,547.80 $ 36,053.47 $ \n \n9,505.67 0.00 \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2010 $ 2011 $ \n \n0.00 $ 18,580.00 $ 18,580.00 $ 0.00 $ 54,575.00 $ 54,575.00 $ \n \n0.00 0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \n \n- 19 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ 100,000.00 $ 100,000.00 \n \nNOTE 7: OPERATING LEASES \n \nCrisp County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2011, for governmental funds amounted to $106,017.36. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2012 2013 \n \n$ \n \n106,017.36 \n \n79,513.02 \n \nTotal \n \n$ \n \n185,530.38 \n \nNOTE 8: LONG-TERM DEBT COMPENSATED ABSENCES \n \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \n \nBalance July 1, 2010 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2011 \n \nDue Within One Year \n \nCompensated Absences (1) $ 170,710.43 $ \n \n14,942.89 $ \n \n33,998.86 $ 151,654.46 $ \n \n0.00 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the \nbasic financial statements. \nVoters have authorized $15,000,000.00 in general obligation debt for capital outlay projects which were not issued as of June 30, 2011. \nNOTE 9: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $131,793.57 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $81,234.92 - 20 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $24,356.65 \n \nOffice of the State Treasurer Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $26,202.00 \n \nNOTE 10: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011: \n \nProject \n \nUnearned Executed Contracts \n \nPrimary School \n \n$ 3,063,750.00 \n \nThe amount described in this note is not reflected in the basic financial statements. \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 12: SUBSEQUENT EVENTS \nIn the subsequent fiscal year, on November 8, 2011, voters of Crisp County authorized the imposition of a one percent sales tax (SPLOST) to raise no more than $23,000,000.00 to be used for various capital outlay projects. On December 14, 2011, the School District entered into a contract with JCI Contractors for the construction of a new elementary school in the amount of $22,359,500.00. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 21 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2011: \n \nJuly 2010 - April 2011 May 2011 - June 2011 \n \n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \n \n$162.72 per member per month $218.20 per member per month $246.20 per member per month \n \nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ 3,700,491.11 $ 3,639,162.05 $ 2,693,465.21 \n \nNOTE 14: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 22 - \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \n \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ 2,241,457.68 $ 2,248,372.05 $ 2,197,334.22 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \n- 23 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers From Other Funds Operating Transfers To Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n8,279,880.74 $ \n \n8,279,880.74 $ \n \n8,416,346.32 \n \n86,798.51 \n \n22,421,426.44 \n \n22,409,878.44 \n \n23,212,634.85 \n \n6,229,762.99 \n \n9,700,175.52 \n \n8,813,075.76 \n \n387,399.64 \n \n387,399.64 \n \n537,055.61 \n \n32,655.20 \n \n32,655.20 \n \n13,534.16 \n \n63,500.26 \n \n63,500.26 \n \n371,853.24 \n \n$ \n \n37,414,625.27 $ \n \n40,873,489.80 $ \n \n41,451,298.45 \n \n$ \n \n25,138,274.00 $ \n \n27,165,255.90 $ \n \n26,360,871.03 \n \n1,177,203.00 1,507,181.00 \n619,842.00 564,478.00 2,454,584.00 267,259.00 3,085,022.00 1,361,378.00 \n22,512.00 396,254.00 2,360,887.27 \n \n1,638,333.33 2,117,842.00 \n619,842.00 681,129.86 2,340,442.00 267,259.00 3,137,330.00 1,470,928.00 \n22,812.00 410,144.00 2,360,887.27 \n \n1,338,573.45 1,529,122.56 \n686,798.73 579,327.49 2,378,374.18 249,730.31 2,922,474.32 1,637,258.91 \n22,462.00 656,607.00 2,509,694.21 \n \n$ \n \n38,954,874.27 $ \n \n42,232,205.36 $ \n \n40,871,294.19 \n \n$ \n \n-1,540,249.00 $ \n \n-1,358,715.56 $ \n \n580,004.26 \n \n$ \n \n200,000.00 $ \n \n200,000.00 $ \n \n-200,000.00 \n \n-200,000.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ \n \n-1,540,249.00 $ \n \n-1,358,715.56 $ \n \n5,915,193.28 \n \n5,915,193.28 \n \n0.00 0.00 0.00 580,004.26 5,915,063.96 -2,739.33 \n \nFund Balances - Ending \n \n$ \n \n4,374,944.28 $ \n \n4,556,477.72 $ \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe 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. \n \n6,492,328.89 \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Impact Aid Cluster Direct Impact Aid \nEducational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Safe and Drug-Free Schools and Communities - State Grants Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning ARRA - Child Care and Development Block Grant Other Programs Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and Communities - State Grants \nTotal U. S. Department of Health and Human Services \n- 26 - \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n2,391,947.63 (1) \n \n$ \n \n2,391,947.63 \n \n84.041 \n \n(3) \n \n84.318 \n \nN/A \n \n$ \n \n7,242.88 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \n437,053.44 16,201.22 \n705,791.24 25,306.92 \n \n$ \n \n1,184,352.82 \n \n* 84.389 * 84.010 \n \nN/A \n \n$ \n \n893,284.17 \n \nN/A \n \n2,861,905.72 \n \n$ \n \n3,755,189.89 \n \n84.048 * 84.410 \n84.367 84.011 84.358 84.186 84.287 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n72,005.00 841,926.00 332,712.98 \n58,156.02 99,466.29 11,908.00 244,315.10 \n \n$ \n \n1,660,489.39 \n \n$ \n \n6,607,274.98 \n \n93.713 84.186 \n \nN/A \n \n$ \n \nN/A $ \n \n29,990.47 \n32,168.77 62,159.24 \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT Defense, U. S. Department of \nDirect Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ \n \n231,694.34 \n \n$ \n \n9,293,076.19 \n \nN/A = Not Available \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $90,323.15. \n(2) Expenditures for the funds earned on the School Breakfast Program ($508,601.00) were not maintained separately and are included in the 2011 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $13,370.04, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Crisp County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category III Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular State Bonds Mid Term Hold Harmless Nursing Services Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Funding GNETS State Grant Health Insurance Math and Science Supplements Preschool Handicapped Program Teachers' Retirement \nOffice of the State Treasurer Public School Employees Retirement \nHuman Resources, Georgia Department of Family Connection \n \nSee notes to the basic financial statements. \n \n- 28 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,358,278.95 \n \n1,433,670.00 335,756.00 \n3,096,986.17 459,053.00 \n1,460,612.00 379,445.00 \n2,798,384.61 1,873,509.22 \n854,642.00 \n3,019,902.00 697,573.00 441,795.00 192,104.00 59,463.00 459,502.00 139,725.00 86,359.00 \n605,858.00 920,589.00 1,048,854.00 \n522,899.00 228,876.00 277,053.00 \n75,023.00 1,922,707.00 \n74,790.00 146,126.00 -3,090,113.00 \n9,506.00 1,010,812.91 \n81,234.92 34,754.42 104,096.00 24,356.65 \n26,202.00 \n42,250.00 \n$ 23,212,634.85 \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nSPLOST II 1.Renovating and modernizing the auditoriums of the crisp County Middle School and A. S. Clark Elementary School. 2. Adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable in connection therewith, including parking areas, present football stadium, playgrounds, and physical education fields. 3. Acquiring new school equipment, including school buses and other school vehicles. 4. Acquiring, constructing, and equipping new additional classrooms, athletic and storage facilities. 5. Acquiring any property necessary or desirable therefor, both real and personal, including computer technology system-wide, the maximum amount of the projects to be paid with sales and use tax proceeds will be $18,000,000.00. \n \n$ 4,224,186.00 \n \n$ 4,224,186.00 Completed \n \n9,669,729.50 $ 2,130,699.00 \n879,409.00 \n \n105,853.50 16,250.00 \n \n9,563,876.00 Ongoing 2,130,699.00 Ongoing \n863,159.00 Ongoing \n \n3,615,424.40 \n \n3,575.00 \n \n3,611,849.40 Ongoing \n \n$ 18,000,000.00 $ 20,519,447.90 $ \n \n125,678.50 $ 20,393,769.40 \n \nSPLOST III 1. Funding for the purpose of the securing General Obligation bonds of $15,000,000.00 and acquiring, constructing, and equipping a new K-1 Elementary school to include land, furniture, fixtures, and equipment. 2. Acquiring, constructing and equipping additional classrooms for Blackshear Trail Elementary School and Southwestern Elementary School. \n3. Renovating, repairing, improving, and equipping existing schools and related facilities, including without limitation, roof replacements and repairs, mechanical system repairs and replacements, parking lot repairs and renovations, improvements and renovations to physical education and athletic facilities. 4. Acquiring and installing system-wide instructional and administrative technology, safety, and security equipment. 5. Acquisition of school buses, vehicles and transportation equipment. 6. Acquiring any necessary property, both real and personal, and paying cost incident to accomplishing the foregoing. \n \n$ \n \n483,398.10 \n \nOngoing Ongoing \nOngoing Ongoing Ongoing Ongoing \n \n$ 24,000,000.00 $ 24,000,000.00 $ \n \n483,398.10 $ \n \n0.00 \n \n$ 42,000,000.00 $ 44,519,447.90 $ \n \n609,076.60 $ 20,393,769.40 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs 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 Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,621,250.00 $ 1,450,669.67 $ 19,356.12 $ 1,470,025.79 \n \n386,311.00 \n \n415,726.61 \n \n3,506.72 \n \n419,233.33 \n \n3,455,124.00 \n \n2,872,301.65 \n \n64,030.69 \n \n2,936,332.34 \n \n530,255.00 \n \n835,947.10 \n \n10,879.98 \n \n846,827.08 \n \n1,653,173.00 \n \n1,339,170.48 \n \n12,212.71 \n \n1,351,383.19 \n \n444,100.00 2,995,640.00 2,032,843.00 \n986,142.00 3,432,529.00 \n788,939.00 478,727.00 220,016.00 \n67,568.00 \n \n381,074.89 2,867,012.80 2,239,056.55 \n977,282.66 \n438,551.85 688,887.02 1,769,019.01 131,383.30 \n773,309.00 237,193.68 251,339.52 \n36,962.32 \n \n2,345.62 53,722.35 268,057.26 83,477.03 \n4,825.40 6,895.53 25,594.87 2,613.24 5,227.50 1,041.28 \n578.16 15,510.29 \n \n383,420.51 2,920,735.15 2,507,113.81 1,060,759.69 \n443,377.25 695,782.55 1,794,613.88 133,996.54 \n5,227.50 774,350.28 237,771.84 266,849.81 \n36,962.32 \n \n$ \n \n19,092,617.00 $ 17,704,888.11 $ 579,874.75 $ 18,284,762.86 \n \n523,728.00 98,342.00 \n \n601,268.14 \n \n51,440.71 \n \n652,708.85 42,043.56 \n \n$ \n \n19,714,687.00 $ 18,306,156.25 $ 631,315.46 $ 18,979,515.27 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 2, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT 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 \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Crisp County Board of Education's basic financial statements and have issued our report thereon dated February 2, 2012. 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. \nInternal Control Over Financial Reporting \nManagement of Crisp County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Crisp County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \n \n2011YB-10 \n \n  Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Crisp County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Crisp County Board of Education in a separate letter dated February 2, 2012. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2011YB-10 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 2, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited Crisp County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. Crisp County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Crisp County Board of Education's management. Our responsibility is to express an opinion on Crisp County Board of Education's compliance based on our audit. \nWe 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Crisp County Board of Education'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. Our audit does not provide a legal determination on Crisp County Board of Education's compliance with those requirements. \nIn our opinion, the Crisp County Board of Education complied, in all material respects, with the 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, 2011. \n \n2011SA-10 \n \n  Internal Control Over Compliance \nManagement of Crisp County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Crisp County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Crisp County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \nOur 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2011SA-10 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nUnqualified \n \nInternal control over financial reporting: \n Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnqualified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 \n \nTitle I, Part A Cluster Special Education Cluster Education Jobs Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2009-h2010","title":"Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2010-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009; ceased with fiscal year ended June 30, 2020.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed January 4, 2023).","Fiscal year ended June 30, 2020 (Georgia Government Publications database, viewed January 4, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Crisp County Board of Education (Crisp County, Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Crisp County--Auditing--Periodicals","Education--Georgia--Crisp County--Finance--Statistics--Periodicals"],"dcterms_title":["Crisp County Board of Education, Cordele, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bc9-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"CRISP COUNTY BOARD OF EDUCATION \nCORDELE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2010 \n(Including Independent Auditor's Reports) \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURESAND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURESAND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURESOF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \n CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WlTH GOVERNMENTAUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \nSECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404)656-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2 0 1 1 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Crisp County Board of Education, as of and for the year ended June 30, 2010, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Crisp County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe 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 GovernmentAuditing 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Crisp County Board of Education, as of June 30, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Crisp County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \n \n In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2011, on our consideration of the Crisp County Board of Education'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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \n \nAccounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, 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 responsesto our inquiries, the basic financial statements, and other knowledge we obtained during the 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. \n \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Crisp County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, AudiB of States, local Governmen\u0026, and Nun-Profit Organiations, are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly t o the underlying accounting and other records used t o prepare the financial statements or to the 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 financial statements as a whole. \n \nA copy of this report has been filed as a permanent record in the office of the State Auditor and \n \nmade available to the press of the State, as provided for by Official Code of Georgia Annotated \n \nsection 50-6-24. \n \n. Respectfully submitted, \n \nJ \nRussell W. Hinton, CPA, CGFM State Auditor \n \n CRISP COUNTY BOARD OF EDUCATION \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30.2010 \nASSETS \nCash and Cash Equivalents lnvestments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable(Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in CapitalAssets Restricted for \nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \nGOVERNMENTAL ACTIVITIES \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30,2010 \n \nEXHIBIT \"BB\" \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-InstructionalServices Food Services \nTotal GovernmentalActivities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Spec~ficPrograms Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \n- Net Assets Beginningof Year \n- Net Assets End of Year \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \nThe notes to the basic financial statements are an integral part of this statement -2- \n \n CRISP COUNlY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30,2010 \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable. Net \nInterest Taxes State Government Federal Government Local Other Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Depositsand Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nResewed for: Bus Replacement Continuation of Federal Programs Capital Projects \nUnrese~ed Designatedfor State Revenue Reduction Designatedfor Student Activities UndesignatedReported in: General Fund \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nEXHIBIT \"C\" \nTOTAL \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 3 - \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30.2010 \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for GovernmentalActivities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-Term Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences \nNet Assets of GovernmentalActivities (Exhibit\"A\") \n \nEXHIBIT \"D\" \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 4 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDEDJUNE 30,2010 \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nNet Change in Fund Balances \n- Fund Balances Beginning \nInventory- Net Change in Period \n- Fund Balances Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nEXHIBIT \"E\" \nTOTAL \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n CRISP COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30,2010 \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"En) \nAmounts reportedfor Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period. these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not providecurrent financial resources are not re~ortedas revenues in the funds. \nFood lnventoriesare expensed on the District-wideStatements usingthe consumption method while on the fund level Food Inventoriesare recorded as expenditures when purchased. In the current periodthis difference amounts to: \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nIncreasein CompensatedAbsences \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \nEXHIBIT \"F\" \n \nThe notesto the basic financial statements are an integral part of this statement \n- 6 - \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30.2010 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \nInterest and Dividends \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nEXHIBIT \"G\" \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 7- \n \n CRISP COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30,2010 \nADDITIONS Investment Earnings Interest Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nEXHIBIT \"H\" \nPRIVATE PURPOSE TRUSTS \n \nThe notesto the basic financial statements are an integral part of this statement. -8- \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Crisp 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. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Crisp County Board Of Education. \nDistrict-wide Ststements: The Statement of Net Assets 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 nonexchangetransactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect 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. \nProgram 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. \nFund Financial Ststemenis: 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 for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \nGeneral Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nDistrict-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \nThe School District reports the following fiduciary fund types: \nPrivate Purpose Trust funds report trust arrangements under which principal and income may be expended for the purpose of refreshments at the Superintendent's discretion, and to fund scholarships awarded to graduating seniors of Crisp County High School. \nAgency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental 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, and grants. 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 is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe 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. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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 compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nThe State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are \ncontracted for the school year (July 1- June 30) and paid over a twelve month contract period, \ngenerally September 1through August 31. In accordance with the respective rules and regulations \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nof the QBE program, the State of Georgia reimburses the School District over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2010, the School District adopted the Governmental Accounting and Standards Board (GASB) Statement No. 51, Accounting and Reporting for Intangible Assets. The provisions of this Statement generally require retroactive reportingfor intangible assets acquired after June 30, 1980, with the exception of those intangible assets that have indefinite useful lives and those that are considered internally generated. \nIn addition, the School District adopted GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. The provisions of this Statement impacts disclosure regarding derivative instruments entered into by the state and local governments. Derivative disclosures, if any, will be identified in Note 3. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 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. \nl NVESTM ENTS \nComposition of lnvestments lnvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District t o invest its funds. 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. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5 . Prime banker's acceptances, \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"1\" \n \n6. The Georgia Fund 1administered by the State of Georgia, Office of Treasury and Fiscal Services, \n7. Repurchaseagreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe 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. \n \nRECEIVABLES \n \nReceivables 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. \n \nPROPERTY TAXES \n \nThe Crisp County Board of Commissioners fixed the property tax levy for the 2009 tax digest year (calendar year) on September 8, 2009 (levy date). Taxes were due on December 20, 2009 (lien date). Taxes collected within the current fiscal year or within 6 0 days after year-end on the 2009 tax digest are reported as revenue in the governmental funds for fiscal year 2010. The Crisp 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, 2010, for maintenance and operations amounted to $8,315,541.77. \n \nThe tax millage rate levied for the 2009 tax year (calendar year) for the Crisp County Board of Educationwas as follows (a mill equals $ 1per thousand dollars of assessed value): \n \nSchool Operations \n \n16.45 mills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,973,215.74 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories On the District-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported a t their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). 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. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. 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. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nN/A \n \n$ \n \n10,000.00 \n \n1 0to 40 years \n \n$ \n \n25,000.00 \n \n20 to 80 years \n \n$ \n \n5,000.00 \n \n4 to 20 years \n \nAll \n \nN/A \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \n \nCOMPENSATED ABSENCES \n \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \n \nVacation leave of ten days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed ten days. \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of 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 invested in capital assets, net of related debt. \nRestricted net assets-These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nUnreserved - Designated \nDesignated fund balances represent tentative plans for future use of financial resources. On September 14, 2010, Crisp County Board of Education approved the designation of $1,035,000.00 of General Fund resourcesto offset the anticipated state budget reductions. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management t o make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 1 1 0 percent 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. Section 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 1 1 0 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. lnsurance on accounts provided by the Federal Deposit lnsurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5 . 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, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a formal policy for managing custodial credit risk. At June 30,2010, the bank balances were $2,675,793.34. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2010, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \nTotal \n \n$ \n \n23.296.42 \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2010, the carrying value of the School District's total investments was $16,716,173.52, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1,formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Georgia Fund 1(Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia \nFund 1is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can \nbe obtained from the Georgia Department of Audits and Accounts at http://www.audits.sa.qov/SGD/cafr. html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1may not exceed 6 0 days. The weighted average maturity for Georgia Fund 1on June 30,2010, was 46 days. \nNOTE 4: NON-MONETARYTRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally \nassigned value. See Note 2 - Inventories \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1,2009 \n \nl ncreases \n \nDecreases \n \nBalances June 30.2010 \n \n$ 2,236,317.21 323,346.86 $ \n \n$ 2,236,317.21 \n \n34,063.81$ 260.068.17 \n \n97,342.50 \n \nTotal Capital Assets, Not Being Depreciated $ 2,559,664.07 $ 34.063.81 $ 260.068.17 $ 2,333,659.71 \n \nCapital Assets. Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 33,468,194.34$ 6,011,590.17 6,182,347.35 \n \n78,125.00 621,932.40 $ \n \n$ 33,546,319.34 10,972.00 6,622,550.57 \n6,182,347.35 \n \nLess: Accumulated Depreciation: Buildings and lmprovements Equipment Land lmprovements \n \nTotal Capital Assets, Being Depreciated, Net $ 29.940.862.58 $ -805,617.96$ \n \n0.00 $ 29,135,244.62 \n \nGovernmentalActivity Capital Assets - Net $ 32,500,526.65$ -771,554.15$ 260,068.17$ 31,468,904.33 \n \nCurrent year depreciation expense by function is as follows: Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \nNOTE 6: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1,1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nFor claims prior to fiscal year 2010, the School District has designated an independent contractor to operate a risk management program for Workers' Compensation. The School District's General Fund reimburses claims paid by the contractor. During the year under review, the School District's General Fund incurred expenditures of $8,100.61 for claims and related expenses incurred by the contractor. \n \nChanges in the workers' compensation claims liability duringthe last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nClaims and \n \nBeginning of Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1,1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \n$500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \nAll Employees \n \nNOTE 7: OPERATING LEASES \n \nCrisp County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2010, for governmental funds amounted to $106,017.36. Future minimum lease payments for these leases are as follows: \n \nGovernmental \n \nYear end in^ \n \nFunds \n \nTotal \n \n$ 291,547.74 \n \nNOTE 8: LONG-TERM DEBT \n \nCOMPENSATED ABSENCES \n \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used t o liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30,2010, were as follows: \n \nBalance July 1,2009 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30,2010 \n \nCompensated Absences (1) $ 168,013.08 $ \n \n27,756.48 $ \n \n25,059.13 $ 170,710.43 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \nVoters have authorized $15,000,000.00 in general obligation debt for capital outlay projects which were not issued as of June 30,2010. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nNOTE 9: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $113,101.04 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health lnsurance of Non-Certified Personnel In the amount of $70.429.04 \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $23,379.04 \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $19,292.96 \nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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. The School District believes that such disallowances, if any, will be immaterial t o its overall financial position. \nThe School District is a defendant in various legal proceedings pertainingto matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 11: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fun provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health lnsurance Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 2 5 percent of the cost of health insurance coverage. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30,2010: \n \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2009 August 2009 -October 2009 November 2009 -June 2010 \n \n18.534% of covered payroll for August Coverage \n14.492% of covered payroll for September - November Coverage 18.534% of covered payroll for December - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2009 -June 2010 \n \n$162.72 per member per month plus Department of Education contribution of $22,838,311.00 \n \nNo additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nNOTE 12: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 2 5 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2010, were 5.25% of annual salary. The member contribution rate will increase to 5.53% effective July 1,2010. Employer contributions required for fiscal year 2010 were 9.74% of annual salary as required by the June 30, 2007, actuarial valuation. The employer contribution rate will increase to 10.28% effective July 1,2010. \n \n CRISP COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"I\" \n \nEmployer contributions for the current fiscal year and the precedingtwo fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDEDJUNE 30,2010 \n \nSCHEDULE \"ln \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nProperty Taxes Sales Taxes State Funds Federal Funds Chargesfor Services Investment Earnings Miscellaneous \nTotal Revenues \n \nCurrent Instruction Support Services Pupil Services Improvementof Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \nTotal Expenditures \nExcessof Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES1 \nOperating Transfers From Other Funds Operating Transfers To Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nFund Balances - Ending \nNotes to t h e Schedule of Revenues. Exoenditures and C W g F u n d e t and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The accompanyingschedule 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. \n \nSee notes to the basic financial statements. \n \nACTUAL AMOUNTS \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30,2010 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Departmentof Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Departmentof Education Food Services ARRA- Child Nutrition Discretionary Grants Limited Availability \nTotal U. S. Departmentof Agriculture \nEducation, U. S. Department of Impact Aid Cluster Direct Impact Aid \nEducation Technology State Grants Cluster Pass-Through From Georgia Departmentof Education Education Technology State Grants \nSpecial EducationCluster Pass-Through From Georgia Departmentof Education Special Education ARRA- Grants to States ARRA- Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nState Fiscal Stabilization Fund Cluster Pass-Through From Georgia Departmentof Education ARRA- Education State Grants \nTitle I, Part A Cluster Pass-Through From Georgia Departmentof Education \nARRA - Title IGrantsto Local Educational Agencies \nTitle I Grantsto Local EducationalAgencies \nTotal Title I, Part A Cluster \nOther Programs Pass-ThroughFrom Georgia Departmentof Education \nCareer and Technical Education- Basic Grantsto States \nEnglish Language Acquisition Grants ImprovingTeacher QualityState Grants Migrant Education -State Grant Program Rural Education Safe and DrueFree Schools and Communities -State Grants Twenty-FirstCentury Community LearningCenters \nTotal Other Programs \nTotal U. S. Departmentof Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30,2010 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services. U. S. Department of Pass-Through From Georgia Department of Human Resources \nSafe and Drug-Free Schools and Communities - State Grants \nChild Care and Development Fund Cluster Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning \nARRA - Child Care and Development Block Grant \nTotal U. S. Department of Health and Human Services \nDefense. U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \nTotal Federal Financial Assistance \nN/A = Not Available \nNotesto the Schedule of Exoendituresof Federal Awards \n(1) Includes the Federally assignedvalue of donated commodities for the Food Donation Program in the amount of $97.647.93. \n(2) Expendituresfor the funds earned on the School Breakfast Program ($488,376.64) were not maintained separately and are included in the 2010 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $11,631.11, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistanceto any Subrecipient. \nThe accompanyingschedule of expendituresof Federalawards includes the Federal grant activity of the Crisp County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,2010 \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program \nKindergarten Program - Early Intervention Program \nPrimary Grades (1-3) Program \nPrimary Grades - Early Intervention (1-3) Program \nUpper Elementary Grades (4-5) Program \nUpper Elementary Grades - Early Intervention (4-5) Program \nMiddle School ( 6 8 ) Program High School General Education ($12) Program Vocational Laboratory(9-12) Program Studentswith Disabilities \nCategory Ill \n- GiftedStudent Category VI \nRemedial Education Program Alternative Education Program EnglishSpeakers of Other Languages(ESOL) Media Center Program 20 Days Additional Instruction Staff and ProfessionalDevelopment Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Sparsity Nursing Services Education Equalization FundingGrant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Health Insurance National Teacher Certification Preschool HandicappedProgram Severely Emotionally Disturbed Teachers' Retirement Virtual Schools Grant \nHuman Resources, Georgia Department of Family Connection \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nSee notes to the basic financial statements. \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDEDJUNE 30,2010 \n \nSCHEDULE \"4\" \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nRenovatingand modernizingthe auditoriumsof the \n \nCrisp County Middle School and A. S. Clark \n \nElementarySchool; addingto, renovating \n \nrepairing, improvingand equippingexistingschool \n \nbuildingsor other buildingsor facilities useful or \n \ndesirable in connectiontherewith, including \n \nparkingareas, present football stadium, \n \nplaygrounds, and physicaleducationfields; \n \nequipment, includingschool buses and other \n \nschool vehicles; acquiring, constructing, and \n \nequipping new additional classrooms, athletic and \n \nstorage facilities; acquiringany property necessary \n \nor desirabletherefor, both real and personal, \n \nincludingcomputer technology system-wide, the \n \nmaximumamount of the projects to be paid with \n \nsales and use tax proceedswill be \n \n$18,000.000.00. \n \n$ \n \n18.000.000.00 $ \n \n20,393.769.40 $ \n \n473,451.88 $ 19,920,317.52 Ongoing \n \nFundingfor the purpose of the securing General Obligation bonds of $15.000.000.00 and acquiring constructing, and equippinga new K - I Elementaryschoolto include land, furniture, fixtures, and equipment; acquiring, constructing and equippingadditional classroomsfor BlackshearTrail ElementarySchool and Southwestern ElementarySchool; renovating, repairing improving, and equippingexisting schools and relatedfacilities, includingwithout limitation, roof replacements and repairs, mechanical system repairs and replacements, parkinglot repairs and renovations, improvements and renovationsto physicaleducationand athletic facilities; acquiringand installingsystem-wide instructionaland administrativetechnology, safety. and security equipment; acquisitionof school buses, vehicles and transportation equipment; acquiringany necessary property, both real and personal, and payingcost incidentto accomplishing the foregoing \n \n24.000.000.00 \n \n24,000,000.00 \n \nOngoing \n \n(1) The School District'soriginal cost estimate as specified in the resolutioncallingfor the impositionof the Local Option Sales Tax. \n(2) The School District'scurrent estimate of total cost for the projects. Includes all cost from project inception to complet~on. (3) The voters of Crisp County approved the imposition of a 1%sales tax to fund the above projects. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the l~feof the projects. \nSee notes to the basic financial statements. \n \n (This page left intentionally blank) \n \n CRISP COUNTY BOARD OF EDUCATION \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES- BY PROGRAM \nYEAR ENDEDJUNE 30.2010 \n \nSCHEDULE \" 5 \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper ElementaryGrades (4-5) Program Upper ElementaryGrades-Early Intervention (4-5) Program Middle School (6-8)Program High School General Education (9-12) Program Vocational Laboratory(412) Program Students with Disabilit~es Category l Category II Category Ill Category IV Category V \nGifted Student - Category VI \nRemedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional DevelODment \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nTOTAL QBE FORMULA FUNDS \n \n(1) Comprisedof State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404)6563174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28,2011 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Crisp County Board of Education as of and for the year ended June 30, 2010, which collectively comprise Crisp County Board of Education's basic financial statements and have issued our report thereon dated April 28, 2011. 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. \nInternal Control Over Financial Re~orting \nIn planning and performing our audit, we considered Crisp County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control over financial reporting. \nA 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, t o prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \nOur consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \n \n Com~lianceand Other Matters \nAs part of obtaining reasonable assurance about whether Crisp County Board of Education'sfinancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Crisp County Board of Education in a separate letter dated April 28,2011. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~us)ell W. Hinton, CPA, CGFM State Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404)656-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2 0 1 1 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Crisp County Board of Education \nINDEPENDENTAUDITOR'S REPORT ON COMPLIANCEWlTH REOUIREMENTSTHAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \nLadies and Gentlemen: \n \nWe have audited Crisp County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2010. Crisp County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Crisp County Board of Education's management. Our responsibility is to express an opinion on Crisp County Board of Education's compliance based on our audit. \nWe 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 OMB Circular A-133, Audits o f States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Crisp County Board of Education'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. Our audit does not provide a legal determination on Crisp County Board of Education's compliance with those requirements. \nIn our opinion, the Crisp County Board of Education complied, in all material respects, with the 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 30,2010. \n \n Internal Control Over Com~liance \nManagement of Crisp County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Crisp County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressingan opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Crisp County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \nOur 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material \nweaknesses,as defined above. \nThis report is intended solely for the information and use of management, members of the Crisp County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n- \n~ u 8 s e 1W1. Hinton, CPA, CGFM State Auditor \n \n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30,2010 \n \nI SUMMARY OF AUDITORS RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \n \nInternal control over financial reporting: Material weakness identified? Significant deficiency identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs: Material weakness identified? Significant deficiency identified? \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \n \nIdentification of major programs: \n \nCFDA Numberk) \n \nName of Federal Program or Cluster \n \nTitle I, Part A Cluster Special Education Cluster State Fiscal Stabilization Fund Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nUnqualified N 0 \nNone Reported \nN 0 None Reported \nUnqualified \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":11,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":11}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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