{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2020-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2021-07-16"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 \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 \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n38 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n39 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 40 \n \n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n41 \n \n6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \n \nSCHOOL OPEB FUND \n \n42 \n \n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n43 \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n44 45 46 47 49 \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 \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \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 4-101 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 Dougherty 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 Dougherty County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements. We were not engaged to audit the financial statements of the Dougherty County Stadium Authority, (Authority). These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \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 \n \n (This page left intentionally blank) \n \n 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 \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of the Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \nUnmodified Opinions \n \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and 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. \nEmphasis of Matter \n \nAs described in Note 2 to the financial statements, in 2020, the School DIstrict early adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The cumulative effect of GASB Statement No. 84 is described in the restatement note in the \nNotes of the Basic Financial Statements. Our opinions are not modified with respect to this matter. \n \n (This page left intentionally blank) \n \n Other 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. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated July 16, 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. \n \n (This page left intentionally blank) \n \n A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nJuly 16, 2021 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nINTRODUCTION \nManagement's discussion and analysis of the Dougherty County Board of Education's (School District) financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2020. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2020, the School District adopted the following Governmental Accounting Standards Board (GASB) Statements: \n No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note in the Notes to the Basic Financial Statements. \n 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. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2020 are as follows: \n The World Health Organization declared the novel coronavirus, known as COVID-19, a pandemic in the last quarter of fiscal year 2020. The economic disruption caused by the pandemic significantly reduced available resources at the state level. \n The federal government signed into law the Coronavirus Aid Relief and Economic Security Act (CARES ACT) in March 2020. This was a $2.2 trillion economic stimulus bill in response to the economic fallout of the COVID-19 pandemic in the United States. In May 2020, the Governor directed the transfer of $457.2 million to the Georgia Department of Education. The Dougherty County Board of Education was awarded $7.9 million based on student enrollment. \n The School District's net position at June 30, 2020 was $80.6 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2020 of $80.6 million represented an increase of $10.3 million, without consideration of the restatement, when compared to the prior year primarily due to a significant decrease in bond debt and OPEB liabilities. \n General revenues increased by $2.8 million. Total program expenses increased by $15.4 million, while program revenues increased by $13.6 million. There was a total increase to change in net position of $1.0 million, without consideration of the restatement, due to increased general fund revenues used to support our program expenditures. \n The School District continues to maintain a sound fiscal position in fiscal year 2020. i \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nOverview of the Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nGovernment-Wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the government-wide statements are reported as governmental activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various other functions. These statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major funds  governmental funds and fiduciary funds. \nGovernmental Funds \nMost of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \nThe School District's governmental funds are the general fund, capital projects fund and debt service fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the general fund. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nFiduciary Funds \nThe School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2019 and fiscal year 2020. \nStatement of Net Position (Analysis of the School District As A Whole) \nAs previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for this fiscal year 2020 and the comparative amounts for fiscal year 2019 as compared to the prior fiscal year. \nTable 1 Net Position (In Thousands) \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2020 \n \n2019 (1) \n \n(Decrease) \n \n$ \n \n70,218 $ \n \n68,392 $ \n \n315,158 \n \n315,132 \n \n1,826 26 \n \nTotal Assets \n \n385,376 \n \n383,524 \n \n1,852 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n47,159 \n \n32,477 \n \n14,682 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n23,059 288,335 \n \n24,931 282,681 \n \nTotal Liabilities \n \n311,394 \n \n307,612 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n40,519 \n \n38,065 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n286,486 18,700 \n(224,564) \n \n275,054 20,147 \n(224,877) \n \nTotal Net Position \n \n$ \n \n80,622 $ \n \n70,324 $ \n \n(1,872) 5,654 3,782 \n2,454 \n11,432 (1,447) \n313 10,298 \n \n(1) Fiscal year 2019 balances do not reflect the effects on the Restatement of Net Position. See Note 15 in the Basic Financial Statements for additional information. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted net position decreased $1.4 million and is restricted for the continuation of federal programs, capital projects and debt servicing. \nTotal net position increased by $10.3 million, without consideration of the restatement, in fiscal year 2020 from the prior year due to the reduction in bond debt and net OPEB liabilities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nStatement of Activities \nTable 2 shows the changes in net position for fiscal year 2019 and fiscal year 2020 as reported on the Statement of Activities. \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2020 \n \n2019 (1) \n \n(Decrease) \n \n$ \n \n1,891 $ \n \n117,399 \n \n5,770 \n \n1,546 $ 109,587 \n374 \n \n345 7,812 5,396 \n \nTotal Program Revenues \n \n125,060 \n \n111,507 \n \n13,553 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Service Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \n \n41,938 73 \n17,516 319 \n13,825 479 \n2,628 76,778 \n \n40,710 71 \n17,055 245 \n12,834 893 \n2,122 73,930 \n \n1,228 2 \n461 74 \n991 (414) 506 2,848 \n \nTotal Revenues \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 and Other Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \nTotal Program Expenses \nIncrease in Net Position \n \n201,838 \n \n185,437 \n \n16,401 \n \n107,922 \n \n93,685 \n \n14,237 \n \n5,978 13,174 \n3,060 2,580 12,320 2,740 18,917 6,583 5,551 \n9 \n \n5,830 11,922 \n2,826 2,270 11,008 2,540 20,800 6,700 6,123 \n- \n \n148 1,252 \n234 310 1,312 200 (1,883) (117) (572) \n9 \n \n262 332 11,569 747 \n \n410 488 10,835 920 \n \n(148) (156) 734 (173) \n \n191,744 \n \n176,357 \n \n15,387 \n \n$ 10,094 $ \n \n9,080 $ 1,014 \n \n(1) Fiscal year 2019 balances do not reflect the effects on the Restatement of Net Position. See Note 15 in the Basic Financial Statements for additional information. \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nThe $13.6 million increase in programs revenues was related to the receipt of the Georgia State Financing and Investment Commission for capital expenditures and operating grants. Property tax revenues increased by $1.2 million indicating an increase in collections for delinquent taxes, public utilities ad valorem, TAVT and the forest land protection act. Sales tax revenues increased by $0.54 million. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. Total Program Expenses increased $15.4 million for fiscal year 2020 compared to the previous fiscal year. This increase is mainly attributed to increase in instructional services. Descriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. Pupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. Improvement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational Media Services are activities that direct, manage and operate educational media centers. General Administration establishes and administers policy for operating the local School District. School Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the School District. Maintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nGovernmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2019 and fiscal year 2020. This information is presented on the Statement of Activities. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2020 \n \n2019 (1) \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2020 \n \n2019 (1) \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 and Other Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 107,922 $ 93,685 $ 21,239 $ 16,806 \n \n5,978 13,174 \n3,060 2,580 12,320 2,740 18,917 6,583 5,551 \n9 \n \n5,830 11,922 \n2,826 2,270 11,008 2,540 20,800 6,700 6,123 \n- \n \n4,238 7,957 \n700 (944) 7,844 2,675 12,674 3,800 5,428 \n9 \n \n4,064 6,674 \n632 (599) 6,834 2,525 15,669 4,761 6,090 \n- \n \n262 332 11,569 747 \n \n410 488 10,835 920 \n \n262 331 (276) 747 \n \n410 488 (424) 920 \n \nTotal Expenses \n \n$ 191,744 $ 176,357 $ 66,684 $ 64,850 \n \n(1) Fiscal year 2019 balances do not reflect the effects on the Restatement of Net Position. See Note 15 in the Basic Financial Statements for additional information. \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other general revenues. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \n \nThe School District's Funds \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nREVENUES \n \nGeneral Fund \n \nCapital Projects \nFund \n \nDebt Service Fund \n \nTotal \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n41,552 $ \n \n319 \n \n98,420 \n \n32,707 \n \n1,891 \n \n237 \n \n2,558 \n \n- $ 5,616 166 70 \n \n- $ 16,325 \n76 - \n \n41,552 16,644 104,036 32,707 \n1,891 479 \n2,628 \n \nTotal Revenues \n \n177,684 \n \n5,852 \n \n16,401 \n \n199,937 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services (Interest) \n \n96,087 65,947 \n262 526 11,399 - \n \n35 1,791 \n12,774 313 \n \n9,496 \n \n96,122 67,738 \n262 526 11,399 12,774 9,809 \n \nTotal Expenditures \n \n174,221 \n \n14,913 \n \n9,496 \n \n198,630 \n \nExcess of Revenues over (under) Expenditures \n \n3,463 \n \n(9,061) \n \n6,905 \n \n1,307 \n \nOTHER FINANCING SOURCES (USES) \n \nTransfers In Transfers Out \n \n(136) \n \n7,377 - \n \n(7,241) \n \n7,377 (7,377) \n \nTotal Other Financing Sources(Uses) \n \n(136) \n \n7,377 \n \n(7,241) \n \n- \n \nNet Change in Fund Balances \n \n3,327 \n \n(1,684) \n \n(336) \n \n1,307 \n \nFund Balances  Beginning (Restated) \n \n27,334 \n \n3,981 \n \n11,778 \n \n43,093 \n \nFund Balances - Ending \n \n$ \n \n30,661 $ \n \n2,297 $ \n \n11,442 $ \n \n44,400 \n \nTotal revenues for all governmental funds were $200.0 million and total expenditures were $198.7 million. Total revenue exceeded total expenditures by $1.3 million for governmental activities. The fund balance for governmental funds increased from $43.1 million at the beginning of the fiscal year to $44.4 million at June 30, 2020. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nThe fund balance reported for the general fund increased by $3.4 million. The restated beginning fund balance was $27.3 million and increased to $30.7 million. \nThe fund balance reported for the capital projects fund decreased from $4.0 million at the beginning of the fiscal year to $2.3 million at June 30, 2020. This was mainly due to previous year bond proceeds spent on current year capital outlay expenditures. Previous year bond proceeds were used to finance most of the capital outlay expenditures for various projects. \nThe fund balance reported for the debt service fund decreased from $11.8 million at the beginning of the fiscal year to $11.4 million at June 30, 2020. Sales tax revenue of $16.3 million and investment earnings were used to pay current year bond expenditures. The remaining revenue was transferred to capital projects fund to service capital outlay expenditures. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General fund budget compared to actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"9\". \nDuring fiscal year 2020, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2019, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. Also, federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital projects programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. The School District has invested over $315.1 million in capital assets net of depreciation. Table 5 compares fiscal year 2020 capital asset balances to fiscal year 2019 balances. \nTable 5 Capital Assets at June 30 (Net of depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year Fiscal Year \n \nIncrease \n \n2020 \n \n2019 \n \n(Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 7,060 293,818 5,229 \n \n9,051 $ 9,781 290,929 5,370 \n \n(2,721) 2,889 \n(141) \n \nTotal \n \n$ 315,158 $ 315,131 $ \n \n27 \n \nTable 5 shows that total capital assets remained relatively the same with a slight increase of $27.0 thousand in fiscal year 2020. The increase is due to completion of construction in progress to the School District's infrastructure, renovations and improvements to schools, and acquisition and construction of new athletic facilities. All construction projects were funded by a one percent Special Purpose Local Option Sales Tax approved by the voters of Dougherty County. \n \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \nDebt Table 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2019 and fiscal year 2020. \nTable 6 Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal Year 2020 \n \nFiscal Year 2019 \n \nIncrease (Decrease) \n \nG.O Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \n$ \n \n26,760 $ \n \n35,000 $ \n \n592 \n \n905 \n \n1,288 \n \n1,141 \n \n1,250 \n \n1,767 \n \n(8,240) (313) 147 (517) \n \n$ \n \n29,890 $ \n \n38,813 $ \n \n(8,923) \n \nAs shown in Table 6, the $8.9 million decrease in long-term debt is primarily attributed to the annual principal payment of the Series 2020 Bond which was issued in fiscal year 2018 with the first principal payment being due in fiscal year 2020. Compensated Absences of $1.3 million represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nCurrent Financial Issues \n \nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The School District transitioned to virtual learning for all students for the remainder of the school year and the first three months of fiscal year 2021. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. As a result, the State of Georgia reduced funding by $7.9 million for fiscal year 2021, which was offset by the $7.9 million dollars awarded from CARES ACT funding. \n \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. In addition to the economic downturn due to the COVID-19 pandemic, increased employer cost for employee health benefits and teachers retirement, a decline in student enrollment (FTE) over the years and a decrease in the local tax digest. \n \nDespite these challenges, the School District is financially stable. The School District's operating millage decreased to 18.323 for fiscal year 2020. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2016. \n \nFY 2016 FY 2017 FY 2018 FY 2019 FY 2020 \n \n15,014 14,686 14,309 14,078 13,776 \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, fully funding teacher salaries, provide a step increase for all employees, the School District implemented cost-saving measures, while maintaining essential levels of service to support teaching and learning. The School District strives to emphasize student achievement while maintaining sound fiscal management. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Susan Hatcher, Chief Financial Officer, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to shatcher@docoschools.org. \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items 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 Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues 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 Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n43,071,859.11 $ \n \n6,149,558.71 11,971,769.60 \n7,789,880.84 23,782.81 \n243,834.66 967,284.79 \n229.95 16,111,250.23 299,046,516.22 \n \n385,375,966.92 \n \n178,273.00 \n27,500.00 410,000.00 2,197,647.00 \n2,813,420.00 \n \n39,857,574.58 \n \n- \n \n7,301,110.00 \n \n- \n \n47,158,684.58 \n \n- \n \n3,617,271.45 17,293,428.89 \n112,879.50 1,046,842.32 \n557,850.78 103,479.63 327,404.27 144,017,238.00 114,426,957.00 \n9,468,073.96 20,422,403.66 \n311,393,829.46 \n \n23,959.00 - \n- \n23,959.00 \n \n8,888,827.00 \n \n- \n \n31,629,688.00 \n \n- \n \n40,518,515.00 \n \n- \n \n286,486,406.73 \n3,769,783.06 12,633,105.92 \n2,297,496.89 (224,564,485.56) \n \n2,607,647.00 \n181,814.00 \n \nTotal Net Position \n \n$ \n \n80,622,307.04 $ \n \n2,789,461.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2020 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \nGOVERNMENTAL ACTIVITIES \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 Community Services Food Services Interest on Long-Term Debt \nTotal Governmental Activities \n \n$ 107,922,159.64 $ 1,513,612.26 $ \n \n80,877,550.81 $ 4,291,861.90 $ (21,239,134.67) $ \n \n- \n \n5,978,076.16 \n \n- \n \n1,736,071.36 \n \n4,137.39 \n \n(4,237,867.41) \n \n- \n \n13,173,598.35 \n \n- \n \n5,215,124.93 \n \n1,446.94 \n \n(7,957,026.48) \n \n- \n \n3,059,629.18 \n \n- \n \n2,276,847.75 \n \n83,096.25 \n \n(699,685.18) \n \n- \n \n2,580,052.55 \n \n- \n \n3,523,993.49 \n \n- \n \n943,940.94 \n \n- \n \n12,320,142.42 \n \n- \n \n4,325,313.43 \n \n151,259.37 \n \n(7,843,569.62) \n \n- \n \n2,739,647.09 \n \n- \n \n20,888.26 \n \n43,764.06 \n \n(2,674,994.77) \n \n- \n \n18,916,794.24 \n \n19,667.92 \n \n5,660,827.83 \n \n562,343.23 \n \n(12,673,955.26) \n \n- \n \n6,583,106.79 \n \n83,732.23 \n \n2,254,987.27 \n \n444,105.34 \n \n(3,800,281.95) \n \n- \n \n5,551,256.09 \n \n- \n \n102,696.16 \n \n20,458.95 \n \n(5,428,100.98) \n \n- \n \n9,015.65 \n \n- \n \n112.97 \n \n- \n \n(8,902.68) \n \n- \n \n262,214.67 \n \n- \n \n- \n \n- \n \n(262,214.67) \n \n- \n \n331,426.16 \n \n- \n \n- \n \n- \n \n(331,426.16) \n \n- \n \n11,569,314.89 \n \n273,966.99 \n \n11,404,054.82 \n \n167,870.34 \n \n276,577.26 \n \n- \n \n747,417.65 \n \n- \n \n- \n \n- \n \n(747,417.65) \n \n- \n \n$ 191,743,851.53 $ 1,890,979.40 $ 117,398,469.08 $ 5,770,343.77 \n \n(66,684,059.28) \n \n- \n \nCOMPONENT UNIT Dougherty County Stadium Authority \n \n$ \n \n276,543.00 $ \n \n118,187.00 $ \n \n- $ \n \n- \n \n$ \n \n(158,356.00) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n41,938,030.67 72,957.94 \n17,515,707.77 319,146.96 \n13,825,140.00 478,875.24 \n2,628,158.05 \n \n- \n2,707.00 10,515.00 \n \nTotal General Revenues \n \n76,778,016.63 \n \n13,222.00 \n \nChange in Net Position \n \n10,093,957.35 \n \n(145,134.00) \n \nNet Position - Beginning of Year (Restated) \n \n70,528,349.69 \n \n2,934,595.00 \n \nNet Position - End of Year \n \n$ \n \n80,622,307.04 $ \n \n2,789,461.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2020 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 30,225,236.39 $ \n3,586,888.21 11,788,919.60 \n7,789,880.84 23,782.81 \n243,834.66 967,284.79 \n229.95 \n \n2,776,187.30 $ \n182,850.00 \n- \n \n10,070,435.42 $ \n2,562,670.50 - \n \n43,071,859.11 \n6,149,558.71 11,971,769.60 \n7,789,880.84 23,782.81 \n243,834.66 967,284.79 \n229.95 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \nTotal Deferred Inflows of Resources \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 54,626,057.25 $ \n \n2,959,037.30 $ 12,633,105.92 $ \n \n70,218,200.47 \n \n$ \n \n3,617,061.45 $ \n \n17,293,428.89 \n \n- \n \n- \n \n327,404.27 \n \n21,237,894.61 \n \n210.00 $ - \n557,850.78 103,479.63 \n- \n661,540.41 \n \n- $ - \n- \n \n3,617,271.45 17,293,428.89 \n557,850.78 103,479.63 327,404.27 \n21,899,435.02 \n \n2,726,745.03 - \n2,726,745.03 \n \n- \n \n- \n \n- \n \n1,191,215.09 \n \n- \n \n1,191,215.09 \n \n2,726,745.03 1,191,215.09 \n3,917,960.12 \n \n967,514.74 3,769,783.06 10,629,404.59 \n552,828.68 14,741,886.54 \n30,661,417.61 \n \n2,297,496.89 \n- \n2,297,496.89 \n \n11,441,890.83 \n- \n11,441,890.83 \n \n967,514.74 17,509,170.78 10,629,404.59 \n552,828.68 14,741,886.54 \n44,400,805.33 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 54,626,057.25 $ \n \n2,959,037.30 $ 12,633,105.92 $ \n \n70,218,200.47 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \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 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 \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 Capital leases payable Compensated absences payable Unamortized bond premiums Claims incurred but not reported \n \n$ \n \n44,400,805.33 \n \n$ \n \n9,051,054.08 \n \n7,060,196.15 \n \n450,293,529.21 \n \n14,235,316.27 \n \n(165,482,329.26) \n \n315,157,766.45 \n \n$ (144,017,238.00) (114,426,957.00) \n \n(258,444,195.00) \n \n$ \n \n30,968,747.58 \n \n(24,328,578.00) \n \n6,640,169.58 3,917,960.12 \n \n$ \n \n(26,760,000.00) \n \n(112,879.50) \n \n(592,013.30) \n \n(1,288,435.02) \n \n(1,250,029.30) \n \n(1,046,842.32) \n \n(31,050,199.44) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n80,622,307.04 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \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 Community Services Food Services Operation \nCapital Outlay Debt Service \nPrincipal Interest \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 (Restated) \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n41,552,171.30 $ \n \n319,146.96 \n \n98,419,731.60 \n \n32,707,426.75 \n \n1,890,979.40 \n \n236,805.41 \n \n2,557,579.41 \n \n177,683,840.83 \n \n- $ 5,615,903.78 165,591.42 70,578.64 \n5,852,073.84 \n \n- $ 16,324,492.68 \n76,478.41 - \n16,400,971.09 \n \n41,552,171.30 16,643,639.64 104,035,635.38 32,707,426.75 \n1,890,979.40 478,875.24 \n2,628,158.05 \n199,936,885.76 \n \n96,087,149.92 \n5,870,233.92 12,977,058.48 \n2,846,714.08 2,519,867.44 11,775,073.72 2,610,035.67 15,318,574.48 6,052,340.86 5,976,422.17 \n609.57 261,910.86 526,248.81 11,398,410.88 \n- \n- \n174,220,650.86 \n3,463,189.97 \n \n34,417.09 \n6,050.00 45,411.00 1,739,913.99 12,774,343.74 \n312,534.49 - \n14,912,670.31 \n(9,060,596.47) \n \n- \n- \n8,240,000.00 1,256,500.00 \n9,496,500.00 \n6,904,471.09 \n \n96,121,567.01 \n5,870,233.92 12,977,058.48 \n2,846,714.08 2,525,917.44 11,775,073.72 2,655,446.67 17,058,488.47 6,052,340.86 5,976,422.17 \n609.57 261,910.86 526,248.81 11,398,410.88 12,774,343.74 \n8,552,534.49 1,256,500.00 \n198,629,821.17 \n1,307,064.59 \n \n(136,472.70) (136,472.70) 3,326,717.27 27,334,700.34 \n \n7,377,380.22 - \n7,377,380.22 (1,683,216.25) 3,980,713.14 \n \n(7,240,907.52) (7,240,907.52) \n(336,436.43) 11,778,327.26 \n \n7,377,380.22 (7,377,380.22) \n1,307,064.59 43,093,740.74 \n \nFund Balances - Ending \n \n$ \n \n30,661,417.61 $ \n \n2,297,496.89 $ \n \n11,441,890.83 $ \n \n44,400,805.33 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n DOUGHERTY 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, 2020 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \n \n$ \n \nAmounts reported for governmental activities in the Statement of Activities are different because: \n \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. \n \nCapital outlay Depreciation expense \n \n$ \n \n12,906,415.44 \n \n(12,880,200.64) \n \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \n \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. \n \nBond principal retirements Capital lease payments Amortization of bond premium \n \n$ \n \n8,240,000.00 \n \n312,534.49 \n \n517,253.52 \n \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. \n \nPension expense OPEB expense \n \n$ \n \n(3,410,802.07) \n \n1,062,980.00 \n \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. \n \nAccrued interest on issuance of bonds Compensated absences Claims incurred but not reported . \n \n$ \n \n(8,171.17) \n \n(147,884.11) \n \n544,734.90 \n \n1,307,064.59 26,214.80 \n1,650,032.40 \n9,069,788.01 (2,347,822.07) \n388,679.62 \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n10,093,957.35 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 \nASSETS Cash and Cash Equivalents Receivables, Net \nLocal \nTotal Assets LIABILITIES Accounts Payable NET POSITION Restricted Individuals, Organizations, and Other Governments \n \nEXHIBIT \"G\" \n \nCUSTODIAL FUNDS \n \n$ \n \n93,480.22 \n \n23,958.80 \n \n$ \n \n117,439.02 \n \n$ \n \n4,083.92 \n \n$ \n \n113,355.10 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \nADDITIONS Miscellaneous \nDEDUCTIONS Other Deductions Change in Net Position \nNet Position - Beginning (Restated) \nNet Position - Ending \n \nEXHIBIT \"H\" \n \nCUSTODIAL FUNDS \n \n$ \n \n90,687.37 \n \n98,497.38 (7,810.01) 121,165.11 \n \n$ \n \n113,355.10 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Notes 4, 5 and 17 for additional component unit disclosures \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 and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \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: \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. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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. \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. \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. \nThe School District reports the following fiduciary fund type: \n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \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. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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 incurred but not reported, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 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. \nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note. \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- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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. \nINVENTORIES \nFood Inventories \n \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 (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nConsumable Supplies \n \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out basis). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount \n \n$ 100,000.00 \n \n$ \n \n50,000.00 \n \n$ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 years \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 18 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 30 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. \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 AND BOND DISCOUNTS/PREMIUMS \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \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- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \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. \nFUND BALANCES \n \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 \nThe School District's fund balances are classified as follows: \n \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. \n \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. \n \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. \n \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 Dougherty County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on September 23, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 23, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $37,899,650.52. \n \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): \n \nSchool Operations \n \n18.323 mills \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $3,579,562.84 during fiscal year ended June 30, 2020. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $16,324,492.68 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years. \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. \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 \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \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 \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 deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $42,707,963.03, and a bank balance of $50,517,556.58. The bank balances insured by Federal depository insurance were $1,263,168.17. \n \nAt June 30, 2020, $49,254,388.41 of the School District's bank balance was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \n \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \n \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 43,071,859.11 93,480.22 \n \nTotal cash and cash equivalents \n \n43,165,339.33 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n457,376.30 \n \nTotal carrying value of depsits - June 30, 2020 \n \n$ 42,707,963.03 \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $457,376.30 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 \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nRule 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. \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, which is publically available at https://sao.georgia.gov/comprehensive-annual-financial-report. \nCOMPONENT UNIT At June 30, 2020, Dougherty County Stadium Authority's bank balance of $178,273.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \nBalances July 1, 2019 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2020 \n \n$ 9,051,054.08 $ \n \n- $ \n \n9,780,920.69 \n \n3,809,587.03 \n \n- $ \n \n- $ 9,051,054.08 \n \n- \n \n(6,530,311.57) \n \n7,060,196.15 \n \nTotal Capital Assets Not Being Depreciated \n \n18,831,974.77 \n \n3,809,587.03 \n \n- \n \n(6,530,311.57) \n \n16,111,250.23 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n435,295,774.26 13,961,110.24 \n \n8,467,443.38 629,385.03 \n \n355,179.00 \n \n6,530,311.57 - \n \n450,293,529.21 14,235,316.27 \n \n144,366,533.09 8,590,774.53 \n \n12,109,761.76 770,438.88 \n \n355,179.00 \n \n- \n \n156,476,294.85 \n \n- \n \n9,006,034.41 \n \nTotal Capital Assets, Being Depreciated, Net \n \n296,299,576.88 \n \n(3,783,372.23) \n \n- \n \n6,530,311.57 299,046,516.22 \n \nGovernmental Activities Capital Assets - Net $ 315,131,551.65 $ \n \n26,214.80 $ \n \n- $ \n \n- $ 315,157,766.45 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n9,495.91 \n \n3,320.93 \n \n190,717.89 \n \n347,162.07 \n \n100,444.84 \n \n1,290,658.80 \n \n683,217.85 \n \n46,956.24 \n \n$ 9,822,939.46 \n2,671,974.53 385,286.65 \n \n$ 12,880,200.64 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nThe following is a summary of changes in capital assets during the fiscal year for the component unit: \n \nComponent Unit Capital Assets, Not Being Depreciated: \nLand \n \nBalances July 1, 2019 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2020 \n \n$ 410,000.00 $ \n \n- $ \n \n- $ 410,000.00 \n \nCapital Assets Being Depreciated Stadium Improvements Equipment Buildings and Improvements \n \n3,525,022.00 \n \n- \n \n- \n \n3,525,022.00 \n \n239,886.00 \n \n- \n \n- \n \n239,886.00 \n \n308,976.00 \n \n- \n \n- \n \n308,976.00 \n \nLess Accumulated Depreciation for: Stadium Improvements Equipment Buildings and Improvements \n \n1,353,345.00 239,885.00 119,727.00 \n \n155,555.00 - \n7,725.00 \n \n- \n \n1,508,900.00 \n \n- \n \n239,885.00 \n \n- \n \n127,452.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,360,927.00 \n \n(163,280.00) \n \n- \n \n2,197,647.00 \n \nComponent Unit Capital Assets - Net \n \n$ 2,770,927.00 $ (163,280.00) $ \n \n- $ 2,607,647.00 \n \nNOTE 6: INTERFUND TRANSFERS \nINTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2020, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral \n \nDebt Service \n \nFund \n \nFund \n \nCapital Projects Fund \n \n$ 136,472.70 $ 7,240,907.52 \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund as required match or supplemental funding source for capital construction projects and SPLOST collected by the debt service fund to the capital projects fund to fund SPLOST projects as allowed in the referendum. \nNOTE 7: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n- $ 6,000,000.00 $ 6,000,000.00 $ \n \n- \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 8: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2019 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2020 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Capital Leases Compensated Absences \n \n$ 35,000,000.00 $ 1,767,282.82 904,547.79 1,140,550.91 \n \n- $ 903,392.01 \n \n8,240,000.00 $ 517,253.52 312,534.49 755,507.90 \n \n26,760,000.00 $ 1,250,029.30 592,013.30 1,288,435.02 \n \n8,570,000.00 517,253.52 290,629.99 90,190.45 \n \n$ 38,812,381.52 $ 903,392.01 $ 9,825,295.91 $ 29,890,477.62 $ 9,468,073.96 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nThe School District had no unused line of credit or outstanding notes form direct borrowing and direct placements related to governmental activities as of June 30, 2020. In the event, the entity is unable to make principal and interest payments on general obligation bonds using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for payment of debt. \n \nOf the total amount originally authorized, $15,000,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2018 \n \n2.00 - 5.00% 2/8/2018 \n \n12/1/2022 $ 35,000,000.00 $ 26,760,000.00 \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 \nUnamortized Bond Premium \n \n2021 2022 2023 \n \n$ \n \n8,570,000.00 $ \n \n920,300.00 \n \n$ \n \n517,253.52 \n \n8,910,000.00 \n \n563,650.00 \n \n517,253.52 \n \n9,280,000.00 \n \n189,200.00 \n \n215,522.26 \n \nTotal Principal and Interest \n \n$ \n \n26,760,000.00 $ 1,673,150.00 \n \n$ \n \n1,250,029.30 \n \nCAPITAL LEASES \nThe School District has acquired information technology equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date Amount Issued \n \nAmount Outstanding \n \nApple Technology Lease \n \n3.70% \n \n6/21/2019 \n \n7/19/2021 $ 904,547.79 $ 592,013.30 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2021 2022 \n \n$ 290,629.99 $ 301,383.31 \n \n21,904.50 11,151.18 \n \nTotal Principal and Interest $ 592,013.30 $ \n \n33,055.68 \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 9: 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. \nGeorgia School Boards Association Risk Management Fund \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 premium 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 (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \nWORKERS' COMPENSATION \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the workers' compensation fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2019 2020 \n \n$ 1,098,748.32 $ 1,591,577.22 \n \n$ 1,289,448.59 $ 257,910.89 \n \n$ 796,619.69 $ 802,645.79 \n \n$ 1,591,577.22 $ 1,046,842.32 \n \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 \n2019 $ \n \n- \n \n$ \n \n8,484.47 $ \n \n8,484.47 $ \n \n- \n \n2020 $ \n \n- \n \n$ \n \n2,983.97 $ \n \n2,983.97 $ \n \n- \n \nSURETY BOND \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$ 50,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance Subsequent Period Expenditures \nAssigned School Activity Accounts \nUnassigned \n \n$ \n \n967,284.79 \n \n229.95 $ \n \n967,514.74 \n \n$ \n \n3,769,783.06 \n \n2,297,496.89 \n \n11,441,890.83 \n \n17,509,170.78 \n \n$ \n \n3,638,479.59 \n \n6,990,925.00 \n \n10,629,404.59 \n \n552,828.68 14,741,886.54 \n \nFund Balance June 30, 2020 \n \n$ 44,400,805.33 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \nNOTE 11: SIGNIFICANT COMMITMENTS \nCOMMITMENTS 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, 2020: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through \nJune 30, 2020 (2) \n \nLED Lights 4C Academy Lab Sylvester Road Renovation Dougherty Middle School Modifications Turner Elementary Modifications \n \n$ 2,154,149.11 $ \n \n1,165,086.07 \n \n9,247.50 \n \n33,206.78 \n \n87,435.00 \n \n220,165.00 \n \n3,693,890.00 \n \n10,347,963.28 \n \n188,580.00 \n \n5,670.00 \n \n$ 6,133,301.61 $ 11,772,091.13 \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 \n \nThe School District leases copiers, postage meters and equipment 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 $298,108.92 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \n \nYear Ending \n \nGovernmental Funds \n \n2021 2022 \n \n$ 297,531.69 172,550.00 \n \nTotal \n \n$ 470,081.69 \n \nNOTE 12: 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. \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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. \nNOTE 13: 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 $3,078,098.00 for the year ended June 30, 2020. 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, 2020, the School District reported a liability of $114,426,957.00 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 0.932412%, which was a decrease of 0.004385% from its proportion measured as of June 30, 2018. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nFor the year ended June 30, 2020, the School District recognized OPEB expense of $2,015,118.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 12,448,462.00 \n \nChange of assumptions \n \n3,973,825.00 \n \n16,130,588.00 \n \nNet differnece between projected and \n \nactual earnings on OPEB plan investments \n \n249,187.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n3,050,638.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n3,078,098.00 \n \n- \n \nTotal \n \n$ 7,301,110.00 $ 31,629,688.00 \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2021 2022 2023 2024 2025 Thereafter \n \n$ (6,172,706.00) $ (6,172,706.00) $ (6,182,284.00) $ (5,384,499.00) $ (2,896,441.00) $ (598,040.00) \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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: \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00% - 8.75%, including inflation \n \nLong-term expected rate of return Healthcare cost trend rate \nPre-Medicare Eligible \n \n7.30%, compounded annually, net of investment expense, and including inflation \n7.250% \n \nMedicare Eligible \n \n5.375% \n \nUltimate trend rate Pre-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 \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. \n \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. \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. \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. \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \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 \nnominal 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 \nweighting the expected future real rates of return by the target asset allocation percentage and by \nadding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment \nstrategy to a more long-term approach. The target allocation and best estimates of arithmetic real \nrates 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 -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \nTotal \n \n30.00% 46.20% \n1.30% 12.40% \n5.10% 5.00% 100.00% \n \n(0.10)% 8.90% \n13.20% 8.90% \n10.90% 12.00% \n \n*Net of Inflation \n \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. \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: \n \nSchool District's proportionate share of Net OPEB Liability \n \n1% Decrease (2.58%) \n \nCurrent Discount Rate (3.58%) \n \n1% Increase (4.58%) \n \n$ 133,001,892.00 $ \n \n114,426,957.00 $ 99,317,081.00 \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 \nSchool District's proportionate share of Net OPEB Liability \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \n$ 96,392,588.00 $ \n \n114,426,957.00 $ 137,331,975.00 \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \nNOTE 14: 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 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 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 21.07% of payroll was required from the School District and 0.07% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $17,874,113.96 and $60,554.24 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/financials. \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- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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. \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, 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 $29,568.62 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/financials. \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 $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. \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 \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 $340,738.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2020, the School District reported a liability of $144,017,238.00 for its proportionate share of the net pension liability for TRS ($143,838,683.00) and ERS ($178,555.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 143,838,683.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n499,723.00 \n \nTotal \n \n$ 144,338,406.00 \n \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. \nAt June 30, 2019, the School District's TRS proportion was 0.668933%, which was a decrease of 0.002579% 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 increase of 0.000504% from its proportion measured as of June 30, 2018. \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 $1,932,659.00. \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. \nFor the year ended June 30, 2020, the School District recognized pension expense of $21,293,850.00 for TRS, $75,807.00 for ERS and $596,008.00 for PSERS and revenue of $56,175.00 for TRS and $596,008.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual \n \nexperience \n \n$ 8,107,481.00 $ \n \n42,644.00 \n \n$ 5,946.00 $ \n \n- \n \nChanges of assumptions \n \n13,803,198.00 \n \n- \n \n3,143.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n3,425,238.00 \n \n- \n \n5,558.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n5,415,387.00 \n \n34,124.00 \n \n- \n \nSchool District contributions subsequent to the measurement date \n \n17,874,113.96 \n \n- \n \n29,568.62 \n \n- \n \nTotal \n \n$ 39,784,792.96 $ 8,883,269.00 \n \n$ 72,781.62 $ \n \n5,558.00 \n \nThe School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net 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: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2021 2022 2023 2024 \n \n$ 5,099,157.00 $ $ (506,549.00) $ $ 3,848,502.00 $ $ 4,586,300.00 $ \n \n38,020.00 (6.00) \n(1,095.00) 736.00 \n \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: \n \nTeachers Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, average, including inflation \n \nInvestment rate of return \n \n7.25%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases 1.50% semi-annually \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 \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \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. \nEmployees' Retirement System: \n \nInflation Salary increases \n \n2.75% 3.25% - 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 \n \nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \n \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 \n \nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \n \nwas used for death after disability retirement. There is a margin for future mortality improvement in \n \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 \n \nactual number of deaths that occurred during the study period for service retirements and \n \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, 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. \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 benefit increases 1.50% semi-annually \n \nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected \nto 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 \nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \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 \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. \n \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. \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \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 \n \nTRS Target allocation \n \nERS/PSERS Target \nallocation \n \nLong-term expected real rate of return* \n \nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 51.00% \n1.50% 12.40% \n5.10% - \n \n30.00% 46.20% \n1.30% 12.40% \n5.10% 5.00% \n \n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \n \nTotal \n \n100.00% \n \n100.00% \n \n* Rates shown are net of assumed rate of inflation. \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. \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: \n \nTeachers Retirement System: \n \n1% Decrease (6.25%) \n \nCurrent Discount Rate (7.25%) \n \n1% Increase (8.25%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 233,492,281.00 $ \n \n143,838,683.00 $ 70,111,570.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.30%) \n \nCurrent Discount Rate (7.30%) \n \n1% Increase (8.30%) \n \nSchool District's proportionate share of the net pension liability \n \n$ \n \n253,743.00 $ \n \n178,555.00 $ \n \n114,458.00 \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/financials. \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nDEFINED CONTRIBUTION PLAN \n \nOn August 1, 1996, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe School District selected Valic as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the School District matches 3% of the employee's contribution. \n \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the School District. \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 \n2020 2019 2018 \n \n3% \n \n$ \n \n3% \n \n$ \n \n3% \n \n$ \n \nNOTE 15: RESTATEMENT OF PRIOR YEAR NET POSITION \n \n186,249.11 169,374.47 161,683.39 \n \nFor fiscal year 2020, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2019 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles. \n \nNet Position, July 1, 2019 as previously reported \n \n$ 70,323,915.83 \n \nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \n \n204,433.86 \n \nNet Position, July 1, 2019, as restated \n \n$ 70,528,349.69 \n \nFund Balance (General Fund), July 1, 2019, as previously reported $ 27,130,266.48 \n \nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \n \n204,433.86 \n \nFund Balance (General Fund), July 1, 2019, as restated \n \n$ 27,334,700.34 \n \nNet Position (Fiduciary Funds), July 1, 2019 as previously reported $ \n \n325,598.97 \n \nPrior Period Adjustment - Implementation of GASB No. 84: Restatement for Custodial Funds Beginning Net Position \n \n(204,433.86) \n \nNet Position (Fiduciary Funds), July 1, 2019, as restated \n \n$ \n \n121,165.11 \n \n- 34 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2020 \n \nEXHIBIT \"I\" \n \nNOTE 16: TAX ABATEMENTS \nDougherty 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 Dougherty County. \nFor the fiscal year ended June 30, 2020, Dougherty County abated property taxes due to the School District that were levied on September 23, 2019 and due on December 23, 2019 totaling $1,628,800.06. Included in that amount abated, the following is an individual tax abatement agreement that exceeded 10.00% percent of the total amount abated: \n A property tax abatement to a local manufacturer of consumer goods for continued investment \nin operations and local employment. The abatement amounted to $1,596,337.14. \nNOTE 17: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement No. 33 and No. 34. The Authority's fiscal year is July 1 through June 30. \nNOTE 18: SUBSEQUENT EVENT \nOn November 18, 2020, the voters of Dougherty authorized the continuation of the Education Special Purpose Local Option Sales Tax of one percent to be imposed on all sales and uses in Dougherty County for a period of time not to exceed 20 consecutive calendar quarters to raise not more than $90,000,000.00. The proceeds are to be used as stated on the Official Ballot of Dougherty County as follows: \n\"1) Shall a special one percent sales and use tax for educational purposes be continued in Dougherty County for a period of time not to exceed 20 calendar quarters and the raising of not more than $90,000,000 for the purpose of funding the (a) renovation, improvement and equipping of existing schools, administration, athletic and related facilities, (b) acquisition, construction and equipping of new schools, administration, athletic, transportation and related facilities, (c) the acquisition of school buses and vehicles for maintenance and transportation use and other maintenance and transportation equipment, (d) acquisition of software, hardware, computers equipment and safety and security equipment for the use of both staff and students, (e) acquisition of energy savings equipment and (f) acquisition of real and personal property necessary for the foregoing? If the continuation of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of the Dougherty County School District in the maximum principal amount of $50,000,000 for the above purpose.\" \n \n- 35 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n2020 2019 2018 2017 2016 2015 \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 \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \n0.668933% $ 0.671512% $ 0.686413% $ 0.716396% $ 0.745907% $ 0.773982% $ \n \n143,838,683.00 $ 124,647,011.00 $ 127,571,970.00 $ 147,800,483.00 $ 113,556,934.00 $ \n97,782,417.00 $ \n \n499,723.00 415,978.00 479,873.00 588,606.00 446,368.00 381,664.00 \n \n$ 144,338,406.00 $ 125,062,989.00 $ 128,051,843.00 $ 148,389,089.00 $ 114,003,302.00 $ 98,164,081.00 \n \n$ 81,934,345.91 $ 80,404,397.90 $ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 $ 79,341,795.52 \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 \n175.55% 155.03% 161.41% 187.28% 143.67% 123.24% \n \n78.56% 80.27% 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- 37 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"2\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2020 \n \n$ \n \n17,874,113.96 $ \n \n17,874,113.96 $ \n \n- \n \n2019 \n \n$ \n \n17,063,212.65 $ \n \n17,063,212.65 $ \n \n- \n \n2018 \n \n$ \n \n13,485,091.83 $ \n \n13,485,091.83 $ \n \n- \n \n2017 \n \n$ \n \n11,252,081.76 $ \n \n11,252,081.76 $ \n \n- \n \n2016 \n \n$ \n \n11,216,453.07 $ \n \n11,216,453.07 $ \n \n- \n \n2015 \n \n$ \n \n10,355,842.01 $ \n \n10,355,842.01 $ \n \n- \n \nSchool District's covered payroll \n$ 84,826,714.69 $ 81,934,345.91 $ 80,404,397.90 $ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 \n \nContribution as a percentage of covered \npayroll \n21.07% 20.83% 16.77% 14.24% 14.21% 13.10% \n \nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \n \n- 38 - \n \n DOUGHERTY 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 \"3\" \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 \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability \nas a percentage of covered payroll \n \n2020 2019 2018 2017 2016 2015 \n \n0.004327% $ 0.003823% $ 0.001442% $ 0.001698% $ 0.002596% $ 0.004753% $ \n \n178,555.00 $ 157,165.00 $ \n58,564.00 $ 80,323.00 $ 105,174.00 $ 178,267.00 $ \n \n109,063.62 97,520.57 35,361.18 36,794.90 64,229.58 97,265.38 \n \n163.72% 161.16% 165.62% 218.30% 163.75% 183.28% \n \nPlan fiduciary net position as a \npercentage of total pension liability \n76.74% 76.68% 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- 39 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2020 \n \n$ \n \n29,568.62 $ \n \n29,568.62 $ \n \n- \n \n2019 \n \n$ \n \n27,026.00 $ \n \n27,026.00 $ \n \n- \n \n2018 \n \n$ \n \n24,192.12 $ \n \n24,192.12 $ \n \n- \n \n2017 \n \n$ \n \n8,773.13 $ \n \n8,773.13 $ \n \n- \n \n2016 \n \n$ \n \n9,095.72 $ \n \n9,095.72 $ \n \n- \n \n2015 \n \n$ \n \n14,104.86 $ \n \n14,104.86 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n119,905.30 \n \n$ \n \n109,063.62 \n \n$ \n \n97,520.57 \n \n$ \n \n35,361.18 \n \n$ \n \n36,794.90 \n \n$ \n \n64,229.58 \n \nContribution as a percentage of covered \npayroll \n24.66% 24.78% 24.81% 24.81% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \n \n- 40 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \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 \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 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 \n- \n \n$ \n \n1,932,659.00 $ 1,731,592.00 $ 1,686,811.00 $ 2,216,830.00 $ 1,556,980.00 $ 1,422,781.00 $ \n \nTotal \n \nSchool District's covered payroll \n \n1,932,659.00 $ 1,731,592.00 $ 1,686,811.00 $ 2,216,830.00 $ 1,556,980.00 $ 1,422,781.00 $ \n \n7,703,525.97 7,637,830.93 7,724,873.84 7,670,767.69 7,101,357.18 6,545,452.68 \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 \nN/A \n \n85.02% \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 \n88.29% \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 DOUGHERTY 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 \"6\" \n \nYear Ended \n2020 2019 2018 \n \nSchool District's proportion of the net \nOPEB liability \n \nSchool District's proportionate share of the net OPEB liability \n \nState of Georgia's proportionate share of the net OPEB liability \nassociated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n \n0.932412% $ 114,426,957.00 $ 0.936797% $ 119,064,024.00 $ 0.957354% $ 134,507,852.00 $ \n \n- \n \n$ 114,426,957.00 $ 73,463,453.95 \n \n- \n \n$ 119,064,024.00 $ 73,759,412.54 \n \n- \n \n$ 134,507,852.00 $ 72,403,688.80 \n \n155.76% 161.42% 185.77% \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n4.63% 2.93% 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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n2020 2019 2018 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n3,078,098.00 $ \n \n3,078,098.00 $ \n \n- \n \n$ \n \n5,021,684.00 $ \n \n5,021,684.00 $ \n \n- \n \n$ \n \n4,855,329.00 $ \n \n4,855,329.00 $ \n \n- \n \nSchool District's coveredemployee payroll \n \n$ \n \n72,692,360.75 \n \n$ \n \n73,463,453.95 \n \n$ \n \n73,759,412.54 \n \nContribution as a percentage of covered- \nemployee payroll \n4.23% 6.84% 6.58% \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"8\" \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). \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%. \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 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. \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. \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). \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. \nSchool OPEB Fund \nChanges of benefit terms: There have been no changes in benefit terms. \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. \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. \n \n- 44 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"9\" \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 Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Operating Transfers from Other Funds Sale or Compensation for Loss of Assets Operating Transfers to Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n39,084,234.00 $ \n \n39,084,234.00 $ \n \n41,552,171.30 $ \n \n2,467,937.30 \n \n220,782.00 \n \n220,782.00 \n \n319,146.96 \n \n98,364.96 \n \n98,189,994.00 \n \n98,250,074.00 \n \n98,419,731.60 \n \n169,657.60 \n \n26,174,760.00 \n \n36,080,030.37 \n \n32,707,426.75 \n \n(3,372,603.62) \n \n1,079,396.00 \n \n1,154,326.00 \n \n1,890,979.40 \n \n736,653.40 \n \n8,000.00 \n \n8,000.00 \n \n236,805.41 \n \n228,805.41 \n \n2,038,798.00 \n \n2,612,505.00 \n \n2,557,579.41 \n \n(54,925.59) \n \n166,795,964.00 \n \n177,409,951.37 \n \n177,683,840.83 \n \n273,889.46 \n \n97,526,366.02 \n4,936,352.01 7,759,048.00 2,899,474.00 3,412,765.00 10,943,877.00 2,455,599.00 15,385,478.00 5,925,049.00 4,417,862.00 \n11,000.00 306,000.00 485,000.00 13,674,603.00 \n170,138,473.03 \n(3,342,509.03) \n \n96,753,941.94 \n6,263,237.30 15,925,622.16 \n2,976,366.18 4,678,681.00 10,952,504.00 3,066,043.00 15,849,836.00 5,915,243.50 6,563,535.00 \n540.00 306,000.00 485,000.00 14,725,283.00 \n184,461,833.08 \n(7,051,881.71) \n \n96,087,149.92 \n5,870,233.92 12,977,058.48 \n2,846,714.08 2,519,867.44 11,775,073.72 2,610,035.67 15,318,574.48 6,052,340.86 5,976,422.17 \n609.57 261,910.86 526,248.81 11,398,410.88 \n174,220,650.86 \n3,463,189.97 \n \n666,792.02 \n393,003.38 2,948,563.68 \n129,652.10 2,158,813.56 (822,569.72) \n456,007.33 531,261.52 (137,097.36) 587,112.83 \n(69.57) 44,089.14 (41,248.81) 3,326,872.12 \n10,241,182.22 \n10,515,071.68 \n \n67,884,368.71 \n15,000.00 (68,044,368.71) \n(145,000.00) \n(3,487,509.03) \n22,127,180.00 \n- \n \n1,546,200.00 67,533,451.48 \n15,000.00 (67,693,451.48) \n1,401,200.00 \n(5,650,681.71) \n27,489,684.58 \n(18,790.12) \n \n(136,472.70) \n(136,472.70) \n3,326,717.27 \n27,334,700.34 \n- \n \n(1,546,200.00) (67,533,451.48) \n(15,000.00) 67,556,978.78 \n(1,537,672.70) \n8,977,398.98 \n(154,984.24) \n18,790.12 \n \nFund Balances - Ending \n \n$ \n \n18,639,670.97 $ \n \n21,820,212.75 $ \n \n30,661,417.61 $ \n \n8,841,204.86 \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 $1,649,214.75 and $1,588,870.10, 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- 45 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"10\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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 Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Gaining Early Awareness and Readiness for Undergraduate Programs School Safety National Activities Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Education for Homeless Children and Youth Education Stabliziation Funds English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program School Improvement Grants School Improvement Grants Striving Readers Supporting Effective Instruction State Grants 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 \nHealth and Human Services, U.S. Department of Pass-Through From Georgia Department of Behavorial Health Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act/Workforce Innovation and Opportunity Act Cluster Pass-Through From Georgia Department of Labor Workforce Innovation and Opportunity Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n205GA324N1099 205GA324N1099 \n \n$ 3,050,016.20 8,370,984.87 \n11,421,001.07 \n \n10.558 \n \n205GA368N2020 \n \n57,280.36 11,478,281.43 \n \n84.027 84.027 84.173 84.173 \n84.334A 84.184G \n84.048 84.196 84.196 84.425D 84.365 84.365 84.011 84.011 84.377A 84.377A 84.371 84.367 84.367 84.010 84.010 \n93.959 \n \nH027A180073 H027A190073 H173A180081 H173A190081 \nV048A190010 S196A180011 S196A190011 S425D200012 S365A180010 S365A190010 S011A180011 S011A190011 S377A180011 S377A190011 S371C110049 S367A180001 S367A190001 S010A180010 S010A190010 \nTP1AH000117 \n \n2,093.93 3,879,004.67 \n1,313.00 134,863.00 \n4,017,274.60 \n1,736,243.25 222,297.67 \n250,306.85 1,835.00 \n53,588.90 1,991,328.95 \n5,136.37 24,333.88 \n7,723.17 11,460.61 95,568.26 676,256.14 761,850.73 60,714.64 83,257.35 1,657,388.39 10,056,869.99 \n17,696,160.15 \n21,713,434.75 \n61,342.26 \n \n17.259 \n \nAA-33224-19-55-A-13 \n \n64,765.38 \n \n12.UNKNOWN 12.UNKNOWN \n \n36,776.47 119,616.72 156,393.19 \n \nTotal Expenditures of Federal Awards \n \n$ 33,474,217.01 \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 Dougherty 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. \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- 46 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"11\" \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 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 Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Grant Categorical Grants Pupil Transportation Regular State Bonds Nursing Services Education Equalization Funding Grant Other State Programs Food Services GNETS State Grant Hygiene Products in Georgia Math and Science Supplements Preschool Disability Services Teacher of the Year Teachers Retirement Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \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$ \n \n1,622,443.72 $ \n \n- $ \n \n1,622,443.72 \n \n4,653,315.00 1,419,188.00 11,261,082.00 3,602,600.00 5,969,418.00 2,414,106.00 10,324,216.00 7,199,195.00 2,865,612.00 10,139,335.00 2,300,036.00 2,029,327.00 \n671,106.00 472,104.00 1,788,828.00 556,765.00 289,964.00 \n6,127.00 \n2,318,495.00 3,626,406.00 3,597,279.00 \n271,393.00 (1,188,712.00) 1,463,799.00 \n1,482,937.00 154,440.00 309,872.00 \n13,825,140.00 \n272,736.00 1,733,931.00 \n18,030.00 63,873.05 260,363.00 \n400.00 60,554.24 223,289.59 \n \n- \n \n4,653,315.00 \n \n- \n \n1,419,188.00 \n \n- \n \n11,261,082.00 \n \n- \n \n3,602,600.00 \n \n- \n \n5,969,418.00 \n \n- \n \n2,414,106.00 \n \n- \n \n10,324,216.00 \n \n- \n \n7,199,195.00 \n \n- \n \n2,865,612.00 \n \n- \n \n10,139,335.00 \n \n- \n \n2,300,036.00 \n \n- \n \n2,029,327.00 \n \n- \n \n671,106.00 \n \n- \n \n472,104.00 \n \n- \n \n1,788,828.00 \n \n- \n \n556,765.00 \n \n- \n \n289,964.00 \n \n- \n \n6,127.00 \n \n- \n \n2,318,495.00 \n \n- \n \n3,626,406.00 \n \n- \n \n3,597,279.00 \n \n- \n \n271,393.00 \n \n- \n \n(1,188,712.00) \n \n- \n \n1,463,799.00 \n \n- \n \n1,482,937.00 \n \n- \n \n154,440.00 \n \n- \n \n309,872.00 \n \n- \n \n13,825,140.00 \n \n- \n \n272,736.00 \n \n- \n \n1,733,931.00 \n \n- \n \n18,030.00 \n \n- \n \n63,873.05 \n \n- \n \n260,363.00 \n \n- \n \n400.00 \n \n- \n \n60,554.24 \n \n- \n \n223,289.59 \n \n340,738.00 \n \n5,615,903.78 - \n \n5,615,903.78 340,738.00 \n \n$ 98,419,731.60 $ \n \n5,615,903.78 $ 104,035,635.38 \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2020 \n \nSCHEDULE \"12\" \n \nSPLOST V \n \n(a) The renovation, improvement and equipping of existing \n \nschools, administration, athletic and related facilities, including \n \nthe provision of safety and security equipment for these \n \nfacilities \n \n$ \n \n(b) acquisition, construction and equipping of new schools, administration, athletic and related facilities \n \n(c) the acquisition of school buses and vehicles for maintenance and transportation use \n \n(d) acquisition of software, hardware and computer equipment for the use of both staff and students \n \n(e) acquisition of energy savings equipment \n \n(f) acquisition of real and personal property necessary for the foregoing \n \nORIGINAL ESTIMATED \nCOST (1) \n80,100,000.00 $ - \n3,000,000.00 6,500,000.00 \n400,000.00 \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n80,100,000.00 $ \n \n12,023,237.07 $ \n \n35,402,878.35 $ \n \n- \n \n- \n \n- \n \n3,000,000.00 \n \n525,006.50 \n \n1,138,890.75 \n \n6,500,000.00 - \n \n1,819,039.82 - \n \n3,408,619.37 - \n \n400,000.00 \n \n- \n \n- \n \n- $ - \n \n- \n \nJune 2023 \n \n- \n \nJune 2023 \n \n- \n \nJune 2023 \n \n- \n \nJune 2023 \n \n- \n \nJune 2023 \n \n- \n \nJune 2023 \n \nTotal - SPLOST V \n \n$ \n \n90,000,000.00 $ \n \n90,000,000.00 $ \n \n14,367,283.39 $ \n \n39,950,388.47 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years Current Year \n \n$ \n \n2,215,583.56 \n \n1,266,985.00 \n \nTotal \n \n$ \n \n3,482,568.56 \n \n- $ \n \n- \n \nSee notes to the basic financial statements. \n \n- 49 - \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 4-101 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 Dougherty 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 Dougherty 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 July 16, 2021. \nThe financial statements of the Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \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) 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. \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 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. \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 \nJuly 16, 2021 \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 4-101 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 Dougherty County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Dougherty County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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 (This page left intentionally blank) \n \n Basis for Qualified Opinion on Gaining Early Awareness and Readiness for Undergraduate Programs \nAs described in the accompanying Schedule of Findings and Questioned Costs, the School District did not comply with requirements regarding Gaining Early Awareness and Readiness for Undergraduate Programs as described in items FA 2020-001 and FA 2020-002 for Matching Level of Effort and Reporting. Compliance with such requirements is necessary, in our opinion, for the School District to comply with requirements applicable to that program. \nQualified Opinion on Gaining Early Awareness and Readiness for Undergraduate Programs \nIn our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on Gaining Early Awareness and Readiness for Undergraduate Programs for the year ended June 30, 2020. \nUnmodified Opinion on Each of the Other Major Federal Programs \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 other major federal programs identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs for the year ended June 30, 2020. \nOther Matters \nThe School District's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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. We consider the deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as items FA 2020-001 and FA 2020-002, to be material weaknesses. \n \n (This page left intentionally blank) \n \n Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses. \nThe School District's response to the internal control over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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 \nJuly 16, 2021 \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 DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FINANCIAL STATEMENT 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 DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \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 weaknesses identified?  Significant deficiency identified? \n \nYes None Reported \n \nType of auditor's report issued on compliance for major programs: \n \nUnmodified for all major programs except for Gaining Early Awareness and Readiness for Undergraduate Programs, which was qualified. \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with 2 CFR 200.516(a)? \n \nYes \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.027, 84.173 84.334A 84.425D \n \nTitle I Grants to Local Educational Agencies Special Education Cluster Gaining Early Awareness and Readiness for Undergraduate Programs Education Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$1,004,226.51 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2020-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \nFederal Award Number: Questioned Costs: \n \nImprove Controls over Matching Requirement Matching, Level of Effort, Earmarking Material Weakness Material Noncompliance U.S. Department of Education Direct 84.334 Gaining Early Awareness and Readiness for Undergraduate Programs P334A180146 $295,525.39 \n \nDescription: The policies and procedures of the School District did not provide adequate internal controls over the matching requirement associated with the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) grant. \n \nCriteria: 34 CFR 694.7 details the matching requirement for the GEAR UP grant and states in part, that \"(a) In order to be eligible for GEAR UP funding  (1) An applicant must state in its application the percentage of the cost of the GEAR UP project the applicant will provide each year from non-Federal funds... and (2) A grantee must make substantial progress towards meeting the matching percentage stated in its approved application for each year of the project period. (b)... The non-Federal share of the cost of the GEAR UP project must be not less than 50 percent of the total cost of the project (i.e., one dollar of non-Federal contributions for every one dollar of Federal funds obligated for the project) over the project period. (c) The non-Federal share of the cost of a GEAR UP project may be provided in cash or in-kind.\" \n \nCondition: Our review of the matching requirement related to the GEAR UP grant revealed that the School District chose to satisfy this requirement by obtaining in-kind contributions from various vendors; however, the proper amount of in-kind contributions was not obtained and no additional cash was allocated from local funds to fulfill the appropriate matching requirement. The total Federal funds expended for the GEAR UP grant during year 1 of the grant was $505,992.66. The School District should have obtained in-kind contributions and/or allocated local funds in the amount of $505,992.66 to be in compliance with Federal regulations. The School District obtained in-kind contributions totaling $210,467.27 from various vendors. Therefore, the School District should have obtained additional inkind contributions and/or allocated additional local funds totaling $295,525.39 to comply with the GEAR UP grant matching requirement. \n \nQuestioned Costs: Questioned costs of $295,525.39 were identified for additional cash and/or in-kind contributions that should have been allocated and/or obtained to satisfy the GEAR UP grant matching requirement. \n \nCause: In discussing this deficiency with management, they stated the deficiencies occurred because management was not familiar with the matching requirements for this program and failed to effectively implement Federal guidelines. \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nEffect or Potential Effect: The School District is not in compliance with Federal regulations specific to the GEAR UP grant. Failure to meet the GEAR UP matching requirement may result in the reduction of the Federal award amount, a refund of Federal funds to the Department of Education, or possible termination of the award; therefore, this deficiency may expose the School District to unnecessary financial strains and shortages within the GEAR UP grant fund. \n \nRecommendation: The School District should review current internal control procedures related to GEAR UP grant matching requirements and ensure that the appropriate matching amounts are allocated from local funds and/or obtained through in-kind contributions or a waiver is obtained in the future. Furthermore, management should develop and implement a monitoring process to ensure that controls are operating appropriately. \n \nViews of Responsible Officials: We concur with this finding. \n \nFA 2020-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \nFederal Award Number: Questioned Costs: \n \nStrengthen Controls over Annual Performance Reporting Reporting Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education 84.334 Gaining Early Awareness and Readiness for Undergraduates Programs P334A180146 None Identified \n \nDescription: The School District did not file an accurate Annual Performance Report for the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) grant. \n \nCriteria: 2 CFR 200.302(a) states in part that \"the non-Federal entity's financial management systems must... be sufficient to permit the preparation of reports required by general and program-specific terms and conditions.\" In addition, 2 CFR 200.302(b)(2) states in part that the non-Federal entity's financial management systems must provide for \"accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements.\" \n \nFurthermore, 2 CFR 200.303(a) states in part that the \"non-Federal must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonFederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award... (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards.\" \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2020 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCondition: All amounts reflected on the 2020 GEAR UP Annual Performance Report (APR) were not accurately completed and supported by the accounting records and other appropriate documentation. Amounts reported by the School District within the following portions of Section 3: Fiscal Management did not agree or could not be supported by proper records and reports: \n The actual Federal expenditures for current budget period from the grant award notification (GAN) start date through March of APR submission year were overstated by a total of $340,659.35 based upon a review of the School District's general ledger. \n Actual matching contributions for the current budget period from the GAN start date through March of the APR submission year were understated by a total of $303,148.34 based upon a review of the School District's general ledger and in-kind contributions documentation. \nCause: In discussing this deficiency with management, they stated the deficiencies occurred because management was not familiar with the matching requirements for this program and failed to effectively implement Federal guidelines. \nEffect or Potential Effect: The School District is not in compliance with the Uniform Guidance and Federal regulations specific to the GEAR UP grant. Failure to accurately report Federal award expenditures and activity through the APR process may result in the reduction of the Federal award amount, a refund of Federal funds to the Department of Education, or possible termination of the award; therefore, this deficiency may expose the School District to unnecessary financial strains and shortages within the GEAR UP grant fund. \nRecommendation: The School District should revise and implement internal control procedures to ensure that amounts reported on the GEAR UP APR submitted to the U.S. Department of Education are supported by the accounting records or other comparable documentation. In addition, management should develop and implement a monitoring process to ensure that control procedures are being followed. Furthermore, the School District should contact the U.S. Department of Education to determine if an amended GEAR UP APR for year 2 of the grant should be completed and submitted. \nViews of Responsible Officials: We concur with this finding. \n- 4 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n (This page left intentionally blank) \n \n  DOUGHERTY COUNTY SCHOOL SYSTEM \nP.O. BOX 3170 / 200 PINE AVENUE ALBANY, GEORGIA 31706-3170 TELEPHONE (229) 431-1285 FAX (229) 431-1276 kenneth.dyer@docoschools.org \nz \nDOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2020 \n \nKENNETH DYER \nSUPERINTENDENT \n \nCORRECTIVE ACTION PLANS - FEDERAL AWARD FINDINGS \n \nFA 2020-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \nFederal Award Number: Questioned Costs: \n \nStrengthen Controls over Annual Performance Reporting Reporting Material Weakness Material Noncompliance U.S. Department of Education Direct 84.334 Gaining Early Awareness and Readiness for Undergraduate Programs P334A180146 None Identified \n \nThe School District did not file an accurate Annual Performance Report for the Gaining Early Awareness and Readiness for Undergraduates Programs (GEAR UP) grant. \n \nCorrective Action Plans: \nThe School District will review and schedule training on the reporting guidelines for the Annual Performance Report for the Gaining Early Awareness and Readiness for Undergraduates Program grant to ensure expenditures and matching requirements are aligned with the reporting period. \n \nEstimated Completion Date: June 30, 2021 \n \nContact Person: Susan Hatcher Telephone: (229) 431-1234 E-mail: shatcher@docoschools.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2019-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2020-09-20"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n38 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n39 \n \n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \n \nSCHOOL OPEB FUND \n \n40 \n \n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n41 \n \n6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 42 \n \n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \n \n43 \n \n DOUGHERTY COUNTY_ BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nREQUIRED SUPPLEMENTARY INFORMATION \n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \nSUPPLEMENTARY INFORMATION \n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n44 45 46 47 49 \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 Dougherty County Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities each major fund, the aggregate remaining fund information and the discretely presented component unit of the Dougherty 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 did not audit the financial statements of Dougherty County Stadium Authority, which is a discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority, is based solely on the report of the other auditors. \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 from material misstatement. The financial statements of the Dougherty County Stadium Authority were audited in accordance the Government Auditing Standards. \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 \n \n 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, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, 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 by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, 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 September 20, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 \nSeptember 20, 2020 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nINTRODUCTION \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2019. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2019, the School District adopted the following Governmental Accounting Standards Board (GASB) Statements: \n 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 does not have a significant impact on the School District's financial statement. \n 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 in the notes to the financial statements. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2019 are as follows:  The School District's net position at June 30, 2019 was $70.3 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2019 of $70.3 million represented an increase of $9.1 million when compared to the prior year primarily due to a significant decrease in long-term liabilities.  General Revenues increased by $3.2 million. Total program expenses increased by $5.4 million, while program revenues decreased by $2.9 million. There was a total decrease to change in net position of $5.1 million due to decreased Federal and State resources to support our program expenditures.  The School District continues to maintain a sound fiscal position in fiscal year 2019. \nOverview of the Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nGovernment-Wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the government-wide statements are reported as governmental activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various other functions. These statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major funds  governmental funds and fiduciary funds. \nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \nThe School District's governmental funds are the general fund, capital projects fund and debt service fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the general fund. \nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2018 and fiscal year 2019. \nStatement of Net Position (Analysis of the School District As A Whole) As previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for this fiscal year 2019 and the comparative amounts for fiscal year 2018 as compared to the prior fiscal year. \nTable 1 Net Position (In Thousands) \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2019 \n \n2018 \n \n(Decrease) \n \n$ \n \n68,392 $ \n \n81,763 $ (13,371) \n \n315,132 \n \n304,839 \n \n10,293 \n \nTotal Assets \n \n383,524 \n \n386,602 \n \n(3,078) \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n32,477 \n \n25,973 \n \n6,504 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n24,931 282,681 \n \n26,237 303,722 \n \n(1,306) (21,041) \n \nTotal Liabilities \n \n307,612 \n \n329,959 \n \n(22,347) \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n38,065 \n \n21,372 \n \n16,693 \n \nNet Position \nNet Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n275,054 20,147 \n(224,877) \n \n279,759 17,175 \n(235,690) \n \n(4,705) 2,972 10,813 \n \nTotal Net Position \n \n$ \n \n70,324 $ \n \n61,244 $ \n \n9,080 \n \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted net position increased $3.0 million and is restricted for the continuation of federal programs, capital projects and debt servicing. \nTotal net position increased by $9.1 million in fiscal year 2019 from the prior year due to the reduction in long-term liabilities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nStatement of Activities \nTable 2 shows the changes in net position for fiscal year 2018 and fiscal year 2019 as reported on the Statement of Activities. \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2019 \n \n2018 \n \n(Decrease) \n \n$ \n \n1,546 $ \n \n1,503 $ \n \n109,587 \n \n107,851 \n \n374 \n \n5,023 \n \n43 1,736 (4,649) \n \nTotal Program Revenues \n \n111,507 \n \n114,377 \n \n(2,870) \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Service Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \n \n40,710 71 \n17,055 245 \n12,834 893 \n2,122 73,930 \n \n41,713 65 \n14,797 308 \n11,280 546 \n2,018 70,727 \n \n(1,003) 6 \n2,258 (63) \n1,554 347 104 \n3,203 \n \nTotal Revenues \n \n185,437 \n \n185,104 \n \n333 \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 and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n93,685 \n5,830 11,922 \n2,826 2,270 11,008 2,540 20,800 6,700 6,123 \n410 488 10,835 920 \n \n91,760 \n5,037 10,585 \n3,526 2,319 11,965 2,715 17,555 8,298 4,935 \n366 367 11,411 \n83 \n \nTotal Expenses Increase in Net Position \n \n176,357 \n \n170,922 \n \n$ \n \n9,080 $ \n \n14,182 $ \n \n1,925 \n793 1,337 \n(700) (49) \n(957) (175) 3,245 (1,598) 1,188 \n44 121 (576) 837 \n5,435 (5,102) \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe $2.9 million decrease in program revenue was directly correlated with the decrease in capital grants. Property tax revenues decreased by $1.0 million indicating a decrease in collections for delinquent taxes, public utilities ad valorem, TAVT and the forest land protection act. Sales tax revenues increased by $2.2 million. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. Total Program Expenses increased $5.4 million for fiscal year 2019 compared to the previous fiscal year. This increase is mainly attributed to an increase in instructional and support services. Descriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. Pupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. Improvement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational Media Services are activities that direct, manage and operate educational media centers. General Administration establishes and administers policy for operating the local School District. School Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the School District. Maintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nGovernmental Activities \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2018 and fiscal year 2019. This information is presented on the Statement of Activities. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2019 \n \n2018 \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2019 \n \n2018 \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 and Other Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n93,685 $ \n5,830 11,922 \n2,826 2,270 11,008 2,540 20,800 6,700 6,123 \n410 488 10,835 920 \n \n91,760 $ \n5,037 10,585 \n3,526 2,319 11,965 2,715 17,555 8,298 4,935 \n366 367 11,411 \n83 \n \n16,806 $ \n4,064 6,674 \n632 (599) 6,834 2,525 15,669 4,761 6,090 \n410 488 (424) 920 \n \n13,904 \n3,685 5,218 1,143 \n(635) 7,570 2,635 12,713 4,821 4,893 \n366 367 (219) \n83 \n \nTotal Expenses \n \n$ \n \n176,357 $ \n \n170,922 $ \n \n64,850 $ \n \n56,544 \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other general revenues. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \n \nThe School District's Funds \nTable 4 shows the change in fund balance for governmental funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nREVENUES \n \nGeneral Fund \n \nCapital Projects \nFund \n \nDebt Service Fund \n \nTotals \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n40,768 $ \n \n245 \n \n95,348 \n \n27,421 \n \n1,546 \n \n396 \n \n2,065 \n \n- $ 437 57 \n \n- $ 17,055 \n58 - \n \n40,768 17,300 95,348 27,421 \n1,546 891 \n2,122 \n \nTotal Revenues \n \n167,789 \n \n494 \n \n17,113 \n \n185,396 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services (Interest) \n \n90,444 65,028 \n410 488 11,250 155 \n- \n \n1,343 1,942 \n22,175 3,271 \n \n1,421 \n \n91,787 66,970 \n410 488 11,250 22,330 4,692 \n \nTotal Expenditures \n \n167,775 \n \n28,731 \n \n1,421 \n \n197,927 \n \nExcess of Revenues over (under) Expenditures \n \n14 \n \n(28,237) \n \n15,692 \n \n(12,531) \n \nOTHER FINANCING SOURCES (USES) \n \nCapital Leases Transfers In Transfers Out \n \n- \n \n905 \n \n- \n \n- \n \n7,215 \n \n- \n \n(99) \n \n- \n \n(7,116) \n \n905 7,215 (7,215) \n \nTotal Other Financing Sources(Uses) \n \n(99) \n \n8,120 \n \n(7,116) \n \n905 \n \nNet Change in Fund Balances \n \n(85) \n \n(20,117) \n \n8,576 \n \n(11,626) \n \nFund Balances  Beginning \n \n27,215 \n \n24,098 \n \n3,202 \n \n54,515 \n \nFund Balances - Ending \n \n$ \n \n27,130 $ \n \n3,981 $ \n \n11,778 $ \n \n42,889 \n \nTotal revenues for all governmental funds were $185.4 million and total expenditures were $197.9 million. Total expenditures exceeded total revenues by $12.5 million for governmental activities. The fund balance for governmental funds decreased from $54.5 million at the beginning of the fiscal year to $42.9 million at June 30, 2019. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nThe fund balance reported for the general fund remained relatively the same. The beginning fund balance was $27.2 million and decreased to $27.1 million. \nThe fund balance reported for the capital projects fund decreased from $24.1 million at the beginning of the fiscal year to $4.0 million at June 30, 2019. This was mainly due to prior year bond proceeds spent on capital outlay expenditures. Prior year bond proceeds were used to finance most of the capital outlay expenditures for various projects. \nThe fund balance reported for the debt service fund increased from $3.2 million at the beginning of the fiscal year to $11.8 million at June 30, 2019. Sales tax revenue of $17.0 million and investment earnings were used to pay current year bond expenditures. The remaining revenue was transferred to capital projects fund to service capital outlay expenditures. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General fund budget compared to actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"9.\" \nDuring fiscal year 2019, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2018, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. Also, federal grants cannot be used to fund state mandated programs or replace local funds that previously funded the same activities. \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital projects programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. The School District has invested over $315.1 million in capital assets net of depreciation. Table 5 compares fiscal year 2019 Capital Asset balances to fiscal year 2018 balances. \nTable 5 Capital Assets at June 30 (Net of depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2019 \n \n2018 \n \n(Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 9,781 290,929 5,370 \n \n9,051 $ 61,303 229,178 \n5,306 \n \n(51,522) 61,751 \n64 \n \nTotal \n \n$ \n \n315,131 $ \n \n304,838 $ \n \n10,293 \n \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \nTable 5 shows that total capital assets increased $10.3 million in fiscal year 2019. The increase is due to the land improvements of baseball fields and the completion of construction in progress to School District's infrastructure, renovations and improvements to schools, acquisition and construction of new athletic facilities. All construction projects were funded by a one percent Special Purpose Local Option Sales Tax approved by the voters of Dougherty County. \nDebt Table 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2018 and fiscal year 2019. \nTable 6 Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal Year Fiscal Year \n \nIncrease \n \n2019 \n \n2018 \n \n(Decrease) \n \nG.O. Bonds \n \n$ 35,000 $ 35,000 $ \n \nCapital Leases \n \n905 \n \n3,215 \n \nCompensated Absences \n \n1,141 \n \n1,084 \n \nBond Premiums Amortized \n \n1,767 \n \n2,285 \n \n(2,310) \n57 (518) \n \n$ 38,813 $ 41,584 $ \n \n(2,771) \n \nAs shown in Table 6, Series 2018 Bond was issued in the prior fiscal year with the first principal payment being due fiscal year 2020. Compensated Absences of $1.1 million represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nCurrent Financial Issues \n \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the increased employer cost for employee health benefits and teachers retirement. Other challenges include a decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nDespite these challenges, the School District is financially stable. The School District's operating millage remains the same at 18.433 for fiscal year 2019. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2015. \n \nFY 2015 FY 2016 FY 2017 FY 2018 FY 2019 \n \n15,361 15,014 14,686 14,309 14,078 \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, fully funding teacher salaries, provide a step increase for all employees, the School District implemented cost-saving measures, while maintaining essential levels of service to support teaching and learning. The School District strives to emphasize student achievement while maintaining sound fiscal management. In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Susan Hatcher, Chief Financial Officer, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to shatcher@docoschools.org. \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items 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 Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues 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 Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \nThe notes to the basic financial statements are an integral part of this statement. \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n45,810,164.44 $ \n \n4,758,554.22 12,728,686.08 \n3,817,094.35 33,016.81 \n445,605.57 791,668.24 \n7,382.37 18,831,974.77 296,299,576.88 \n \n383,523,723.73 \n \n172,715.00 \n410,000.00 2,360,927.00 \n2,943,642.00 \n \n27,294,086.65 \n \n- \n \n5,182,777.00 \n \n- \n \n32,476,863.65 \n \n- \n \n3,218,575.06 16,780,389.63 \n104,708.33 1,591,577.22 1,901,774.25 \n504,238.54 829,960.00 124,804,176.00 119,064,024.00 \n9,149,626.57 29,662,754.95 \n307,611,804.55 \n \n9,047.00 - \n9,047.00 \n \n12,127,599.00 \n \n- \n \n25,937,268.00 \n \n- \n \n38,064,867.00 \n \n- \n \n275,053,708.25 \n4,387,696.76 11,778,327.26 \n3,980,713.14 (224,876,529.58) \n \n2,770,926.00 \n163,669.00 \n \n$ \n \n70,323,915.83 $ \n \n2,934,595.00 - 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES 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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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 \n93,684,699.22 $ \n \n5,829,676.57 11,921,986.66 \n2,826,470.81 2,269,928.82 11,008,195.69 2,540,194.90 20,799,938.53 6,699,776.41 6,122,988.46 \n5.81 \n \n410,128.89 488,366.32 10,834,841.86 919,979.21 \n \n$ 176,357,178.16 $ \n \n1,185,599.40 \n24,893.59 145,083.97 - \n190,392.84 - \n1,545,969.80 \n \n$ \n \n299,912.00 $ \n \n110,000.00 \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITES \n \nSTADIUM AUTHORITY \n \n$ \n \n75,492,712.03 $ \n \n1,765,817.82 5,247,810.55 2,189,799.20 2,868,661.60 4,166,990.24 \n13,191.48 4,970,966.17 1,778,908.34 \n32,309.30 72.60 \n \n11,059,714.86 - \n \n$ 109,586,954.19 $ \n \n200,784.87 $ \n209.95 267.45 4,216.65 \n7,675.52 2,220.77 135,397.39 14,322.26 1,038.17 \n- \n8,518.43 - \n374,651.46 \n \n(16,805,602.92) $ \n(4,063,648.80) (6,673,908.66) \n(632,454.96) 598,732.78 (6,833,529.93) (2,524,782.65) (15,668,681.38) (4,761,461.84) (6,089,640.99) \n66.79 \n(410,128.89) (488,366.32) 423,784.27 (919,979.21) \n(64,849,602.71) \n \n$ \n \n- $ \n \n- \n \n$ \n \n- \n- \n- \n- \n(189,912.00) \n \n40,710,440.28 70,907.36 \n17,055,060.35 244,873.95 \n12,834,072.00 892,502.20 \n2,121,730.06 \n73,929,586.20 \n9,079,983.49 \n61,243,932.34 \n \n$ \n \n70,323,915.83 $ \n \n- \n1,401.00 79,208.00 80,609.00 (109,303.00) 3,043,898.00 \n2,934,595.00 \n \n- 3 - \n \n DOUGHERTY 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 Prepaid Items \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 27,755,819.37 $ \n3,284,376.52 12,728,686.08 \n3,817,094.35 25,013.81 \n445,604.97 791,668.24 \n7,382.37 \n \n7,750,195.51 $ \n8,003.00 0.60 - \n \n10,304,149.56 $ \n1,474,177.70 - \n \n45,810,164.44 \n4,758,554.22 12,728,686.08 \n3,817,094.35 33,016.81 \n445,605.57 791,668.24 \n7,382.37 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 48,855,645.71 $ \n \n7,758,199.11 $ 11,778,327.26 $ \n \n68,392,172.08 \n \n$ \n \n1,847,101.88 $ \n \n16,780,389.63 \n \n- \n \n- \n \n829,960.00 \n \n19,457,451.51 \n \n1,371,473.18 $ - \n1,901,774.25 504,238.54 - \n3,777,485.97 \n \n- $ - \n- \n \n3,218,575.06 16,780,389.63 \n1,901,774.25 504,238.54 829,960.00 \n23,234,937.48 \n \n2,267,927.72 \n \n- \n \n- \n \n2,267,927.72 \n \n799,050.61 4,387,696.76 7,287,426.34 \n290,280.27 14,365,812.50 \n27,130,266.48 \n \n3,980,713.14 \n- \n3,980,713.14 \n \n11,778,327.26 \n- \n11,778,327.26 \n \n799,050.61 20,146,737.16 \n7,287,426.34 290,280.27 \n14,365,812.50 \n42,889,306.88 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 48,855,645.71 $ \n \n7,758,199.11 $ 11,778,327.26 $ \n \n68,392,172.08 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n DOUGHERTY 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 Buildings and improvements 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 \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 Capital leases payable Compensated absences payable Unamortized bond premiums Claims and judgments payable \n \n$ \n \n42,889,306.88 \n \n$ \n \n9,051,054.08 \n \n9,780,920.69 \n \n435,295,774.26 \n \n13,961,110.24 \n \n(152,957,307.62) \n \n315,131,551.65 \n \n$ (124,804,176.00) (119,064,024.00) \n \n(243,868,200.00) \n \n$ \n \n15,166,487.65 \n \n(20,754,491.00) \n \n(5,588,003.35) 2,267,927.72 \n \n$ (35,000,000.00) (104,708.33) (904,547.79) \n(1,140,550.91) (1,767,282.82) (1,591,577.22) \n \n(40,508,667.07) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n70,323,915.83 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n DOUGHERTY 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \n$ \n \n40,767,506.48 $ \n \n244,873.95 \n \n95,348,151.86 \n \n27,421,321.05 \n \n1,545,969.80 \n \n396,470.37 \n \n2,064,842.14 \n \n167,789,135.65 \n \n- $ 437,078.08 56,885.63 \n493,963.71 \n \n90,444,063.03 \n6,110,589.03 12,426,904.50 \n2,852,673.69 2,409,940.70 11,388,619.81 2,539,343.07 15,560,927.57 6,205,990.82 5,521,881.25 \n10,895.42 410,128.89 488,366.32 11,249,884.57 154,440.00 \n- \n167,774,648.67 \n14,486.98 \n \n1,343,042.04 \n6,380.00 4,906.60 1,785,013.54 90,320.00 55,800.00 22,175,190.83 \n3,214,893.05 55,654.46 \n28,731,200.52 \n(28,237,236.81) \n \n(99,266.57) \n(99,266.57) \n(84,779.59) \n27,215,046.07 \n \n904,547.79 7,215,062.39 \n- \n8,119,610.18 \n(20,117,626.63) \n24,098,339.77 \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n- $ 17,055,060.35 \n58,956.04 - \n \n40,767,506.48 17,299,934.30 95,348,151.86 27,421,321.05 \n1,545,969.80 892,504.49 \n2,121,727.77 \n \n17,114,016.39 \n \n185,397,115.75 \n \n- \n120.00 - \n1,421,300.00 \n1,421,420.00 \n15,692,596.39 \n \n91,787,105.07 \n6,110,589.03 12,426,904.50 \n2,852,673.69 2,416,320.70 11,388,619.81 2,544,369.67 17,345,941.11 6,296,310.82 5,577,681.25 \n10,895.42 410,128.89 488,366.32 11,249,884.57 22,329,630.83 \n3,214,893.05 1,476,954.46 \n197,927,269.19 \n(12,530,153.44) \n \n(7,115,795.82) \n(7,115,795.82) \n8,576,800.57 \n3,201,526.69 \n \n904,547.79 7,215,062.39 (7,215,062.39) \n904,547.79 \n(11,625,605.65) \n54,514,912.53 \n \nFund Balances - Ending \n \n$ \n \n27,130,266.48 $ \n \n3,980,713.14 $ 11,778,327.26 $ 42,889,306.88 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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 \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. \nCapital leases issued Capital lease payments Amortization of bond premium \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 \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 bonds Compensated absences Claims and judgments \n \n$ \n \n(11,625,605.65) \n \n$ \n \n22,417,039.83 \n \n(12,124,263.64) \n \n10,292,776.19 13,841.16 \n \n$ \n \n(904,547.79) \n \n3,214,893.05 \n \n517,253.52 \n \n2,827,598.78 \n \n$ \n \n7,522,575.69 \n \n558,382.00 \n \n8,080,957.69 \n \n$ \n \n39,721.73 \n \n(56,477.51) \n \n(492,828.90) \n \n(509,584.68) \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n9,079,983.49 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2019 \nASSETS Cash and Cash Equivalents Receivables, Net \nLocal \nTotal Assets LIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n320,996.98 \n \n9,047.12 \n \n$ \n \n330,044.10 \n \n$ \n \n330,044.10 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Notes 4, 5 and 16 for additional component unit disclosures. \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 and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \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. \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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 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. \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. \nThe School District reports the following fiduciary fund type: \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. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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 judgements, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 resources 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. \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nINVENTORIES \n \nFood Inventories \n \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 (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nConsumable Supplies \n \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out basis). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \n \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 \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAny Amount 100,000.00 \n50,000.00 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 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 \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \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. \nCOMPENSATED ABSENCES \nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \nVacation leave up to 18 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 30 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. \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 AND BOND DISCOUNTS/PREMIUMS \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \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 the 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. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nFUND BALANCES \n \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 \nThe School District's fund balances are classified as follows: \n \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. \n \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. \n \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. \n \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. \n \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. \n \nPROPERTY TAXES \n \nThe Dougherty County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on August 6, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $37,839,197.22. \n \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 \n18.433 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,857,401.90 during fiscal year ended June 30, 2019. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $17,055,060.35 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years. \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. \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \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. \n \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 deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $45,680,535.68, and a bank balance of $52,757,918.07. The bank balances insured by Federal depository insurance were $1,229,834.98 and the bank balances included in the State's Secure Deposit Program (SDP) were $51,528,083.09. \n \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasury (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to amount of up to 125% if economic or financial conditions warrant. The program lists the types of eligible collateral. The OST approves authorized custodians. \n \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \n \n$ 45,810,164.44 320,996.98 \n \nTotal cash and cash equivalents \n \n46,131,161.42 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n450,625.74 \n \nTotal carrying value of deposits - June 30, 2019 \n \n$ 45,680,535.68 \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF CASH EQUIVALENTS \n \nThe School District reported cash equivalents of $450,625.74 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. \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. \n \nCOMPONENT UNIT \n \nAt June 30, 2019, Dougherty County Stadium Authority's bank balance of $172,715.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2018 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2019 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 $ \n \n- $ \n \n61,303,313.30 \n \n9,275,301.38 \n \n- $ \n \n- $ \n \n- \n \n(60,797,693.99) \n \n9,051,054.08 9,780,920.69 \n \nTotal Capital Assets Not Being Depreciated \n \n70,354,367.38 \n \n9,275,301.38 \n \n- \n \n(60,797,693.99) \n \n18,831,974.77 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n362,167,804.87 13,149,647.19 \n \n12,330,275.40 811,463.05 \n \n132,989,484.63 7,843,559.35 \n \n11,377,048.46 747,215.18 \n \n- \n \n60,797,693.99 \n \n435,295,774.26 \n \n- \n \n- \n \n13,961,110.24 \n \n- \n \n- \n \n144,366,533.09 \n \n- \n \n- \n \n8,590,774.53 \n \nTotal Capital Assets, Being Depreciated, Net 234,484,408.08 \n \n1,017,474.81 \n \n- \n \n60,797,693.99 \n \n296,299,576.88 \n \nGovernmental Activities Capital Assets - Net $ 304,838,775.46 $ 10,292,776.19 $ \n \n- $ \n \n- $ 315,131,551.65 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n9,495.91 \n \n12,096.83 \n \n190,717.89 \n \n347,162.07 \n \n100,444.84 \n \n1,302,860.73 \n \n647,792.21 \n \n46,956.24 \n \n$ 9,081,450.27 \n2,657,526.72 385,286.65 \n$ 12,124,263.64 \n \nComponent Unit \nCapital Assets, Not Being Depreciated: Land \n \nBalances July 1, 2018 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2019 \n \n$ 410,000.00 $ \n \n- $ \n \n- $ 410,000.00 \n \nCapital Assets Being Depreciated Stadium Improvements Equipment Buildings and Improvements \n \n3,470,650.00 239,886.00 308,976.00 \n \n54,372.00 - \n \n- \n \n3,525,022.00 \n \n- \n \n239,886.00 \n \n- \n \n308,976.00 \n \nLess Accumulated Depreciation for: Stadium Improvements Equipment Buildings and Improvements \n \n1,197,980.00 239,885.00 112,003.00 \n \n155,365.00 - \n7,724.00 \n \n- \n \n1,353,345.00 \n \n- \n \n239,885.00 \n \n- \n \n119,727.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,469,644.00 (108,717.00) \n \n- \n \n2,360,927.00 \n \nComponent Unit Capital Assets - Net \n \n$ 2,879,644.00 $ (108,717.00) $ \n \n- $ 2,770,927.00 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2019, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral Fund \n \nDebt Service Fund \n \nCapital Projects Fund \n \n$ 99,266.57 $ 7,115,795.82 \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund to cover a portion of the employees' salaries not funded as a part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects and move ESPLOST funds from debt service to fund capital project construction projects. \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 7: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n- $ 6,500,000.00 $ 6,500,000.00 $ \n \n- \n \nNOTE 8: 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 \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2019 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Capital Leases Compensated Absences \n \n$ 35,000,000.00 $ 2,284,536.34 3,214,893.05 1,084,073.40 \n \n- $ \n \n- $ 35,000,000.00 $ 8,240,000.00 \n \n- \n \n517,253.52 \n \n1,767,282.82 \n \n517,253.52 \n \n904,547.79 3,214,893.05 \n \n904,547.79 \n \n312,534.49 \n \n903,700.99 \n \n847,223.48 \n \n1,140,550.91 \n \n79,838.56 \n \n$ 41,583,502.79 $ 1,808,248.78 $ 4,579,370.05 $ 38,812,381.52 $ 9,149,626.57 \n \nThe School District had no unused line of credit or outstanding notes form direct borrowing and direct placements related to governmental activities as of June 30, 1029. In the event, the entity is unable to make principal and interest payments on general obligation bonds using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for payment of debt. \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nOf the total amount originally authorized, $15,000,000 remains unissued. General obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2018 \n \n2.00 - 5.00% \n \n2/8/2018 \n \n12/1/2022 $ 35,000,000.00 $ 35,000,000.00 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \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 \nUnamortized Bond Premium \n \n2020 2021 2022 2023 \n \n$ \n \n8,240,000.00 $ 1,256,500.00 \n \n$ \n \n517,253.52 \n \n8,570,000.00 \n \n920,300.00 \n \n517,253.52 \n \n8,910,000.00 \n \n563,650.00 \n \n517,253.52 \n \n9,280,000.00 \n \n189,200.00 \n \n215,522.26 \n \nTotal Principal and Interest \n \n$ \n \n35,000,000.00 $ 2,929,650.00 \n \n$ \n \n1,767,282.82 \n \nCAPITAL LEASES \n \nThe School District has acquired information technology equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nApple Technology Lease \n \n3.70% \n \n6/21/2019 \n \n7/19/2021 $ 904,547.79 $ 904,547.79 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2020 2021 2022 \n \n$ \n \n312,534.49 $ \n \n290,629.99 \n \n301,383.31 \n \n21,904.50 11,151.18 \n \nTotal Principal and Interest \n \n$ \n \n904,547.79 $ \n \n33,055.68 \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 9: 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; acts of God and unemployment compensation. \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 \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nwith 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 \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the workers' compensation fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2018 \n \n$ \n \n912,248.97 \n \n$ 1,083,684.10 \n \n$ \n \n897,184.75 \n \n$ 1,098,748.32 \n \n2019 \n \n$ 1,098,748.32 \n \n$ 1,289,448.59 \n \n$ \n \n796,619.69 \n \n$ 1,591,577.22 \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 \n2018 $ \n \n- \n \n$ 19,069.43 \n \n$ \n \n19,069.43 \n \n$ \n \n- \n \n2019 $ \n \n- \n \n$ \n \n8,484.47 \n \n$ \n \n8,484.47 \n \n$ \n \n- \n \nSURETY BOND \nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 50,000.00 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance Subsequent Period Expenditures \nAssigned School Activity Accounts \nUnassigned \n \n$ \n \n791,668.24 \n \n7,382.37 $ \n \n$ 4,387,696.76 3,980,713.14 \n11,778,327.26 \n \n$ 3,799,917.34 3,487,509.00 \n \n799,050.61 \n20,146,737.16 \n7,287,426.34 290,280.27 \n14,365,812.50 \n \nFund Balance, June 30, 2019 \n \n$ 42,889,306.88 \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. \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \nNOTE 11: 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, 2019: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2019 (2) \n \nSylvester Road Renovations Baseball/Athletic Fields GNETS at Sherwood Middle School Flooring \n \n$ \n \n87,435.00 $ \n \n220,165.00 \n \n191,063.52 \n \n5,736,400.16 \n \n6,778,504.68 \n \n793,911.41 \n \n55,077.10 \n \n- \n \n$ 7,112,080.30 $ 6,750,476.57 \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- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nOPERATING LEASES \nThe School District leases copiers, postage meters and equipment 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 $344,672.66 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \n \nYear Ending \n \nGovernmental Funds \n \n2020 2021 2022 \n \n$ 298,108.92 297,531.69 172,550.04 \n \nTotal \n \n$ 768,190.65 \n \nNOTE 12: 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. \nNOTE 13: 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. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a pay-asyou-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 $5,021,684.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \n \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \n \nAt June 30, 2019, the School District reported a liability of $119,064,024.00 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 0.936797% which was a decrease of 0.020557% from its proportion measured as of June 30, 2017. \n \nFor the year ended June 30, 2019, the School District recognized OPEB expense of $4,463,302.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n- $ 2,708,238.00 \n \nChanges of assumptions \n \n- \n \n20,170,018.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n161,093.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n3,059,012.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n5,021,684.00 \n \n- \n \nTotal \n \n$ 5,182,777.00 $ 25,937,268.00 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 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$ (4,980,239.00) $ (4,980,239.00) $ (4,980,239.00) $ (4,989,863.00) $ (4,188,521.00) $ (1,657,074.00) \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 Healthcare cost trend rate \nPre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \n \n7.30%, compounded annually, net of investment expense, and including inflation 7.50% 5.50% \n4.75% 4.75% \n2028 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 \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. \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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. \n \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 \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. \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. 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 \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. \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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 \nof the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point \nlower (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$ 139,029,447.00 $ 119,064,024.00 $ 102,963,999.00 \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 OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share of the Net OPEB Liability \n \n$ 100,098,083.00 $ 119,064,024.00 $ 143,301,796.00 \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. \n \nNOTE 14: 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 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 \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \namount 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 20.83% of payroll was required from the School District and 0.07% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $17,063,212.65 and $57,150.27 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 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 contribution 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 $27,026.00 for the current fiscal year. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \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. \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 $318,583.00. \n \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 $124,804,176.00 for its proportionate share of the net pension liability for TRS ($124,647,011.00) and ERS ($157,165.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 124,647,011.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n415,978.00 \n \nTotal \n \n$ 125,062,989.00 \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. \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nAt June 30, 2018, the School District's TRS proportion was 0.671512%, which was a decrease of 0.014901% from its proportion measured as of June 30, 2017. At June 30, 2018, the School District's ERS proportion was 0.003823%, which was an increase of 0.002381% from its proportion measured as of June 30, 2017. \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 $1,731,592.00. \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 $9,481,877.00 for TRS, $46,604.00 for ERS and $400,927.00 for PSERS and revenue of $1,011.00 for TRS and $400,927.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 8,251,808.00 $ \n \n256,900.00 \n \n$ 4,888.00 $ \n \n- \n \nChanges of assumptions \n \n1,880,878.00 \n \n- \n \n7,404.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n3,408,091.00 \n \n- \n \n3,622.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n8,456,492.00 \n \n58,870.00 \n \n2,494.00 \n \nSchool District contributions subsequent to the measurement date \n \n17,063,212.65 \n \n- \n \n27,026.00 \n \n- \n \nTotal \n \n$ 27,195,898.65 $ 12,121,483.00 \n \n$ 98,188.00 $ 6,116.00 \n \nThe School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net 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$ 3,066,207.00 $ 46,114.00 \n \n$ \n \n591,053.00 $ 26,572.00 \n \n$ (5,039,887.00) $ (6,021.00) \n \n$ (672,300.00) $ (1,619.00) \n \n$ \n \n66,130.00 $ \n \n- \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nActuarial assum ptions: 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. \n \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 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, 2017 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 \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 \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \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 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- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \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% 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 (6.50% and 6.30%) or 1-percentage-point higher (8.50% and 8.30%) 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$ 208,071,552.00 $ 124,647,011.00 $ 55,900,943.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.30%) \n \nCurrent Discount Rate (7.30%) \n \n1% Increase (8.30%) \n \nSchool District's proportionate share of the net pension liability \n \n$ \n \n223,544.00 $ \n \n157,165.00 $ 100,608.00 \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 publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nDEFINED CONTRIBUTION PLAN \n \nOn August 1, 1996, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe School District selected Valic as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the School District matches 3% of the employee's contribution. \n \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the School District. \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 \n2019 2018 2017 \n \n3% \n \n$ \n \n169,374.47 \n \n3% \n \n$ \n \n161,683.39 \n \n3% \n \n$ \n \n155,397.40 \n \n- 34 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2019 \n \nEXHIBIT \"H\" \n \nNOTE 15: TAX ABATEMENTS \nDougherty 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 Dougherty County. \nFor the fiscal year ended June 30, 2019, Dougherty County abated property taxes due to the School District that were levied on August 6, 2018 and due on December 20,2018 totaling $1,778,809.50. Included in that amount abated, the following is an individual tax abatement agreement that exceeded 10.00% of the total amount abated: \n A property tax abatement to a local manufacturer of consumer goods for continued investment in operations and local employment. The abatement amount to $1,671,785.01. \nNOTE 16: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement No. 33 and No. 34. The authority's fiscal year is July 1 through June 30. \nNOTE 17: SUBSEQUENT EVENTS \nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \n \n- 35 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \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 \n2019 2018 2017 2016 2015 \n \n0.671512% $ 124,647,011.00 $ 0.686413% $ 127,571,970.00 $ 0.716396% $ 147,800,483.00 $ 0.745907% $ 113,556,934.00 $ 0.773982% $ 97,782,417.00 $ \n \n415,978.00 479,873.00 588,606.00 446,368.00 381,664.00 \n \n$ 125,062,989.00 $ 128,051,843.00 $ 148,389,089.00 $ 114,003,302.00 $ 98,164,081.00 \n \n$ 80,404,397.90 $ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 $ 79,341,795.52 \n \n155.03% 161.41% 187.28% 143.67% 123.24% \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- 37 - \n \n DOUGHERTY 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 \n2019 2018 2017 2016 2015 \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 \n0.003823% $ 0.001442% $ 0.001698% $ 0.002596% $ 0.004753% $ \n \n157,165.00 $ 58,564.00 $ 80,323.00 $ \n105,174.00 $ 178,267.00 $ \n \n97,520.57 35,361.18 36,794.90 64,229.58 97,265.38 \n \nSchool District's proportionate share of the net pension liability as a \npercentage of covered payroll \n161.16% 165.62% 218.30% 163.75% 183.28% \n \nPlan fiduciary net position as a \npercentage of total pension liability \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- 38 - \n \n DOUGHERTY 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 \n2019 2018 2017 2016 2015 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \n \nTotal \n \nSchool District's covered payroll \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 \n1,731,592.00 $ 1,731,592.00 $ 7,637,830.93 1,686,811.00 $ 1,686,811.00 $ 7,724,873.84 2,216,830.00 $ 2,216,830.00 $ 7,670,767.69 1,556,980.00 $ 1,556,980.00 $ 7,101,357.18 1,422,781.00 $ 1,422,781.00 $ 6,545,452.68 \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 \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 \n88.29% \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 DOUGHERTY 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 net OPEB liability \n \nState of Georgia's proportionate share of the net OPEB liability \nassociated with the School District \n \n2019 \n \n0.936797% $ 119,064,024.00 $ \n \n- \n \n2018 \n \n0.957354% $ 134,507,852.00 $ \n \n- \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \n \n$ 119,064,024.00 $ 134,507,852.00 \n \n$ 73,759,412.54 $ 72,403,688.80 \n \n161.42% 185.77% \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- 40 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n17,063,212.65 $ \n \n17,063,212.65 $ \n \n- \n \n$ \n \n13,485,091.83 $ \n \n13,485,091.83 $ \n \n- \n \n$ \n \n11,252,081.76 $ \n \n11,252,081.76 $ \n \n- \n \n$ \n \n11,216,453.07 $ \n \n11,216,453.07 $ \n \n- \n \n$ \n \n10,355,842.01 $ \n \n10,355,842.01 $ \n \n- \n \nSchool District's covered payroll \n$ 81,934,345.91 $ 80,404,397.90 $ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 \n \nContribution as a percentage of covered \npayroll \n20.83% 16.77% 14.24% 14.21% 13.10% \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n2019 2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n27,026.00 $ \n \n27,026.00 $ \n \n- \n \n$ \n \n24,192.12 $ \n \n24,192.12 $ \n \n- \n \n$ \n \n8,773.13 $ \n \n8,773.13 $ \n \n- \n \n$ \n \n9,095.72 $ \n \n9,095.72 $ \n \n- \n \n$ \n \n14,104.86 $ \n \n14,104.86 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n109,063.62 \n \n$ \n \n97,520.57 \n \n$ \n \n35,361.18 \n \n$ \n \n36,794.90 \n \n$ \n \n64,229.58 \n \nContribution as a percentage of covered \npayroll \n24.78% 24.81% 24.81% 24.72% 21.96% \n \nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \n \n- 42 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"7\" \n \nYear Ended \n2019 2018 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n5,021,684.00 $ \n \n5,021,684.00 $ \n \n- \n \n$ \n \n4,855,329.00 $ \n \n4,855,329.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 73,463,453.95 $ 73,759,412.54 \n \nContribution as a percentage of covered- \nemployee payroll \n6.84% 6.58% \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System \n \nChanges of assumptions: On Novembe- r 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 \n \nretired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of \n \nActuaries' projection scale BB (set forward one year for males). \n \n- \n \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. \n \nEmployees' Retirement System \n \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 WKHFKDQJHVZHUHWKHXSGDWHVWRUDWHVRIPRUWDOLW\\UHWLUHPHQWGLVDELOLW\\ZLWKGUDZDODQGVDODU\\LQFUHDVHV \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 y-ears 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 H[SHULHQFH \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. \n \n- 44 - \n \n DOUGHERTY 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 \"9\" \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 Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Operating Transfers from Other Funds Sale or Compensation for Loss of Assets Operating Transfers to Other Funds \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 \n38,007,837.00 $ \n \n40,858,441.00 $ \n \n40,767,506.48 $ \n \n220,782.00 \n \n244,875.00 \n \n244,873.95 \n \n94,698,385.00 \n \n95,360,441.00 \n \n95,348,151.86 \n \n26,345,418.00 \n \n32,025,617.00 \n \n27,421,321.05 \n \n1,243,503.00 \n \n1,193,365.00 \n \n1,545,969.80 \n \n8,000.00 \n \n262,066.00 \n \n396,470.37 \n \n2,636,600.00 \n \n2,832,178.00 \n \n2,064,842.14 \n \n163,160,525.00 \n \n172,776,983.00 \n \n167,789,135.65 \n \n(90,934.52) (1.05) \n(12,289.14) (4,604,295.95) \n352,604.80 134,404.37 (767,335.86) \n(4,987,847.35) \n \n96,692,866.21 \n4,515,402.68 7,182,779.00 2,911,462.00 3,128,573.00 10,461,214.00 2,046,115.00 14,889,372.50 5,750,232.00 5,707,094.00 \n300,000.00 472,802.00 13,314,742.00 \n- \n167,372,654.39 \n(4,212,129.39) \n \n93,148,609.04 \n6,157,788.67 15,360,845.00 \n2,901,308.00 3,385,631.05 10,280,181.00 2,409,768.00 15,730,492.50 6,127,974.00 6,028,064.02 \n10,000.00 380,794.00 472,802.00 14,526,757.00 \n- \n176,921,014.28 \n(4,144,031.28) \n \n90,444,063.03 \n6,110,589.03 12,426,904.50 \n2,852,673.69 2,409,940.70 11,388,619.81 2,539,343.07 15,560,927.57 6,205,990.82 5,521,881.25 \n10,895.42 410,128.89 488,366.32 11,249,884.57 154,440.00 \n167,774,648.67 \n14,486.98 \n \n2,704,546.01 \n47,199.64 2,933,940.50 \n48,634.31 975,690.35 (1,108,438.81) (129,575.07) 169,564.93 (78,016.82) 506,182.77 \n(895.42) (29,334.89) (15,564.32) 3,276,872.43 (154,440.00) \n9,146,365.61 \n4,158,518.26 \n \n1,582,183.00 61,784,731.00 \n15,000.00 (61,944,731.00) \n1,437,183.00 \n(2,774,946.39) \n19,012,952.00 \n- \n \n1,739,564.00 69,787,543.99 \n49,637.00 (69,947,543.99) \n1,629,201.00 \n(2,514,830.28) \n27,874,294.82 \n(206,841.26) \n \n(99,266.57) \n(99,266.57) \n(84,779.59) \n27,215,046.07 \n- \n \n(1,739,564.00) (69,787,543.99) \n(49,637.00) 69,848,277.42 \n(1,728,467.57) \n2,430,050.69 \n(659,248.75) \n206,841.26 \n \nFund Balances - Ending \n \n$ \n \n16,238,005.61 $ \n \n25,152,623.28 $ \n \n27,130,266.48 $ \n \n1,977,643.20 \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 $1,084,230.91 and $1,125,290.65, 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- 45 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"10\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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 Direct Gaining Early Awareness and Readiness for Undergraduate Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program School Improvement Grants School Improvement Grants Striving Readers Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants 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 \nHealth and Human Services, U. S. Department of Pass-Through From Georgia Department of Behavioral Health Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act/Workforce Innovation and Opportunity Act Cluster Pass-Through from Georgia Department of Labor Workforce Innovation and Opportunity Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n10.558 \n \n195GA324N1099 \n \n$ \n \n195GA324N1099 \n \n2,696,838.70 8,910,799.05 \n11,607,637.75 \n \n195GA368N2020 \n \n72,566.17 11,680,203.92 \n \n84.027 84.027 84.173 \n \nH027A170073 H027A180073 H173A180081 \n \n84.334 \n84.048 84.196 84.365 84.365 84.011 84.011 84.377A 84.377A 84.371 84.424A 84.424A 84.367 84.367 84.010 84.010 \n \nP334A180146 \nV048A180010 S196A180011 S365A170010 S365A180010 S011A170011 S011A180011 S377A170011 S377A180011 S371C170002 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 \n \n93.959 \n \nTP1AH000117 \n \n17.259 \n \nAA-32361-18-55-A-13 \n \n12.UNKNOWN 12.UNKNOWN \n \n208,604.75 3,535,414.24 \n127,739.00 3,871,757.99 \n773,542.33 230,753.00 \n47,192.35 4,373.20 \n21,592.80 7,952.11 \n15,852.17 287,428.75 709,282.88 507,193.41 \n26,769.61 599,699.23 118,012.96 764,115.49 1,001,507.39 7,470,031.91 12,585,299.59 16,457,057.58 \n53,165.52 \n66,865.50 \n38,027.59 \n113,814.99 \n151,842.58 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n28,409,135.10 \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 Dougherty County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. 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. \n \nNote 3. Indirect Cost Rate 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- 46 - \n \n DOUGHERTY 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 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 State Health Benefit Plan Employee Holiday Charter System 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 School Safety Grant School Security Grant Teachers Retirement Vocational Education Vocational Construction Related Equipment - State Bonds \nGovernor's Office of Student Achievement AmeriCorp Grant Innovation in K-8 Computer Science/Coding Professional Learning Grant \nOffice of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"11\" \n \nGOVERNMENTAL FUND TYPE \nGENERAL FUND \n \n$ \n \n1,559,704.95 \n \n5,055,916.00 759,051.00 \n11,903,406.00 2,766,122.00 5,980,867.00 2,033,269.00 9,169,092.00 7,395,268.00 2,595,638.00 9,176,680.00 2,061,965.00 1,866,977.00 635,490.00 354,482.00 1,733,177.00 538,317.00 270,022.00 5,686.00 \n1,648,720.00 3,483,470.00 3,653,485.00 1,093,160.00 \n(780,570.00) 1,350,745.00 \n1,544,969.00 314,240.00 \n12,834,072.00 \n263,852.00 1,781,437.00 \n103,295.29 223,375.00 106,592.00 519,716.00 \n57,150.27 195,882.89 268,059.46 \n481,788.00 25,000.00 \n318,583.00 \n \n$ \n \n95,348,151.86 \n \n- 47 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2019 \n \nSCHEDULE \"12\" \n \nSPLOST V \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (5) \n \n(a) The renovation, improvement \n \nand equipping of existing \n \nschools, administration, athletic \n \nand related facilities, including \n \nthe provision of safety and \n \nsecurity equipment for these \n \nfacilities; \n \n$ 80,100,000.00 $ 35,402,878.35 $ 20,908,250.21 $ 14,494,628.14 $ \n \n- $ \n \n- \n \n(b) acquisition, construction and \n \nequipping of new schools, \n \nadministration, athletic and \n \nrelated facilities; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(c) the acquisition of school buses \n \nand vehicles for maintenance \n \nand transportation use; \n \n3,000,000.00 \n \n1,138,890.75 \n \n756,153.31 \n \n382,737.44 \n \n- \n \n- \n \n(d) acquisition of software, hardware \n \nand computer equipment for the \n \nuse of both staff and students; \n \n6,500,000.00 \n \n3,408,619.37 \n \n2,761,585.63 \n \n647,033.74 \n \n- \n \n- \n \n(e) acquisition of energy savings \n \nequipment; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(f) acquisition of real and personal \n \nproperty necessary for the \n \nforegoing. \n \n400,000.00 \n \n- \n \n- \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \nJune 2023 \nJune 2023 June 2023 June 2023 June 2023 June 2023 \n \nTotal - SPLOST V \n \n$ 90,000,000.00 $ 39,950,388.47 $ 24,425,989.15 $ 15,524,399.32 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years Current Year \n \n$ 4,463,983.86 1,488,241.06 \n \nTotal \n \n$ 5,952,224.92 \n \nSee notes to the basic financial statements. \n \n- 49 - \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 Dougherty 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, the aggregate remaining fund information and the discretely presented component unit of the Dougherty 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 September 20, 2020. Our report includes a reference to other auditors who audited the financial statements of the discretely presented component unit, as described in our report on the School District's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. \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 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, 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 \nSeptember 20, 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 Dougherty County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Dougherty 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 \nSeptember 20, 2020 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 6471-12-01 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nFurther Action Not Warranted \n \nFS 6471-13-01 Control Categories: \nInternal Control Impact: Compliance Impact: \nFinding Status: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \nFurther Action Not Warranted \n \nFS 2014-002 Control Categories: \nInternal Control Impact: Compliance Impact: \nFinding Status: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \nFurther Action Not Warranted \n \nFS 2015-003 Control Categories: \nInternal Control Impact: Compliance Impact: \nFinding Status: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \nFurther Action Not Warranted \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-001 Control Categories: \nInternal Control Impact: Compliance Impact: Finding Status: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \nFurther Action Not Warranted \n \nFS 2017-001 Control Categories: \nInternal Control Impact: Compliance Impact: Finding Status: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \nFurther Action Not Warranted \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2018-001 Compliance Requirement: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Numbers: \n \nImprove Controls over Expenditures Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education CFDA 10.553 and 10.555 Child Nutrition Cluster 18185GA324N1099 18185GA324N1100 \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \nFA 2018-002 \n \nImprove Controls over Special Reporting \n \nCompliance Requirement: Reporting \n \nInternal Control Impact: Significant Deficiency \n \nCompliance Impact: \n \nNonmaterial Noncompliance \n \nFederal Awarding Agency: U.S. Department of Agriculture \n \nPass-Through Entity: \n \nGeorgia Department of Education \n \nCFDA Number and Title: CFDA 10.553 and 10.555 Child Nutrition Cluster \n \nFederal Award Number: 18185GA324N1099 \n \n18185GA324N1100 \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2019 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information; Discretely Presented Component Unit \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 2 CFR 200.516(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.377 \n \nChild Nutrition Cluster School Improvement Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$852,274.05 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2018-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2019-08-09"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 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 CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \nPage \ni \n1 2 \n4 5 6 7 8 9 \n37 38 39 40 41 42 43 44 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION I FINANCIAL SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND SUPPLEMENTARY INFORMATION 10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nPage \n45 46 47 49 \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 \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \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 \nAugust 9, 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 Dougherty 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 Dougherty County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit, Dougherty County Stadium Authority (Authority). These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \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 \n \n 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 \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of the Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \nUnmodified Opinions \n \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 \n \nAs described in Note 2 to the financial statements, in 2018, the Dougherty County Board of Education \nadopted 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 85, Omnibus 2017. The School District restated beginning net position \nfor the effect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \n \n Other 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 oter additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary 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 August 9, 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. \n \n A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nINTRODUCTION \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2018. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2018, the School District adopted the following Governmental Accounting Standards Board (GASB) Statements: \n 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. \n 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. \n 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. \n 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. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2018 are as follows:  Beginning net position was restated resulting in a decrease of $137.5 million for the implementation of GASB No. 75. This restatement is based on actuarial estimates and information is not available for the fiscal year 2017 comparative balances used throughout this discussion and analysis. See Note 15 in the Notes to the Basic Financial Statements for more information about the restatement of net position.  The School District's net position at June 30, 2018 was $61.2 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2018 of $61.2 million represented a decrease of $123.3 million when compared to the prior year primarily due to implementation of GASB No. 75. The net OPEB Liability totaled $134.5 million.  Total Revenues increased $9.9 million while total program expenses increased by 3.5 million. There was a total increase to net position of $6.4 million due to increased Federal and State resources to support our program expenditures.  Capital Assets increased $30.2 million primarily due to enhancements to the district's infrastructure, renovations and improvements to schools, acquisition and construction of new athletic facilities.  The School District continues to maintain a sound fiscal position in fiscal year 2018. \nOverview of the Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nGovernment-Wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the government-wide statements are reported as governmental activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. These statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nFund Financial Statements Fund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. The Dougherty County School District has two kind of funds  governmental funds and fiduciary funds. Governmental Funds Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. The School District's governmental funds are the general fund, capital projects fund and debt service fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the general fund. Fiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations 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 government-wide financial statements because it cannot use these assets to finance its operations. Presentation of Financial Data The next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2017 and fiscal year 2018. \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nStatement of Net Position (Analysis of the School District As A Whole) \nAs previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for this fiscal year 2018 and the comparative amounts for fiscal year 2017 as compared to the prior fiscal year. \nTable 1 Net Position (In Thousands) \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2018 \n \n2017 (1) \n \n(Decrease) \n \n$ \n \n81,763 $ \n \n66,950 $ \n \n14,813 \n \n304,839 \n \n274,575 \n \n30,264 \n \nTotal Assets \n \n386,602 \n \n341,525 \n \n45,077 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n25,973 \n \n36,000 \n \n(10,027) \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n26,237 303,722 \n \n20,799 164,430 \n \n5,438 139,292 \n \nTotal Liabilities \n \n329,959 \n \n185,229 \n \n144,730 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans and OPEB \n \n21,372 \n \n7,728 \n \n13,644 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \nTotal Net Position \n \n279,759 17,175 \n(235,690) \n \n260,370 28,980 \n(104,782) \n \n19,389 (11,805) (130,908) \n \n$ \n \n61,244 $ \n \n184,568 $ (123,324) \n \n(1) Fiscal year 2017 balances do not reflect the efects of the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted net position decreased $11.8 million and is restricted for the continuation of federal programs, capital projects and debt servicing. \nTotal net position decreased by $123.3 million in fiscal year 2018 from the prior year due to the implementation of GASB No. 75. \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nStatement of Activities \nTable 2 shows the changes in net position for fiscal year 2017 and fiscal year 2018 as reported on the Statement of Activities. \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Service Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2018 \n \n2017 (1) \n \n(Decrease) \n \n$ \n \n1,503 $ \n \n1,439 $ \n \n107,851 \n \n105,378 \n \n5,023 \n \n1,595 \n \n114,377 \n \n108,412 \n \n64 2,473 3,428 \n5,965 \n \n41,713 65 \n14,797 308 \n11,280 546 \n2,018 \n \n39,430 53 \n15,008 287 \n8,971 213 \n2,802 \n \n2,283 12 \n(211) 21 \n2,309 333 (784) \n \nTotal General Revenues \n \n70,727 \n \n66,764 \n \n3,963 \n \nTotal Revenues \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 and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n185,104 \n91,760 \n5,037 10,585 \n3,526 2,319 11,965 2,715 17,555 8,298 4,935 \n366 367 11,411 \n83 \n \n175,176 \n93,710 \n5,049 10,489 \n3,198 1,654 10,960 1,924 17,552 6,916 4,735 \n372 509 10,248 \n79 \n \nTotal Expenses Increase in Net Position \n \n170,922 \n \n167,395 \n \n$ \n \n14,182 $ \n \n7,781 $ \n \n(1) Fisical year 2017 balances do not reflect the effects on the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \n \n9,928 \n(1,950) \n(12) 96 328 665 1,005 791 \n3 1,382 \n200 \n(6) (142) 1,163 \n4 \n3,527 6,401 \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nThe $5.9 million increase in programs revenues was directly correlated the approval of more state and federal awards. Property tax revenues increased notably by $2.2 million with an increase in collections for delinquent taxes, public utilities ad valorem, TAVT and the forest land protection act. Sales tax revenues decreased by $0.2 million. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. Total Program Expenses increased $3.5 million for fiscal year 2018 compared to the previous fiscal year. This increase is mainly attributed to increase in school administration and transportation services. Descriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. Pupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. Improvement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational Media Services are activities that direct, manage and operate educational media centers. General Administration establishes and administers policy for operating the local school district. School Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the school district. Maintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nGovernmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2017 and fiscal year 2018. This information is presented on the Statement of Activities. \nTable 3 Governmental Activities \n(In Thousands) \n \nInstruction Support Services \nPupil Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2018 \n \n2017 (1) \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2018 \n \n2017 (1) \n \n$ \n \n91,760 $ \n \n93,710 $ \n \n13,904 $ \n \n23,585 \n \n5,037 \n \n5,049 \n \n3,685 \n \n3,157 \n \nImprovement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services \n \nInterest on Short-Term and Long-Term Debt \n \nTotal Expenses \n \n$ \n \n10,585 3,526 2,319 \n11,965 2,715 \n17,555 8,298 4,935 \n366 367 11,411 \n83 \n170,922 $ \n \n10,489 3,198 1,654 \n10,960 1,924 \n17,552 6,916 4,735 \n372 509 10,248 \n79 \n167,395 $ \n \n5,218 1,143 \n(635) 7,570 2,635 12,713 4,821 4,893 \n366 367 (219) \n83 \n56,544 $ \n \n2,482 1,202 (1,903) 6,701 1,879 12,721 4,791 4,685 \n372 509 (1,277) \n79 \n58,983 \n \n(1) Fiscal year 2017 balances do not reflect the effects of the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other general revenues. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nThe School District's Funds \n \nTable 4 shows the change in fund balance for governmental funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \nGeneral Fund \n \nCapital Projects \nFund \n \nDebt Service Fund \n \nTotals \n \n$ 40,716 $ 308 \n92,465 28,177 \n1,502 251 \n2,051 \n \n- $ 3,513 233 116 \n \n- $ 14,797 \n61 - \n \n40,716 15,105 95,978 28,177 \n1,502 545 \n2,167 \n \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services (Interest) \n \n165,470 \n \n3,862 \n \n14,858 \n \n184,190 \n \n89,288 60,138 \n366 367 10,005 386 - \n \n340 1,655 \n38,074 3,271 \n \n9,241 \n \n89,628 61,793 \n366 367 10,005 38,460 12,512 \n \nTotal Expenditures \n \n160,550 \n \n43,340 \n \n9,241 \n \n213,131 \n \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \n \n4,920 \n(460) \n \n(39,478) \n35,000 2,500 \n11,766 - \n \n5,617 \n(11,306) \n \n(28,941) \n35,000 2,500 \n11,766 (11,766) \n \nTotal Other Financing Sources(Uses) \n \n(460) \n \n49,266 \n \n(11,306) \n \n37,500 \n \nNet Change in Fund Balances Fund Balances  Beginning \n \n4,460 22,755 \n \n9,788 14,310 \n \n(5,689) 8,890 \n \n8,559 45,955 \n \nFund Balances - Ending \n \n$ 27,215 $ 24,098 $ \n \n3,201 $ 54,514 \n \nTotal revenues for all governmental funds were $184.1 million and total expenditures were $213.1 million. Total expenditures exceeded total revenues by $28.9 million for governmental activities. The fund balance for governmental funds increased from $45.9 million at the beginning of the fiscal year to $54.5 million at June 30, 2018. \nThe fund balance reported for the general fund increased from $22.7 million at the beginning of the fiscal year to $27.2 million at June 30, 2018 due to a combined increase of general fund revenues received over expenditures in the areas of instruction, support services and food servicing. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \nThe fund balance reported for the capital projects fund increased from $14.3 million at the beginning of the fiscal year to $24 million at June 30, 2018. This was mainly due to bond proceeds to support capital outlay expenditures. Prior year bond proceeds were used to finance most of the capital outlay expenditures for various projects. \nThe fund balance reported for the debt service fund decreased from $8.8 million at the beginning of the fiscal year to $3.2 million at June 30, 2018. Sales tax revenue of $14.8 million and investment earnings were used to pay current year bond expenditures. The remaining revenue was transferred to capital projects fund to service capital outlay expenditures. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General fund budget compared to actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"9.\" \nDuring fiscal year 2018, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2017, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. Also, federal grants cannot be used to fund state mandated programs or replace local funds that previously funded the same activities. \nFor fiscal year 2018, the \"temporary QBE reduction\" for the School District was approximately $1.4 million. The cumulative effect of these reductions to the School District over the 15 year period is a loss of $93.7 million in state funding. While there were still challenges of a continued decline in stagnant local tax revenue, decline in student enrollment and increases in employee benefits cost, the School District presented a balanced budget. \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital projects programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nThe School District has invested over $304.8 million in capital assets net of depreciation. Table 5 compares fiscal year 2018 Capital Asset balances to fiscal year 2017 balances. \nTable 5 Capital Assets at June 30 (Net of depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2018 \n \n2017 \n \n(Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 61,303 229,178 \n5,306 \n \n9,051 $ 51,717 209,437 \n4,370 \n \n9,586 19,741 \n936 \n \nTotal \n \n$ 304,838 $ 274,575 $ \n \n30,263 \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \n \nTable 5 shows that total capital assets increased $30.2 million in fiscal year 2018. The increase is a cumulative total of the following: increase in construction in progress largely due to School District's infrastructure, renovations and improvements to schools, and the acquisition and construction of new athletic facilities. All construction projects were funded by a one percent Special Purpose Local Option Sales Tax approved by the voters of Dougherty County. \nDebt \nTable 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2017 and fiscal year 2018. \nTable 6 Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2018 \n \n2017 \n \n(Decrease) \n \nGeneral Obligation Bonds \n \n$ \n \nUnamortized Bond Premiums \n \nCompensated Absences \n \nCapital Leases \n \nTotal \n \n$ \n \n35,000 $ 2,285 1,084 3,215 \n41,584 $ \n \n8,600 $ 513 \n1,061 6,376 \n16,550 $ \n \n26,400 1,772 23 \n(3,161) \n25,034 \n \nAs shown in Table 6, capital leases totaling $3.2 million with Key Financial, US Bank and Dell Financial to finance technology upgrades. The Series 2013 annual bond principal payment of $8.6 million was made during the fiscal year and Series 2018 Bond was issued. Compensated absences of $1.0 million represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \nCurrent Financial Issues \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the increased employer cost for employee health benefits and teachers retirement. Other challenges include a decline in student enrollment (FTE) over the years and a stagnant local tax digest. \nDespite these challenges, the School District is financially stable. The School District's operating millage was reduced from 18.445 to 18.433 for fiscal year 2018. \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2014. \n \nFY 2014 FY 2015 FY 2016 FY 2017 FY 2018 \n \n15,628 15,361 15,014 14,686 14,309 \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, fully funding teacher salaries, provide a step increase for all employees, the School District implemented cost-saving measures, while maintaining essential levels of service to support teaching and learning. The School District strives to emphasize student achievement while maintaining sound fiscal management. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Susan Hatcher, Chief Financial Officer, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to shatcher@docoschools.org. \nxi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items 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 Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues 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 Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n58,480,306.72 $ \n \n9,922.73 \n \n4,639,978.83 12,856,030.07 \n4,733,339.18 27,204.81 \n367,608.23 637,396.74 \n11,104.33 70,354,367.38 234,484,408.08 \n \n386,601,667.10 \n \n194,195.00 - \n410,000.00 2,448,703.00 \n3,052,898.00 \n \n21,078,571.95 \n \n- \n \n4,894,670.00 \n \n- \n \n25,973,241.95 \n \n- \n \n1,265,666.90 16,330,477.01 \n144,430.06 1,098,748.32 4,198,212.12 2,177,096.99 1,022,439.53 127,630,534.00 134,507,852.00 \n3,808,031.71 37,775,471.07 \n329,958,959.71 \n \n32,394.00 - \n- \n32,394.00 \n \n10,608,302.00 \n \n- \n \n10,763,715.00 \n \n- \n \n21,372,017.00 \n \n- \n \n279,758,716.74 \n5,120,891.60 3,201,526.69 8,852,459.59 (235,689,662.28) \n \n2,858,703.00 \n161,801.00 \n \nTotal Net Position \n \n$ \n \n61,243,932.34 $ \n \n3,020,504.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2018 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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, Restated \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n91,759,665.78 $ \n \n5,036,867.18 10,584,714.24 \n3,525,905.17 2,319,192.92 11,965,395.12 2,714,583.71 17,555,275.28 8,298,314.76 4,924,243.43 \n10,544.92 \n \n366,245.80 367,110.12 11,410,556.40 \n83,012.24 \n \n$ \n \n170,921,627.07 $ \n \n1,177,867.76 \n33,922.50 154,958.45 - \n136,074.21 - \n1,502,822.92 \n \n$ \n \n327,594.43 $ \n \n142,791.00 \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nCOMPONENT \n \nGOVERNMENT \n \nUNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITES \n \nSTADIUM AUTHORITY \n \n$ 73,449,307.98 $ \n1,344,213.48 5,366,508.32 2,234,227.93 2,954,684.79 4,123,530.49 \n1,572.16 4,599,642.68 2,550,170.45 \n41,228.85 405.86 \n11,185,929.69 - \n$ 107,851,422.68 $ \n \n3,228,252.43 $ \n7,395.11 - \n148,525.03 - \n271,903.81 78,223.25 \n208,982.07 772,387.91 \n- \n307,697.03 - \n5,023,366.64 \n \n(13,904,237.61) \n(3,685,258.59) (5,218,205.92) (1,143,152.21) \n635,491.87 (7,569,960.82) (2,634,788.30) (12,712,728.03) (4,820,797.95) (4,883,014.58) \n(10,139.06) \n(366,245.80) (367,110.12) 219,144.53 \n(83,012.24) \n(56,544,014.83) \n \n$ \n \n(177,409.00) \n \n41,712,570.85 64,874.49 \n14,797,394.12 307,525.01 \n11,279,938.00 545,578.92 \n2,018,335.71 \n70,726,217.10 \n14,182,202.27 \n47,061,730.07 \n \n- \n896.00 27,450.00 \n28,346.00 \n(149,063.00) \n3,169,567.00 \n \n$ \n \n61,243,932.34 $ \n \n3,020,504.00 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2018 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 26,257,548.29 $ 30,430,118.64 $ \n \n9,922.73 \n \n- \n \n3,231,091.93 12,856,030.07 \n4,733,339.18 27,204.81 \n196,547.63 637,396.74 \n11,104.33 \n \n171,060.60 - \n \n1,792,639.79 $ - \n1,408,886.90 - \n \n58,480,306.72 9,922.73 \n4,639,978.83 12,856,030.07 \n4,733,339.18 27,204.81 \n367,608.23 637,396.74 \n11,104.33 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 47,960,185.71 $ 30,601,179.24 $ \n \n3,201,526.69 $ 81,762,891.64 \n \n$ \n \n1,146,150.90 $ \n \n16,330,477.01 \n \n- \n \n- \n \n1,014,425.17 \n \n18,491,053.08 \n \n119,516.00 $ - \n4,198,212.12 2,177,096.99 \n8,014.36 \n6,502,839.47 \n \n- $ - \n- \n \n1,265,666.90 16,330,477.01 \n4,198,212.12 2,177,096.99 1,022,439.53 \n24,993,892.55 \n \n2,254,086.56 \n \n- \n \n- \n \n2,254,086.56 \n \n648,501.07 5,120,891.63 4,796,340.32 \n333,724.12 16,315,588.93 \n27,215,046.07 \n \n24,098,339.77 \n- \n24,098,339.77 \n \n3,201,526.69 \n- \n3,201,526.69 \n \n648,501.07 32,420,758.09 \n4,796,340.32 333,724.12 \n16,315,588.93 \n54,514,912.53 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 47,960,185.71 $ 30,601,179.24 $ \n \n3,201,526.69 $ 81,762,891.64 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n DOUGHERTY 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 becauseL \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 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 \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 Capital leases payable Compensated absences payable Unamortized bond premiums Claims and judgments payable \n \n$ \n \n54,514,912.53 \n \n$ \n \n9,051,054.08 \n \n61,303,313.30 \n \n362,167,804.87 \n \n13,149,647.19 \n \n(140,833,043.98) \n \n304,838,775.46 \n \n$ (127,630,534.00) (134,507,852.00) \n \n(262,138,386.00) \n \n$ \n \n10,470,269.95 \n \n(5,869,045.00) \n \n4,601,224.95 2,254,086.56 \n \n$ (35,000,000.00) (144,430.06) \n(3,214,893.04) (1,084,073.40) (2,284,536.34) (1,098,748.32) \n \n(42,826,681.16) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n61,243,932.34 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n DOUGHERTY 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n40,715,766.26 $ \n \n307,525.01 \n \n92,465,372.09 \n \n28,176,615.48 \n \n1,502,822.92 \n \n251,130.16 \n \n2,051,420.63 \n \n165,470,652.55 \n \n- $ 3,512,893.93 233,503.48 115,932.02 \n3,862,329.43 \n \n- $ 14,797,394.12 \n60,945.28 - \n14,858,339.40 \n \n40,715,766.26 15,104,919.13 95,978,266.02 28,176,615.48 \n1,502,822.92 545,578.92 \n2,167,352.65 \n184,191,321.38 \n \n89,288,355.96 \n5,176,756.51 11,422,425.26 \n2,884,494.33 2,130,361.75 10,830,062.72 2,204,910.79 14,360,965.55 6,187,406.77 4,934,752.56 \n4,653.78 366,245.80 367,110.12 10,005,410.69 386,287.91 \n- \n160,550,200.50 \n4,920,452.05 \n \n340,487.00 \n186,140.00 173,490.49 1,295,482.40 38,073,869.74 \n3,160,595.77 109,951.74 \n43,340,017.14 \n(39,477,687.71) \n \n- \n- \n8,600,000.00 641,130.27 \n9,241,130.27 \n5,617,209.13 \n \n89,628,842.96 \n5,176,756.51 11,422,425.26 \n2,884,494.33 2,316,501.75 10,830,062.72 2,378,401.28 15,656,447.95 6,187,406.77 4,934,752.56 \n4,653.78 366,245.80 367,110.12 10,005,410.69 38,460,157.65 \n11,760,595.77 751,082.01 \n213,131,347.91 \n(28,940,026.53) \n \n(460,138.99) \n(460,138.99) \n4,460,313.06 \n22,754,733.01 \n \n35,000,000.00 2,500,058.60 \n11,766,071.16 - \n49,266,129.76 \n9,788,442.05 \n14,309,897.72 \n \n(11,305,932.17) \n(11,305,932.17) \n(5,688,723.04) \n8,890,249.73 \n \n35,000,000.00 2,500,058.60 \n11,766,071.16 (11,766,071.16) \n37,500,058.60 \n8,560,032.07 \n45,954,880.46 \n \nFund Balances - Ending \n \n$ \n \n27,215,046.07 $ \n \n24,098,339.77 $ \n \n3,201,526.69 $ \n \n54,514,912.53 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n DOUGHERTY 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. \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, including a premium of $2,500,058.60 Amortization of bond premium Bond principal retirements Capital lease payments \nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \nPension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \nAccrued interest on issuance of bonds Compensated absences Claims and judgments \n \n$ \n \n8,560,032.07 \n \n$ 38,460,157.65 (7,608,688.88) \n \n30,851,468.77 (587,787.06) \n1,061,679.08 \n \n$ (37,500,058.60) 728,645.36 \n8,600,000.00 3,160,595.77 \n \n(25,010,817.47) \n \n$ \n \n2,448,438.06 \n \n(2,870,976.00) \n \n(422,537.94) \n \n$ \n \n(60,575.59) \n \n(22,760.24) \n \n(186,499.35) \n \n(269,835.18) \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 14,182,202.27 \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 Receivables, Net \nLocal \nTotal Assets LIABILITIES Funds Held for Others \n \nDOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 299,255.80 32,393.57 $ 331,649.37 $ 331,649.37 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Notes 4, 5 and 17 for additional component unit disclosures. \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. \n- 9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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 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), 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. \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. \nThe School District reports the following fiduciary fund type: \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. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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 judgements, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nreporting 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. \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 basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nConsumable Supplies \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out basis). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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 \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAny Amount 100,000.00 \n50,000.00 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 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 \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 up to 18 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 30 days. \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \ndiscounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \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. \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. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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 Dougherty County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on July 31, 2017 (levy date) based on property values as of January 1, 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 funds for fiscal year 2018. The Dougherty County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.1% 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 $38,121,541.45. \n \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 \n18.433 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,529,350.32 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 $14,797,394.12 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years. \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 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. \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \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 $58,348,971.64, and a bank balance of $66,684,108.64. The bank balances insured by Federal depository insurance were $1,063,297.09. \nAt June 30, 2018, $65,620,811.55 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized \n \n$ \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 \n65,620,811.55 \n \nTotal \n \n$ 65,620,811.55 \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nCash and cash equivalents \n \nStatement of Net Position \n \n$ \n \nStatement of Fiduciary Net Position \n \n58,480,306.72 299,255.80 \n \nTotal cash and cash equivalents \n \n58,779,562.52 \n \nAdd: Deposits with original maturity of three months or more reported as investments \n \n9,922.73 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n440,513.61 \n \nTotal carrying value of deposits - June 30, 2018 \n \n$ 58,348,971.64 \n \nCOMPONENT UNIT \nAt June 30, 2018, Dougherty County Stadium Authority's bank balance of $54,249.89 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $440,513.61 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2017 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2018 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 $ \n \n- $ \n \n- $ 9,051,054.08 \n \n51,716,802.52 36,797,984.83 27,211,474.05 \n \n61,303,313.30 \n \nTotal Capital Assets Not Being Depreciated \n \n60,767,856.60 36,797,984.83 27,211,474.05 \n \n70,354,367.38 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n337,037,195.37 11,509,374.37 \n \n27,233,374.05 1,640,272.82 \n \n2,102,764.55 - \n \n362,167,804.87 13,149,647.19 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n127,600,355.75 7,138,976.84 \n \n6,904,106.37 704,582.51 \n \n1,514,977.49 - \n \n132,989,484.63 7,843,559.35 \n \nTotal Capital Assets, Being Depreciated, Net 213,807,237.15 21,264,957.99 \n \n587,787.06 234,484,408.08 \n \nGovernmental Activity Capital Assets - Net $ 274,575,093.75 $ 58,062,942.82 $ 27,799,261.11 $ 304,838,775.46 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nPupil Services \n \n$ 9,495.90 \n \nImprovements of Instructional Services \n \n18,365.35 \n \nEducational Media Services \n \n190,717.89 \n \nSchool Administration \n \n347,162.07 \n \nBusiness Administration \n \n100,444.84 \n \nMaintenance and Operation of Plant \n \n251,888.12 \n \nStudent Transportation Services \n \n605,159.56 \n \nCentral Support Services \n \n46,956.24 \n \nFood Services \n \n$ 5,653,212.26 \n1,570,189.97 385,286.65 \n \n$ 7,608,688.88 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nComponent Unit \nCapital Assets, Not Being Depreciated: Land \n \nBalances July 1, 2017 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2018 \n \n$ 410,000.00 $ \n \n- $ \n \n- $ 410,000.00 \n \nCapital Assets Being Depreciated Stadium Improvements Equipment Buildings and Improvements \n \n3,448,285.00 239,886.00 308,976.00 \n \n- \n \n- \n \n3,448,285.00 \n \n- \n \n- \n \n239,886.00 \n \n- \n \n- \n \n308,976.00 \n \nLess Accumulated Depreciation for: Stadium Improvements Equipment Buildings and Improvements \n \n1,046,251.00 239,885.00 104,275.00 \n \n150,304.00 - \n7,729.00 \n \n- \n \n1,196,555.00 \n \n- \n \n239,885.00 \n \n- \n \n112,004.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,606,736.00 \n \n(158,033.00) \n \n- \n \n2,448,703.00 \n \nCapital Assets - Net \n \n$ 3,016,736.00 $ (158,033.00) $ \n \n- $ 2,858,703.00 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2018, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nGeneral Fund \n \nDebt Service Fund \n \nCapital Projects Fund \n \n$ 460,138.99 $ 11,305,932.17 \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund to cover a portion of the employee's salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects and move ESPLOST funds from debt service to fund capital construction projects. \n \nNOTE 7: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ \n \n- $ 8,000,000.00 $ 8,000,000.00 $ \n \n- \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 8: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2017 \n \nAdditions \n \nGovernmental Activities Deductions \n \nBalance June 30, 2018 \n \nDue Within One Year \n \nGeneral Obligation Bonds $ Unamortized Bond Premiums Capital Leases Compensated Absences \n \n8,600,000.00 $ 35,000,000.00 $ \n \n513,123.10 \n \n2,500,058.60 \n \n6,375,488.81 \n \n- \n \n1,061,313.16 \n \n866,912.98 \n \n8,600,000.00 $ 728,645.36 \n3,160,595.77 844,152.74 \n \n35,000,000.00 $ \n \n- \n \n2,284,536.34 \n \n517,253.52 \n \n3,214,893.04 3,214,893.04 \n \n1,084,073.40 \n \n75,885.15 \n \n$ 16,549,925.07 $ 38,366,971.58 $ 13,333,393.87 $ 41,583,502.78 $ 3,808,031.71 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \n \nDuring the current year, the School District issued general obligation bonds totaling $35,000,000.00 for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. \n \nOf the total amount originally authorized, $15,000,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2018 \n \n2.00 - 5.00% \n \n2/8/2018 \n \n12/1/2022 $ 35,000,000.00 $ 35,000,000.00 \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 \nUnamortized Bond Premium \n \n2019 2020 2021 2022 2023 \n \n$ \n \n- $ 1,421,300.00 $ 517,253.52 \n \n8,240,000.00 \n \n1,256,500.00 \n \n517,253.52 \n \n8,570,000.00 \n \n920,300.00 \n \n517,253.52 \n \n8,910,000.00 \n \n563,650.00 \n \n517,253.52 \n \n9,280,000.00 \n \n189,200.00 \n \n215,522.26 \n \nTotal Principal and Interest \n \n$ \n \n35,000,000.00 $ 4,350,950.00 $ 2,284,536.34 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nCAPITAL LEASES \nThe School District has acquired information technology equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \nGovernmental Activities \n \nConstruction in Progress \n \n$ 7,008,854.30 \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date Maturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nKey Financial (Technology) US Bank (Technology) Dell (Technology) \n \n2.20% 0.27% 3.00% \n \n7/17/2014 5/1/2015 \n12/1/2015 \n \n10/17/2018 $ 5/1/2019 \n12/1/2018 \n \n5,543,885.34 $ 5,857,254.97 3,767,715.10 \n \n1,084,907.37 1,174,552.47 \n955,433.20 \n \n$ 15,168,855.41 $ 3,214,893.04 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2019 \n \n$ 3,214,893.04 $ 55,654.46 \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 9: 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; acts of God and unemployment compensation. \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 \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nwith 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 \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the workers' compensation fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2017 2018 \n \n$ 1,430,585.90 $ 912,248.97 \n \n$ 1,215,304.51 $ 1,083,684.10 \n \n$ 1,733,641.44 $ 897,184.75 \n \n$ 912,248.97 $ 1,098,748.32 \n \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 \n2017 $ \n \n- \n \n$ 15,666.90 \n \n$ 15,666.90 \n \n$ \n \n- \n \n2018 $ \n \n- \n \n$ 19,069.43 \n \n$ 19,069.43 \n \n$ \n \n- \n \nSURETY BOND \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$ 50,000.00 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance Subsequent Period Expenditures \nAssigned School Activity Accounts \nUnassigned \n \n$ 637,396.74 11,104.33 $ 648,501.07 \n \n$ 5,120,891.63 24,098,339.77 3,201,526.69 \n \n32,420,758.09 \n \n$ 2,741,394.32 2,054,946.00 \n \n4,796,340.32 \n \n333,724.12 16,315,588.93 \n \nFund Balance, June 30, 2017 \n \n$ 54,514,912.53 \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. \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \nNOTE 11: SIGNIFICANT COMMITMENTS \nCOMMITMENTS 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, 2018: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2018 (2) \n \nAlbany High School Modifications Monroe High School-PHASE II Commodore Conyers College and Career Academy Magnolia Education Complex GNETS at Sherwood \n \n$ 154,634.00 $ 10,469,916.80 389,240.18 969,115.60 45,266.54 \n \n13,512.00 29,078,139.39 15,157,362.56 \n6,263,130.58 335,152.82 \n \n$ 12,028,173.12 $ 50,847,297.35 \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- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nOPERATING LEASES \n \nThe School District leases copiers, postage meters and equipment 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 $349,484.96 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \n \nYear Ending \n \nGovernmental Funds \n \n2019 2020 2021 2022 \n \n$ 204,636.95 42,774.53 2,308.92 1,731.69 \n \nTotal \n \n$ 251,452.09 \n \nNOTE 12: 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. \nNOTE 13: 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 \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nArrangement (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 $4,855,329.00 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 \n \nAt June 30, 2018, the School District reported a liability of $134,507,852.00 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 0.957354%, which was a decrease of 0.004150% from its proportion measured as of June 30, 2016. \n \nFor the year ended June 30, 2018, the School District recognized OPEB expense of $7,726,305.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nDeferred Outflows of Resources \n \nOPEB \n \nDeferred Inflows of Resources \n \nChanges of assumptions \nNet difference between projected and actual earnings on OPEB plan investments \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \nTotal \n \n$ \n \n- $ 10,242,430.00 \n \n39,341.00 \n \n- \n \n- \n \n521,285.00 \n \n4,855,329.00 \n \n- \n \n$ 4,894,670.00 $ 10,763,715.00 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nSchool District contributions subsequent to the measurement date of $4,855,329.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2019 2020 2021 2022 2023 2024 \n \n$ (1,926,084.00) $ (1,926,084.00) $ (1,926,084.00) $ (1,926,084.00) $ (1,935,919.00) $ (1,084,119.00) \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 \nTRS \n \n3.25 -- 9.00%, including inflation \n \nPSERS \n \nN/A \n \nLong-term expected rate of return \nHealthcare cost trend rate \n \n3.88%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible \n \n7.75% \n \nMedicare Eligible \n \n5.75% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n5.00% \n \nMedicare Eligible \n \n5.00% \n \nYear of Ultimate trend rate \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 \n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 \nwith 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 \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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. \n \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. \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. \n \nAdditionally, there was a change 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%. \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. \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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 \ncalculated 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$ 159,703,979.00 $ \n \n134,507,852.00 $ 114,623,003.00 \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 \nliability, as well as what the District's proportionate share of the net OPEB liability would be if it were \ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \nhigher 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$ 111,491,685.00 $ 134,507,852.00 $ 164,474,866.00 \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. \nNOTE 14: 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 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% of their \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nannual 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 16.77% of payroll was required from the School District and 0.04% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $13,485,091.83 and $43,591.69 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 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 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 $24,192.12 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. \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe 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. \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. \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 $350,637.00. \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 $127,630,534.00 for its proportionate share of the net pension liability for TRS ($127,571,970.00) and ERS ($58,564.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 127,571,970.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n479,873.00 \n \nTotal \n \n$ 128,051,843.00 \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 0.686413%, which was a decrease of 0.029983% from its proportion measured as of June 30, 2016. At June 30, 2017, the School District's ERS proportion was 0.001442%, which was a decrease of 0.000256% from its proportion measured as of June 30, 2016. \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \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 $1,686,811.00. \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 $11,113,754.00 for TRS, ($35,520.00) for ERS and $339,958.00 for PSERS and revenue of $22,405.00 for TRS and $339,958.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 4,771,977.00 $ 481,443.00 $ 642.00 $ \n \n- \n \nChanges of assumptions \n \n2,796,536.00 \n \n- \n \n133.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n877,908.00 \n \n- \n \n146.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n9,237,030.00 \n \n- \n \n11,775.00 \n \nSchool District contributions subsequent to the measurement date \n \n13,485,091.83 \n \n- \n \n24,192.12 \n \n- \n \nTotal \n \n$ 21,053,604.83 $ 10,596,381.00 $ 24,967.12 $ 11,921.00 \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nThe School District contributions subsequent to the measurement date of $13,485,091.83 for TRS and $24,192.12 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2019 \n \n$ (3,710,128.00) $ \n \n(9,968.00) \n \n2020 \n \n$ 3,858,854.00 $ \n \n(175.00) \n \n2021 \n \n$ 1,312,283.00 $ \n \n657.00 \n \n2022 \n \n$ (4,464,458.00) $ \n \n(1,660.00) \n \n2023 \n \n$ \n \n(24,419.00) $ \n \n- \n \nActuarial assumptions: 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: \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, 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 \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \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, 2016 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 \n7.50%, 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 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, 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 \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 \n \n- 33 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nbenefit 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 \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$ 209,360,571.00 $ \n \n127,571,970.00 $ 60,196,546.00 \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \n$ \n \n82,661.00 $ \n \n58,564.00 $ \n \n38,010.00 \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 http://www.ers.ga.gov/formspubs/formspubs.html. \n \nDEFINED CONTRIBUTION PLAN \n \nOn August 1, 1996, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe School District selected Valic as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the School District matches 3% of the employee's contribution. \n \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the School District. \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 \n2018 2017 2016 \n \n3% \n \n$ \n \n3% \n \n$ \n \n3% \n \n$ \n \n161,683.39 155,397.40 144,801.75 \n \n- 34 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2018 \n \nEXHIBIT \"H\" \n \nNOTE 15: RESTATEMENT OF PRIOR YEAR NET POSITION \n \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 $137,505,921.00. This change is in accordance with generally accepted accounting procedures. \n \nNet Position, July 1, 2017 as previously reported \n \n$ 184,567,651.07 \n \nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \n \n(142,497,640.00) \n \nDeferred Outflows - School District's Contributions made during fiscal year 2017 \n \n4,991,719.00 \n \nNet Position, July 1, 2017, as restated \n \n$ 47,061,730.07 \n \nNOTE 16: TAX ABATEMENTS \nThe School District property tax revenues were reduced by $1,778,809.50 under agreements entered into by Albany Dougherty Payroll Development and Albany-Dougherty Inner City Authority. \nNOTE 17: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement No. 33 and No. 34. The authority's fiscal year is July 1 through June 30. \n \n- 35 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the net pension \nliability \n \nState of Georgia's proportionate share of the \nnet pension liability associated with the School \nDistrict \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 \n2018 2017 2016 2015 \n \n0.686413% $ 127,571,970.00 $ 0.716396% $ 147,800,483.00 $ 0.745907% $ 113,556,934.00 $ 0.773982% $ 97,782,417.00 $ \n \n479,873.00 588,606.00 446,368.00 381,664.00 \n \n$ 128,051,843.00 $ 148,389,089.00 $ 114,003,302.00 $ 98,164,081.00 \n \n$ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 $ 79,341,795.52 \n \n161.41% 187.28% 143.67% 123.24% \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 DOUGHERTY 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 \n2018 2017 2016 2015 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the net pension liability as a percentage of covered payroll \n \nPlan fiduciary net position as a percentage of total \nnet pension liability \n \n0.001442% $ 0.001698% $ 0.002596% $ 0.004753% $ \n \n58,564.00 $ 80,323.00 $ 105,174.00 $ 178,267.00 $ \n \n35,361.18 36,794.90 64,229.58 97,265.38 \n \n165.62% 218.30% 163.75% 183.28% \n \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 DOUGHERTY 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 net pension \nliability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n1,686,811.00 $ \n \n- \n \n$ \n \n2,216,830.00 $ \n \n- \n \n$ \n \n1,556,980.00 $ \n \n- \n \n$ \n \n1,422,781.00 $ \n \nTotal \n1,686,811.00 2,216,830.00 1,556,980.00 1,422,781.00 \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 \n$ 7,724,873.84 $ 7,670,767.69 $ 7,101,357.18 $ 6,545,452.68 \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \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 DOUGHERTY 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 2018 \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 \nassociated with the School District \n \n0.957354% $ 134,507,852.00 $ \n \n- \n \nTotal \n \nSchool District's covered-employee \npayroll \n \n$ 134,507,852.00 $ 72,403,688.80 \n \nSchool District's proportionate share of the \nnet OPEB liability as a percentage of its covered- \nemployee payroll \n185.77% \n \nPlan fiduciary net position as a \npercentage of the total OPEB liability \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \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 \n13,485,091.83 $ \n \n13,485,091.83 $ \n \n- \n \n2017 \n \n$ \n \n11,252,081.76 $ \n \n11,252,081.76 $ \n \n- \n \n2016 \n \n$ \n \n11,216,453.07 $ \n \n11,216,453.07 $ \n \n- \n \n2015 \n \n$ \n \n10,355,842.01 $ \n \n10,355,842.01 $ \n \n- \n \nSchool District's covered payroll \n \nContribution as a percentage of covered payroll \n \n$ 80,404,397.90 $ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 \n \n16.77% 14.24% 14.21% 13.10% \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"6\" \n \nYear Ended \n2018 2017 2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \n$ \n \n24,192.12 $ \n \n$ \n \n8,773.13 $ \n \n$ \n \n9,095.72 $ \n \n$ \n \n14,104.86 $ \n \n24,192.12 $ 8,773.13 $ 9,095.72 $ \n14,104.86 $ \n \n- \n \n$ \n \n97,520.57 \n \n- \n \n$ \n \n35,361.18 \n \n- \n \n$ \n \n36,794.90 \n \n- \n \n$ \n \n64,229.58 \n \nContribution as a percentage of covered \npayroll \n24.81% 24.81% 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- 42 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \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 \n2018 \n \n$ \n \n4,855,329.00 $ \n \n4,855,329.00 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 73,759,412.54 \n \nContribution as a percentage of covered- \nemployee payroll \n6.58% \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"8\" \n \nTeachers Retirement System \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. \nOn November 1- 8, 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). \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 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. \n- On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 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. \n \n- 44 - \n \n DOUGHERTY 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 \"9\" \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 Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Operating Transfers from Other Funds Sale or Compensation for Loss of Assets Operating Transfers to Other Funds \nTotal Other Financing Sources (Uses) \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 \n38,519,473.00 $ \n \n39,869,473.00 $ \n \n40,715,766.26 $ \n \n220,782.00 \n \n220,782.00 \n \n307,525.01 \n \n89,920,890.00 \n \n91,521,494.00 \n \n92,465,372.09 \n \n28,209,782.00 \n \n30,634,354.00 \n \n28,176,615.48 \n \n1,327,818.00 \n \n1,335,318.00 \n \n1,502,822.92 \n \n8,000.00 \n \n8,000.00 \n \n251,130.16 \n \n4,488,961.00 \n \n4,009,470.00 \n \n2,051,420.63 \n \n162,695,706.00 \n \n167,598,891.00 \n \n165,470,652.55 \n \n846,293.26 86,743.01 \n943,878.09 (2,457,738.52) \n167,504.92 243,130.16 (1,958,049.37) \n(2,128,238.45) \n \n94,387,446.00 \n4,699,207.00 10,706,289.00 \n3,065,687.00 2,317,512.00 10,610,574.00 1,712,154.00 14,931,458.00 6,002,468.00 5,587,254.00 \n750.00 13,130,705.00 \n347,000.00 472,802.00 \n- \n167,971,306.00 \n(5,275,600.00) \n \n86,246,340.80 \n4,830,254.00 13,648,461.70 \n2,664,334.00 3,015,643.00 10,712,699.00 2,200,772.00 15,176,859.00 6,558,555.00 5,620,387.00 \n13,100.00 14,295,216.01 \n407,420.00 477,352.00 \n- \n165,867,393.51 \n1,731,497.49 \n \n89,288,355.96 \n5,176,756.51 11,422,425.26 \n2,884,494.33 2,130,361.75 10,830,062.72 2,204,910.79 14,360,965.55 6,187,406.77 4,934,752.56 \n4,653.78 366,245.80 367,110.12 10,005,410.69 386,287.91 \n160,550,200.50 \n4,920,452.05 \n \n(3,042,015.16) \n(346,502.51) 2,226,036.44 \n(220,160.33) 885,281.25 (117,363.72) \n(4,138.79) 815,893.45 371,148.23 685,634.44 \n8,446.22 13,928,970.21 \n40,309.88 (9,528,058.69) \n(386,287.91) \n5,317,193.01 \n3,188,954.56 \n \n1,582,183.00 962,500.00 60,000.00 \n(1,122,500.00) \n1,482,183.00 \n(3,793,417.00) \n18,351,559.90 \n(29,697.93) \n \n1,582,183.00 61,118,165.16 \n40,000.00 (65,071,637.48) \n(2,331,289.32) \n(599,791.83) \n22,687,723.65 \n- \n \n(460,138.99) \n(460,138.99) \n4,460,313.06 \n22,754,733.01 \n- \n \n(1,582,183.00) (61,118,165.16) \n(40,000.00) 64,611,498.49 \n1,871,150.33 \n5,060,104.89 \n67,009.36 \n- \n \n$ \n \n14,528,444.97 $ \n \n22,087,931.82 $ \n \n27,215,046.07 $ \n \n5,127,114.25 \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 $1,065,411.69 and $1,147,634.08, 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- 45 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"10\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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 Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program School Improvement Grants School Improvement Grants Special Education - State Personnel Development Striving Readers Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants 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 \nHealth and Human Services, U.S. Department of Child Care and Development Fund Cluster Pass-Through From Georgia Department of Behavioral Health Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act/Workforce Innovation and Opportunity Act Cluster Pass-Through From Georgia Department of Labor Workforce Innovation and Opportunity Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n18185GA324N1099 $ 18185GA324N1100 \n \n2,711,952.65 7,442,291.17 \n10,154,243.82 \n \n10.558 \n \n185GA368N2020 \n \n68,921.06 10,223,164.88 \n \n84.027 84.027 84.173 \n \nH027A160073 H027A170073 H173A170081 \n \n552,593.00 3,637,146.63 \n143,905.00 \n4,333,644.63 \n \n84.048 84.196 84.365 84.365 84.011 84.011 84.377A 84.377A 84.323 84.371 84.424A 84.367 84.367 84.010 84.010 \n \nV048A170010 S196A170011 S365A160010 S365A170010 S011A160011 S011A170011 S377A160011 S377A170011 H323A170010 S371C170002 S424A170011 S367A160001 S367A170001 S010A160010 S010A170010 \n \n209,327.00 54,235.73 4,964.77 28,579.09 9,724.97 12,925.57 \n470,736.70 1,417,088.44 \n67,358.25 45,830.52 198,385.72 345,055.69 596,446.32 1,536,582.68 7,645,107.27 \n12,642,348.72 \n16,975,993.35 \n \n93.959 \n \n411009060000089000 \n \n109,808.56 \n \n17.259 \n \nAA-30743-17-55-A-13 \n \n62,690.51 \n \n12.UNKNOWN 12.UNKNOWN \n \n45,295.90 117,510.44 162,806.34 \n \nTotal Expenditures of Federal Awards \n \n$ \n \n27,534,463.64 \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 Dougherty County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2018. 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. 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- 46 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"11\" \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 Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System 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 Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Vocational Education Vocational Construction Related Equipment - State Bonds \nGeorgia Emergency Management Agency \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nGovernor's Office of Student Achievement Innovation in K-8 Computer Science/Coding Professional Learning Grant \nOffice of the State Treasurer Public School Employees Retirement \nSummer Literacy Initiative Grant \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n1,438,188.77 $ \n \n- $ 1,438,188.77 \n \n4,944,727.00 887,881.00 \n12,191,774.00 2,893,521.00 5,829,935.00 2,302,460.00 9,090,839.00 7,682,650.00 2,449,747.00 8,633,894.00 1,878,397.00 1,269,715.00 639,433.00 293,699.00 1,725,446.00 536,878.00 274,287.00 5,637.00 \n1,779,093.00 3,390,688.00 3,743,103.00 \n732,101.00 (1,207,389.00) 1,384,689.00 \n1,585,831.00 312,353.00 \n11,279,938.00 \n279,318.00 1,825,066.00 \n101,496.69 214,012.00 772,387.91 \n507.25 43,591.69 168,033.39 706,373.29 \n- \n \n- \n- \n- \n- \n8,500.00 \n \n4,944,727.00 887,881.00 \n12,191,774.00 2,893,521.00 5,829,935.00 2,302,460.00 9,090,839.00 7,682,650.00 2,449,747.00 8,633,894.00 1,878,397.00 1,269,715.00 639,433.00 293,699.00 1,725,446.00 536,878.00 274,287.00 5,637.00 \n1,779,093.00 3,390,688.00 3,743,103.00 \n732,101.00 (1,207,389.00) 1,384,689.00 \n1,585,831.00 312,353.00 \n11,279,938.00 \n279,318.00 1,825,066.00 \n101,496.69 214,012.00 772,387.91 \n507.25 43,591.69 168,033.39 706,373.29 \n8,500.00 \n \n31,433.10 350,637.00 \n3,000.00 \n \n3,504,393.93 - \n \n3,504,393.93 31,433.10 \n350,637.00 3,000.00 \n \n$ 92,465,372.09 $ 3,512,893.93 $ 95,978,266.02 \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2018 \n \nSCHEDULE \"12\" \n \nSPLOST IV \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (5) \n \n(a) The renovation and improvement of one \n \nor more existing schools, administration \n \nand related facilities, including the \n \nprovision of safety and security \n \nequipment for these facilities; \n \n$ 83,400,000.00 $ 65,358,204.78 $ 23,024,339.06 $ 42,333,865.72 $ 65,358,204.78 $ \n \n- \n \n(b) acquisition, construction and equipping \n \nof new schools, administration and \n \nrelated facilities; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(c) the acquisition of school buses, vehicles \n \nfor maintenance and transportation use \n \nand other transportation equipment; \n \n6,200,000.00 \n \n2,467,354.30 \n \n871,247.47 \n \n1,596,106.83 \n \n2,467,354.30 \n \n- \n \n(d) acquisition, construction and equipping of new athletic facilities; \n \n- \n \n69.22 \n \n- \n \n69.22 \n \n69.22 \n \n- \n \n(e) acquisition of software, hardware and \n \ncomputer equipment for the use of \n \nboth staff and students and \n \n10,000,000.00 \n \n18,256,070.67 \n \n360,300.00 \n \n17,895,770.67 \n \n18,256,070.67 \n \n- \n \n(f) acquisition of real and personal property \n \nnecessary for the foregoing. \n \n400,000.00 \n \n- \n \n- \n \n- \n \n- \n \n- \n \nTotal- SPLOST IV \n \n100,000,000.00 \n \n86,081,698.97 \n \n24,255,886.53 \n \n61,825,812.44 \n \n86,081,698.97 \n \n- \n \nSPLOST V \n \n(a) The renovation, improvement and \n \nequipping of existing schools, \n \nadministration, athletic and related \n \nfacilities, including the provision of \n \nsafety and security equipment for \n \nthese facilities; \n \n80,100,000.00 \n \n80,100,000.00 \n \n14,494,628.14 \n \n- \n \n- \n \n- \n \n(b) acquisition, construction and equipping of new schools, administration, athletic and related facilities; \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(c) the acquisition of school buses and vehicles for maintenance and transportation use; \n \n3,000,000.00 \n \n3,000,000.00 \n \n382,737.44 \n \n- \n \n- \n \n- \n \n(d) acquisition of software, hardware \n \nand computer equipment for the \n \nuse of both staff and students; \n \n6,500,000.00 \n \n6,500,000.00 \n \n647,033.74 \n \n- \n \n- \n \n- \n \n(e) acquisition of energy savings equipment and \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n(f) acquisition of real and personal \n \nproperty necessary for the foregoing. \n \n400,000.00 \n \n400,000.00 \n \n- \n \n- \n \n- \n \n- \n \nTotal - SPLOST V \n \n90,000,000.00 \n \n90,000,000.00 \n \n15,524,399.32 \n \n- \n \n- \n \n- \n \nESTIMATED COMPLETION \nDATE \nComplete Complete \nComplete Complete Complete Complete \nJune 2023 \nJune 2023 June 2023 June 2023 June 2023 June 2023 \n \n$ 190,000,000.00 $ 176,081,698.97 $ 39,780,285.85 $ 61,825,812.44 $ 86,081,698.97 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years $ Current Year \n \n3,539,411.36 924,572.50 \n \nTotal \n \n$ \n \n4,463,983.86 \n \nSee notes to the basic financial statements. \n \n- 49 - \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 \nAugust 9, 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 Dougherty 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 Dougherty 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 August 9, 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 \nAugust 9, 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 Dougherty 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 Dougherty 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 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, 2018. \nOther Matters \nThe results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying Schedule of Findings and Questioned Costs as items FA 2018-001 and FA 2018-002. Our opinion on each major federal program is not modified with respect to these matters. \nThe School District's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as items FA 2018-001 and FA 2018-002, that we consider to be significant deficiencies. \n \n The School District's response to the internal control over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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 DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 6471-12-01 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 6471-13-01 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 2014-002 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-003 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 2016-001 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 2017-001 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented in fiscal year 2019. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 \n \nI SUMMARY OF AUDITOR'S RESULTS \nFinancial Statements \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information, Discretely Presented Component Unit \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \nNoncompliance material to financial statements noted: \nFederal Awards \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \nType of auditor's report issued on compliance for major programs: All major programs \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nUnmodified Disclaimer \nNo No No \nNo Yes \nUnmodified \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.367 \n \nChild Nutrition Cluster Supporting Effective Instruction State Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$826,033.91 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2018-001 \n \nImprove Controls over Expenditures \n \nCompliance Requirement: Activities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nInternal Control Impact: Significant Deficiency \n \nCompliance Impact: \n \nNonmaterial Noncompliance \n \nFederal Awarding Agency: U.S. Department of Agriculture \n \nPass-Through Entity: \n \nGeorgia Department of Education \n \nCFDA Number and Title: 10.553 and 10.555 Child Nutrition Cluster \n \nFederal Award Numbers: 18185GA324N1099 \n \n18185GA324N1100 \n \nQuestioned Costs: \n \nNone identified \n \nDescription: A review of expenditures charged to the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed that the School District's internal control procedures were not operating appropriately to ensure that all expenditures were properly reviewed and approved. \n \nCriteria: 2 CFR 200.303(a) states in part that \"the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award... (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards.\" \n \nCondition: A random sample of 60 expenditures were selected using a non-statistical sampling approach. These items were examined to determine if expenditures were reviewed and approved appropriately. For seven expenditures, evidence of review and approval was not reflected within the voucher package. \n \nCause: In discussing this deficiency with the School District, they stated the new School Nutrition central office staff were not properly trained on the internal control procedures to ensure that all expenditures are reviewed and approved before payment is made. \n \nEffect or Potential Effect: Failure to ensure that expenditures are reviewed appropriately could result in the expenditure of Federal funds for unauthorized purposes and the return of grant funds associated with these unallowable expenditures. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \n \nRecommendation: Management should evaluate and improve the School District's policies and procedures for reviewing Federal program expenditures to ensure that these funds are expended for allowable purposes. In addition, management should develop and implement a monitoring process to ensure that these procedures are operating appropriately. \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2018-002 \n \nImprove Controls over Special Reporting \n \nCompliance Requirement: Reporting \n \nInternal Control Impact: Significant Deficiency \n \nCompliance Impact: \n \nNonmaterial Noncompliance \n \nFederal Awarding Agency: U.S. Department of Agriculture \n \nPass-Through Entity: \n \nGeorgia Department of Education \n \nCFDA Number and Title: 10.553 and 10.555 Child Nutrition Cluster \n \nFederal Award Numbers: 18185GA324N1099 \n \n18185GA324N1100 \n \nQuestioned Costs: \n \nNone identified \n \nDescription: The policies and procedures of the School District were insufficient to provide adequate internal controls over the monthly Claims for Reimbursement process. \n \nCriteria: Provisions included in 7 CFR 210.7( c) require that the School District \"base Claims for Reimbursement on lunch counts, taken daily at the point of service, which correctly identify the number of free, reduced price and paid lunches served to eligible children\" and \"correctly record, consolidate and report those lunch and supplemental counts on the Claim for Reimbursement.\" \n \nIn addition, provisions included in 7 CFR 220.11(d) state that the School District \"shall establish internal controls which ensure the accuracy of breakfast counts prior to the submission of the monthly Claim for Reimbursement.\" \n \nFurthermore, 2 CFR 200.303(a) states in part that \"the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurances that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and condition of the Federal award... (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards.\" \n \nCondition: The School District generates the Form DE0112 Daily Record of Number of Breakfasts Served and Form DE0118 Daily Record of Number of Lunches Served based upon data from the School Food Service meal sales system to support the Claims for Reimbursement submitted to the Georgia Department of Education each month. A random sample of two months of the School District's Form DE0112 and DE0118 reports was selected for testing using a non-statistical sampling approach. Upon review of the Form DE0112 and DE0118 reports prepared by the twenty-one schools within the School District, it was noted that the Form DE0112 and DE0118 reports were not appropriately reviewed and approved by the lunchroom manager for two schools in the month of October 2017 and three schools in the month of February 2018. \n \nCause: In discussing this deficiency with the School District, they stated that neither the new School Nutrition central office staff nor the lunchroom managers were properly trained to ensure that each Form DE0112 and DE0118 was reviewed and approved signed by the lunchroom manager to certify the accuracy of the reports. \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2018 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Effect or Potential Effect: Failure to ensure that managers certify the accuracy of the meal counts could result in inaccurate reporting to the Georgia Department of Education and the School District obtaining more or less funding than they are eligible to receive. In addition, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. Recommendation: The School District should implement policies and procedures to ensure the meal counts are properly certified as being accurate. Management should develop and implement a monitoring process to ensure that controls are properly documented. Views of Responsible Officials: We concur with this finding. \n- 4 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n DOUGHERTY COUNTY SCHOOL SYSTEM \nP.O. Box 3l7O/2OO Pine Avenue Albany, Georgia 317O6-31?0 \nOFFICE (229) 431.1285 . FAX (2291 43r.1276 \nkenneth.dyer@docoschools.org \n \nCORRECTIVE ACTION PLAN - FINANCIAL STATEMENTS FINDING \n \nFA 201\u0026001 \n \nInternal Control Procedures \n \nCompliance Requirement: Allowable Costs/Cost Principles - Direct Costs \nlntemal Control Impact: Significant Deficiency Compliancelmpact: NonmaterialNoncompliance \n \nFederal AwardingAgency: U.S. DepartmentofAgriculture \n \nCFDANumberandTitle: CFDA 10.553 and 10.555 Child Nutrition Cluster \n \nFederalAward Number: l8l85GA32N I 100 \n \nQuestioned Costs: \n \nNone identified. \n \nDescription: \nA review of expenditures charged to the Child Nutrition Cluster (CFDA 10.553 and 10.555) revealed \nthat the School District did not implement intemal control procedures to ensure that expenditures were \nproperly approved. \n \nCorrective Action Plan: \nThe School District will provide training to School Nutrition staffon policies and procedures for their \ndepartment. \n \nFA 2018-002 \n \nInternal Control Procedures \n \nCompliance Requirement: Reporting \n \nlnternalControllmpact: SignificantDeficiency \nCompliance Impact: Nonmaterial Noncompliance \n \nFederal Awarding Agency: U.S. Department of Agriculture \n \nCFDANumberandTitle: CFDA 10.553 and 10.555 Child Nutrition Cluster \n \nFederal Award Number: I 8l85GA32N I I 00 \n \nQuestioned Costs: \n \nNone identified. \n \nDescription: \nThe policies and procedures of the School District were insufficient to provide adequate internal \ncontrols over the monthly Claims for Reimbursement process. \n \nCorrective Action Plan: \nThe School District will update School Nutrition policies and procedures and provide training to staff \nas needed. \n \nEstimated Completion Date: June 30, 2020 Contact Person: Susan Hatcher Telephone: (229) 43 I - 123 4 \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2017-belec-p-btext","title":"Dougherty County Board of Education, Albany, Georgia, annual financial report for the fiscal year ended 2017 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":["2018-10-23"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, annual financial report for the fiscal year ended 2017 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-bd7-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n38 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 39 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n40 \n \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n41 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS  \n \nSECTION I \nFINANCIAL \nSCHEDULES \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 \n42 43 45 \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 \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \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 \nOctober 23, 2018 \n \nThe Honorable Nathan Deal, 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 Dougherty County Board of Education \n \nINDEPENDENT AUDITOR'S REPORT \n \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 Dougherty County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit, Dougherty County Stadium Authority (Authority). These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \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 \n \n 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 \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified Unmodified \n \nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \n \nThe financial statements of the Authority have been audited by other auditors; however, we were not able to rely on the audit due to the number of revisions provided by the other auditors to correct material misstatements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \nUnmodified Opinions \n \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, 2017, 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 \n \nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to \nthese matters. \n \n Other 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 xi , and pages 35 through 41, 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 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. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated October 23, 2018 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. \n \n A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nINTRODUCTION \nManagement's discussion and analysis of The Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2017. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2017, the School District adopted the following Governmental Accounting Standards Board (GASB) Statements: \n No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements. \n No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. \n No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and 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 No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2017 are as follows: \n The School District's net position at June 30, 2017 was $184.6 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2017 of $184.6 million represented an increase of $7.8 million when compared to the prior year primarily due to the increase in net capital assets. There was a $19.0 million increase in construction in progress to enhance the School District's infrastructure. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n General fund revenues accounted for $158.7 million or about 90% of all revenues totaling almost $175.5 million. Among major funds, there was a fund balance increase of $1.8 million in the general fund. Revenues totaled $158.7 million while expenditures totaled $156.9. \n Long-term debt decreased by $11.7 million improving the net position of the School District. The Series 2013 bond is expected to be paid in full fiscal year 2018. The retirement of the bond will add another $9.0 million to the School District's cash flow. \n The School District continues to maintain a sound fiscal position in fiscal year 2017. \nOverview of the Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nGovernment-Wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the government-wide statements are reported as governmental activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. These statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. The Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two kind of funds  governmental funds and fiduciary funds. \nGovernmental Funds \nMost of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. The School District's governmental funds are the general fund, capital projects fund and debt service fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the general fund. Fiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations 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 government-wide financial statements because it cannot use these assets to finance its operations. Presentation of Financial Data The next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2016 and fiscal year 2017. \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nStatement of Net Position (Analysis of the School District As A Whole) As previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for this fiscal year 2017 and the comparative amounts for fiscal year 2016 as compared to the prior fiscal year. \nTable 1 Net Position (In Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease \n \nYear 2017 Year 2016 \n \n(Decrease) \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 66,950 $ 274,575 \n \n82,427 $ 260,083 \n \n(15,477) 14,492 \n \nTotal Assets \n \n341,525 \n \n342,510 \n \n(985) \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans \n \n36,000 \n \n11,227 \n \n24,773 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n20,799 164,430 \n \n20,501 141,878 \n \n298 22,552 \n \nTotal Liabilities \n \n185,229 \n \n162,379 \n \n22,850 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans \n \n7,728 \n \n14,572 \n \n(6,844) \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n260,370 28,980 \n(104,782) \n \n254,733 45,389 \n(123,336) \n \n5,637 (16,409) 18,554 \n \nTotal Net Position \n \n$ 184,568 $ 176,786 $ \n \n7,782 \n \nRestricted or designated net position are funds that must be used for a specific purpose. Restricted net position decreased $16.4 million and is restricted for the continuation of federal programs, capital projects and debt servicing. \nTotal net position increased by $7.8 million in fiscal year 2017 from the prior year due to the decrease in debt related to capital assets. \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nStatement of Activities \nTable 2 shows the changes in net position for fiscal year 2016 and fiscal year 2017 as reported on the Statement of Activities. \n \nTable 2 \n \nChange in Net Position \n \n(In Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2017 \n \n2016 \n \n(Decrease) \n \nRevenues \n \nProgram Revenues: \n \nCharges for Services \n \n$ \n \n1,439 $ \n \n1,577 $ \n \n(138) \n \nOperating Grants and Contributions \n \n105,378 \n \n103,961 \n \n1,417 \n \nCapital Grants and Contributions \n \n1,595 \n \n464 \n \n1,131 \n \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \n \n108,412 \n \n106,002 \n \n2,410 \n \n39,430 53 \n15,008 287 \n8,971 213 \n2,802 66,764 \n \n40,069 52 \n15,552 271 \n9,210 120 \n1,918 67,192 \n \n(639) 1 \n(544) 16 \n(239) 93 \n884 (428) \n \nTotal Revenues \n \n175,176 \n \n173,194 \n \n1,982 \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 and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Service Food Services Interest on Short-Term and Long-Term Debt \n \n93,710 \n5,049 10,489 \n3,198 1,654 10,960 1,924 17,552 6,916 4,735 \n372 509 10,248 \n79 \n \n92,717 \n3,995 9,988 3,021 1,661 9,991 3,076 14,121 6,581 7,583 \n342 496 10,990 447 \n \n993 \n1,054 501 177 (7) 969 \n(1,152) 3,431 \n335 (2,848) \n30 13 (742) (368) \n \nTotal Expenses \n \n167,395 \n \n165,009 \n \n2,386 \n \nIncrease/(Decrease) in Net Position \n \n$ \n \n7,781 $ \n \n8,185 $ \n \n(404) \n \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nThe $2.4 million increase in programs revenues was directly correlated the approval of more state and federal awards and additional QBE funding. Property tax revenues decreased marginally by $638,000.00. Sales tax revenues decreased by $528,000.00. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. Total Program Expenses increased $2.4 million for fiscal year 2017 compared to the previous fiscal year. This increase in instructional and support services are correlated with the increase in federal and state awards received. Descriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. Pupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. Improvement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational Media Services are activities that direct, manage and operate educational media centers. General Administration establishes and administers policy for operating the local School District. School Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the School District. Maintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by federal and state grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nGovernmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2016 and fiscal year 2017. This information is presented on the Statement of Activities. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2017 \n \nYear 2016 \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 and Other Support Services \n \nOperations of Non-Instructional Services: \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n93,710 $ \n5,049 10,489 \n3,198 1,654 10,960 1,924 17,552 6,916 4,735 \n372 509 10,248 \n79 \n \n92,717 $ \n3,995 9,988 3,021 1,661 9,991 3,076 14,121 6,581 7,583 \n342 496 10,990 447 \n \n23,585 $ \n3,157 2,482 1,202 (1,903) 6,701 1,879 12,721 4,791 4,685 \n372 509 (1,277) \n79 \n \n23,964 \n2,879 1,811 \n997 (497) 5,802 2,979 9,439 4,145 6,897 \n342 496 (692) 447 \n \nTotal Expenses \n \n$ \n \n167,395 $ \n \n165,009 $ \n \n58,983 $ \n \n59,009 \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other general revenues. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nThe School District's Funds \nTable 4 shows the change in fund balance for governmental funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nREVENUES \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n39,981 $ \n \n- $ \n \n- $ \n \n39,981 \n \n287 \n \n- \n \n15,008 \n \n15,295 \n \n86,432 \n \n1,540 \n \n- \n \n87,972 \n \n27,900 \n \n- \n \n- \n \n27,900 \n \n1,370 \n \n- \n \n- \n \n1,370 \n \n28 \n \n115 \n \n70 \n \n213 \n \n2,733 \n \n55 \n \n- \n \n2,788 \n \nTotal Revenues EXPENDITURES \n \n158,731 \n \n1,710 \n \n15,078 \n \n175,519 \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services (Interest) \nTotal Expenditures \n \n87,452 57,612 \n348 509 10,933 \n- \n156,854 \n \n153 2,029 \n20,332 3,271 \n25,785 \n \n8,725 \n8,725 \n \n87,605 59,641 \n348 509 10,933 20,332 11,996 \n191,364 \n \nRevenues over (under) Expenditures \n \n1,877 \n \n(24,075) \n \n6,353 \n \n(15,845) \n \nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances \n \n(99) (99) 1,778 \n \n22,482 - \n22,482 (1,593) \n \n(22,383) (22,383) (16,030) \n \n22,482 (22,482) \n(15,845) \n \nFund Balances - Beginning \n \n20,977 \n \n15,903 \n \n24,920 \n \n61,800 \n \nFund Balances - Ending \n \n$ \n \n22,755 $ \n \n14,310 $ \n \n8,890 $ \n \n45,955 \n \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nTotal revenues for all governmental funds were $175.5 million and total expenditures were $191.3 million. Total expenditures exceeded total revenues by $15.8 million for governmental activities. The fund balance for governmental funds decreased from $61.8 million at the beginning of the fiscal year to $45.9 million at June 30, 2017. The fund balance reported for the general fund increased from $21.0 million at the beginning of the fiscal year to $22.8 million at June 30, 2017 due to a combined increase of general fund revenues received over expenditures in the areas of instruction, support services and food servicing. \nThe fund balance reported for the capital projects fund decreased from $15.9 million at the beginning of the fiscal year to $14.3 million at June 30, 2017. This was mainly due to the capital outlay expenditures exceeding revenues in the current year. Prior year bond proceeds were used to finance most of the capital outlay expenditures for various projects. The fund balance reported for the debt service fund decreased from $24.9 million at the beginning of the fiscal year to $8.9 million at June 30, 2017. Sales tax revenue of $15.0 million and investment earnings were used to pay current year bond expenditures. The remaining revenue was transferred to capital projects fund to service capital outlay expenditures. General Fund Budgeting Highlights The School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General fund budget compared to actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"7\". During fiscal year 2017, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2016, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. Also, federal grants cannot be used to fund state mandated programs or replace local funds that previously funded the same activities. For the past three consecutive years the state budget included funds that provided continued relief to the \"austerity reductions\" that began in fiscal year 2003. The additional state funding enabled school districts to eliminate teacher adjusted work days, increase instructional days, and/or increase teacher salaries. The cumulative effect of these reductions to the School District over the 14-year period is the loss of $92.0 million in state funding. While there were still challenges of a continued decline in local tax revenue, decline in student enrollment and increases in employee benefits cost, the School District presented a balanced budget. Capital Assets Since fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \nThe School District has invested over $274.6 million in capital assets, net of depreciation. Table 5 compares fiscal year 2017 Capital Asset balances to fiscal year 2016 balances. \nTable 5 Capital Assets (Net of Depreciation, In Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease \n \nYear 2017 \n \nYear 2016 \n \n(Decrease) \n \nLand \n \n$ \n \n9,051 $ \n \n9,051 $ \n \nConstruction In Progress \n \n51,717 \n \n32,269 \n \nBuilding and Improvements \n \n209,437 \n \n214,846 \n \nEquipment \n \n4,370 \n \n3,917 \n \n19,448 (5,409) \n453 \n \nTotal \n \n$ 274,575 $ 260,083 $ 14,492 \n \nTable 5 shows that total capital assets increased $14.5 million in fiscal year 2017. The increase is a cumulative total of the following: increase in construction in progress largely due to school renovations and the IT infrastructure upgrade. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. Current year depreciation of $5.9 million accounts for most of the decrease in buildings. \nDebt Table 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2016 and fiscal year 2017. \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2017 \n \n2016 \n \n(Decrease) \n \nGeneral Obligation Bonds \n \n$ \n \nUnamortized Bond Premium \n \nCompensated Absences \n \nCapital Leases \n \n8,600 $ 513 \n1,061 6,376 \n \n16,775 $ 1,026 931 9,483 \n \n(8,175) (513) 130 \n(3,107) \n \nTotal \n \n$ 16,550 $ 28,215 $ (11,665) \n \nAs shown in Table 6, capital leases totaling $6.4 million with Key Financial, US Bank and Dell Financial are to finance technology upgrades. The current year's annual bond principal payment of $8.2 million was made during the fiscal year. The bond is set to be paid in full in fiscal year 2018. Compensated absences of $1.0 million represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \n \nCurrent Financial Issues \n \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the increased employer cost for employee health benefits and teachers retirement and the continued state formula allotment reductions. Other challenges include a decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nDespite these challenges, the School District is financially stable. The School District's operating millage for fiscal year 2017 was 18.445. The current millage rate has remained at 18.445 since fiscal year 2008 (2007 digest). \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2013. \n \nFY 2013 FY 2014 FY 2015 FY 2016 FY 2017 \n \n15,676 15,628 15,361 15,014 14,686 \n \nThe Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, fully funding teacher salaries, provide a step increase for all employees, the School District implemented cost-saving measures, while maintaining essential levels of service to support teaching and learning. The School District strives to emphasize student achievement while maintaining sound fiscal management. \n \nContacting the School District's Financial Management \n \nThis management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Susan Hatcher, Chief Financial Officer, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to shatcher@docoschools.org. \n \nxi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes 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 Interest Payable Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension 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 \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n46,180,678.24 $ \n \n9,863.38 \n \n3,500,099.56 12,313,861.29 \n4,303,975.19 26,526.81 \n163,775.43 451,600.97 60,767,856.60 213,807,237.15 \n \n341,525,474.62 \n \n192,719.00 - \n410,000.00 2,606,736.00 \n3,209,455.00 \n \n35,999,684.89 \n \n- \n \n1,527,634.32 16,202,069.67 \n83,854.47 912,248.97 236,994.72 1,218,581.74 617,812.48 147,880,806.00 \n12,348,010.79 4,201,914.28 \n185,229,927.44 \n \n39,888.00 - \n- \n39,888.00 \n \n7,727,581.00 \n \n- \n \n260,370,107.73 \n4,224,466.03 8,906,449.38 15,849,328.65 (104,782,700.72) \n \n3,016,736.00 \n152,831.00 \n \nTotal Net Position \n \n$ 184,567,651.07 $ \n \n3,169,567.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2017 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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 \nPROGRAM REVENUE \n \n$ 93,710,436.60 $ \n5,049,363.66 10,489,029.31 \n3,198,431.29 1,653,504.72 10,960,131.84 1,924,099.66 17,551,656.84 6,915,804.84 4,689,165.51 \n45,823.22 \n371,569.67 509,324.21 10,248,329.57 \n78,497.51 \n$ 167,395,168.45 $ \n \n1,113,523.18 \n32,402.50 138,889.60 - \n154,029.96 - \n1,438,845.24 \n \n$ \n \n287,734.00 $ \n \n110,000.00 \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITES \n \nSTADIUM AUTHORITY \n \n$ 67,751,940.37 $ \n1,889,082.01 8,003,358.37 1,945,047.00 3,556,439.39 4,166,615.87 \n17,654.91 4,743,301.83 1,985,492.38 \n27,858.67 17,105.17 \n11,274,493.25 - \n$ 105,378,389.22 $ \n \n1,259,701.57 $ \n2,568.93 3,962.40 51,594.90 \n92,372.72 27,173.34 55,008.88 \n5,477.63 \n- \n96,583.55 - \n1,594,443.92 \n \n(23,585,271.48) \n(3,157,712.72) (2,481,708.54) (1,201,789.39) 1,902,934.67 (6,701,143.25) (1,879,271.41) (12,720,943.63) (4,791,422.86) (4,655,829.21) \n(28,718.05) \n(371,569.67) (509,324.21) 1,276,777.19 \n(78,497.51) \n(58,983,490.07) \n \n$ \n \n(177,734.00) \n \n39,429,494.55 53,228.38 \n15,008,015.23 287,287.76 \n8,971,443.00 212,746.36 \n2,802,446.52 \n66,764,661.80 \n7,781,171.73 \n176,786,479.34 \n \n$ \n \n184,567,651.07 $ \n \n- \n889.00 47,419.00 48,308.00 (129,426.00) 3,298,993.00 \n3,169,567.00 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2017 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Receivables, Net \nTaxes State Government Federal Government Local Other Inventories \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 24,148,647.24 $ 14,316,484.39 $ 7,715,546.61 $ 46,180,678.24 \n \n9,863.38 \n \n- \n \n- \n \n9,863.38 \n \n2,325,396.44 10,774,315.89 \n4,303,975.19 26,526.81 \n163,775.43 451,600.97 \n \n1,539,545.40 \n- \n \n1,174,703.12 - \n \n3,500,099.56 12,313,861.29 \n4,303,975.19 26,526.81 \n163,775.43 451,600.97 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 42,204,101.35 $ 15,856,029.79 $ 8,890,249.73 $ 66,950,380.87 \n \n$ 1,476,804.58 $ 16,202,069.67 578,086.61 \n \n50,829.74 $ - \n236,994.72 1,218,581.74 \n39,725.87 \n \n18,256,960.86 \n \n1,546,132.07 \n \n- $ 1,527,634.32 \n \n- \n \n16,202,069.67 \n \n- \n \n236,994.72 \n \n- \n \n1,218,581.74 \n \n- \n \n617,812.48 \n \n- \n \n19,803,092.93 \n \n1,192,407.48 \n \n- \n \n- \n \n1,192,407.48 \n \n451,600.97 4,224,466.03 4,621,756.54 \n383,215.30 13,073,694.17 \n22,754,733.01 \n \n14,309,897.72 \n- \n14,309,897.72 \n \n8,890,249.73 \n- \n8,890,249.73 \n \n451,600.97 27,424,613.48 \n4,621,756.54 383,215.30 \n13,073,694.17 \n45,954,880.46 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 42,204,101.35 $ 15,856,029.79 $ 8,890,249.73 $ 66,950,380.87 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2017 \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 Accumulated depreciation \nSome liabilities 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 funds. \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 Capital leases payable Compensated absences payable Unamortized bond premiums Claims and judgments payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ 45,954,880.46 \n \n$ \n \n9,051,054.08 \n \n51,716,802.52 \n \n337,037,195.37 \n \n11,509,374.37 \n \n(134,739,332.59) \n \n274,575,093.75 \n \n(147,880,806.00) 28,272,103.89 1,192,407.48 \n \n$ \n \n(8,600,000.00) \n \n(83,854.47) \n \n(6,375,488.81) \n \n(1,061,313.16) \n \n(513,123.10) \n \n(912,248.97) \n \n(17,546,028.51) \n \n$ 184,567,651.07 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 \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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \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 \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 39,980,829.88 $ 287,287.76 \n86,432,722.29 27,900,024.94 \n1,369,741.97 27,781.40 \n2,732,724.01 \n158,731,112.25 \n \n- $ 1,539,545.40 115,108.56 54,898.52 \n1,709,552.48 \n \n- $ 15,008,015.23 \n69,753.99 - \n \n39,980,829.88 15,295,302.99 87,972,267.69 27,900,024.94 \n1,369,741.97 212,643.95 \n2,787,622.53 \n \n15,077,769.22 \n \n175,518,433.95 \n \n87,451,579.05 \n4,961,827.92 10,291,778.64 \n2,956,980.36 1,633,967.94 10,249,697.78 1,790,688.36 14,508,612.84 6,055,919.26 5,136,488.29 \n26,132.23 348,373.31 509,324.21 10,933,273.93 \n- \n- \n156,854,644.12 \n1,876,468.13 \n \n152,851.00 \n5,960.00 144,258.21 1,766,425.79 104,492.00 7,385.37 20,332,813.51 \n3,107,620.26 162,927.25 \n25,784,733.39 \n(24,075,180.91) \n \n- \n- \n8,175,000.00 550,250.00 \n8,725,250.00 \n6,352,519.22 \n \n87,604,430.05 \n4,961,827.92 10,291,778.64 \n2,956,980.36 1,639,927.94 10,249,697.78 1,934,946.57 16,275,038.63 6,160,411.26 5,143,873.66 \n26,132.23 348,373.31 509,324.21 10,933,273.93 20,332,813.51 \n11,282,620.26 713,177.25 \n191,364,627.51 \n(15,846,193.56) \n \n(98,931.42) \n(98,931.42) \n1,777,536.71 \n20,977,196.30 \n \n22,481,980.25 - \n22,481,980.25 \n(1,593,200.66) \n15,903,098.38 \n \n(22,383,048.83) \n(22,383,048.83) \n(16,030,529.61) \n24,920,779.34 \n \n22,481,980.25 (22,481,980.25) \n- \n(15,846,193.56) \n61,801,074.02 \n \n$ 22,754,733.01 $ 14,309,897.72 $ 8,890,249.73 $ 45,954,880.46 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n DOUGHERTY 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, 2017 \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. \nBond principal retirements Capital lease payments Amortization of bond premium \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 liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \nPension expense \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 bonds Compensated absences Claims and judgments \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ (15,846,193.56) \n \n$ 20,332,813.51 (5,918,515.75) \n \n14,414,297.76 \n \n77,517.89 \n \n(498,106.95) \n \n$ 8,175,000.00 3,107,620.26 513,123.10 \n \n11,795,743.36 \n \n(2,601,813.90) \n \n$ \n \n51,467.60 \n \n(130,077.40) \n \n518,336.93 \n \n439,727.13 \n \n$ 7,781,171.73 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal \nTotal Assets LIABILITIES Accounts Payable Funds Held for Others \nTotal Liabilities \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ 335,777.17 39,887.99 \n \n$ 375,665.16 \n \n$ \n \n3,327.02 \n \n372,338.14 \n \n$ 375,665.16 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Notes 4 and 15 for additional component unit disclosures. \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 positon often has constraints on resources imposed by management which can be removed or modified. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \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 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. \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. \nThe School District reports the following fiduciary fund type: \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 \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \navailable 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 judgements, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and 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 No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payrollrelated measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. 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. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nOfficial 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. \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 (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nConsumable Supplies \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \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- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount $ 100,000.00 $ 50,000.00 $ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 years \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \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. \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 \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 up to 18 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 30 days. \n \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \n \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \n \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \n \nPENSIONS \n \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 \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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. \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 Dougherty County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on August 01, 2016 (levy date) based on property values as of January 01, 2016. Taxes were due on December 20, 2016 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2016 tax digest are reported as revenue in the governmental funds for fiscal year 2017. The Dougherty County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.1% 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, 2017, for maintenance and operations amounted to $37,418,341.19. \nThe tax millage rate levied for the 2016 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 \n18.445 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,509,260.31 during fiscal year ended June 30, 2017. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $15,008,015.23 and is to be used for capital outlay and debt services for educational purposes. 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 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. \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 \nwithin the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the \nUnited States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or \nmunicipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the \nstatute 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 \nState of Georgia, and \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary \ncorporation 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, 2017, the School District had deposits with a carrying amount of $16,838,698.07, and a bank balance of $26,606,550.78. The bank balances insured by Federal depository insurance were $856,003.81. \nAt June 30, 2016, $25,750,546.97 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized Uninsured with collateral held by the pledging \nfinancial institution Uninsured with collateral held by the pledging \nfinancial institution's trust department or agent but not in the School District's name \n \n$ \n \n- \n \n- \n \n25,750,546.97 \n \nTotal \n \n$ 25,750,546.97 \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nStatement of Net Position Cash and cash equivalents \nStatement of Fiduciary Net Position Cash and cash equivalents \n \n$ 46,180,678.24 335,777.17 \n \nTotal cash and cash equivalents \n \n46,516,455.41 \n \nAdd: Deposits with original maturity of three months or more reported as investments \n \n9,863.38 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n29,687,620.72 \n \nTotal carrying value of deposits - June 30, 2017 \n \n$ 16,838,698.07 \n \nCOMPONENT UNIT \nAt June 30, 2017, Dougherty County Stadium Authority's bank balance of $192,719.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $29,687,620.72 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2017, was 56 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nBalances July 1, 2016 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2017 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 $ \n \n- $ \n \n32,268,638.01 19,448,164.51 \n \n- $ 9,051,054.08 \n \n- \n \n51,716,802.52 \n \nTotal Capital Assets Not Being Depreciated \n \n41,319,692.09 19,448,164.51 \n \n- \n \n60,767,856.60 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n336,765,218.37 11,573,143.37 \n \n271,977.00 612,672.00 \n \n676,441.00 \n \n337,037,195.37 11,509,374.37 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n121,919,293.95 7,655,481.78 \n \n5,681,061.80 237,453.95 \n \n753,958.89 \n \n127,600,355.75 7,138,976.84 \n \nTotal Capital Assets, Being Depreciated, Net \n \n218,763,586.01 \n \n(5,033,866.75) \n \n(77,517.89) 213,807,237.15 \n \nGovernmental Activity Capital Assets - Net \n \n$ 260,083,278.10 $ 14,414,297.76 $ (77,517.89) $ 274,575,093.75 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ 4,453,492.19 \n \n$ 9,495.90 14,646.80 \n190,717.89 341,450.98 100,444.84 203,337.48 227,665.78 \n20,247.80 \n \n1,108,007.47 357,016.09 \n \nComponent Unit Capital Assets, Not Being Depreciated: \nLand \nCapital Assets Being Depreciated Stadium Improvements Equipment Buildings and Improvements \nLess Accumulated Depreciation for: Stadium Improvements Equipment Buildings and Improvements \nTotal Capital Assets, Being Depreciated, Net \nCapital Assets - Net \n \nBalances July 1, 2016 \n \n$ 5,918,515.75 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2017 \n \n$ 410,000.00 $ \n \n- $ \n \n- $ \n \n410,000.00 \n \n3,431,140.00 239,886.00 308,976.00 \n \n17,145.00 - \n \n- \n \n3,448,285.00 \n \n- \n \n239,886.00 \n \n- \n \n308,976.00 \n \n895,943.00 239,885.00 \n96,551.00 \n \n150,308.00 - \n7,724.00 \n \n2,747,623.00 \n \n(140,887.00) \n \n$ 3,157,623.00 $ (140,887.00) $ \n \n- \n \n1,046,251.00 \n \n- \n \n239,885.00 \n \n- \n \n104,275.00 \n \n- \n \n2,606,736.00 \n \n- $ 3,016,736.00 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2017, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nDebt Service \n \nGeneral Fund \n \nFund \n \nCapital Projects $ 98,931.42 $ 22,383,048.83 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund to cover a portion of the employee's salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects and move ESPLOST funds from debt service to fund capital construction projects. \n \nNOTE 7: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n- $ 8,500,000.00 $ 8,500,000.00 $ \n \n- \n \nNOTE 8: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2016 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2017 \n \nDue Within One Year \n \nGeneral Obligation Bonds \n \n$ 16,775,000.00 $ \n \n- $ \n \nCapital Leases \n \n9,483,109.07 \n \n- \n \nUnamortized Bond Premiums \n \n1,026,246.20 \n \n- \n \nCompensated Absences \n \n931,235.76 \n \n857,765.70 \n \n8,175,000.00 $ 3,107,620.26 \n513,123.10 727,688.30 \n \n8,600,000.00 $ 6,375,488.81 \n513,123.10 1,061,313.16 \n \n8,600,000.00 3,160,595.77 \n513,123.10 74,291.92 \n \n$ 28,215,591.03 $ 857,765.70 $ 12,523,431.66 $ 16,549,925.07 $ 12,348,010.79 \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nVoters have authorized $50,000,000.00 in general obligation debt for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates Issue Date Maturity Date Amount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2013 \n \n2.00 - 5.00% 11/21/2013 \n \n12/1/2017 $ 32,450,000.00 $ 8,600,000.00 \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 \nUnamortized Bond Premium \n \n2018 \n \n$ 8,600,000.00 $ 195,000.00 $ \n \n513,123.10 \n \nCAPITAL LEASES \n \nThe School District has acquired information technology equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \n \nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \n \nGovernmental Activities \n \nConstruction in Progress \n \n$ 7,008,854.30 \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates Issue Date Maturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nKey Financial (Technology) US Bank (Technology) Dell (Technology) \n \n2.20% 0.27% 3.00% \n \n7/17/2014 5/1/2015 \n12/1/2015 \n \n10/17/2018 $ 5/1/2019 \n12/1/2018 \n \n5,543,885.34 $ 5,857,254.97 3,767,715.10 \n \n2,146,458.92 2,345,995.24 1,883,034.65 \n \n$ 15,168,855.41 $ 6,375,488.81 \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2018 2019 \n \n$ 3,160,595.77 $ 109,951.74 \n \n3,214,893.05 \n \n55,654.46 \n \nTotal Principal and Interest $ 6,375,488.82 $ 165,606.20 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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 9: 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; acts of God and unemployment compensation. \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 \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the internal service fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \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 \n2016 $ 1,086,890.71 $ 1,569,873.56 $ 1,226,178.37 $ 1,430,585.90 2017 $ 1,430,585.90 $ 1,215,304.51 $ 1,733,641.44 $ 912,248.97 \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 \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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 \n2016 $ \n \n- \n \n$ 20,674.00 $ 20,674.00 $ \n \n- \n \n2017 $ \n \n- \n \n$ 15,666.90 $ 15,666.90 $ \n \n- \n \nSURETY BOND \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$ 50,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance Subsequent Period Expenditures \nAssigned School Activity Accounts \nUnassigned \n \n$ \n \n451,600.97 \n \n$ 4,224,466.03 14,309,897.72 8,890,249.73 \n \n27,424,613.48 \n \n$ 2,995,766.54 1,625,990.00 \n \n4,621,756.54 \n \n383,215.30 13,073,694.17 \n \nFund Balance, June 30, 2017 \n \n$ 45,954,880.46 \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. \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nNOTE 11: 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, 2017: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2017 (2) \n \nMonroe High Phase II Commodore Conyers College and Career Academy GNETS, Sherwood Elementary School \n \n$ 26,673,979.83 $ 11,680,321.35 \n \n2,906,210.37 \n \n4,038,980.82 \n \n92,234.63 \n \n118,524.17 \n \n$ 29,672,424.83 $ 15,837,826.34 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include Contracts and Retainages Payable at year end. \nOPERATING LEASES \nThe School District leases copiers, postage meters and equipment 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 $345,923.22 for governmental activities for the year ended June 30, 2017. The following future minimum lease payments were required under operating leases at June 30, 2017: \n \nYear Ending \n \nGovernmental Funds \n \n2018 2019 2020 \n \n$ 323,724.84 202,328.03 40,465.61 \n \n$ 566,518.48 \n \nNOTE 12: 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 it is not believed to have a material adverse effect on the financial condition of the School District. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \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). 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 \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, 2017: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2016  June 30, 2017 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2016  December 31, 2016 $746.20 per member per month \n \nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2017 2016 2015 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n17,756,083.13 16,637,068.51 15,938,801.37 \n \nNOTE 14: RETIREMENT PLANS \n \nThe School District 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 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 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 2017. The School District's contractually required contribution rate for the year ended June 30, 2017 was 14.27% of annual School District payroll, of which 14.24% of payroll was required from the School District and 0.03% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $11,252,081.76 and $40,218.02 from the School District and the State, respectively. \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 \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nO.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, 2017 was 24.81% 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 $8,773.14 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. \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. \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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. \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 $347,972.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2017, the School District reported a liability of $147,880,806.00 for its proportionate share of the net pension liability for TRS ($147,800,483.00) and ERS ($80,323.00). \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 147,800,483.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n588,606.00 \n \nTotal \n \n$ 148,389,089.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 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, 2016. \nAt June 30, 2016, the School District's TRS proportion was 0.716396%, which was a decrease of 0.029511% from its proportion measured as of June 30, 2015. At June 30, 2016, the School District's ERS proportion was 0.001698%, which was a decrease of 0.000898% from its proportion measured as of June 30, 2015. \nAt June 30, 2017, 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 $2,216,830.00. \nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 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, 2016. \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nFor the year ended June 30, 2017, the School District recognized pension expense of $13,951,074.00 for TRS, ($48,771.00) for ERS and $363,421.00 for PSERS and revenue of $41,854.00 for TRS and $363,421.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience \n \n$ 2,201,829.00 $ 730,874.00 $ \n \n- $ \n \n186.00 \n \nChanges of assumptions \nNet difference between projected and actual earnings on pension plan investments \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \n \n3,830,784.00 \n \n- \n \n18,697,370.00 \n \n- \n \n- \n \n6,954,180.00 \n \n11,252,081.76 \n \n- \n \n680.00 \n \n- \n \n8,167.00 \n \n- \n \n8,773.13 \n \n42,341.00 \n- \n \nTotal \n \n$ 35,982,064.76 $ 7,685,054.00 $ 17,620.13 $ 42,527.00 \n \nThe School District contributions subsequent to the measurement date of $11,252,081.76 for TRS and $8,773.13 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2018 2019 2020 2021 2022 \n \n$ (959,652.00) $ \n \n$ (959,645.00) $ \n \n$ (8,858,767.00) $ \n \n$ (6,168,497.00) $ \n \n$ \n \n(98,368.00) $ \n \n36,360.00 4,452.00 (4,403.00) (2,729.00) - \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nActuarial assumptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, 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, 2015 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 Investment rate of return \n \n3.25%  7.00%, average, including inflation \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 \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, 2015 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 Investment rate of return \n \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 \nto 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 \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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, 2015 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% \n12.00% 13.50% \n8.00% 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, 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- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \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%, 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 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$ 230,053,274.00 $ 147,800,483.00 $ 80,078,867.00 \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 the net \n \npension liability \n \n$ \n \n108,852.00 $ \n \n80,323.00 $ \n \n56,010.00 \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 http://www.ers.ga.gov/formspubs/formspubs.html. \nDEFINED CONTRIBUTION PLAN \nOn August 1, 1996, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \nThe School District selected Valic as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the School District matches 3% of the employee's contribution. \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the School District. \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 \n2017 2016 2015 \n \n3% \n \n$ \n \n155,397.40 \n \n3% \n \n$ \n \n144,801.75 \n \n3% \n \n$ \n \n152,225.45 \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2017 \n \nEXHIBIT \"H\" \n \nNOTE 15: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement No. 33 and No. 34. The authority's fiscal year is July 1 through June 30. \n \n- 33 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n \nSchool District's proportion of the net 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 \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 \n2017 2016 2015 \n \n0.716396% $ 0.745907% $ 0.773982% $ \n \n147,800,483.00 $ 113,556,934.00 $ \n97,782,417.00 $ \n \n588,606.00 $ 148,389,089.00 $ 78,919,817.39 446,368.00 $ 114,003,302.00 $ 79,042,137.85 381,664.00 $ 98,164,081.00 $ 79,341,795.52 \n \n187.28% 143.67% 123.24% \n \n76.06% 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- 35 - \n \n DOUGHERTY 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 pension 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 \nPlan fiduciary net position as a \npercentage of total net pension liability \n \n2017 2016 2015 \n \n0.001698% $ \n \n80,323.00 $ \n \n0.002596% $ 105,174.00 $ \n \n0.004753% $ 178,267.00 $ \n \n36,794.90 64,229.58 97,265.38 \n \n218.30% 163.75% 183.28% \n \n72.34% 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- 36 - \n \n DOUGHERTY 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 \n2017 2016 2015 \n \nSchool District's proportion of the net \npension liability \n \nSchool District's proportionate share of the \nnet pension liability \n \n0.00% $ \n \n- \n \n0.00% $ \n \n- \n \n0.00% $ \n \n- \n \nState of Georgia's proprotionate share of the net pension liaibility \nassociated with the School District \n \n$ \n \n2,216,830.00 $ \n \n$ \n \n1,556,980.00 $ \n \n$ \n \n1,422,781.00 $ \n \nTotal \n2,216,830.00 1,556,980.00 1,422,781.00 \n \nSchool District's covered payroll \n$ 7,724,873.84 $ 7,670,767.69 $ 7,101,357.18 \n \nSchool District's proportionate share of the net pension liability as a percentage of its \ncovered payroll \nN/A N/A N/A \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n81.00% 87.00% 88.29% \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2017 \n \n$ \n \n11,252,081.76 $ \n \n11,252,081.76 $ \n \n- \n \n2016 \n \n$ \n \n11,216,453.07 $ \n \n11,216,453.07 $ \n \n- \n \n2015 \n \n$ \n \n10,355,842.01 $ \n \n10,355,842.01 $ \n \n- \n \nSchool District's covered payroll \n$ 79,036,484.54 $ 78,919,817.39 $ 79,042,137.85 \n \nContribution as a percentage of covered \npayroll \n14.24% 14.21% 13.10% \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n2017 \n \n$ \n \n8,773.14 $ \n \n8,773.14 $ \n \n- \n \n2016 \n \n$ \n \n9,095.72 $ \n \n9,095.72 $ \n \n- \n \n2015 \n \n$ \n \n14,104.86 $ \n \n14,104.86 $ \n \n- \n \nSchool District's covered payroll \n \n$ \n \n35,361.18 \n \n$ \n \n36,794.90 \n \n$ \n \n64,229.58 \n \nContribution as a percentage of covered \npayroll \n24.81% 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- 39 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"6\" \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). \n \n- 40 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"7\" \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 Community Services 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 \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n40,441,437.00 $ \n \n40,129,442.00 $ \n \n39,980,829.88 $ \n \n220,782.00 \n \n220,782.00 \n \n287,287.76 \n \n83,923,126.00 \n \n81,692,029.00 \n \n86,432,722.29 \n \n29,386,693.00 \n \n33,582,259.00 \n \n27,900,024.94 \n \n990,858.00 \n \n1,206,108.00 \n \n1,369,741.97 \n \n14,000.00 \n \n14,000.00 \n \n27,781.40 \n \n2,953,236.00 \n \n5,056,218.00 \n \n2,732,724.01 \n \n157,930,132.00 \n \n161,900,838.00 \n \n158,731,112.25 \n \n(148,612.12) 66,505.76 \n4,740,693.29 (5,682,234.06) \n163,633.97 13,781.40 \n(2,323,493.99) \n(3,169,725.75) \n \n90,665,611.00 \n3,884,426.00 9,990,057.00 2,889,695.00 1,709,948.00 9,272,739.00 1,714,184.00 14,479,199.00 6,055,208.00 5,076,395.00 \n911,652.00 12,510,873.00 \n346,200.00 472,802.00 \n159,978,989.00 \n(2,048,857.00) \n \n90,487,182.23 \n4,149,074.77 12,472,708.00 \n2,890,930.00 2,213,235.00 9,278,741.15 1,553,374.00 14,570,233.85 6,214,828.00 5,183,444.00 1,081,929.00 12,977,427.00 \n330,870.00 472,802.00 \n163,876,779.00 \n(1,975,941.00) \n \n87,451,579.05 \n4,961,827.92 10,291,778.64 \n2,956,980.36 1,633,967.94 10,249,697.78 1,790,688.36 14,508,612.84 6,055,919.26 5,136,488.29 \n26,132.23 348,373.31 509,324.21 10,933,273.93 \n156,854,644.12 \n1,876,468.13 \n \n3,035,603.18 \n(812,753.15) 2,180,929.36 \n(66,050.36) 579,267.06 (970,956.63) (237,314.36) \n61,621.01 158,908.74 \n46,955.71 1,055,796.77 12,629,053.69 \n(178,454.21) (10,460,471.93) \n7,022,134.88 \n3,852,409.13 \n \n2,465,715.00 (825,000.00) \n1,640,715.00 (408,142.00) \n16,485,515.53 - \n \n2,471,610.00 (825,000.00) \n1,646,610.00 (329,331.00) \n18,565,390.10 (19,407.34) \n \n(98,931.42) (98,931.42) 1,777,536.71 20,977,196.30 \n- \n \n(2,471,610.00) 726,068.58 \n(1,745,541.42) 2,106,867.71 2,411,806.20 \n19,407.34 \n \n$ \n \n16,077,373.53 $ \n \n18,216,651.76 $ \n \n22,754,733.01 $ \n \n4,538,081.25 \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 $1,031,408.91 and $1,036,757.67, 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- 41 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"8\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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 Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants English Language Acquisition Grants Improving Teacher Quality State Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program School Improvement Grants Special Education State Personnel Development Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \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 Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Southwest Georgia Developmental Center Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n17175GA324N1099 $ 17175GA324N1100 \n \n2,687,422.56 8,772,423.63 \n11,459,846.19 \n \n10.558 \n \n16165GA368N1099 \n \n96,916.71 11,556,762.90 \n \n84.027 84.027 84.173 84.173 \n84.048 84.196 84.365 84.365 84.367 84.367 84.011 84.011 84.377 \n84.323 84.010 84.010 \n \nH027A150073 H027A160073 H173A150081 H173A160081 \nV048A160010 S196A150011 S365A150010 S365A160010 S367A150001 S367A160001 S011A150011 S011A160011 S377A150011 \nH323A120020 S010A150010 S010A160010 \n \n382,675.00 3,648,678.92 \n21,122.00 114,801.24 \n4,167,277.16 \n228,059.00 14,433.09 7,788.17 28,791.09 \n752,490.32 800,862.06 \n2,685.00 12,397.79 1,934,449.37 \n72,711.67 1,325,987.95 7,322,644.84 \n12,503,300.35 \n16,670,577.51 \n \n93.959 \n \n4411009060000089568 \n \n119,655.71 \n \n17.259 \n \nnot available \n \n45,168.63 \n \n12.UNKNOWN 12.UNKNOWN \n \n46,359.51 115,544.29 161,903.80 \n \nTotal Expenditures of Federal Awards \n \n$ 28,554,068.55 \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 Dougherty County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2017. 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- 42 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"9\" \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 Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System 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 Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \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$ 1,369,806.67 $ \n \n- $ 1,369,806.67 \n \n5,468,997.00 439,253.00 \n12,770,084.00 1,780,621.00 5,930,259.00 1,600,950.00 8,352,070.00 8,063,755.00 2,288,394.00 8,247,333.00 1,905,246.00 1,142,277.00 619,804.00 317,854.00 1,696,156.00 526,657.00 271,243.00 6,035.00 \n1,548,979.00 3,463,535.00 3,817,133.00 \n576,886.00 (1,033,322.00) 1,340,859.00 \n1,564,910.00 305,164.00 \n8,971,443.00 \n276,206.00 1,868,697.00 \n127,723.67 258,372.00 \n507.25 40,218.02 160,644.68 \n \n- \n \n5,468,997.00 \n \n- \n \n439,253.00 \n \n- \n \n12,770,084.00 \n \n- \n \n1,780,621.00 \n \n- \n \n5,930,259.00 \n \n- \n \n1,600,950.00 \n \n- \n \n8,352,070.00 \n \n- \n \n8,063,755.00 \n \n- \n \n2,288,394.00 \n \n- \n \n8,247,333.00 \n \n- \n \n1,905,246.00 \n \n- \n \n1,142,277.00 \n \n- \n \n619,804.00 \n \n- \n \n317,854.00 \n \n- \n \n1,696,156.00 \n \n- \n \n526,657.00 \n \n- \n \n271,243.00 \n \n- \n \n6,035.00 \n \n- \n \n1,548,979.00 \n \n- \n \n3,463,535.00 \n \n- \n \n3,817,133.00 \n \n- \n \n576,886.00 \n \n- \n \n(1,033,322.00) \n \n- \n \n1,340,859.00 \n \n- \n \n1,564,910.00 \n \n- \n \n305,164.00 \n \n- \n \n8,971,443.00 \n \n- \n \n276,206.00 \n \n- \n \n1,868,697.00 \n \n- \n \n127,723.67 \n \n- \n \n258,372.00 \n \n- \n \n507.25 \n \n- \n \n40,218.02 \n \n- \n \n160,644.68 \n \n- \n \n1,539,545.40 \n \n1,539,545.40 \n \n347,972.00 \n \n- \n \n347,972.00 \n \n$ 86,432,722.29 $ 1,539,545.40 $ 87,972,267.69 \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2017 \n \nSCHEDULE \"10\" \n \nSPLOST IV \n(a) The renovation and improvement of one or more existing schools, administration and related facilities, including the provision of safety and security equipment for these facilities \n(b) acquisition, construction and equipping of new schools, administration and related facilities \n(c) the acquisition of school buses, vehicles for maintenance and transportation use and other transportation equipment \n(d) acquisition, construction and equipping of new athletic facilities \n(e) acquisition of software, hardware and computer equipment for the use of both staff and students \n(f) acquisition of real and personal property necessary for the foregoing \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3)(4) \n \nAMOUNT EXPENDED IN PRIOR YEARS(3)(4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (5) \n \nESTIMATED COMPLETION \nDATE \n \n$ 83,400,000.00 $ 78,000,000.00 $ 21,270,723.68 $ 21,063,142.04 $ \n \n- \n \n- \n \n- \n \n- \n \n6,200,000.00 \n \n3,000,000.00 \n \n852,747.83 \n \n743,359.00 \n \n- \n \n69.22 \n \n- \n \n69.22 \n \n10,000,000.00 \n \n17,895,770.67 \n \n291,782.95 \n \n17,603,987.72 \n \n400,000.00 \n \n100,000.00 \n \n- \n \n- \n \n- $ 69.22 - \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \n- \n \nCompleted \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \nGrand Total \n \n$ 100,000,000.00 $ 98,995,839.89 $ 22,415,254.46 $ 39,410,557.98 $ \n \n69.22 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years Current Year \nTotal \n \n$ \n \n2,826,234.11 \n \n713,177.25 \n \n$ \n \n3,539,411.36 \n \nSee notes to the basic financial statements. \n \n- 45 - \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 \nOctober 23, 2018 \n \nThe Honorable Nathan Deal, 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 Dougherty County Board of Education \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 \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 Dougherty County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated October 23, 2018. This report was modified for a scope limitation as identified in the auditors report on the basic financial statements and described below. \nThe financial statements of Dougherty County Stadium Authority (Authority) have been audited by other auditors, however, we were not able to rely on the opinion of the other auditors. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \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 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we and other auditors did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2017-001, that we consider to be a significant deficiency. \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. \nSchool District's Response to Findings \nThe School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \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 \nOctober 23, 2018 \n \nThe Honorable Nathan Deal, 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 Dougherty 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 Dougerty 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, 2017. 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, 2017. \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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 6471-12-01 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented fiscal year 2018. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 6471-13-01 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented fiscal year 2018. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 2014-002 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented fiscal year 2018. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-003 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented fiscal year 2018. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nFS 2016-001 Control Categories: \nInternal Control Impact: Compliance Impact: \n \nInadequate Accounting Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented fiscal year 2018. Finance Staff will also provide technical assistance to school staff as they transition in and out of positions. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \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: CFDA Numbers \n \nName of Federal Program or Cluster \n \n84.010 84.027, 84.173 84.367 \n \nTitle I Grants to Local Educational Agencies Special Education Cluster Improving Teacher Quality State Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$856,622.06 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2017-001 Control Category: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2016-001, FS 2015-003, FS 2014-002, FS 6471-13-01, FS 6471-12-01 \n \nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: Management is responsible for designing and maintaining internal controls that provide proper segregation of duties and reasonable assurance that transactions are processed according to established procedures. \nFinancial Management for Georgia Local Units of Administration Chapter V-4, School Activity Accounts (Principal Accounts) states in part \"Student Activity Funds (Agency Fund - 705) support activities that are based in student organizations.\" In addition, it states \"All activity funds should operate on a cash basis, meaning that no commitments or indebtedness may be incurred unless the fund contains sufficient cash.\" \n \nCondition: The following deficiencies were noted with the School District's school activity accounts: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \nRevenues/Receipts/Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of forty-three receipt transactions: o Eleven receipts were not deposited in a timely manner. o Thirty-five receipts could not be traced to their recording on the general ledger due to lack of adequate information. o Three receipts did not agree to the amount deposited. o Two were not supported by adequate documentation. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of forty disbursement transactions: o Three disbursements did not have original invoices attached. o Twenty of the disbursements examined lacked information to be able to trace to recording on the general ledger. o Nineteen voucher packages did not have evidence of receipt of goods. o One disbursement was not charged to the correct period. \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2017 \n \nII \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGeneral Ledger  During testing of school activity accounts, the auditor noted two schools had a deficit balance in the agency fund. \n \nCause: In discussing these conditions with management, they stated that school personnel have not been adequately following the policies and procedures set-forth in the School District's \"Accounting Manual for Activity Funds.\" \n \nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that reduce vulnerabilities in ineffectively separated functions and the risk of errors and fraud. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \n \nViews of Responsible Officials: We concur with this finding. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n- 3 - \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n DOUGHERTY COUNTY SCHOOL SYSTEM P.O. BOX 3170 / 200 PINE AVENUE ALBANY, GEORGIA 31706-3170 TELEPHONE (229) 431-1285 FAX (229) 431-1276 \nKENNETH DYER SUPERINTENDENT \n \nBOARD OF EDUCATION MS. VELVET EDWARDS POOLE, CHAIR REVEREND JAMES C. BUSH, MR. MILTON GRIFFIN, MRS. GERALDINE HUDLEY, DR. DEAN PHINAZEE, \nMRS. MELISSA STROTHER, MR. ROBERT YOUNGBLOOD, VICE CHAIR \n \nCORRECTIVE ACTION PLAN  FINANCIAL STATEMENTS FINDING \n \nFS 2017-001 Control Category: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2016-001, FS 2015-003, FS-2014-002, FS-6471-13-01, FS-6471-12-01 \n \nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCorrective Action Plan: The School District will use Central Office Finance Staff to provide a monthly review of the Student Activity Accounts. This change was implemented in fiscal year 2018. Also, Finance Staff will provide technical assistance to school staff as needed. \n \nEstimated Completion Date: June 30, 2019 \n \nContact Person: Susan Hatcher Telephone: (229) 431-1234 \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2016-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2017-09-08"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \n37 \n \n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \n38 \n \n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 39 \n \n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n40 \n \n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n41 \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \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 \n42 44 45 \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 \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nSECTION V MANAGEMENT'S CORRECTIVE ACTION SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \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 \nSeptember 8, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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 \n \n (This page left intentionally blank) \n \n 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. \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nBasis for Disclaimer of Opinion on Discretely Presented Component Unit \nThe financial statements of the Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an audit opinion on the financial statements of the Discretely Presented Component Unit as of and for the year ended June 30, 2016. \nUnmodified Opinions \nIn our opinion, the basic 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 School District, as of June 30, 2016, and the respective changes in financial position, and 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, Schedule of Contributions to Retirement System, 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 xi and pages 35 through 41 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 \n \n (This page left intentionally blank) \n \n 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 School District'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 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 as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated September 8, 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 DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nINTRODUCTION \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2016. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2016, the School District adopted the following Governmental Accounting Standards Board (GASB) Statements: \n No. 72, Fair Value Measurement and Application. The provisions of 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 this statement. \n No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \n 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. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2016 are as follows: \n The School District's net position at June 30, 2016 was $176.8 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2016 of $176.8 million represented an increase of $8.2 million when compared to the prior year primarily due to the increase in program revenues and a decrease in instructional expenditures. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n General fund revenues accounted for $157.6 million or about 91% of all governmental fund revenues totaling almost $173.3 million. \n Among major funds the general fund had $157.6 million in revenues and $154.8 million in expenditures. The general fund's fund balance increased from $18.3 million to $21.0 million. \n The School District continues to maintain a sound fiscal position in fiscal year 2016. \nOverview of the Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nGovernment-Wide Statements \nThe Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, state and federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the government-wide statements are reported as governmental activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two kinds of funds as discussed below: \nGovernmental Funds \nMost of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nThe School District's governmental funds are the general fund, capital projects fund and debt service fund. General operations, school food services, other federal and state grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the general fund. \nFiduciary Funds \nThe School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only 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. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2015 and fiscal year 2016. \nStatement of Net Position (Analysis of the School District As A Whole) \nAs previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for this fiscal year 2016 and the comparative amounts for fiscal year 2015. \nTable 1 Net Position (In Thousands) \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease \n \nYear 2016 \n \nYear 2015 \n \n(Decrease) \n \n$ \n \n82,427 $ \n \n260,083 \n \n89,814 $ 260,823 \n \n(7,387) (740) \n \nTotal Assets \n \n342,510 \n \n350,637 \n \n(8,127) \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans \n \n11,227 \n \n10,374 \n \n853 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n20,501 141,878 \n \n24,100 134,096 \n \n(3,599) 7,782 \n \nTotal Liabilities \n \n162,379 \n \n158,196 \n \n4,183 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans \n \n14,572 \n \n34,213 \n \n(19,641) \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n254,733 45,389 \n(123,336) \n \n252,664 41,374 \n(125,436) \n \n2,069 4,015 2,100 \n \nTotal Net Position \n \n$ \n \n176,786 $ \n \n168,602 $ \n \n8,184 \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 See Table 5 for analysis of the decrease in capital assets. Restricted or designated net position is funds that must be used for a specific purpose. Restricted net position increased $4.0 million and is primarily restricted to service debt. Total net position increased by $8.2 million in fiscal year 2016 from the prior year due to the decrease in debt related to capital assets. \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nStatement of Activities \n \nTable 2 shows the changes in net position for fiscal year 2016 and fiscal year 2015 as reported on the Statement of Activities. \n \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nFiscal Year 2016 \n \nGovernmental Activities Fiscal Year 2015 \n \nIncrease (Decrease) \n \n$ \n \n1,577 $ \n \n1,463 $ \n \n114 \n \n103,961 \n \n102,984 \n \n977 \n \n464 \n \n90 \n \n374 \n \nTotal Program Revenues \n \n106,002 \n \n104,537 \n \n1,465 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales For Debt Service For Capital Projects Other Sales Tax Grants and Contributions not Restricted Specific Programs Investment Earnings Miscellaneous \nSpecial Items \n \n40,069 52 \n15,552 - \n271 \n9,210 120 \n1,918 - \n \n39,807 51 \n12,051 3,482 272 \n9,065 64 \n1,890 (684) \n \n262 1 \n3,501 (3,482) \n(1) \n145 56 28 \n684 \n \nTotal General Revenues and Special Items \n \n67,192 \n \n65,998 \n \n1,194 \n \nTotal Revenues \n \n173,194 \n \n170,535 \n \n2,659 \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 and Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n92,717 \n3,995 9,988 3,021 1,661 9,991 3,076 14,121 6,581 7,583 \n342 496 10,990 447 \n \n103,416 \n4,141 9,299 2,917 1,519 9,787 1,923 13,714 6,412 5,668 \n396 494 10,044 672 \n \n(10,699) \n(146) 689 104 142 204 1,153 407 169 1,915 \n(54) 2 \n946 (225) \n \nTotal Expenses \n \n165,009 \n \n170,402 \n \n(5,393) \n \nIncrease in Net Position \n \n$ \n \n8,185 $ \n \n133 $ \n \n8,052 \n \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nThe change in net position increased $8.1 million from fiscal year 2015 to fiscal year 2016. \nThere was a $1.5 million increase in programs revenues directly correlated with nearly $1.0 million in federal awards and the remaining in QBE and state funding. Property tax revenues increased by $263,000. Sales tax revenues increased slightly by $18,000. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. Total Program Expenses decreased $5.4 million for fiscal year 2016 compared to the previous fiscal year. Although there was an increase in support and operation expenditures of $5.3 million, there was a decrease in instructional expenditures of $10.7 million. The decrease in instructional expenditures was due to the initial purchase of technology equipment and peripherals that were purchased for the 1:1 initiative in fiscal year 2015. Descriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. Pupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. Improvement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. Educational Media Services are activities that direct, manage and operate educational media centers. General Administration establishes and administers policy for operating the local School District. School Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. Business Administration includes the financial and warehouse operations of the School District. Maintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. Student Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. Central and Other Support Services include all other support services including personnel services, management information services, and public relations services. Enterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. Community Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. Food Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by federal and state grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nGovernmental Activities \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2015 and fiscal year 2016. This information is presented on the Statement of Activities. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2016 \n \nYear 2015 \n \nInstruction \n \n$ \n \n92,717 $ \n \n103,416 $ \n \n23,964 $ \n \n35,719 \n \nSupport 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 and Other Support Services \nOperations of Non-Instructional Services Enterprise Operations Community Services Food Services \nInterest on Short-Term and Long-Term Debt \n \n3,995 9,988 3,021 1,661 9,991 3,076 14,121 6,581 7,583 \n342 496 10,990 447 \n \n4,141 9,299 2,917 1,519 9,787 1,923 13,714 6,412 5,668 \n396 494 10,044 672 \n \n2,879 1,811 \n997 (497) 5,802 2,979 9,439 4,145 6,897 \n342 496 (692) 447 \n \n2,971 1,490 \n874 (601) 5,489 1,831 8,897 4,259 4,801 \n396 494 (1,427) 672 \n \nTotal Expenses \n \n$ \n \n165,009 $ \n \n170,402 $ \n \n59,009 $ \n \n65,865 \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other general revenues. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nThe School District's Funds \n \nTable 4 shows the change in fund balance for governmental funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services \nTotal Expenditures \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nGeneral Fund \n \nCapital Projects \nFund \n \n$ 39,918 $ 271 \n84,948 28,915 \n1,577 13 \n1,918 \n157,560 \n \n- $ 15 78 \n93 \n \n88,220 54,796 \n342 496 10,448 \n481 - \n154,783 \n \n6,196 2,167 \n- \n5,490 3,270 \n17,123 \n \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Capital Leases Transfers In Transfers Out Total Other Financing Sources(Uses) \n \n2,777 \n(86) (86) \n \n(17,030) \n3,768 86 - \n3,854 \n \nNet Change in Fund Balances Fund Balances - Beginning \n \n2,691 18,286 \n \n(13,176) 29,080 \n \nDebt Service Fund \n- $ 15,552 \n92 15,644 \n8,820 8,820 \n6,824 \n- \n6,824 18,096 \n \nTotals \n39,918 15,823 84,948 28,915 \n1,577 120 \n1,996 173,297 \n94,416 56,963 \n342 496 10,448 5,971 12,090 180,726 \n(7,429) \n3,768 86 (86) \n3,768 \n(3,661) 65,462 \n \nFund Balances - Ending \n \n$ \n \n20,977 $ \n \n15,904 $ \n \n24,920 $ \n \n61,801 \n \nTotal revenues for all governmental funds were $173.3 million and total expenditures were $180.7 million. Total expenditures exceeded total revenues by $7.4 million for governmental activities. The fund balance for governmental funds decreased from $65.5 million at the beginning of the fiscal year to $61.8 million at June 30, 2016. \nThe fund balance reported for the general fund increased from $18.3 million at the beginning of the fiscal year to $21.0 million at June 30, 2016 due to a combined increase of general fund revenues received over expenditures in the areas of instruction, support services and food service operations. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nThe fund balance reported for the capital projects fund decreased from $29.1 million at the beginning of the fiscal year to $15.9 million at June 30, 2016. This was mainly due to the capital outlay expenditures exceeding revenues in the current year. The School District entered into a capital lease agreement with Dell Financial to finance the School District's 1:1 initiative, to help support classroom learning that is student-centered, collaborative, imaginative, and adaptive. \nThe fund balance reported for the debt service fund increased from $18.1 million at the beginning of the fiscal year to $24.9 million at June 30, 2016. This increase was a result of an increase in sales tax revenue of $3.5 million. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"6\". \nDuring fiscal year 2016, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2015, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds restricted for a specific purpose can only be used to fund additional programs. Also, federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nFor the past three consecutive years the state budget included funds that provided continued relief to the \"austerity reductions\" that began in fiscal year 2003. The additional state funding enabled school districts to eliminate teacher adjusted work days, increase instructional days, and/or increase teacher salaries. The cumulative effect of these reductions to the School District over the 13-year period is the loss of just under $90.0 million in state funding. While there were still challenges of a continued decline in local tax revenue, decline in student enrollment and increases in employee benefits cost, the School District presented a balanced budget. \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nThe School District has invested over $260 million in capital assets, net of depreciation. Table 5 compares fiscal year 2016 capital asset balances to fiscal year 2015 balances. \nTable 5 Capital Assets at June 30 (Net of depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2016 \n \n2015 \n \n(Decrease) \n \nLand \n \n$ \n \n9,051 $ \n \n9,051 $ \n \nConstruction in Progress \n \n32,269 \n \n27,039 \n \nBuildings and Building Improvements \n \n214,846 \n \n220,506 \n \nEquipment \n \n3,917 \n \n4,227 \n \nTotal \n \n$ 260,083 $ 260,823 $ \n \n5,230 (5,660) \n(310) \n(740) \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 5 shows that total capital assets decreased $740,000 in fiscal year 2016. The decrease is a cumulative total of the following: Increase in construction in progress largely due to school renovations, completion of the IT infrastructure upgrade and the full implementation of 1:1 technology. All construction projects were funded by a one percent Special Purpose Local Option Sales Tax (SPLOST) approved by the voters of Dougherty County. Current year depreciation expense represents the majority of the decrease in buildings and equipment totaling $6.0 million. \nDebt \nTable 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2015 and fiscal year 2016. \nTable 6 Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 \n \nIncrease (Decrease) \n \nG.O. Bonds Caital Leases Compensated Absences Bond Premiums Amortized \n \n$ \n \n16,775 $ \n \n24,725 $ \n \n(7,950) \n \n9,483 \n \n8,881 \n \n602 \n \n931 \n \n990 \n \n(59) \n \n1,026 \n \n1,540 \n \n(514) \n \n$ \n \n28,215 $ \n \n36,136 $ \n \n(7,921) \n \nAs shown in Table 6, capital leases total $9.5 million with Key Financial, US Bank and Dell Financial to finance technology upgrades. The annual bond principal payment of $7.9 million was made during the fiscal year. In addition, compensated absences of $931,000 represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \nCurrent Financial Issues \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the increased employer cost for employee health benefits and teachers retirement and the continued state formula allotment reductions. Other challenges include a decline in student enrollment (FTE) over the years and a stagnant local tax digest. \nDespite these challenges, the School District is financially stable. The School District's operating millage for fiscal year 2016 was 18.445. The current millage rate has remained at 18.445 since fiscal year 2008 (2007 digest). \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2013. \nFiscal Year 2012 15,497 Fiscal Year 2013 15,676 Fiscal Year 2014 15,628 Fiscal Year 2015 15,361 \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, fully funding teacher salaries, provide a step increase for all employees, the School District implemented cost-saving measures, while maintaining essential levels of service to support teaching and learning. The School District strives to emphasize student achievement while maintaining sound fiscal management. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Susan Hatcher, Chief Financial Officer, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to shatcher@docoschools.org. \nxi \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCTION STATEMENT OF NET POSTION JUNE 30, 2016 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items 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 Interest Payable Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension 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 \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ 62,620,636.73 $ 9,804.39 \n3,791,485.33 10,943,915.01 \n3,846,969.31 29,734.81 \n761,963.22 415,324.93 \n6,940.91 41,319,692.09 218,763,586.01 \n342,510,052.74 \n \n151,279.00 - \n410,000.00 2,793,068.00 \n3,354,347.00 \n \n11,227,004.79 \n \n- \n \n1,682,872.80 15,785,890.23 \n135,322.07 1,430,585.90 \n904,181.37 266,171.57 296,070.22 113,662,108.00 \n11,860,929.86 16,354,661.17 \n162,378,793.19 \n \n10,407.00 - \n- \n10,407.00 \n \n14,571,785.00 \n \n- \n \n253,563,067.60 \n4,700,207.11 24,861,571.01 15,826,984.64 (122,165,351.02) \n \n3,203,068.00 \n140,872.00 \n \nTotal Net Position \n \n$ 176,786,479.34 $ \n \n3,343,940.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2016 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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$ 92,717,280.08 $ \n3,994,617.76 9,988,042.21 3,020,641.35 1,660,938.50 9,991,209.72 3,075,796.33 14,121,341.05 6,581,209.99 6,937,929.54 \n645,907.40 \n341,619.46 495,632.06 10,990,247.37 446,780.29 \n$ 165,009,193.11 $ \n \n1,219,141.62 \n19,355.51 181,581.27 - \n157,003.28 - \n1,577,081.68 \n \n$ \n \n219,909.00 $ \n \n141,684.00 \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL DOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ 67,456,134.78 $ \n1,116,062.02 8,177,329.28 2,023,157.00 2,158,059.16 4,188,952.48 \n96,449.83 4,663,197.61 1,868,730.05 \n8,458.57 678,753.20 \n11,525,524.16 - \n$ 103,960,808.14 $ \n \n77,586.35 $ (23,964,417.33) \n \n386,100.00 - \n \n(2,878,555.74) (1,810,712.93) \n(997,484.35) 497,120.66 (5,802,257.24) (2,979,346.50) (9,438,787.93) (4,144,798.67) (6,929,470.97) \n32,845.80 \n \n- \n \n(341,619.46) \n \n- \n \n(495,632.06) \n \n- \n \n692,280.07 \n \n- \n \n(446,780.29) \n \n463,686.35 \n \n(59,007,616.94) \n \n$ \n \n78,225.00 \n \n40,068,490.50 51,632.25 \n15,552,233.54 271,154.23 \n9,210,277.00 120,194.81 \n1,918,140.89 \n67,192,123.22 \n8,184,506.28 \n168,601,973.06 \n \n- \n441.00 812,365.00 \n812,806.00 \n734,581.00 \n2,619,766.00 \n \n$ 176,786,479.34 $ \n \n3,354,347.00 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2016 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Receivables, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 21,619,808.18 $ 17,360,914.93 $ \n \n9,804.39 \n \n- \n \n2,510,619.61 \n \n- \n \n10,943,915.01 \n \n- \n \n3,846,969.31 \n \n- \n \n29,734.81 \n \n- \n \n761,963.22 \n \n- \n \n415,324.93 \n \n- \n \n6,940.91 \n \n- \n \n23,639,913.62 $ - \n1,280,865.72 - \n \n62,620,636.73 9,804.39 \n3,791,485.33 10,943,915.01 \n3,846,969.31 29,734.81 \n761,963.22 415,324.93 \n6,940.91 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 40,145,080.37 $ 17,360,914.93 $ 24,920,779.34 $ 82,426,774.64 \n \n$ 1,490,033.58 $ 15,785,890.23 201,445.83 \n \n192,839.22 $ - \n904,181.37 266,171.57 \n94,624.39 \n \n17,477,369.64 \n \n1,457,816.55 \n \n- $ - \n- \n \n1,682,872.80 15,785,890.23 \n904,181.37 266,171.57 296,070.22 \n18,935,186.19 \n \n1,690,514.43 \n \n- \n \n- \n \n1,690,514.43 \n \n422,265.84 4,575,656.41 4,221,294.03 \n363,990.33 11,393,989.69 \n20,977,196.30 \n \n15,903,098.38 \n- \n15,903,098.38 \n \n24,920,779.34 \n- \n24,920,779.34 \n \n422,265.84 45,399,534.13 \n4,221,294.03 363,990.33 \n11,393,989.69 \n61,801,074.02 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 40,145,080.37 $ 17,360,914.93 $ 24,920,779.34 $ 82,426,774.64 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2016 \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 Accumulated depreciation \nSome liabilities 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 funds. \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 Capital leases payable Compensated absences payable Unamortized bond premiums Claims and judgments payable \nTotal Long-Term Liabilities \n \n$ \n \n61,801,074.02 \n \n$ \n \n9,051,054.08 \n \n32,268,638.01 \n \n336,765,218.37 \n \n11,573,143.37 \n \n(129,574,775.73) \n \n260,083,278.10 \n \n(113,662,108.00) (3,344,780.21) 1,690,514.43 \n \n$ (16,775,000.00) (135,322.07) \n(9,483,109.07) (931,235.76) \n(1,026,246.20) (1,430,585.90) \n \n(29,781,499.00) \n \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n176,786,479.34 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \n \nEXHIBIT \"E\" \n \nREVENUES \n \nProperty Taxes \n \n$ \n \nSales Taxes \n \nState Funds \n \nFederal Funds \n \nCharges for Services \n \nInvestment Earnings \n \nMiscellaneous \n \nTotal Revenues \n \nEXPENDITURES \n \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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \n \nTotal Expenditures \n \nRevenues over (under) Expenditures \n \nOTHER FINANCING SOURCES (USES) \n \nCapital Leases Transfers In Transfers Out \n \nTotal Other Financing Sources (Uses) \n \nNet Change in Fund Balances \n \nFund Balances - Beginning \n \nGENERAL FUND \n39,918,165.02 $ 271,154.23 \n84,947,619.92 28,914,994.05 \n1,577,081.68 13,335.02 \n1,918,140.89 \n157,560,490.81 \n88,220,350.02 \n4,134,746.25 10,264,135.76 \n2,891,390.00 1,677,965.10 9,947,631.54 1,839,280.83 13,313,722.63 5,479,878.74 4,567,200.76 \n680,216.08 341,619.46 495,632.06 10,447,933.15 481,559.00 \n- \n154,783,261.38 \n2,777,229.43 \n(86,250.80) \n(86,250.80) \n2,690,978.63 \n18,286,217.67 \n \nCAPITAL PROJECTS \nFUND \n- $ 15,090.81 77,586.35 \n92,677.16 \n6,196,288.73 \n6,260.00 7,994.00 2,755.58 1,675,491.28 108,777.44 365,703.54 5,489,766.93 \n3,165,685.49 104,486.45 \n17,123,209.44 \n(17,030,532.28) \n3,767,715.10 86,250.80 - \n3,853,965.90 \n(13,176,566.38) \n29,079,664.76 \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n- $ 15,552,233.54 \n91,768.98 - \n15,644,002.52 \n \n39,918,165.02 15,823,387.77 84,947,619.92 28,914,994.05 \n1,577,081.68 120,194.81 \n1,995,727.24 \n173,297,170.49 \n \n- \n- \n7,950,000.00 869,500.00 \n8,819,500.00 \n6,824,502.52 \n \n94,416,638.75 \n4,134,746.25 10,264,135.76 \n2,891,390.00 1,684,225.10 9,955,625.54 1,842,036.41 14,989,213.91 5,588,656.18 4,932,904.30 \n680,216.08 341,619.46 495,632.06 10,447,933.15 5,971,325.93 \n11,115,685.49 973,986.45 \n180,725,970.82 \n(7,428,800.33) \n \n- \n- \n6,824,502.52 \n18,096,276.82 \n \n3,767,715.10 86,250.80 (86,250.80) \n3,767,715.10 \n(3,661,085.23) \n65,462,159.25 \n \nFund Balances - Ending \n \n$ \n \n20,977,196.30 $ 15,903,098.38 $ \n \n24,920,779.34 $ \n \n61,801,074.02 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n DOUGHERTY 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, 2016 \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. \nCapital leases issued Bond principal retirements Capital lease payments Amortization of bond premium \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 liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \nPension expense \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 bonds Compensated absences Claims and judgments \n \n$ (3,661,085.23) \n \n$ 5,971,325.93 (6,787,469.79) \n \n(816,143.86) 76,713.73 \n201,957.73 \n \n$ (3,767,715.10) 7,950,000.00 3,165,685.49 513,123.10 \n \n7,861,093.49 \n \n4,792,717.92 \n \n$ \n \n14,083.06 \n \n58,864.63 \n \n(343,695.19) \n \n(270,747.50) \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ 8,184,506.28 \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 Receivables, Net \nLocal \nTotal Assets LIABILITIES Accounts Payable Funds Held for Others \nTotal Liabilities \n \nDOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2016 \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 393,672.53 10,409.17 $ 404,081.70 \n$ 7,972.48 396,109.22 \n$ 404,081.70 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 8 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Notes 5 and 15 for additional component unit disclosures. \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. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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 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. \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. \nThe School District reports the following fiduciary fund type: \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. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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 judgements and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of 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. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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. \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 (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nConsumable Supplies \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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. \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount \n \nN/A \n \n$ \n \n100,000.00 \n \n20 to 80 years \n \n$ \n \n50,000.00 \n \n4 to 10 years \n \n$ 1,000,000.00 \n \n4 to 8 years \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \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. \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 \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 18 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 30 days. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \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 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. \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. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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. \n \nPROPERTY TAXES \nThe Dougherty County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on July 20, 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 Dougherty County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.1% 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 $37,607,755.06. \n \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 \n18.445 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,258,777.71 during fiscal year ended June 30, 2016. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $15,552,233.54 and is to be used for capital outlay and debt services for educational purposes. 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. \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- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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: \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, 2016, School District had deposits with a carrying amount of $17,718,746.92, and a bank balance of $25,331,007.78. The bank balances insured by Federal depository insurance were $1,235,844.70 and the bank balances collateralized with securities held by the pledging institution or by the pledging financial institution's trust department or agent in the School District's name were $28,033.68. \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nAt June 30, 2016, $24,317,129.40 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized Uninsured with collateral held by the pledging \nfinancial institution Uninsured with collateral held by the pledging \nfinancial institution's trust department or agent but not in the School District's name \n \n$ \n \n- \n \n- \n \n24,067,129.40 \n \nTotal \n \n$ 24,067,129.40 \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nStatement of Net Position Cash and cash equivalents \nStatement of Fiduciary Net Position Cash and cash equivalents \n \n$ 62,620,636.73 393,672.53 \n \nTotal cash and cash equivalents \n \n63,014,309.26 \n \nAdd: Deposits with original maturity of three months or more reported as investments \n \n9,804.39 \n \nLess: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \n \n45,305,366.73 \n \nTotal carrying value of deposits - June 30, 2016 \n \n$ 17,718,746.92 \n \nCOMPONENT UNIT \nAt June 30, 2016, Dougherty County Stadium Authority's bank balance of $151,279.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $45,305,366.73 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \n$ 9,051,054.08 $ \n \n- $ \n \n27,038,831.08 \n \n5,229,806.93 \n \n- $ 9,051,054.08 \n \n- \n \n32,268,638.01 \n \nTotal Capital Assets Not Being Depreciated \n \n36,089,885.16 \n \n5,229,806.93 \n \n- \n \n41,319,692.09 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n338,916,569.12 10,831,624.37 \n \n741,519.00 \n \n2,151,350.75 - \n \n336,765,218.37 11,573,143.37 \n \n118,410,615.91 6,604,754.51 \n \n5,736,742.52 1,050,727.27 \n \n2,228,064.48 - \n \n121,919,293.95 7,655,481.78 \n \nTotal Capital Assets, Being Depreciated, Net \n \n224,732,823.07 \n \n(6,045,950.79) \n \n(76,713.73) \n \n218,763,586.01 \n \nGovernmental Activity Capital Assets - Net $ 260,822,708.23 $ (816,143.86) $ \n \n(76,713.73) $ 260,083,278.10 \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 \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n14,801.63 29,159.59 190,717.88 341,838.95 100,444.83 238,371.27 842,038.93 92,901.11 \n \n$ 4,522,610.93 \n1,850,274.19 414,584.67 \n$ 6,787,469.79 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCOMPONENT UNIT \nCapital Assets, Not Being Depreciated: Land \n \nBalances July 1, 2015 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2016 \n \n$ \n \n410,000.00 $ \n \n- $ \n \n- $ \n \n410,000.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Stadium Improvements \n \n308,976.00 239,886.00 2,607,983.00 \n \n812,365.00 \n \n- \n \n308,976.00 \n \n- \n \n239,886.00 \n \n- \n \n3,420,348.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Stadium Improvements \n \n88,826.00 239,885.00 766,372.00 \n \n7,724.00 5,411.00 67,924.00 \n \n- \n \n96,550.00 \n \n- \n \n245,296.00 \n \n- \n \n834,296.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,061,762.00 \n \n731,306.00 \n \n- \n \n2,793,068.00 \n \nCapital Assets - Net \n \n$ 2,471,762.00 $ 731,306.00 $ \n \n- $ 3,203,068.00 \n \nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2016, consisted of the following: \n \nTransfers to \n \nTransfers From General Fund \n \nCapital Projects Fund \n \n$ 86,250.80 \n \nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund to cover a portion of the employee's salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects. \n \nNOTE 7: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n- $ 8,200,000.00 $ 8,200,000.00 $ \n \n- \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 8: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \n \nBalance July 1, 2015 \n \nAdditions \n \nGovernmental Activities \n \nDeductions \n \nBalance June 30, 2016 \n \nDue Within One Year \n \nGeneral Obligation Bonds $ 24,725,000.00 $ \n \n- $ \n \nCapital Leases \n \n8,881,079.46 \n \n3,767,715.10 \n \nBond Premiums Amortized \n \n1,539,369.30 \n \n- \n \nCompensated Absences \n \n990,100.39 \n \n781,447.06 \n \n7,950,000.00 $ 3,165,685.49 \n513,123.10 840,311.69 \n \n16,775,000.00 $ 9,483,109.07 1,026,246.20 931,235.76 \n \n8,175,000.00 3,107,620.26 \n513,123.10 65,186.50 \n \n$ 36,135,549.15 $ 4,549,162.16 $ 12,469,120.28 $ 28,215,591.03 $ 11,860,929.86 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property and sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nVoters have authorized $7,550,000.00 in general obligation debt for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. These bonds had not been issued as of June 30, 2016. \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date Maturity Date Amount Issued Amount Outstanding \n \nGeneral Government - Series 2013 2.00 - 5.00% 11/21/2013 \n \n12/1/2017 $ 32,450,000.00 $ \n \n16,775,000.00 \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: \n2017 2018 \nTotal Principal and Interest \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n$ \n \n8,175,000.00 $ \n \n8,600,000.00 \n \n550,250.00 \n \n$ \n \n195,000.00 \n \n513,123.10 513,123.10 \n \n$ \n \n16,775,000.00 $ \n \n745,250.00 \n \n$ \n \n1,026,246.20 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCAPITAL LEASES \nThe School District has acquired information technology equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \nGovernmental Activities \n \nConstruction In Progress \n \n$ 7,008,854.30 \n \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of information technology equipment at a cost of $3,767,715.10. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \n \nCapital leases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nKey Financial (Technology) US Bank (Technology) Dell (Technology) \n \n2.20% 0.27% 3.00% \n \n7/17/2014 5/1/2015 12/1/2015 \n \n10/17/2018 $ 5/1/2019 12/1/2018 \n \n5,543,885.34 $ 5,857,254.97 3,767,715.10 \n \n3,185,157.45 3,514,336.52 2,783,615.10 \n \nThe following is a schedule of total capital lease payments: \n \n$ \n \n15,168,855.41 $ 9,483,109.07 \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2017 2018 2019 \n \n$ 3,107,620.26 $ 3,160,595.77 3,214,893.04 \n \n162,927.25 109,951.74 \n55,654.46 \n \nTotal Principal and Interest $ 9,483,109.07 $ \n \n328,533.45 \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 \nNOTE 9: 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; acts of God and unemployment compensation. \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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 \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the internal service fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2015 2016 \n \n$ 1,223,673.06 $ 1,086,890.71 \n \n$ 928,271.89 $ 1,569,873.56 \n \n$ 1,065,054.24 $ 1,226,178.37 \n \n$ 1,086,890.71 $ 1,430,585.90 \n \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 \n \nClaims and \n \nof Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n2015 \n \n$ \n \n- \n \n$ \n \n74,014.30 \n \n$ \n \n74,014.30 \n \n$ \n \n- \n \n2016 \n \n$ \n \n- \n \n$ \n \n20,674.00 \n \n$ \n \n20,674.00 \n \n$ \n \n- \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nSURETY BOND \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 \n50,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \n \nNonspendable \nInventories Prepaid assets Restricted Continuation of federal programs Capital projects Debt service Committed Self-Insurance Subsequent period expenditures Assigned School activity accounts Unassigned \n \n$ \n \n415,324.93 \n \n6,940.91 $ \n \n422,265.84 \n \n$ \n \n4,575,656.41 \n \n15,903,098.38 \n \n24,920,779.34 \n \n45,399,534.13 \n \n$ \n \n2,311,114.03 \n \n1,910,180.00 \n \n4,221,294.03 \n \n363,990.33 11,393,989.69 \n \nFund balance, June 30, 2016 \n \n$ 61,801,074.02 \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. \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A. 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 11: 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: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2016 (2) \n \nIT Infrastructure Upgrade/Data Centers Demolition Albany High Cafeteria Monroe High Phase II Magnolia Education Center \n \n$ \n \n14,694.87 $ \n \n531,309.27 \n \n232,845.00 \n \n19,507.50 \n \n2,291,358.68 \n \n2,275,612.32 \n \n27,021,177.00 \n \n872,224.00 \n \n60,347.00 \n \n7,153.00 \n \n$ \n \n29,620,422.55 $ \n \n3,705,806.09 \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, postage meters and equipment 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 $386,744.96 for governmental activities for the year ended June 30, 2016. The following future minimum lease payments were required under operating leases at June 30, 2016: \n \nYear Ending \n \nGovernmental Activities \n \n2017 \n \n$ \n \n28,101.11 \n \nNOTE 12: 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 it is not believed to have a material adverse effect on the financial condition of the School District. \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 13: POST-EMPLOYMENT BENEFITS \n \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \n \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. \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% 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. Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \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 $746.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% 100% 100% \n \n$ \n \n16,637,068.51 \n \n$ \n \n15,938,801.37 \n \n$ \n \n16,535,080.12 \n \nNOTE 14: 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 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 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 14.21% of payroll was required from the School District and 0.06% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $11,216,453.07 and $43,975.82 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. \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \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, 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 $9,095.72 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. \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. \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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. \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 $364,890.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2016, the School District reported a liability of $113,662,108.00 for its proportionate share of the net pension liability for TRS ($113,556,934.00) and ERS ($105,174.00). \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 113,556,934.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n446,368.00 \n \nTotal \n \n$ 114,003,302.00 \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 0.745907%, which was a decrease of 0.028075% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.002596%, which was a decrease of 0.002157% 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 $1,556,980.00. \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. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nFor the year ended June 30, 2016, the School District recognized pension expense of $6,472,461.00 for TRS, ($32,327.00) for ERS and $92,849.00 for PSERS and revenue of $10,588.00 for TRS and $92,849.00 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. \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 \nERS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nDifferences between expected and actual experience $ \n \n- $ \n \n998,792.00 $ \n \n- $ \n \nNet difference between projected and actual earnings on pension plan investments \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n9,578,647.00 \n \n- \n \n- \n \n3,925,530.00 \n \n1,456.00 \n \nSchool District contributions subsequent to the measurement date \n \n11,216,453.07 \n \n- \n \n9,095.72 \n \nTotal \n \n$ 11,216,453.07 $ 14,502,969.00 $ 10,551.72 $ \n \n840.00 7,588.00 \n60,388.00 - \n68,816.00 \n \nThe School District contributions subsequent to the measurement date of $11,216,453.07 for TRS and $9,095.72 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2017 2018 2019 2020 2021 \n \n$ (5,623,872.00) $ (42,745.00) \n \n$ (5,623,872.00) $ (23,792.00) \n \n$ (5,623,880.00) $ (3,382.00) \n \n$ 2,600,186.00 $ 2,559.00 \n \n$ (231,531.00) $ \n \n- \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nActuarial assumptions: 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: \n \nInflation \n \n3.00% \n \nSalary increases \n \n3.75%  7.00%, 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 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 \n \nN/A \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 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- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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 \n \nTarget allocation \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 \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 \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 \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 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$ 195,139,005.00 \n \nCurrent Discount Rate (7.50%) \n \n$ \n \n113,556,934.00 \n \n1% Increase (8.50%) \n$ 46,313,895.00 \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 the \n \nnet pension liability \n \n$ \n \n149,088.00 $ \n \n105,174.00 $ \n \n67,736.00 \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 http://www.ers.ga.gov/formspubs/formspubs.html. \n \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nDEFINED CONTRIBUTION PLAN \nOn August 1, 1996, the School District began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \nThe School District selected VALIC as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the School District matches 3% of the employee's contribution. \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the School District. \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 \n2016 2015 2014 \n \n3% \n \n$ \n \n3% \n \n$ \n \n3% \n \n$ \n \n144,801.75 152,225.45 163,989.90 \n \nNOTE 15: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement No. 33 and 34. The authority's fiscal year is July 1 through June 30. \nNOTE 16: SUBSEQUENT EVENTS \nOn November 8, 2016, the voters of Dougherty County approved the continuation of the Education Special Purpose Local Option Sales Tax (ESPLOST) of one percent to be imposed on all sales and uses in Dougherty County for a period of time not to exceed 20 calendar quarters to raise not more than $90,000,000.00. The proceeds are to be used as stated on the Official Ballot of Dougherty County as follows: \n\"For the purpose of funding the (a) renovation, improvement and equipping of existing schools, administration, athletic and related facilities, (b) acquisition, construction and equipping of new schools, administration, athletic and related facilities, (c) the acquisition of school buses and vehicles for maintenance and transportation use, (d) acquisition of software, hardware and computer equipment for the use of both staff and students, (e) acquisition of energy savings equipment and (f) acquisition of real and personal property necessary for the foregoing.\" \nThis vote also approved the issuance of general obligation debt of the Dougherty County School District in the principal amount of $50,000,000.00 for the above capital outlay purposes. \n \n- 33 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n2016 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 net pension liability \nassociated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \n0.745907% $ 113,556,934.00 $ 0.773982% $ 97,782,417.00 $ \n \n446,368.00 381,664.00 \n \n$ 114,003,302.00 $ 98,164,081.00 \n \n$ 79,042,137.85 $ 79,341,795.52 \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n143.67% 123.24% \n \n81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n DOUGHERTY 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 \n2016 2015 \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-employee \npayroll \n \nSchool District's proportionate share of the net pension liability as a \npercentage of covered payroll \n \n0.002596% $ 0.004753% $ \n \n105,174.00 $ 178,267.00 $ \n \n64,229.58 97,265.38 \n \n163.75% 183.28% \n \nPlan fiduciary net position as a \npercentage of total net pension liability \n76.20% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 36 - \n \n DOUGHERTY 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 \n2016 2015 \n \nSchool District's proportion of the \nnet pension liability \n \nSchool District's proportionate share of \nthe net pension liability \n \nState of Georgia's proportionate share of the net pension liability \nassociated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the net pension liability as a percentage of its covered \nemployee payroll \n \nPlan fiduciary net position as a \npercentage of the total pension liability \n \n0.00% $ 0.00% $ \n \n- \n \n$ \n \n1,556,980.00 $ 1,556,980.00 $ 7,670,767.69 \n \n- \n \n$ \n \n1,422,781.00 $ 1,422,781.00 $ 7,101,357.18 \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \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 DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"4\" \n \nYear Ended \n2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n11,216,453.07 $ \n \n11,216,453.07 $ \n \n- \n \n$ \n \n10,355,842.01 $ \n \n10,355,842.01 $ \n \n- \n \nSchool District's covered-employee \npayroll \n$ 78,919,817.39 $ 79,042,137.85 \n \nContribution as a percentage of covered- \nemployee payroll \n14.21% 13.10% \n \nThe schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 38 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nSCHEDULE \"5\" \n \nYear Ended \n2016 2015 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \n$ \n \n9,095.72 $ \n \n9,095.72 $ \n \n- \n \n$ \n \n14,104.86 $ \n \n14,104.86 $ \n \n- \n \nSchool District's covered-employee \npayroll \n \n$ \n \n36,794.90 \n \n$ \n \n64,229.58 \n \nContribution as a percentage of covered- \nemployee payroll \n24.72% 21.96% \n \nThe schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 39 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System \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. \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, 2016 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, 2013 Entry age Level percentage of payroll, closed 30 years Five-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \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, 2016 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, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment \nexpense, including inflation \n \nPublic School Employees Retirement System \n \nChanges of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were revised and adopted by the board on December 16,2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014. \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, 2016 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 \nCost-of living adjustments \n \nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment \nexpense, including inflation 1.50% semi-annually \n \n- 40 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"7\" \n \nREVENUES \n \nProperty Taxes \n \n$ \n \nSales Taxes \n \nState Funds \n \nFederal Funds \n \nCharges for Services \n \nInvestment Earnings \n \nMiscellaneous \n \nTotal Revenues \n \nEXPENDITURES \n \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 Community Services Food Services Operation \nCapital Outlay \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nOTHER FINANCING SOURCES (USES) \n \nOther Sources Other Uses \n \nTotal Other Financing Sources (Uses) \n \nNet Change in Fund Balances \n \nFund Balances - Beginning \n \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \n40,441,437.00 $ 220,782.00 \n83,923,126.00 29,386,693.00 \n990,858.00 14,000.00 \n2,953,236.00 \n157,930,132.00 \n \n40,129,442.00 $ 220,782.00 \n81,692,029.00 33,582,259.00 \n1,206,108.00 14,000.00 \n5,056,218.00 \n161,900,838.00 \n \n90,665,611.00 \n3,884,426.00 9,990,057.00 2,889,695.00 1,709,948.00 9,272,739.00 1,714,184.00 14,479,199.00 6,055,208.00 5,076,395.00 \n911,652.00 12,510,873.00 \n346,200.00 472,802.00 \n- \n159,978,989.00 \n(2,048,857.00) \n \n90,487,182.23 \n4,149,074.77 12,472,708.00 \n2,890,930.00 2,213,235.00 9,278,741.15 1,553,374.00 14,570,233.85 6,214,828.00 5,183,444.00 1,081,929.00 12,977,427.00 \n330,870.00 472,802.00 \n- \n163,876,779.00 \n(1,975,941.00) \n \n2,465,715.00 (825,000.00) \n1,640,715.00 (408,142.00) \n16,485,515.53 - \n \n2,471,610.00 (825,000.00) \n1,646,610.00 (329,331.00) \n18,565,390.10 (19,407.34) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n39,918,165.02 $ 271,154.23 \n84,947,619.92 28,914,994.05 \n1,577,081.68 13,335.02 \n1,918,140.89 \n157,560,490.81 \n \n(211,276.98) 50,372.23 \n3,255,590.92 (4,667,264.95) \n370,973.68 (664.98) \n(3,138,077.11) \n(4,340,347.19) \n \n88,220,350.02 \n4,134,746.25 10,264,135.76 \n2,891,390.00 1,677,965.10 9,947,631.54 1,839,280.83 13,313,722.63 5,479,878.74 4,567,200.76 \n680,216.08 341,619.46 495,632.06 10,447,933.15 481,559.00 \n154,783,261.38 \n2,777,229.43 \n \n2,266,832.21 \n14,328.52 2,208,572.24 \n(460.00) 535,269.90 (668,890.39) (285,906.83) 1,256,511.22 734,949.26 616,243.24 401,712.92 12,635,807.54 (164,762.06) (9,975,131.15) (481,559.00) \n9,093,517.62 \n4,753,170.43 \n \n(86,250.80) (86,250.80) 2,690,978.63 18,286,217.67 \n- \n \n(2,471,610.00) 738,749.20 \n(1,732,860.80) 3,020,309.63 \n(279,172.43) 19,407.34 \n \nFund Balances - Ending \n \n$ \n \n16,077,373.53 $ \n \n18,216,651.76 $ \n \n20,977,196.30 $ \n \n2,760,544.54 \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 $1,31,408.91 and $1,036,757.67, 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- 41 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"8\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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 Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program School Improvement Grants Special Education State Personnel Development Title I Grants to Local Educational Agencies \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 Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Southwest Georgia Developmental Center Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n16165GA324N1099 $ 16165GA324N1099 \n \n2,800,982.71 8,335,194.06 \n11,136,176.77 \n \n10.558 \n \n15165GA368N2020 \n \n115,431.81 11,251,608.58 \n \n84.027 84.173 \n \nH027A150073 H173A150081 \n \n84.048 84.196 84.365 84.367 84.011 84.377 \n84.323 84.010 \n \nV048A150010 S196A150011 S365A150010 S367A150001 S011A150011 S377A150011 \nH323A120020 S010A150010 \n \n3,755,122.96 118,005.63 \n3,873,128.59 \n212,203.00 18,073.59 40,585.58 \n1,590,026.93 40,411.03 \n2,211,354.86 \n37,372.43 9,320,676.43 \n13,470,703.85 \n17,343,832.44 \n \n93.959 \n \nnot available \n \n17.259 \n \n15151507013 \n \n91,732.54 \n34,259.89 \n37,560.34 81,173.05 118,733.39 \n \nTotal Expenditures of Federal Awards \n \n$ 28,840,166.84 \n \n- 42 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"8\" \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 Dougherty County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \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- 43 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \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 Handicapped Program Pupil Transportation - State Bonds Teachers Retirement Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \nSee notes to the basic financial statements. \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,208,872.02 \n \n5,760,656.00 430,095.00 \n13,662,984.00 2,381,149.00 5,645,766.00 1,867,670.00 9,253,564.00 8,502,007.00 2,513,426.00 7,751,861.00 1,796,559.00 871,821.00 674,044.00 313,421.00 1,771,469.00 557,343.00 275,700.00 6,060.00 \n1,569,220.00 3,583,368.00 3,898,074.00 \n65,281.00 (3,875,646.00) \n1,548,993.00 297,461.00 \n9,210,277.00 \n266,130.00 1,834,671.00 \n103,351.88 265,425.00 386,100.00 \n43,975.82 141,581.20 \n364,890.00 \n$ 84,947,619.92 \n \n- 44 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nFOR THE YEAR ENDED JUNE 30, 2016 \n \nSCHEDULE \"10\" \n \nSPLOST III \n(i) The renovation and improvement of four high schools and five elementary schools, strategic land acquisition for future school expansion, certain other capital repairs and modifications in system-wide schools, buildings and office (including carpet replacement, gym flooring and certain other capital repairs and modifications). \n(ii) The provision of additional classroom technology (including hardware, software and computer furniture), regular system-wide replacement of computers five years or older, installing six computers in all K-8th grade classrooms and three computers in all 9th-12th grade classrooms, providing system-wide teacher laptop computers, system-wide \"wireless-connectivity\" in all classroom and other buildings, upgrading existing computer-aided instructional systems to \"Model Classroom\" standards and providing three additional \"Model Classrooms\" per school, providing system-wide upgraded or new servers and upgraded main data frame (MDF) rooms, installing \"voice-over-internet-protocol\" (VOIP) in various classrooms throughout the School System. \n(iv) Vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment, and other educational related equipment. \nSubtotal SPLOST III \nSPLOST IV \n(a) The renovation and improvement of one or more existing schools, administration and related facilities, including the provision of safety and security equipment for these facilities; \n(b) acquisition, construction and equipping of new schools, administration and related facilities; \n(c) the acquisition of school buses, vehicles for maintenance and transportation use and other transportation equipment; \n(d) acquisition, construction and equipping of new athletic facilities; \n(e) acquisition of software, hardware and computer equipment for the use of both staff and students; \n(f) acquisition of real and personal property necessary for the foregoing; \nSubtotal SPLOST IV \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEAR (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (4) \n \nESTIMATED COMPLETION \nDATE \n \n$ 75,200,000.00 $ 64,362,346.56 $ \n \n1,747.02 $ 64,360,599.54 $ \n \n64,362,346.56 $ \n \n- \n \nCompleted \n \n10,500,000.00 \n \n20,214,620.13 \n \n8,111.15 \n \n20,206,508.98 \n \n20,214,620.13 \n \n- \n \nCompleted \n \n3,600,000.00 89,300,000.00 \n \n4,254,842.13 88,831,808.82 \n \n9,858.17 \n \n4,254,842.13 88,821,950.65 \n \n4,254,842.13 88,831,808.82 \n \n- \n \nCompleted \n \n- \n \n83,400,000.00 \n \n80,000,000.00 \n \n7,377,665.08 \n \n13,685,476.96 \n \n- \n \n- \n \n- \n \n- \n \n6,200,000.00 \n \n1,000,000.00 \n \n359,971.00 \n \n383,388.00 \n \n- \n \n69.22 \n \n69.22 \n \n- \n \n10,000,000.00 \n \n17,603,987.72 \n \n6,883,722.58 \n \n10,720,265.14 \n \n400,000.00 100,000,000.00 \n \n200,000.00 98,804,056.94 \n \n14,621,427.88 \n \n24,789,130.10 \n \n69.22 69.22 \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \n- \n \nCompleted \n \n- \n \nJune 2018 \n \n- \n \nJune 2018 \n \n- \n \nTotal \n \n$ 189,300,000.00 $ 187,635,865.76 \n \n14,631,286.05 $ 113,611,080.75 $ \n \n88,831,878.04 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 1,852,247.66 \n \nCurrent Year \n \n973,986.45 \n \nTotal \n \n$ 2,826,234.11 \n \nSee notes to the basic financial statements. \n \n- 45 - \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 \nSeptember 8, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 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 Dougherty 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 September 8, 2017. The report was modified for a scope limitation as identified in the auditor's report on the basic financial statements and described below. \nThe financial statements of Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as a part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \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. \n \n (This page left intentionally blank) \n \n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2016-001 that we consider to be a significant deficiency. \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. \nWe also noted certain matters that we have reported to management of Dougherty County Board of Education in a separate letter dated September 8, 2017. \nSchool District's Response to Findings \nThe School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \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 (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 \nSeptember 8, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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 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 DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 6471-12-01 Inadequate Accounting Procedures over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented February 2016. \n \nFS 6471-13-01 Inadequate Accounting Procedures over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented February 2016. \n \nFS 2014-001 Uncollateralized Deposits \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents None Material Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \nFS 2014-002 Inadequate Accounting Procedures over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented February 2016. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-001 Uncollateralized Deposits \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents None Material Noncompliance \n \nFinding Status: \n \nPreviously Reported Corrective Action Implemented \n \nFS 2015-002 Inadequate Control over Financial Reporting Process \n \nControl Category: Internal Control Impact: Compliance Impact: \n \nFinancial Reporting Material Weakness None \n \nFinding Status: \n \nFurther Action Not Warranted (1) \n \nFS 2015-003 Inadequate Accounting Procedures over School Activity Accounts \n \nControl Category: \nInternal Control Impact: Compliance Impact: \n \nCash and Cash Equivalents Revenues/Receipts/Receivables Expenditures/Liabilities/Disbursements Significant Deficiency None \n \nFinding Status: \n \nUnresolved \n \nThe School District will use Central Office Finance staff to provide a monthly review of student activity accounts. This change was implemented February 2016. \n \n(1) Findings/internal control deficiencies of their nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \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 \n10.553, 10.555 84.377 \n \nChild Nutrition Cluster School Improvement Grants Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$862,785.48 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2016 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2016-001 Control Category: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInternal Controls over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2015-003, FS 2014-002, FS-6471-13-01 \n \nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nFinancial Management for Georgia Local Units of Administration Chapter 43, School Activity Accounts (Principal Accounts) states in part \"District Activity Funds (Governmental Funds 500) belong to the School District, are used to support its co-curricular and extra-curricular activities, and are administered by the School District. ... Examples of Authorized District Activity Funds: Athletics...\" In addition, it states \"All activity funds should operate on a cash basis, meaning that no commitments or indebtedness may be incurred unless the fund contains sufficient cash\". \n \nCondition: The following deficiencies were noted with the School District's school activity accounts: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \nRevenues/Receipts/Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of forty-six receipt transactions: o Eighteen receipts were not deposited in a timely manner. o Four receipts did not contain the signature of two employees as required by Board policy. o Thirty-four receipts could not be traced to their recording on the general ledger due to lack of adequate information. o Five receipts did not agree to the amount deposited. o Twelve receipts were not supported by adequate documentation. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of forty disbursement transactions: o Four disbursements did not have original invoices attached. o Twenty-one of the disbursements examined lacked information to be able to trace to recording on the general ledger. \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2016 \n \nII \n \nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \no Three voucher packages did not have evidence of receipt of goods. o Four vouchers did not have appropriately approved requisition requests as required by \nBoard policy. o Three checks written did not agree to the attached invoice. o Four disbursements examined lacked information to be able to determine if charged to the \ncorrect period. \n \nGeneral Ledger  During testing of school activity accounts at three schools, the auditor noted eight accounts with deficit balances. \n \nCause: In discussing these conditions with management, they stated that school personnel have not been adequately following the policies and procedures set-forth in the School District's \"Accounting Manual for Activity Funds\". \n \nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that reduce vulnerabilities in ineffectively separated functions and the risk of errors and fraud. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \n \nViews of Responsible Officials: We concur with this finding. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n- 3 - \n \n (This page left intentionally blank) \n \n SECTION V MANAGEMENT'S CORRECTIVE ACTION \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \n \nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \n \nFS 2016-001 \n \nInternal Controls over School Activity Accounts \n \nControl Category: \n \nCash and Cash Equivalents \n \nRevenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nGeneral Ledger \n \nInternal Control Impact: Significant Deficiency \n \nCompliance Impact: \n \nNone \n \nRepeat of Prior Year Finding: FS 2015-003, FS 2014-002, FS-6471-13-01 \n \nThe accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCorrective Action Plans: The school district will use Central Office staff to provide a monthly review of school activity accounts. Central Office staff will also provide training to school staff as needed. \n \nEstimated Completion Date: This change was implemented February 2016. \n \nContact Person: Susan Hatcher \n \nTelephone: (229) 431-1234 \n \nE-mail: \n \nshatcher@docoschools.org \n \nCORRECTIVE ACTION PLANS  FEDERAL AWARD FINDINGS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2015-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2017-02-23"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 \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 NOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \n35 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n36 \n \n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \n38 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 40 \n \n5 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n42 \n \n6 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n43 \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \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 \n44 46 47 49 \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 23, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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 H), 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 did not audit the financial statements of Dougherty County Stadium Authority, which is a discretely presented component unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority is based solely on the report of other auditors. \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 from material misstatement. \n \n2015ARL-12 \n \n (This page left intentionally blank) \n \n An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \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, based on our audit and the report of other auditors, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Dougherty 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 Dougherty 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, the 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 x and pages 35 through 43, 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-12 \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 Dougherty 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 February 23, 2017, on our consideration of the Dougherty 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 Dougherty 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:es 2015ARL-12 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nINTRODUCTION \nManagement's Discussion and Analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2015. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contribution Made Subsequent to the Measurement Date - an Amendment of GASB Statement No. 68. The adoption of these statements had a significant impact on the School District's District-wide financial statements, and in many cases modifies comparability of fiscal year 2015 financial statements with those of the prior year. Prior year financial statements, as presented within the Management's Discussion and Analysis, have not been restated for implementation of GASB No. 68 and GASB No. 71. The School District's Governmental Fund Financial Statements were not affected by implementation of GASB No. 68 or GASB No. 71. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2015 are as follows: \n The School District continues to maintain a sound fiscal position in fiscal year 2015.  The School District's net position at June 30, 2015 was $168.6 million. Net position reflects \nthe difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2015 of $168.6 million represented a decrease of over $125.3 million when compared to the prior year primarily due to the implementation of GASB No. 68 and GASB No. 71.  General Fund revenues accounted for $155.9 million or about 91% of all revenues totaling $171.6 million.  Among major funds the general fund had $155.9 million in revenues and $155.1 million in expenditures. The general fund's fund balance increased marginally from $17.5 million to $18.3 million. \nUsing the Basic Financial Statements The annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \nFund Financial Statements Fund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major funds: Governmental Funds and Fiduciary Funds. \nGovernmental Funds Most of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds  not the School District as a whole. Governmental funds record how money flows in and out within the current period, and reports the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund and Debt Service Fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance its operations. \nPresentation of Financial Data The next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2014 and fiscal year 2015. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nStatement of Net Position (Analysis of the School District as a Whole) As previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2015 and the comparative amounts for fiscal year 2014. \n \nTable 1 Net Position (In Thousands) \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease \n \nYear 2015 Year 2014 (1) (Decrease) \n \n$ \n \n89,814 $ \n \n100,389 $ \n \n-10,575 \n \n260,823 \n \n252,050 \n \n8,773 \n \nTotal Assets \n \n350,637 \n \n352,439 \n \n-1,802 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plans \n \n10,374 \n \n0 \n \n10,374 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n24,100 134,096 \n \n22,993 35,505 \n \n1,107 98,591 \n \nTotal Liabilities \n \n158,196 \n \n58,498 \n \n99,698 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plans \n \n34,213 \n \n0 \n \n34,213 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted \nTotal Net Position \n \n252,664 41,374 \n-125,436 \n \n$ \n \n168,602 $ \n \n247,174 33,746 13,021 \n \n5,490 7,628 -138,457 \n \n293,941 $ -125,339 \n \n(1) Fiscal Year 2014 balances do not reflect the effect of the Restatement of Net Position. See note 2 in the Notes to the Basic Financial Statements for additional information. \nSee Table 5 for an analysis of the increase in Capital Assets. \nRestricted or designated net position is funds that must be used for a specific purpose. Restricted net position increased $7.6 million and includes $4.5 million restricted for the continuation of federal programs and $36.9 million restricted for capital projects and debt services. \nUnrestricted net position for Governmental Activities decreased from a $13.0 million balance at the end of fiscal year 2014 to a -$125.4 million balance at the end of fiscal year 2015. The decrease is primarily due to the implementation of GASB No. 68 and GASB No. 71. \nStatement of Activities Table 2 shows the changes in net position for fiscal year 2015 and fiscal year 2014 as reported on the Statement of Activities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \n \nFiscal Year 2015 \n \nGovernmental Activities Fiscal Year 2014 (1) \n \n$ \n \n1,463 $ \n \n102,984 \n \n90 \n \n1,534 $ 97,921 \n622 \n \nIncrease (Decrease) \n-71 5,063 \n-532 \n \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items \nTotal General Revenues and Special Items \nTotal Revenues \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 \u0026 Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n104,537 \n39,807 51 \n12,051 3,482 272 \n9,065 64 \n1,890 -684 \n65,998 170,535 \n103,416 \n4,141 9,299 2,917 1,519 9,787 1,923 13,714 6,412 5,668 \n396 494 10,044 672 170,402 \n \n100,077 \n40,889 47 \n4,507 11,176 \n307 \n11,504 53 \n1,947 \n70,430 170,507 \n97,635 \n4,348 7,707 3,092 1,619 10,144 2,082 14,210 7,380 4,922 \n409 498 9,555 723 164,324 \n \n4,460 \n-1,082 4 \n7,544 -7,694 \n-35 \n-2,439 11 -57 \n-684 -4,432 \n28 \n5,781 \n-207 1,592 \n-175 -100 -357 -159 -496 -968 746 \n-13 -4 \n489 -51 6,078 \n \nIncrease in Net Position \n \n$ \n \n133 $ \n \n6,183 $ \n \n-6,050 \n \n(1) Fiscal Year 2014 balances do not reflect the effect of the Restatement of Net Position. See note 2 in the Notes to the Basic Financial Statements for additional information. \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nThe change in net position decreased $6.1 million from fiscal year 2014 to fiscal year 2015. \nThe $4.5 million increase in program revenues is directly correlated with the $2.8 million increase in federal awards and $1.9 million in QBE and state funding (excluding the equalization grant reported as Grants and Contributions not Restricted to Specific Programs). Property tax revenues decreased by $1.0 million. Sales tax revenues decreased slightly by $185,000. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses increased $6.1 million for fiscal year 2015 compared to the previous fiscal year. An increase in instructional expenses of $5.8 million account for the majority of the increase. The increase in instructional expenses was due to salary and benefits and instructional supplies, software and textbook purchases. \nDescriptions of Expense Categories Instruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local School District. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the School District. \nMaintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. \nCentral and Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nFood Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \n \nGovernmental Activities Table 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2014 and fiscal year 2015. This information is presented on the Statement of Activities. \n \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2015 \n \nYear 2014 (1) \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2015 \n \nYear 2014 (1) \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 \u0026 Other Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n103,416 $ \n4,141 9,299 2,917 1,519 9,787 1,923 13,714 6,412 5,668 \n396 494 10,044 672 \n \n97,635 $ \n4,348 7,707 3,092 1,619 10,144 2,082 14,210 7,380 4,922 \n409 498 9,555 723 \n \n35,719 $ \n2,971 1,490 \n874 -601 5,489 1,831 8,897 4,259 4,801 \n396 494 -1,427 672 \n \n32,808 \n3,173 2,022 1,017 \n-423 5,916 1,983 9,191 4,617 4,017 \n409 498 -1,704 723 \n \nTotal Expenses \n \n$ \n \n170,402 $ \n \n164,324 $ \n \n65,865 $ \n \n64,247 \n \n(1) Fiscal Year 2014 balances do not reflect the effect of the Restatement of Net Position. See note 2 in the Notes to the Basic Financial Statements for additional information. \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nThe School District's Funds Table 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances. \n \nREVENUES \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nGeneral Fund \n \nCapital Projects Fund \n \nDebt Service Fund \n \nTotals \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \n \n$ 39,987 272 $ \n82,180 30,136 \n1,463 13 \n1,889 \n155,940 \n \n3,482 $ \n8 91 3,581 \n \n$ 12,051 \n43 \n \n39,987 15,805 82,180 30,136 \n1,463 64 \n1,980 \n \n12,094 \n \n171,615 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services \nTotal Expenditures \nExcess of Revenues over (under) \nExpenditures \n \n89,600 54,190 \n396 503 10,371 \n155,060 \n880 \n \n11,585 1,242 \n15,388 2,549 \n30,764 \n-27,183 \n \n8,831 8,831 \n3,263 \n \n101,185 55,432 396 503 10,371 15,388 11,380 \n194,655 \n-23,040 \n \nOTHER FINANCING SOURCES (USES) \n \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances Fund Balances  Beginning \n \n-92 -92 \n788 17,498 \n \n11,401 92 \n11,493 -15,690 44,770 \n \n3,263 14,833 \n \n11,401 92 -92 \n11,401 \n-11,639 77,101 \n \nFund Balances - Ending \n \n$ 18,286 $ \n \n29,080 $ \n \n18,096 $ 65,462 \n \nTotal revenues for all governmental funds were $171.6 million and total expenditures were $194.6 million. Total expenditures exceeded total revenues by $23.0 million for governmental activities. The fund balance for governmental funds decreased from $77.1 million at the beginning of the fiscal year to $65.5 million at June 30, 2015. \n \nThe fund balance reported for the General Fund increased from $17.5 million at the beginning of the fiscal year to $18.3 million at June 30, 2015 due to a combined increase of general fund revenues received over expenditures in the areas of instruction, support services and food servicing. \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nThe fund balance reported for the Capital Projects Fund decreased from $44.8 million at the beginning of the fiscal year to $29.1 million at June 30, 2015. This was mainly due to the capital outlay expenditures exceeding revenues in the current year. Last fiscal year, the School District received bond proceeds to finance capital outlay expenditures for various projects. However, the majority of the expenditures occurred this fiscal year. In addition, the School District entered into two capital lease agreements with U.S. Bank Equipment Finance and Key Government Finance to finance the School District's initiative to upgrade technology equipment. \nThe fund balance reported for the Debt Service Fund increased from $14.8 million at the beginning of the fiscal year to $18.1 million at June 30, 2015. Revenue from sales taxes offset by bond principal and interest payments account for the increase in fund balance from prior fiscal year. \nGeneral Fund Budgeting Highlights The School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"6\". \nDuring fiscal year 2015, the School District amended its general fund budget as needed. The original budget approved by the School District's Board in June 2014, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds restricted for a specific purpose can only be used to fund additional programs. Also, federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nThe fiscal year 2015 state budget included funds to provide some relief for the \"austerity reduction\" that the School District had not seen since fiscal year 2003. This reduction gave the School District the flexibility to eliminate the adjusted work days for teachers. Teachers, along with other staff, have experienced these adjusted days since fiscal year 2009. While there were still challenges of a continued decline in local tax revenue, decline in student enrollment and increases in employee benefits cost, the School District presented a balanced budget. \nCapital Assets Since fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nAt the end of fiscal year 2015, renovations and improvements were completed on four high schools and five elementary schools. In addition, the School District had invested $260.8 million in capital assets. Table 5 compares fiscal year 2015 Capital Asset balances to fiscal year 2014 balances. \nIn November of fiscal year 2011, the voters of Dougherty County approved the continuation of the one percent sales tax (Sales Tax for Educational Progress). These sales tax revenues will be used to complete the renovation of schools and improvements, acquire school buses, vehicles for maintenance and transportation, real and personal property. Sales tax revenues will also be used to upgrade the IT Infrastructure located in the administration building and in one elementary school, leading classroom technology for teachers and end user projects such as One to One technology to all students. Other sales tax projects include the installation of safety and access controls, and the purchase of musical instruments and other academic/instruction related equipment. In the Spring of fiscal year 2014 the School District issued General Obligation Bonds in the amount of $32.5 million. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nFiscal Year 2015 \n \nGovernmental Activities Fiscal Year 2014 \n \nIncrease (Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 27,039 220,506 \n4,227 \n \n9,051 $ 11,650 226,908 \n4,441 \n \n0 15,389 -6,402 \n-214 \n \nTotal \n \n$ \n \n260,823 $ \n \n252,050 $ \n \n8,773 \n \nTable 5 shows that Total Capital Assets increased $8.8 million in fiscal year 2015. The increase in Construction in Progress is largely due to schools renovations and the IT Infrastructure Upgrade with the completion and implementation of One-to-One technology. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. \nDebt Table 6 summarizes the Long-Term Debt outstanding at June 30 for fiscal year 2014 and fiscal year 2015. \n \nTable 6 Debt at June 30 (In Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 \n \nIncrease (Decrease) \n \nGeneral Obligation Bonds $ Capital Leases Compensated Absences Bond Premiums Amortized \n \n24,725 $ 8,881 990 1,540 \n \n32,450 $ \n1,003 2,052 \n \n-7,725 8,881 \n-13 -512 \n \nTotal \n \n$ \n \n36,136 $ \n \n35,505 $ \n \n631 \n \nAs shown in Table 6, Capital Leases totaling $8.9 million with U.S. Bank Equipment Finance and Key Government Finance were commenced to finance technology upgrades. The annual bond principal payment of $7.7 million was made during the fiscal year. In addition, Compensated Absences of $990,000 represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nCurrent Financial Issues Like most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the increased employer cost for employee health benefits and Teachers Retirement, utilities and the continued state formula allotment reductions. Other challenges include a decline in student enrollment (FTE) over the years and a stagnant local tax digest. \nDespite these challenges, the School District is financially stable. The School District's operating millage for fiscal year 2015 was 18.445. The current millage rate has remained at 18.445 since fiscal year 2008 (2007 digest). \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The School District has experienced decreases in student enrollment since fiscal year 2013. \n \nFiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 \n \n15,628 15,497 15,676 15,628 15,361 \n \nThe School District continues to be financially challenged by multiple years of reductions in State funding to local districts. Austerity reductions to State funding were budgeted again for fiscal year 2015. Even with these reductions in State resources (and the local tax digest), the School District has maintained the current millage of 18.445 mills since fiscal year 2008 and has been able to maintain a healthy General Fund Balance. \n \nIn spite of the continued challenges, the Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. In order to meet the challenges of mandated increases, including fully funding teacher salaries, and providing for a step increase for all employees, the School District implemented the cost-saving measures, such as maintaining operating expenses at or below the prior year spending levels, while maintaining essential levels of service to support teaching and learning, reviewing unfilled District-level positions and filling only critically necessary positions in future years as vacancies occur. The School District strives to emphasize student achievement while maintaining sound fiscal management. \n \nContacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Kenneth Dyer, Associate Superintendent and CFO, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to kenneth.dyer@docoschools.org. \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items 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 Claims Incurred but not Reported (IBNR) Interest Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year Net Pension Liability \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \n \nGOVERNMENTAL ACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n29,928,539.21 $ \n \n37,833,039.51 \n \n3,881,015.60 10,175,410.65 \n6,724,197.22 33,127.13 \n824,685.86 356,655.89 \n57,274.28 36,089,885.16 224,732,823.07 \n \n350,636,653.58 \n \n159,274.00 \n410,000.00 2,061,761.00 2,631,035.00 \n \n10,373,828.87 \n \n4,644,284.62 16,604,483.61 \n1,086,890.71 149,405.13 499,959.23 864,499.35 250,002.59 \n10,714,015.62 25,421,533.53 97,960,684.00 \n158,195,758.39 \n \n11,269.00 11,269.00 \n \n34,212,751.00 \n \n252,663,573.99 \n4,457,053.00 18,010,568.49 18,906,461.72 -125,435,684.14 \n \n2,471,761.00 148,005.00 \n \nTotal Net Position \n \n$ \n \n168,601,973.06 $ \n \n2,619,766.00 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2015 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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 \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES \n \n$ 103,416,967.59 $ \n4,140,707.39 9,298,810.40 2,916,511.50 1,519,223.72 9,787,104.61 1,923,206.41 13,713,828.84 6,411,550.20 4,950,500.06 \n717,230.82 \n396,075.88 494,146.29 10,043,561.64 672,262.18 \n$ 170,401,687.53 $ \n \n1,009,085.68 \n54,954.50 223,877.83 \n174,691.42 1,462,609.43 \n \n$ \n \n439,581.00 $ \n \n220,000.00 \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ \n \n66,598,982.25 $ \n \n1,169,983.68 7,808,685.07 2,042,167.00 2,120,958.82 4,297,631.27 \n91,940.16 4,761,458.82 1,928,643.89 \n126,826.75 740,049.42 \n \n11,296,493.60 $ 102,983,820.73 $ \n \n90,216.08 $ 90,216.08 \n \n-35,718,683.58 \n-2,970,723.71 -1,490,125.33 \n-874,344.50 601,735.10 -5,489,473.34 -1,831,266.25 -8,897,415.52 -4,259,028.48 -4,823,673.31 \n22,818.60 \n-396,075.88 -494,146.29 1,427,623.38 -672,262.18 \n-65,865,041.29 \n \n$ \n \n-219,581.00 \n \n39,807,571.60 50,966.20 \n12,050,786.61 3,481,885.19 272,043.24 9,064,683.00 64,378.49 1,890,118.99 \n-683,968.04 \n65,998,465.28 \n133,423.99 \n168,468,549.07 \n \n1,792.00 69,334.00 \n71,126.00 -148,455.00 2,768,221.00 \n \n$ \n \n168,601,973.06 $ \n \n2,619,766.00 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2015 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICT-WIDE CAPITAL PROJECTS FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 17,547,260.94 $ 1,706,253.38 \n \n12,381,278.27 19,320,914.93 $ \n \n$ 29,928,539.21 \n \n16,805,871.20 \n \n37,833,039.51 \n \n2,590,609.98 10,175,410.65 \n6,724,197.22 33,127.13 \n824,685.86 356,655.89 \n57,274.28 \n \n1,290,405.62 \n \n3,881,015.60 10,175,410.65 \n6,724,197.22 33,127.13 \n824,685.86 356,655.89 \n57,274.28 \n \n$ 40,015,475.33 $ 31,702,193.20 $ 18,096,276.82 $ 89,813,945.35 \n \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 3,558,425.50 $ 16,604,483.61 \n77,791.85 20,240,700.96 \n \n1,085,859.12 \n499,959.23 864,499.35 172,210.74 \n2,622,528.44 \n \n$ 4,644,284.62 16,604,483.61 499,959.23 864,499.35 250,002.59 \n22,863,229.40 \n \n1,488,556.70 \n \n1,488,556.70 \n \n413,930.17 4,372,759.64 2,444,006.32 1,578,475.76 9,477,045.78 \n18,286,217.67 \n \n29,079,664.76 $ 18,096,276.82 \n \n29,079,664.76 \n \n18,096,276.82 \n \n413,930.17 51,548,701.22 \n2,444,006.32 1,578,475.76 9,477,045.78 \n65,462,159.25 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 40,015,475.33 $ 31,702,193.20 $ 18,096,276.82 $ 89,813,945.35 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n DOUGHERTY 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 Buildings and Improvements 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, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These consist of: \nBonds Payable Accrued Interest Payable Capital Leases Payable Compensated Absences Payable Bond Premiums, Net of Amortization Claims and Judgments Payable \nTotal Long-Term Liabilities \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ \n \n65,462,159.25 \n \n$ \n \n9,051,054.08 \n \n27,038,831.08 \n \n338,916,569.12 \n \n10,831,624.37 \n \n-125,015,370.42 \n \n260,822,708.23 \n \n-97,960,684.00 -23,838,922.13 \n \n1,488,556.70 \n \n$ -24,725,000.00 -149,405.13 \n-8,881,079.46 -990,100.39 \n-1,539,369.30 -1,086,890.71 \n \n-37,371,844.99 \n \n$ \n \n168,601,973.06 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n DOUGHERTY 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICT-WIDE CAPITAL PROJECTS FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n39,986,328.21 \n \n272,043.24 $ \n \n82,180,291.79 \n \n30,136,159.63 \n \n1,462,609.43 \n \n13,050.90 \n \n1,889,218.99 \n \n155,939,702.19 \n \n3,481,885.19 $ \n8,427.23 91,116.08 3,581,428.50 \n \n$ 12,050,786.61 \n42,900.36 12,093,686.97 \n \n39,986,328.21 15,804,715.04 82,180,291.79 30,136,159.63 \n1,462,609.43 64,378.49 \n1,980,335.07 \n171,614,817.66 \n \n89,600,395.57 \n4,241,396.07 9,462,329.06 2,789,489.26 1,530,328.05 9,721,341.44 1,781,884.64 13,310,941.85 5,883,706.21 4,731,644.85 \n736,036.33 396,075.88 503,325.28 10,371,266.88 \n155,060,161.37 \n879,540.82 \n \n11,584,769.53 \n5,785.00 89,322.57 395,047.55 383,388.00 368,829.17 \n15,388,522.90 2,520,060.85 28,813.48 \n30,764,539.05 -27,183,110.55 \n \n7,725,000.00 1,105,750.00 \n8,830,750.00 \n3,262,936.97 \n \n101,185,165.10 \n4,241,396.07 9,462,329.06 2,789,489.26 1,536,113.05 9,721,341.44 1,871,207.21 13,705,989.40 6,267,094.21 5,100,474.02 \n736,036.33 396,075.88 503,325.28 10,371,266.88 15,388,522.90 \n10,245,060.85 1,134,563.48 \n194,655,450.42 \n-23,040,632.76 \n \n-91,580.60 -91,580.60 787,960.22 17,498,257.45 \n \n11,401,140.31 91,580.60 \n11,492,720.91 -15,690,389.64 44,770,054.40 \n \n3,262,936.97 14,833,339.85 \n \n11,401,140.31 91,580.60 -91,580.60 \n11,401,140.31 \n-11,639,492.45 \n77,101,651.70 \n \n$ \n \n18,286,217.67 $ \n \n29,079,664.76 $ \n \n18,096,276.82 $ \n \n65,462,159.25 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n DOUGHERTY 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. \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Position, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \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. The net effect of these adjustments: \nAccrued Interest Amortization of Bond Premium Compensated Absences Claims and Judgments Pension Expense \nTotal Additional Expenditures \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ -11,639,492.45 \n \n$ 15,771,911.10 -6,315,439.93 \n \n9,456,471.17 -683,968.04 -127,790.41 \n \n-11,401,140.31 \n \n$ 7,725,000.00 2,520,060.85 \n \n10,245,060.85 \n \n$ \n \n-50,821.80 \n \n513,123.10 \n \n12,814.66 \n \n136,782.35 \n \n3,672,384.87 \n \n4,284,283.18 \n \n$ \n \n133,423.99 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2015 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 421,824.33 \n11,706.75 $ 433,531.08 \n$ 433,531.08 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 18 for additional component unit disclosures. \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 Dougherty 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. \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 \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \n District-wide 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 to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n 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. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds 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 principal and interest on general longterm debt, claims and judgments and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 $125,471,991.00. This change is in accordance with generally accepted accounting principles. \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNet Position, July 1, 2014, as previously reported \n \n$ 293,940,540.07 \n \nPrior Period adjustment - Implementation of GASB 68: \n \nNet Pension Liability (measurement date) \n \nTRS \n \n$ -134,963,885.00 \n \nERS \n \n-224,338.00 -135,188,223.00 \n \nDeferred Outflows - School District's contribution made \n \nduring fiscal year 2014 \n \nTRS \n \n$ 9,696,475.00 \n \nERS \n \n19,757.00 \n \n9,716,232.00 \n \nNet Position, July 1, 2014, as restated \n \n$ 168,468,549.07 \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 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- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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 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 current credit risk, custodial credit risk, concentration of credit risk, interest rate risk or foreign currency risk. \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 Dougherty County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on July 21, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on December 21, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $37,860,530.98. \nThe tax millage rate levied for the 2014 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.445 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,074,831.03 during fiscal year ended June 30, 2015. \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $15,532,671.80 and is to be used for capital outlay and debt services for educational purposes. 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). 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. \nConsumable Supplies \nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2015, are recorded as prepaid items. \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 13, 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 \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount \n \n$ \n \n100,000.00 \n \n$ \n \n50,000.00 \n \n$ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 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. \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 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 18 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 30 days. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nBeginning of Year Liability \n \nIncrease \n \nDecrease \n \nEnd of Year Liability \n \n2013 \n \n$ \n \n1,168,992.95 $ \n \n815,575.40 $ \n \n932,242.14 $ \n \n1,052,326.21 \n \n2014 \n \n$ \n \n1,052,326.21 $ \n \n785,895.50 $ \n \n835,306.66 $ \n \n1,002,915.05 \n \n2015 \n \n$ \n \n1,002,915.05 $ \n \n780,301.81 $ \n \n793,116.47 $ \n \n990,100.39 \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \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 fiduciary net position of the Teachers' Retirement System of Georgia (TRS), 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. \n \nNET POSITION \nThe School District's Net Position in the District-wide Statements is classified as follows: \nNet Investment 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. \nRestricted Net Position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service, 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 $97,960,684.00 which is required for financial reporting. \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \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 have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \nFund Balances of the Governmental Funds at June 30, 2015, are as follows: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance \nAssigned Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ 356,655.89 57,274.28 $ 413,930.17 \n \n$ 4,372,759.64 29,079,664.76 18,096,276.82 \n \n51,548,701.22 \n \n2,444,006.32 \n \n$ 1,240,628.00 337,847.76 \n \n1,578,475.76 9,477,045.78 \n \nFund Balance, June 30, 2015 \n \n$ 65,462,159.25 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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, 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 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 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, $11,157,178.19 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institution 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, \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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. \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 $30,360,109.13, which includes $9,745.59 in Certificates of Deposit that are reported as Investments, and a bank balance of $35,940,795.99. The bank balances insured by Federal depository insurance were $1,436,433.42, and the bank balances collateralized with securities held by the pledging institution or by the pledging financial institution's trust department or agent in the School District's name were $32,056.34. \n \nThe amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2015, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 11,157,178.19 \n \n2 \n \n0.00 \n \n3 \n \n23,315,128.04 \n \nTotal \n \n$ 34,472,306.23 \n \nCOMPONENT UNIT \nAt June 30, 2015, Dougherty County Stadium Authority's bank balance of $159,274.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2015, the carrying value of the School District's total investments was $37,833,039.51, which is materially the same as fair value. This includes $9,745.59 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 \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nDistrict 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 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, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2015, was 56 days. \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2014 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2015 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 11,650,307.98 $ 15,388,523.10 $ \n \n$ 9,051,054.08 \n \n0.00 \n \n27,038,831.08 \n \nTotal Capital Assets Not Being Depreciated \n \n20,701,362.06 15,388,523.10 \n \n0.00 \n \n36,089,885.16 \n \nCapital Assets Being Depreciated: Buildings and Improvements Equipment \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n339,600,537.16 10,448,236.37 \n112,692,826.77 6,007,103.72 \n \n383,388.00 \n5,717,789.14 597,650.79 \n \n683,968.04 \n \n338,916,569.12 10,831,624.37 \n \n118,410,615.91 6,604,754.51 \n \nTotal Capital Assets, Being Depreciated, Net 231,348,843.04 \n \n-5,932,051.93 \n \n683,968.04 224,732,823.07 \n \nGovernmental Activity Capital Assets - Net $ 252,050,205.10 $ 9,456,471.17 $ 683,968.04 $ 260,822,708.23 \n \nCapital assets acquired under capital leases as of June 30, 2015, are as follows: \n \nConstruction in Progress \n \nGovernmental Activities \n$ 6,831,077.39 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n14,801.63 \n \n25,441.04 \n \n190,717.88 \n \n341,838.95 \n \n100,444.83 \n \n202,238.61 \n \n542,536.24 \n \n29,774.28 \n \n$ 4,509,235.37 \n1,447,793.46 358,411.10 \n \n$ 6,315,439.93 \n \nCOMPONENT UNIT \n \nBalances July 1, 2013 (1) \n \nIncreases \n \nDecreases \n \nBalances June 30, 2015 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \n \n$ \n \n410,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n410,000.00 \n \nCapital Assets Being Depreciated: Buildings and Improvements Equipment Stadium Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Stadium Improvements \n \n308,976.00 239,886.00 2,607,983.00 \n73,378.00 229,063.00 630,527.00 \n \n15,448.00 10,822.00 135,845.00 \n \n0.00 \n \n308,976.00 239,886.00 2,607,983.00 \n88,826.00 239,885.00 766,372.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,223,877.00 \n \n-162,115.00 \n \n0.00 \n \n2,061,762.00 \n \nGovernmental Activity Capital Assets - Net $ 2,633,877.00 $ -162,115.00 $ \n \n0.00 $ 2,471,762.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activity for a two year period ending June 30, 2015. \nNOTE 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2015, consisted of the following: \n \nTransfer to \n \nTransfer From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ 91,580.60 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund to cover a portion of the employees' salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects. \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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 \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \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 \n2014 $ 1,110,722.97 $ 1,151,177.37 $ 1,038,227.28 $ 1,223,673.06 \n \n2015 $ 1,223,673.06 $ \n \n928,271.89 $ 1,065,054.24 $ 1,086,890.71 \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 $ 0.00 $ \n \n47,583.00 $ 74,014.30 $ \n \n47,583.00 $ 74,014.30 $ \n \n0.00 0.00 \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 \n50,000.00 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 9: OPERATING LEASES \nDougherty County Board of Education has entered into various leases as lessee for copiers, postage meters and fax machines. 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 $374,406.45. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2016 \n \n$ \n \n29,477.68 \n \nNOTE 10: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n0.00 $ 10,000,000.00 $ 10,000,000.00 $ \n \n0.00 \n \nNOTE 11: LONG-TERM LIABILITIES \n \nCAPITAL LEASES \nThe Dougherty County Board of Education entered into two lease agreements as lessee for information technology and infrastructure improvement purchases. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \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 \nGENERAL OBLIGATION DEBT OUTSTANDING \nGeneral Obligation Bond currently outstanding is as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2013 \n \n2.00% - 5.00% $ 24,725,000.00 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nVoters have authorized $7,550,000.00 in general obligation debt for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. These bonds had not been issued as of June 30, 2015. \n \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \n \nG.O. Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \nBalance July 1, 2014 \n \nAdditions \n \nGovernmental Activities Deductions \n \nBalance June 30, 2015 \n \nDue Within One Year \n \n$ \n \n32,450,000.00 \n \n$ \n \n7,725,000.00 $ 24,725,000.00 $ \n \n7,950,000.00 \n \n0.00 $ 11,401,140.31 \n \n2,520,060.85 \n \n8,881,079.46 \n \n2,181,585.49 \n \n1,002,915.05 \n \n780,301.81 \n \n793,116.47 \n \n990,100.39 \n \n69,307.03 \n \n2,052,492.40 \n \n513,123.10 \n \n1,539,369.30 \n \n513,123.10 \n \n$ \n \n35,505,407.45 $ 12,181,442.12 $ 11,551,300.42 $ 36,135,549.15 $ \n \n10,714,015.62 \n \nAt June 30, 2015, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2016 2017 2018 2019 \nTotal Principal and Interest \n \n$ \n \n2,181,585.49 $ \n \n104,862.02 \n \n2,207,039.81 \n \n79,407.70 \n \n2,232,994.32 \n \n53,453.19 \n \n2,259,459.84 \n \n26,987.65 \n \n$ \n \n8,881,079.46 $ \n \n264,710.56 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2016 2017 2018 \nTotal Principal and Interest \n \n$ \n \n7,950,000.00 $ \n \n8,175,000.00 \n \n8,600,000.00 \n \n$ \n \n24,725,000.00 $ \n \n869,500.00 $ 550,250.00 195,000.00 \n1,614,750.00 $ \n \n513,123.10 513,123.10 513,123.10 \n1,539,369.30 \n \nNOTE 12: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $402,082.67 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 $41,294.67 \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 $360,788.00 \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \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. \n \nNOTE 13: SPECIAL ITEM \nIn fiscal year 2013, the Dougherty County Board of Education closed several schools. Only two of these schools had net book value remaining as of June 30, 2015. The School District repurposed one school as a storage facility. In addition, the School District voted to demolish another school. Therefore, the buildings were no longer being used for their intended service utility and were considered impaired. The buildings were written down to their determined deflated depreciated replacement cost and fair market value, respectively, resulting in a loss of $683,968.04. This activity is reported as a Special Item on the Statement of Activities. \n \nNOTE 14: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2015. \n \nProject \n \nUnearned Executed Contracts \n \nFloor Replacement \n \n$ \n \nIT Infrastructure Upgrade/Data Centers \n \nDougherty High School COE Phase II \n \nSecurity Access and Control \n \nDemolition \n \n203,102.60 14,694.87 \n148,105.43 80,777.95 85,320.00 \n \n$ \n \n532,000.85 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNOTE 15: 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 believed to be material to the basic financial statements. \n \nNOTE 16: 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- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \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. 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 \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, 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$596.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ 15,938,801.37 $ 16,535,080.12 $ 14,708,855.59 \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 17: RETIREMENT PLANS \nDougherty 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% 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 \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$ 10,394,041.13 \n \n$ \n \n9,743,172.49 \n \n$ \n \n8,933,693.84 \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. \n \n- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \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 $4,200. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members and 18.87% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n14,104.86 \n \n$ \n \n17,955.16 \n \n$ \n \n15,586.45 \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 \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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. \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. \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 $97,960,684.00 for its proportionate share of the Net Pension Liability for TRS ($97,782,417.00) and ERS ($178,267.00). \nThe TRS Net Pension Liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the Net Pension Liability, the related State of Georgia support, and the total portion of the Net Pension Liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the Net Pension Liability \n \n$ 97,782,417.00 \n \nState of Georgia's proportionate share of the Net Pension Liability associated with the School District \n \n381,664.00 \n \nTotal \n \n$ 98,164,081.00 \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. \nAt June 30, 2014, the School District's TRS proportion was 0.773982%, which was a decrease of 0.000565% from its proportion measured as of June 30, 2013. At June 30, 2014, the School District's ERS proportion was 0.004753%, which was an increase of 0.000130% from its proportion measured as of June 30, 2013. \n \n- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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 $1,422,781.00. \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. \nFor the year ended June 30, 2015, the School District recognized pension expense of $6,694,824.00 for TRS, $13,313.00 for ERS and $123,560.00 for PSERS and revenue of $10,575.00 for TRS and $123,560.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS, the State of Georgia support is provided only for certain support personnel. \nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: \n \nTRS \n \nDeferred \n \nDeferred \n \nOutflows of \n \nInflows of \n \nResources \n \nResources \n \nERS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nNet difference between projected and actual earnings on pension plan investments \n \n$ 34,089,023.00 \n \n$ 43,509.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n80,219.00 $ 3,882.00 \n \nSchool District contributions subsequent to the measurement date \n \n$ 10,355,842.01 \n \n14,104.86 \n \nTotal \n \n$ 10,355,842.01 $ 34,169,242.00 $ 17,986.86 $ 43,509.00 \n \nDougherty 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$ -8,540,485.00 $ -8,451.00 \n \n$ -8,540,485.00 $ -9,421.00 \n \n$ -8,540,485.00 $ -10,877.00 \n \n$ -8,540,493.00 $ -10,878.00 \n \n$ \n \n-7,294.00 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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: \n \nInflation Salary increases Investment rate of return \n \n3.00% \n3.75  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 \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, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \n- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \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 \n \nTarget allocation \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 \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. \n \nSensitivity of the Dougherty 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 \n(7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the Net Pension Liability \n \n$ 180,199,875.00 $ \n \n97,782,417.00 $ \n \n29,913,352.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate \n(7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the Net Pension Liability \n \n$ \n \n259,948.00 $ \n \n178,267.00 $ \n \n108,737.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs. \n- 32 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nDEFINED CONTRIBUTION PLAN \nIn August 1, 1996, Dougherty County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \nThe Board selected VALIC as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the Board matches 3% of employee's contribution. \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the Board. \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 \nNOTE 18: COMPONENT UNIT \n \n3% \n \n$ 152,225.45 \n \n3% \n \n$ 163,989.90 \n \n3% \n \n$ 173,175.01 \n \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. The authority's fiscal year is July 1 through June 30. \nNOTE 19: SUBSEQUENT EVENTS \nOn November 8, 2016, the voters of Dougherty 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 Dougherty County for a period of time not to exceed 20 calendar quarters to raise not more than $90,000,000.00. The proceeds are to be used as stated on the Official Ballot of Dougherty County as follows: \n\"For the purpose of funding the (a) renovation, improvement and equipping of existing schools, administration, athletic and related facilities, (b) acquisition, construction and equipping of new schools, administration, athletic and related facilities, (c) the acquisition of school buses and vehicles for maintenance and transportation use, (d) acquisition of software, hardware and computer equipment for the use of both staff and students, (e) acquisition of energy savings equipment and (f) acquisition of real and personal property necessary for the foregoing.\" \nThis vote also approved the issuance of general obligation debt of the Dougherty County School District in the principal amount of $50,000,000.00 for the above capital outlay purposes. \n \n- 33 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 proportionate share of the Net Pension Liability \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 0.773982% $ 97,782,417.00 \n381,664.00 $ 98,164,081.00 $ 79,341,795.52 \n123.24% 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 Dougherty County Board of Education. \n- 35 - \n \n DOUGHERTY 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 \n \n0.004753% \n \n$ \n \n178,267.00 \n \n$ \n \n97,265.38 \n \n183.28% 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 Dougherty County Board of Education. \n- 36 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 \n$ 10,394,041.13 $ 9,743,172.49 $ \n \n$ 10,394,041.13 $ 9,743,172.49 $ \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n$ 79,042,137.85 $ 79,341,795.52 $ \n \n13.15% \n \n12.28% \n \n2013 8,933,693.84 8,933,693.84 \n0.00 78,263,371.19 \n11.41% \n \nThis schedule is intended to show information for 10 years. Due to the retention policy of the Dougherty 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- 38 - \n \n SCHEDULE \"3\" \n \n2012 \n \n2011 \n \n2010 \n \n$ 8,086,748.31 $ \n \n8,168,630.90 $ 8,303,432.60 \n \n$ 8,086,748.31 $ \n \n8,168,630.90 $ 8,303,432.60 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 78,661,874.95 $ 79,461,390.08 $ 85,250,848.05 \n \n10.28% \n \n10.28% \n \n9.74% \n \n- 39 - \n \n DOUGHERTY 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 \n14,104.86 $ \n \n17,955.16 $ \n \n15,586.45 \n \n$ \n \n14,104.86 $ \n \n17,955.16 $ \n \n15,586.45 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n64,229.58 $ \n \n97,265.38 $ 104,607.05 \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 Dougherty 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- 40 - \n \n SCHEDULE \"4\" \n \n2012 \n \n$ \n \n11,927.26 $ \n \n$ \n \n11,927.26 $ \n \n$ \n \n0.00 $ \n \n$ 102,555.98 $ \n \n11.63% \n \n2011 10,196.26 $ 10,196.26 $ \n0.00 $ 97,947.58 $ \n10.41% \n \n2010 7,871.80 7,871.80 \n0.00 75,617.83 \n10.41% \n \n- 41 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"5\" \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. \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- 42 - \n \n DOUGHERTY 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 Community Services 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 \n40,065,352.00 $ \n \n40,065,352.00 $ \n \n39,986,328.21 $ \n \n250,000.00 \n \n250,000.00 \n \n272,043.24 \n \n81,570,255.00 \n \n82,676,990.00 \n \n82,180,291.79 \n \n29,662,659.00 \n \n33,328,136.40 \n \n30,136,159.63 \n \n1,011,260.00 \n \n1,011,260.00 \n \n1,462,609.43 \n \n113,400.00 \n \n113,400.00 \n \n13,050.90 \n \n3,376,971.00 \n \n4,934,179.00 \n \n1,889,218.99 \n \n156,049,897.00 \n \n162,379,317.40 \n \n155,939,702.19 \n \n-79,023.79 22,043.24 -496,698.21 -3,191,976.77 451,349.43 -100,349.10 -3,044,960.01 \n-6,439,615.21 \n \n87,998,706.17 \n4,307,420.00 11,115,356.51 \n2,963,352.00 2,075,811.00 8,922,995.98 1,675,501.02 13,707,955.23 6,698,040.71 4,296,871.00 \n547,008.38 357,315.00 472,802.00 12,683,752.00 \n157,822,887.00 \n-1,772,990.00 \n1,706,151.00 -748,436.00 \n957,715.00 \n-815,275.00 \n11,915,334.00 \n \n91,808,543.70 \n4,240,373.77 11,532,080.75 \n2,964,677.50 1,921,363.82 9,110,290.39 1,820,651.60 14,120,918.14 7,399,405.01 5,046,920.30 \n864,148.00 359,815.00 531,914.00 14,560,547.40 \n166,281,649.38 \n-3,902,331.98 \n2,411,601.00 -905,142.00 \n1,506,459.00 \n-2,395,872.98 \n17,329,424.16 \n-61,251.42 \n \n89,600,395.57 \n4,241,396.07 9,462,329.06 2,789,489.26 1,530,328.05 9,721,341.44 1,781,884.64 13,310,941.85 5,883,706.21 4,731,644.85 \n736,036.33 396,075.88 503,325.28 10,371,266.88 \n155,060,161.37 \n879,540.82 \n-91,580.60 \n-91,580.60 \n787,960.22 \n17,498,257.45 \n \n2,208,148.13 \n-1,022.30 2,069,751.69 \n175,188.24 391,035.77 -611,051.05 \n38,766.96 809,976.29 1,515,698.80 315,275.45 128,111.67 -36,260.88 \n28,588.72 4,189,280.52 \n11,221,488.01 \n4,781,872.80 \n-2,411,601.00 813,561.40 \n-1,598,039.60 \n3,183,833.20 \n168,833.29 \n61,251.42 \n \nFund Balances - Ending \n \n$ \n \n11,100,059.00 $ \n \n14,872,299.76 $ \n \n18,286,217.67 $ \n \n3,413,917.91 \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 $1,058,979.55 and $1,051,668.92, 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- 43 - \n \n DOUGHERTY 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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of School Improvement Grants Cluster Pass-Through From Georgia Department of Education School Improvement Grants \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 ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Special Education State Personnel Development Title I Grants to Local Educational Agencies \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 Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Southwest Georgia Developmental Center Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \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$ 11,038,741.85 (1) \n \n11,038,741.85 \n \n10.558 \n \nN/A \n \n47,818.67 11,086,560.52 \n \n84.377 \n \nN/A \n \n1,757,408.68 \n \n84.027 \n \nN/A \n \n84.173 \n \nN/A \n \n84.395 \n \nN/A \n \n84.048 \n \nN/A \n \n84.365 \n \nN/A \n \n84.367 \n \nN/A \n \n84.011 \n \nN/A \n \n84.323 \n \nN/A \n \n* 84.010 \n \nN/A \n \n3,563,635.30 113,988.33 \n3,677,623.63 \n2,057,151.94 213,529.37 30,335.39 \n1,112,666.61 42,637.36 \n39,442.17 9,807,646.14 \n13,303,408.98 \n18,738,441.29 \n \n93.959 \n \nN/A \n \n17.259 \n \nN/A \n \n76,025.53 \n62,252.91 \n42,035.56 129,206.10 171,241.66 \n \nTotal Expenditures of Federal Awards N/A = Not Available \n \n- 44 - \n \n$ 30,134,521.91 \n \n DOUGHERTY 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 $608,231.72. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,857,888.03) were maintained separately and are included in the 2015 National School Lunch Program. \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 Dougherty 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- 45 - \n \n DOUGHERTY 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 Food Services GNETS State Grant Math and Science Supplements Preschool Handicapped Program Teacher of the Year Teachers' Retirement Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 46 - \n \nSCHEDULE \"8\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,242,884.93 \n \n6,174,450.00 406,384.00 \n13,578,683.00 2,576,471.00 5,391,492.00 1,871,371.00 9,769,029.00 8,630,287.00 2,103,930.00 7,401,196.00 1,794,052.00 906,839.00 690,498.00 269,050.00 1,782,366.00 561,454.00 282,068.00 \n1,568,606.00 3,590,697.00 3,909,636.00 \n566,713.00 -6,677,086.00 \n1,534,879.00 300,332.00 \n9,064,683.00 \n244,315.00 1,845,550.00 \n63,773.42 186,144.00 \n507.25 41,294.67 146,954.52 \n360,788.00 \n$ 82,180,291.79 \n \n BOARD OF EDUCATION \n \nDOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"9\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (4) (5) \n \nESTIMATED COMPLETION \nDATE \n \nSPLOST III \n \n(i) The renovation and improvement of four high schools \n \nand five elementary schools, strategic land acquisition \n \nfor future school expansion, certain other capital repairs \n \nand modifications in system-wide schools, buildings \n \nand office (including carpet replacement, gym flooring \n \nand certain other capital repairs and modifications) \n \n$ 75,200,000.00 $ 66,069,226.24 $ 3,172,764.60 $ 61,187,834.94 $ \n \n0.00 $ \n \n0.00 December 2015 \n \n(ii) The provision of additional classroom technology (including hardware, software and computer furniture), regular system-wide replacement of computers five years or older, installing six computers in all K-8th grade classrooms and three computers in all 9th-12th grade classrooms, providing system-wide teacher laptop computers, system-wide \"wireless-connectivity\" in all classroom and other buildings, upgrading existing computer-aided instructional systems to \"Model Classroom\" standards and providing three additional \"Model Classrooms\" per school, providing system-wide upgraded or new servers and upgraded main data frame (MDF) rooms, installing \"voice-over-internet-protocol\" (VOIP) in various classrooms throughout the School System \n \n10,500,000.00 \n \n20,675,485.70 \n \n5,052,649.67 15,153,859.31 \n \nDecember 2015 \n \n(iv) Vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment, and other educational related equipment \n \n3,600,000.00 \n \n4,254,842.13 \n \n2,175.00 \n \n4,252,667.13 \n \nDecember 2015 \n \nSubtotal SPLOST III \n \n89,300,000.00 \n \n90,999,554.07 \n \n8,227,589.27 80,594,361.38 \n \n0.00 \n \n0.00 \n \nSPLOST IV \n \n(a) The renovation and improvement of one or more existing schools, administration and related facilities, including the provision of safety and security equipment for these facilities \n \n83,400,000.00 \n \n80,000,000.00 \n \n8,792,196.95 \n \n4,893,280.01 \n \n0.00 \n \n0.00 June 30, 2018 \n \n(b) acquisition, construction and equipping of new schools, administration and related facilities \n \n0.00 \n \n0.00 \n \nJune 30, 2018 \n \n(c) the acquisition of school buses, vehicles for maintenance and transportation use and other transportation equipment \n \n6,200,000.00 \n \n5,000,000.00 \n \n383,388.00 \n \nJune 30, 2018 \n \n(d) acquisition, construction and equipping of new athletic facilities \n \n0.00 \n \n0.00 \n \nJune 30, 2018 \n \n(e) acquisition of software, hardware and computer equipment for the use of both staff and students \n \n10,000,000.00 \n \n10,720,265.14 10,720,265.14 \n \nJune 30, 2018 \n \n(f) acquisition of real and personal property necessary for the foregoing \n \n400,000.00 \n \n200,000.00 \n \nJune 30, 2018 \n \nSubtotal SPLOST III \n \n100,000,000.00 \n \n95,920,265.14 19,895,850.09 \n \n4,893,280.01 \n \n0.00 \n \n0.00 \n \nTotal \n \n$ 189,300,000.00 $ 186,919,819.21 $ 28,123,439.36 $ 85,487,641.39 $ \n \n0.00 $ \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 \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dougherty 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 \n(4) In addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ \n \n717,039.38 \n \nCurrent Year \n \n1,135,208.28 \n \nTotal \n \n$ 1,852,247.66 \n \n(5) SPLOST III Projects (i) and (iv) were reported as completed at June 30, 2014 in error. These projects are expected to be completed in December 2015. \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASED EDUCATION (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 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 \n$ \n \n7,099,255.00 $ \n \n476,003.00 \n \n15,517,259.00 \n \n2,932,663.00 \n \n6,225,463.00 \n \n2,136,665.00 11,316,626.00 \n9,932,591.00 2,463,523.00 8,382,465.00 \n \n2,042,091.00 978,952.00 796,872.00 301,372.00 \n70,601,800.00 \n2,045,950.00 315,201.00 \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n6,623,135.22 $ 596,603.07 \n14,543,770.37 1,996,345.09 8,405,410.01 \n1,423,093.75 11,382,207.69 10,825,359.11 \n1,252,639.58 \n115,139.77 3,178,204.53 5,547,946.44 \n118,959.24 921,736.99 \n1,476,016.40 323,900.66 \n68,730,467.92 \n2,093,193.79 72,415.36 \n \n41,779.16 $ 91,608.17 429,133.01 \n138,814.24 996,704.43 170,455.99 \n305.20 9,074.49 9,345.75 15,092.38 70,493.19 \n1,972,806.01 203,758.15 76,541.43 \n \n6,664,914.38 596,603.07 \n14,635,378.54 1,996,345.09 8,834,543.02 \n1,423,093.75 11,521,021.93 11,822,063.54 \n1,423,095.57 \n115,444.97 3,178,204.53 5,557,020.93 \n128,304.99 936,829.37 \n1,546,509.59 323,900.66 \n70,703,273.93 \n2,296,951.94 148,956.79 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n72,962,951.00 $ \n \n70,896,077.07 $ 2,253,105.59 $ 73,149,182.66 \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- 49 - \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 23, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 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 Dougherty 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 Dougherty County Board of Education's basic financial statements and have issued our report thereon dated February 23, 2017. Our report includes a reference to others auditors who audited the financial statements of the discretely presented component unit, as described in our report on Dougherty County Board of Education's financial statements. This report does not include the results of other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Dougherty 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 Dougherty County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Dougherty County Board of Education's internal control. \nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses and significant deficiencies. \n \n2015YB-60 \n \n (This page left intentionally blank) \n \n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2015-002 to be a material weakness. \nA 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. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2015-003 to be a significant deficiency. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty 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 an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS 2015-001. \nWe also noted certain matters that we have reported to management of Dougherty County Board of Education in a separate letter dated February 23, 2017. \nDougherty County Board of Education's Response to Findings \nDougherty County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:es 2015YB-60 \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 \nFebruary 23, 2017 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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. Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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:es 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 DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-12-01 FS-6471-13-01 FS 2014-001 FS 2014-002 \n \nUnresolved  See Corrective Action/Responses Unresolved  See Corrective Action/Responses Unresolved  See Corrective Action/Responses Unresolved  See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-12-01 \n \nThe School District will use Central Office Finance staff to provide a monthly review of school activity accounts. This change will be implemented February 2016. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-13-01 \n \nThe School District will use Central Office Finance staff to provide a monthly review of school activity accounts. This change will be implemented February 2016. \n \nCASH AND CASH EQUIVALENTS Uncollateralized Deposits Finding Control Number: FS 2014-001 \n \nManagement will ensure that all bond proceeds are adequately collateralized according to O.C.G.A 45-8-12. The School District has implemented procedures to monitor the collateralization of bank balances. This change will be implemented in fiscal year 2016. \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Finding Control Number: FS 2014-002 \n \nThe School District will use Central Office Finance staff to provide a monthly review of school activity accounts. This change will be implemented February 2016. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-13-02 FA 2014-001 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \n- 2 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n DOUGHERTY 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; Debt Service Fund; Aggregate Remaining Fund Information, Discretely Presented Component Unit \n \nUnmodified \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nYes \n \n Significant deficiency identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nYes \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 \n10.553, 10.555 84.010 \n \nChild Nutrition Cluster Title I Grants to Local Education Agencies \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$904,035.66 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nUncollateralized Deposits Cash and Cash Equivalents None Material Noncompliance FS 2014-001 \n \nDescription: The School District did not have its bank balances fully collateralized. \n \nCriteria: The Official Code of Georgia Annotated (O.C.G.A.) 45-8-12 states in part: \"The collecting officer or officers holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. 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.\" \n \nCondition: As of June 30, 2015, the School District had $11,157,178.19 of bank balances that were not properly collateralized as required by O.C.G.A. 45-8-12. \n \nCause: In discussing this condition with management, they stated that management mistakenly relied on the financial institution's position that collateralization was not needed for bond proceeds as they are not appropriated by the State. \n \nEffect or Potential Effect: A financial loss could be incurred by the School District for the uncollateralized bank balances. \n \nRecommendation: The School District should implement procedures to monitor the collateralization of bank balances to ensure compliance with State laws governing deposits. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. Management will ensure that all bond proceeds are adequately collateralized according to O.C.G.A. 45-8-12. The School District has implemented procedures to monitor the collateralization of bank balances. This change will be implemented in fiscal year 2016. \n \nContact Person: Kenneth Dyer, Associate Superintendent and CFO Telephone: (229) 431-1234 Fax: (229) 431-1239 E-mail: kenneth.dyer@docoschools.org \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \n \nInadequate Control over Financial Reporting Process Financial Reporting Material Weakness None \n \nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. \n \nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \n \nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis  for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \n \nChapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information presented for audit: \n \n A review of interfund transfers revealed that transfers from the Capital Projects Fund to the Debt Service Fund in the amount of $32,277,220.92 were invalid and were incorrectly reported on the financial statements. This error caused additional material misstatements within the Cash and Cash Equivalents, Investments and Sales Taxes balances reported for the Capital Projects Fund and the Debt Service Fund. \n On the Statement of Revenues, Expenditures and Changes in Fund Balances, Debt Service expenditures were understated by $1,440,097.26 and Other Sources  Capital Leases were understated by $1,177,670.44 within the Capital Projects Fund. \n Adjustments to Beginning Net Position in the amount of $34,429,715.54 were proposed and accepted by the School District to agree to the prior year audit report. These omissions resulted in the material misstatement to expense balances, as well. \n Additions to Construction-in-Progress from the prior fiscal year in the amount of $1,082,069.18 were duplicated in the current fiscal year. \n On the Statement of Net Position, Capital Assets, Non-Depreciable was overstated by $12,050,561.63 due to the capitalization of items that did not comply with the entity's capitalization policy. In addition, capital lease proceeds in the amount of $10,133,253.79, which were associated with these expenses, were reflected as Miscellaneous Revenue on the Statement Activities. \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n The Restatement of Prior Year Net Position note disclosure reflected a $158,752,317.07 variance in the balance reported for \"Net Position, July 1, 2014, as previously reported\" and a $37,227,539.00 variance in the \"Prior period adjustment  Implementation of GASB 68\" associated with the TRS and ERS Net Pension Liability. Therefore, the \"Net Position, July 1, 2014, as restated\" did not agree to the Statement of Activities. \n Numerous other audit adjustments and reclassification entries were made to the Financial Statements, Notes to the Basic Financial Statements and Schedules to correctly reflect the financial statements in accordance with Chapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. \nCause: In discussing these conditions with management, they stated that the School District had turnover in key personnel previously responsible for the preparation of the financial statements. Their responsibilities were assigned to personnel who are less experienced and less trained in financial statement preparation. \nEffect or Potential Effect: Material and significant misstatements were included in the financial statements presented for audit. Numerous adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \nRecommendation: As part of internal controls over the preparation of financial statements, including disclosures, the School District should implement comprehensive preparation and/or review procedures to ensure that the financial statements are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of the applicable GAAP, GASB pronouncements, and knowledge of the School District's activities and operations. \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. Management will implement procedures to ensure strengthened internal controls are in place over the financial statement reporting process. Additionally, personnel involved in the financial statement reporting process have been provided additional training in that area. This change will be implemented in time for the preparation of the fiscal year 2016 financial statement reporting process. \nContact Person: Kenneth Dyer, Associate Superintendent \u0026 CFO Telephone: (229) 431-1234 Fax: (229) 431-1239 E-mail: kenneth.dyer@docoschools.org \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-003 Control Category: \nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \n \nInadequate Internal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2014-002 FS-6471-13-01 FS-6471-12-01 \n \nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper segregation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nFinancial Management for Georgia Local Units of Administration Chapter 43, School Activity Accounts (Principal Accounts) states in part \"District Activity Funds (Governmental Funds 500) belong to the District, are used to support its co-curricular and extra-curricular activities, and are administered by the School District. ... Examples of Authorized District Activity Funds: Athletics...\" In addition, it states \"All activity funds should operate on a cash basis, meaning that no commitments or indebtedness may be incurred unless the fund contains sufficient cash. \n \nCondition: The following deficiencies were noted with the School District's school activity accounts: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  Testing revealed bank reconciliations that were not approved by the appropriate personnel. \nRevenues/Receipts/Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of forty receipt transactions: 1. Twenty-two receipts were not deposited in a timely manner. 2. Thirteen receipts did not contain the signature of two employees as required by Board policy. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of forty disbursement transactions: 1. Eight disbursements did not have original invoices attached. 2. Eleven of the disbursements examined lacked information to be able to trace to recording on the general ledger. 3. Seventeen voucher packages did not have evidence of receipt of goods. \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n4. Nine vouchers did not have appropriately approved requisition requests as required by Board policy. \n5. Five checks written did not agree to the attached invoice. 6. Three disbursements examined lacked information to be able to determine if charged to \nthe correct period. \nGeneral Ledger  During testing of school activity accounts at three schools, the auditor noted six accounts with deficit balances. \nCause: In discussing these conditions with management, they stated that school personnel have not been adequately following the policies and procedures set-forth in the School District's \"Accounting Manual for Activity Funds\". \nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \nRecommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District will use Central Office Finance staff to provide a monthly review of School Activity Accounts. This change will be implemented in fiscal year 2016. \nContact Person: Kenneth Dyer, Associate Superintendent and CFO Telephone: (229) 431-1234 Fax: (229) 431-1239 E-mail: kenneth.dyer@docoschools.org \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n- 6 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2014-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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":["2016-01-19"],"dcterms_description":["Annual financial report for the Dougherty 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 NOTES 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 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \ni \n1 2 4 5 6 7 8 9 \n29 30 32 33 34 \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nSECTION III 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 (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 \nJanuary 19, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 H) of the Dougherty 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 of the Board's primary government 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 are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \n2014ARL-25X \n \n (This page left intentionally blank) \n \n 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. \nExcept for the matter described in the \"Basis for Disclaimer of Opinion for the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nBasis for Disclaimer of Opinion for the Discretely PresentedComponent Unit \nThe financial statements of Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as a part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \nDisclaimer of Opinion \nIn our opinion, because of the significance of the matter described in the \"Basis for Disclaimer Opinion for the Discretely Presented Component Unit\" paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Authority as of the year ended June 30, 2014. \nUnmodified Opinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the Dougherty 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 Dougherty 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 xi and page 28 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 \n2014ARL-25X \n \n (This page left intentionally blank) \n \n 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 Dougherty 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. \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 January 19, 2016, on our consideration of the Dougherty 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 Dougherty 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:er 2014ARL-25X \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nINTRODUCTION \nManagement's discussion and analysis of The Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2014. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2014 are as follows: \n The School District continues to maintain a sound fiscal position in fiscal year 2014.  Among major funds the general fund had $154.0 million in revenues and $155.0 \nmillion in expenditures. The general fund's fund balance decreased slightly from $18.2 million to $17.5 million.  Total Net Position increased nearly $6.2 million in fiscal year 2014. This total increase was due to governmental activities since the School District has no businesstype activities. \nUsing the Basic Financial Statements The annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements The Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School District by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School District's activities. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nFund Financial Statements Fund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major funds: Governmental Funds and Fiduciary Funds. \nGovernmental Funds Most of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds  not the School District as a whole. Governmental funds record how money flows in and out within the current period, and reports the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund and Debt Service Fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance its operations. \nPresentation of Financial Data The next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2013 and fiscal year 2014. \nStatement of Net Position (Analysis of the District as a Whole) As previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2014 and the comparative amount for fiscal year 2013. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 1 Net Position (In Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nIncrease \n \nYear 2014 \n \nYear 2013 (Decrease) \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 100,389 $ 62,193 $ 38,196 \n \n252,050 \n \n246,007 \n \n6,043 \n \nTotal Assets \n \n352,439 \n \n308,200 44,239 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n22,993 35,505 \n \n19,390 1,052 \n \n3,603 34,453 \n \nTotal Liabilities \n \n58,498 \n \n20,442 38,056 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted \n \n247,174 33,746 13,021 \n \n246,007 27,520 14,231 \n \n1,167 6,226 -1,210 \n \nTotal N et Position $ 293,941 $ 287,758 $ 6,183 \n \nSee Table 5 for an analysis of the increase in Capital Assets. \nSee Table 6 for complete analysis of the increase on Long-Term Debt at June 30. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted assets increased $6.2 million and include $1.1 million restricted for the continuation of federal programs and for $5.1 million for capital projects and debt services. \nUnrestricted Net Position for Governmental Activities decreased from a $14.2 million balance at the end of fiscal year 2013 to a $13.0 million balance at the end of fiscal year 2014. The decrease is mainly due to program expenditures exceeding total general fund revenues. \nStatement of Activities Table 2 shows the changes in net position for fiscal year 2014 and fiscal year 2013 as reported on the Statement of Activities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2014 \n \n2013 \n \nIncrease (Decrease) \n \n$ \n \n1,534 $ \n \n2,026 $ \n \n97,921 \n \n91,083 \n \n622 \n \n762 \n \n-492 6,838 \n-140 \n \nTotal Program Revenues \n \n100,077 \n \n93,871 \n \n6,206 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n40,889 47 \n4,507 11,176 \n307 \n11,504 53 \n1,947 \n \n40,205 43 \n16,413 306 \n10,377 61 \n1,126 \n \n684 4 \n4,507 -5,237 \n1 \n1,127 -8 \n821 \n \nTotal General Revenues \n \n70,430 \n \n68,531 \n \n1,899 \n \nTotal Revenues \n \n170,507 \n \n162,402 \n \n8,105 \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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \n \n97,635 \n4,348 7,707 3,092 1,619 10,144 2,082 14,210 7,380 4,922 \n409 498 9,555 723 \n \n94,026 \n4,430 5,672 3,295 1,765 9,801 1,468 13,900 6,744 3,408 \n391 527 9,233 \n \n3,609 \n-82 2,035 \n-203 -146 343 614 310 636 1,514 \n18 -29 322 723 \n \nTotal Expenses \n \n164,324 \n \n154,660 \n \n9,664 \n \nIncrease in Net Position \n \n$ \n \n6,183 $ \n \n7,742 $ \n \n-1,559 \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nThe change in Net Position decreased $1.6 million from fiscal year 2013 to fiscal year 2014. \nThe $6.2 million increase in programs revenues are directly correlated with the $2.0 million increase in QBE and state funding and $4.2 million in federal awards. Property tax revenues increased slightly by $684,000 mainly due to an increase in Motor Vehicle Ad Valorem and TAVT (Title Ad Valorem Taxes). Sales tax revenues decreased by $729,000 signifying a decrease in economic spending as our economy continues to recover. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses increased $9.7 million for fiscal year 2014 compared to the previous fiscal year. Instructional expenses account for $3.6 million, this increase is mainly due to salary and benefits as mandated by the state for certified personnel and Improvement of Instructional Services account for $2.0 million due to increase professional learning activities. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well-being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local school district. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the school district. \nMaintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. \nCentral and Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nFood Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nGovernmental Activities \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2013 and fiscal year 2014. This information is presented on the Statement of Activities. \n \nTable 3 Governmental Activities \n(In Thousands) \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 \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 \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n97,635 $ \n4,348 7,707 3,092 1,619 10,144 2,082 14,210 7,380 4,211 \n711 \n409 498 9,555 723 \n \n94,026 $ \n4,430 5,672 3,295 1,765 9,801 1,468 13,900 6,744 2,830 \n578 \n391 527 9,233 \n \n32,808 $ 35,009 \n \n3,173 2,022 1,017 \n-423 5,916 1,983 9,191 4,617 4,016 \n1 \n \n2,620 1,813 \n982 -648 4,601 1,367 8,282 3,512 2,772 \n11 \n \n409 \n \n391 \n \n498 \n \n527 \n \n-1,704 \n \n-450 \n \n723 \n \nTotal Expenses \n \n$ 164,324 $ 154,660 $ \n \n64,247 $ 60,789 \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \nThe School District's Funds \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(in Thousands) \n \nREVENUES \n \nGeneral Fund \n \nCapital Projects Funds \n \nDebt Service Fund \n \nTotals \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \n \n$ \n \n40,558 \n \n307 $ \n \n82,670 \n \n27,377 \n \n1,534 \n \n13 \n \n1,912 \n \n$ \n \n154,371 $ \n \n11,176 $ \n7 35 11,218 $ \n \n$ 4,507 \n33 4,540 $ \n \n40,558 15,990 82,670 27,377 \n1,534 \n53 \n1,947 170,129 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay Debt Services (Interest) \nTotal Expenditures Excess of Revenues over (under) \nExpenditures \n \n91,970 52,256 \n409 498 9,345 622 \n155,100 \n-729 \n \n1,445 1,688 \n11,860 14,993 \n-3775 \n \n624 624 \n3,916 \n \n93,415 53,944 \n409 498 9,345 12,482 624 170,717 \n-588 \n \nOTHER FINANCING SOURCES (USES) \n \nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \n \n32,450 \n \n2,566 \n \n57 \n \n-57 \n \n-10,917 \n \n-57 \n \n24,156 \n \n10,917 10,917 \n \n32,450 2,566 \n10,974 -10,974 35,016 \n \nNet Change in Fund Balances Fund Balances - Beginning \n \n-786 18,284 \n \n20,381 24,390 \n \n14,833 \n \n34,428 42,674 \n \nFund Balances - Ending \n \n$ \n \n17,498 $ \n \n44,771 $ \n \n14,833 $ \n \n77,102 \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nTotal revenues for all governmental funds were $170.1 million and total expenditures were $170.7 million. Total expenditures exceeded total revenues by $588,000 for governmental activities. The fund balance for governmental funds increased from $42.7 million at the beginning of the fiscal year to $77.1 million at June 30, 2014 mainly due to bond proceeds of $32.0 million in November 2013. \nThe fund balance reported for the General Fund decreased from $18.3 million at the beginning of the fiscal year to $17.5 million at June 30, 2014 due to a combined increase of expenditures in the areas of instruction, support services, food servicing, and capital outlay over general fund revenues received to fund these governmental activities. \nThe fund balance reported for the Capital Projects Fund increased from $24.4 million at the beginning of the fiscal year to $44.8 million at June 30, 2014. This was mainly due to the $32.0 million bond issuance in November 2013. \nThe fund balance reported for the Debt Service Fund is $14.8 million at the end of the fiscal year. Revenue from sales taxes offset by bond interest payments and a transfer from the Capital Projects Fund of $10.9 million account for total fund balance. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual  Schedule \"1.\" \nDuring fiscal year 2014, the School District amended its general fund budget as needed. The Original Budget approved by the School District's Board in June, 2013, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the district later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds restricted for a specific purpose can only be used to fund additional programs. Also, Federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nIn December, 2008, the District began receiving the proceeds from a newly approved special purpose local option sales tax referendum. The approved referendum provides for the renovation of three of the District's high schools. Most of the work on these projects was delayed until fiscal year 2009 when the District received additional start up proceeds from the issuance of a General Obligation Bond. At the end of fiscal year 2014 renovations and improvements were completed on four high schools and five elementary schools. Also, the School District had invested $252.0 million in capital assets. Table 5 compares fiscal year 2014 Capital Asset balances to fiscal year 2013 balances. \nIn November of fiscal year 2011, the voters of Dougherty County approved the continuation of the one percent sales tax (Sales Tax for Educational Progress). These sales tax revenues will be used to complete the renovation of schools and improvements, acquire school buses, vehicles for \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nmaintenance and transportation, real and personal property. Sales tax revenues will also be used to upgrade the IT Infrastructure located in the administration building and in one elementary school, leading classroom technology for teachers and end user projects such as One to One technology to all students. Other sales tax projects include the installation of safety and access controls, and the purchase of musical instruments and other academic/instruction related equipment. In the fall of fiscal year 2014 the School District issued General Obligation Bonds in the amount of $32.5 million. \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nFiscal Year 2014 \n \nGovernmental Activities Fiscal Year 2013 \n \nIncrease (Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 11,650 226,908 \n4,441 \n \n9,051 685 $ \n232,619 3,652 \n \n10,965 -5,711 \n789 \n \nTotal \n \n$ \n \n252,050 $ \n \n246,007 $ 6,043 \n \nTable 5 shows that Total Capital Assets increased $6.0 million in fiscal year 2014. The increase in Construction in Progress is largely due to Dougherty High School's Phase II renovation and the IT Infrastructure Upgrade both totaling $10.7 million. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. \nDebt \nTable 6 summarizes the Long-Term Debt outstanding at June 30 for fiscal year 2013 and fiscal year 2014. \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2014 \n \n2013 \n \n(Decrease) \n \nGeneral Obligation Bonds $ Compensated Absences Bond Premiums Amortized \n \n32,450 1,003 $ 2,052 \n \n$ 1,052 \n \n32,450 -49 \n2,052 \n \nTotal \n \n$ \n \n35,505 $ \n \n1,052 $ \n \n34,453 \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nAs shown in Table 6, General Obligation Bonds were issued for $32.4 million to finance capital outlay projects funded by forthcoming SPLOST revenues. Amortized bond premiums represent $2.0 million and $1.0 million is for Compensated Absences, which represent the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \nCurrent Financial Issues Like most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the rising costs in employee benefits, state mandated teacher salary increases, utilities and the continued state formula allotment reductions. Other challenges include a slow decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nDespite these challenges, the School District is financially stable. The School Districts operating millage for fiscal year 2014 was 18.445. The current millage rate has remained at 18.445 since fiscal year 2008 (2007 digest). \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. After an increase last fiscal year, there was a small decrease in the FTE count for fiscal year 2014. \n \nFiscal Year 2010 Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 \n \n15,962 15,628 15,497 15,676 15,628 \n \nIn August, 2008, the School District was notified of the decline in State revenues and the resulting additional reduction in educational funding for fiscal year 2009. In total, State funding for fiscal year 2009 was reduced $5.2 million. Expenditure reduction measures were taken in all areas with the purpose of preserving the fund balance. Management has continued to monitor expenditures and identify additional costs savings and reductions on a monthly basis, which contributed to the preservation of the general fund balance. \n \nThe School District continues to be financially challenged by multiple years of reductions in State funding to local districts. Austerity reductions to State funding were budgeted again for fiscal year 2014. Even with these reductions in State resources (and the local tax digest), the School District has maintained the current millage of 18.445 mills since fiscal year 2009 and has been able to maintain a healthy General Fund Balance. \n \nIn spite of the continued challenges, The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars. The School District completed an occupancy and space utilization assessment aimed at ensuring the School District is using its facilities space efficiently. As a result three schools (two elementary and one middle) were closed at the end of the 2013 school year, resulting in an operational cost savings of approximately $2.0 million. The School District strives to emphasize student achievement while maintaining sound fiscal management. \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Contacting the District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Kenneth Dyer, Associate Superintendent and CFO, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to kenneth.dyer@docoschools.org. \nxi \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Interest Payable Retainages Payable Deposits and Unearned Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ \n \n46,992,352.95 $ \n \n29,620,053.43 \n \n4,911,529.61 10,003,197.76 \n7,449,695.57 31,965.63 \n903,434.92 473,475.90 \n2,985.00 20,701,362.06 231,348,843.04 \n \n352,438,895.87 \n \n160,849.83 \n410,000.00 2,125,630.00 2,696,479.83 \n \n4,151,030.15 16,845,208.50 \n1,223,673.06 98,583.33 \n613,092.46 61,360.85 \n8,308,327.15 27,197,080.30 \n58,498,355.80 \n \n247,173,958.90 \n4,274,579.35 14,734,756.52 14,736,515.37 13,020,729.93 \n \n2,535,630.00 160,849.83 \n \nTotal Net Position \n \n$ \n \n293,940,540.07 $ \n \n2,696,479.83 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n DOUGHERTY 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n97,634,907.34 $ \n \n4,348,437.29 7,707,376.42 3,091,961.42 1,618,925.39 10,143,840.50 2,081,754.87 14,210,171.61 7,380,253.96 4,210,614.75 \n711,159.25 \n \n408,630.13 498,129.08 9,554,971.43 722,944.45 \n \n$ \n \n164,324,077.89 $ \n \n1,111,852.35 \n69,775.00 154,134.26 \n198,413.87 1,534,175.48 \n \n$ \n \n242,520.50 $ \n \n110,000.00 \n \nNet Position - End of Year \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 \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ \n \n63,632,745.24 $ \n \n1,175,850.11 5,685,170.32 2,075,263.00 2,042,018.68 4,227,809.23 \n98,411.71 4,949,801.18 2,068,953.59 \n194,104.43 710,040.07 \n \n11,060,584.88 \n \n$ \n \n97,920,752.44 $ \n \n82,000.00 $ 540,540.00 622,540.00 $ \n \n-32,808,309.75 \n-3,172,587.18 -2,022,206.10 -1,016,698.42 \n423,093.29 -5,916,031.27 -1,983,343.16 -9,190,595.43 -4,616,626.11 -4,016,510.32 \n-1,119.18 \n-408,630.13 -498,129.08 1,704,027.32 -722,944.45 \n-64,246,609.97 \n \n$ \n \n-132,520.50 \n \n40,888,603.92 47,006.47 \n4,507,389.07 11,176,370.71 \n306,506.20 11,504,148.00 \n52,706.00 1,946,864.15 \n70,429,594.52 \n6,182,984.55 \n287,757,555.52 \n \n$ \n \n293,940,540.07 $ \n \n747.44 44,036.20 44,783.64 -87,736.86 2,784,216.69 \n2,696,479.83 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2014 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 13,015,507.39 $ 31,242,521.85 $ 2,734,323.71 $ \n \n1,719,361.55 \n \n17,133,576.19 \n \n10,767,115.69 \n \n3,579,629.16 10,003,197.76 \n7,449,695.57 31,965.63 \n903,434.92 473,475.90 \n2,985.00 \n \n1,331,900.45 \n \n46,992,352.95 29,620,053.43 \n4,911,529.61 10,003,197.76 \n7,449,695.57 31,965.63 \n903,434.92 473,475.90 \n2,985.00 \n \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ 37,179,252.88 $ 48,376,098.04 $ 14,833,339.85 $ 100,388,690.77 \n \n$ 1,158,078.97 $ 16,845,208.50 \n61,360.85 \n18,064,648.32 \n \n2,992,951.18 $ 613,092.46 \n3,606,043.64 \n \n$ \n \n4,151,030.15 \n \n16,845,208.50 \n \n613,092.46 \n \n61,360.85 \n \n21,670,691.96 \n \n1,616,347.11 \n \n1,616,347.11 \n \n476,460.90 4,198,805.93 2,614,255.99 1,795,032.46 8,413,702.17 \n17,498,257.45 \n \n44,770,054.40 $ 14,833,339.85 \n \n44,770,054.40 \n \n14,833,339.85 \n \n476,460.90 63,802,200.18 \n2,614,255.99 1,795,032.46 8,413,702.17 \n77,101,651.70 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \n$ 37,179,252.88 $ 48,376,098.04 $ 14,833,339.85 $ 100,388,690.77 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n DOUGHERTY 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 Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nProperty Taxes \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Accrued Interest Payable Compensated Absences Payable Bond Premiums, Net of Amortization Claims and Judgments Payable \nTotal Long-Term Liabilities \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 77,101,651.70 \n \n$ \n \n9,051,054.08 \n \n11,650,307.98 \n \n339,600,537.16 \n \n10,448,236.37 \n \n-118,699,930.49 \n \n252,050,205.10 \n \n1,616,347.11 \n \n$ -32,450,000.00 -98,583.33 \n-1,002,915.05 -2,052,492.40 -1,223,673.06 \n \n-36,827,663.84 \n \n$ 293,940,540.07 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nInterest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 40,558,598.74 \n \n306,506.20 $ 11,176,370.71 $ \n \n82,670,371.97 \n \n27,377,068.47 \n \n1,534,175.48 \n \n12,491.38 \n \n7,025.40 \n \n1,911,864.15 \n \n35,000.00 \n \n154,371,076.39 \n \n11,218,396.11 \n \n$ 4,507,389.07 \n33,189.22 \n \n40,558,598.74 15,990,265.98 82,670,371.97 27,377,068.47 \n1,534,175.48 52,706.00 \n1,946,864.15 \n \n4,540,578.29 \n \n170,130,050.79 \n \n91,969,680.91 \n4,334,171.74 7,677,805.25 2,911,533.19 1,611,840.27 9,820,180.06 1,891,428.10 13,382,006.62 6,469,009.90 3,446,573.24 \n711,159.25 408,630.13 498,129.08 9,345,020.60 622,540.00 \n \n1,445,452.80 \n5,625.60 7,085.12 95,053.38 529,755.57 427,992.19 623,073.88 \n11,859,790.23 \n \n155,099,708.34 -728,631.95 \n \n14,993,828.77 -3,775,432.66 \n \n624,361.12 624,361.12 3,916,217.17 \n \n93,415,133.71 \n4,334,171.74 7,683,430.85 2,911,533.19 1,618,925.39 9,820,180.06 1,986,481.48 13,911,762.19 6,897,002.09 4,069,647.12 \n711,159.25 408,630.13 498,129.08 9,345,020.60 12,482,330.23 \n624,361.12 \n170,717,898.23 \n-587,847.44 \n \n-57,026.11 -57,026.11 -785,658.06 18,283,915.51 \n \n32,450,000.00 2,565,615.50 57,026.11 \n-10,917,122.68 \n24,155,518.93 \n20,380,086.27 \n24,389,968.13 \n \n10,917,122.68 \n10,917,122.68 14,833,339.85 \n0.00 \n \n32,450,000.00 2,565,615.50 \n10,974,148.79 -10,974,148.79 \n35,015,615.50 \n34,427,768.06 \n42,673,883.64 \n \n$ \n \n17,498,257.45 $ 44,770,054.40 $ 14,833,339.85 $ 77,101,651.70 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n DOUGHERTY 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. \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Position. In the current period, proceeds were received from: \nGeneral Obligation Bonds Issued, Including a Premium of $2,565,615.50 \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nAmortized Bond Premium \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nNet Decrease in Accrued Interest on Issuance of Bonds Increase in Compensated Absences Decrease in Claims and Judgments \nTotal Additional Expenditures \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ 34,427,768.06 \n \n$ 12,482,330.23 -6,259,858.27 \n \n6,222,471.96 -179,652.46 377,011.65 \n \n-35,015,615.50 \n \n513,123.10 \n \n$ \n \n-98,583.33 \n \n49,411.16 \n \n-112,950.09 \n \n-162,122.26 \n \n$ \n \n6,182,984.55 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2014 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n390,162.60 \n \n17,422.63 \n \n$ \n \n407,585.23 \n \n$ \n \n407,585.23 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 17 for additional component unit disclosures. \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 Dougherty County Board of Education. \nDistrict-wide Statements: The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other 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, 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. \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 \n- 9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \n District-wide 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 to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n 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. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds 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 are 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 to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nFUTURE ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2015, the School District will adopt Governmental Account 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. Based on information provided by the Teachers' Retirement System of Georgia (TRS), the School District's liability for the unfunded portion of the pension plan administered through TRS is estimated to be $97,782,417.00 at June 30, 2015. \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 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 current credit risk, custodial credit risk, concentration of credit risk, interest rate risk or foreign currency risk. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \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 Dougherty County Board of Commissioners County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on July 15, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on December 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $38,784,468.35. \nThe tax millage rate levied for the 2013 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.445 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,727,123.92 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 $15,683,759.78 and is to be used for capital outlay and debt services for educational purposes. 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 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). 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. \nConsumable Supplies On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2014, are recorded as prepaid items. \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. \n \nThe 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. \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 Buildings and Improvements Equipment Intangible Assets \n \nAny amount \n \nN/A \n \n$ 100,000.00 20 to 80 years \n \n$ \n \n50,000.00 4 to 10 years \n \n$ 1,000,000.00 \n \n4 to 8 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 \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 4 to 8 years. \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \n \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. \n \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 reported 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. \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \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 18 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 30 days. \n \nBeginning of Year Liability \n \nIncrease \n \nDecrease \n \nEnd of Year Liability \n \n2012 2013 2014 \n \n$ 1,194,069.27 $ 1,168,992.95 $ 1,052,326.21 \n \n$ 870,137.27 $ 815,575.40 $ 785,895.50 \n \n$ 895,213.59 $ 1,168,992.95 $ 932,242.14 $ 1,052,326.21 $ 835,306.66 $ 1,002,915.05 \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \nNET POSITION \n \nThe School District's net position in the District-wide Statements is classified as follows: \n \nNet Investment 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 \nRestricted net position  This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net position - Unrestricted net position represents 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. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \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 \n \nInventories \n \n$ \n \n473,475.90 \n \nPrepaid Assets \n \n2,985.00 $ 476,460.90 \n \nRestricted \n \nContinuation of Federal Programs \n \n4,198,805.93 \n \nCapital Projects \n \n44,770,054.40 \n \nDebt Service \n \n14,833,339.85 \n \n63,802,200.18 \n \nCommitted \n \nSelf-Insurance \n \n2,614,255.99 \n \nAssigned \n \nSubsequent Period Expenditures \n \n1,433,004.00 \n \nSchool Activity Accounts \n \n362,028.46 \n \n1,795,032.46 \n \nUnassigned \n \n8,413,702.17 \n \nFund Balance, June 30, 2014 \n \n$ 77,101,651.70 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of 8% to 12% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \n \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \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, 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 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 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. \nAt June 30, 2014 $37,161,722.37 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, \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \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, 2014, the School District had deposits with a carrying amount of $47,407,950.08, which includes $25,434.53 in Certificates of Deposit that are reported as Investments, and a bank balance of $53,465,444.32. The bank balances insured by Federal depository insurance were $1,658,183.31 and the bank balances collateralized with securities held by the pledging institution or by the pledging financial institution's trust department or agent in the School District's name were $85,568.16. The amounts exposed to custodial credit risk are classified into three categories as follows: \nCategory 1 - Uncollateralized Category 2 - Cash collateralized with securities held by the pledging financial institution \no or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2014, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 37,161,722.37 \n \n2 \n \n0.00 \n \n3 \n \n14,559,970.48 \n \nTotal \n \n$ 51,721,692.85 \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nCOMPONENT UNIT \n \nAt June 30, 2014, Dougherty County Stadium Authority's bank balance of $160,849.83 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2014, the carrying value of the School District's total investments was $29,620,053.43, which is materially the same as fair value. This includes $25,434.53 invested in Certificates of Deposit, which are collateralized in the same manner as other cash deposits. \nThis investment also includes $29,594,618.90 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, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity for Georgia Fund 1 on June 30, 2014, was 62 days. \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their federally assigned value. See Note 2 - Inventories \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2013 \n \nTransfers \n \nIncreases \n \nDecreases \n \nBalances June 30, 2014 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 \n \n$ \n \n685,024.75 $ -7,806.50 $ 10,973,089.73 \n \n0.00 $ \n \n9,051,054.08 11,650,307.98 \n \nTotal Capital Assets Not Being Depreciated \n \n9,736,078.83 -7,806.50 10,973,089.73 \n \n0.00 \n \n20,701,362.06 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n339,613,760.08 9,309,699.37 \n \n7,806.50 \n \n178,433.50 1,330,807.00 \n \n199,462.92 192,270.00 \n \n339,600,537.16 10,448,236.37 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n106,994,848.09 5,657,304.59 \n \n5,717,789.14 542,069.13 \n \n19,810.46 192,270.00 \n \n112,692,826.77 6,007,103.72 \n \nTotal Capital Assets, Being Depreciated, Net 236,271,306.77 \n \n7,806.50 -4,750,617.77 \n \n179,652.46 \n \n231,348,843.04 \n \nGovernmental Activity Capital Assets - Net $ 246,007,385.60 $ \n \n0.00 $ 6,222,471.96 $ 179,652.46 $ 252,050,205.10 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \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 \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nFood Services \n \n$ 4,509,235.37 \n \n14,801.63 25,441.04 190,717.88 341,838.95 100,444.83 178,605.95 510,587.24 29,774.28 \n$ \n \n1,392,211.80 358,411.10 \n6,259,858.27 \n \nCOMPONENT UNIT \nComponent Unit's Summary of Changes in Capital Assets \nBalances July 1, 2013 \n \nIncrease \n \nDecrease \n \nBalances June 30, 2014 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \n \n$ 410,000.00 $ \n \n0.00 $ \n \n0.00 $ 410,000.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Stadium Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Stadium Improvements \n \n308,976.00 239,886.00 2,607,983.00 \n \n73,378.00 229,063.00 630,527.00 \n \n7,724.00 21,889.00 68,634.00 \n \n308,976.00 239,886.00 2,607,983.00 \n \n81,102.00 \n \n250,952.00 \n \n0.00 \n \n699,161.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n2,223,877.00 \n \n-98,247.00 \n \nGovernmental Activity Capital Assets - Net $ 2,633,877.00 $ -98,247.00 $ \n \n0.00 \n \n2,125,630.00 \n \n0.00 $ 2,535,630.00 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nNOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2014, consisted of the following: \n \nTransfers to \n \nTransfers From \n \nDistrict-wide \n \nGeneral Fund \n \nCapital Projects \n \nDistrict-wide Capital Projects $ 57,026.11 \n \nDebt Service Fund \n \n$ 10,917,122.68 \n \nTotal \n \n$ 57,026.11 $ 10,917,122.68 \n \nEXHIBIT \"H\" \n \nTransfers are used to (1) move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund to cover a portion of the employees' salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects and (2) move Education Special Purpose Local Option Sales Tax (ESPLOST) proceeds collected by the District-wide Capital Projects Fund to the Debt Service Fund to meet debt service requirements. \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. \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \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 \n2013 $ 1,463,903.42 $ 2014 $ 1,110,722.97 $ \n \n934,091.09 $ 1,287,271.54 $ 1,151,177.37 $ 1,038,227.28 $ \n \n1,110,722.97 1,223,673.06 \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. \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 $ 0.00 $ \n \n63,106.45 $ 47,583.00 $ \n \n63,106.45 $ 47,583.00 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ \n \n50,000.00 \n \n$ 100,000.00 \n \nNOTE 9: OPERATING LEASES \nDougherty County Board of Education has entered into various leases as lessee for copiers and fax machines. 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 $353,108.16. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2015 \n \n$ \n \n34,425.68 \n \nNOTE 10: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ \n \n0.00 $ 9,000,000.00 $ 9,000,000.00 $ \n \n0.00 \n \nNOTE 11: LONG-TERM LIABILITIES 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. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bond currently outstanding is as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2013 \n \n2.00% - 5.00% $ 32,450,000.00 \n \nVoters have authorized $7,550,000.00 in general obligation debt for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. These bonds had not been issued as of June 30, 2014. \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \n \nBalance July 1, 2013 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2014 \n \nDue Within One Year \n \nG.O. Bonds \n \n$ \n \nCompensated Absences \n \nBond Premiums Amortized \n \n$ \n \n0.00 $ 1,052,326.21 \n0.00 \n \n32,450,000.00 785,895.50 $ \n2,565,615.50 \n \n$ 835,306.66 513,123.10 \n \n32,450,000.00 $ 1,002,915.05 2,052,492.40 \n \n1,052,326.21 $ 35,801,511.00 $ 1,348,429.76 $ 35,505,407.45 $ \n \n7,725,000.00 70,204.05 \n513,123.10 \n8,308,327.15 \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nAt June 30, 2014, payments due by fiscal year which include principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2015 2016 2017 2018 \n \n$ 7,725,000.00 $ 1,105,750.00 $ \n \n7,950,000.00 \n \n869,500.00 \n \n8,175,000.00 \n \n550,250.00 \n \n8,600,000.00 \n \n195,000.00 \n \n513,123.10 513,123.10 513,123.10 513,123.10 \n \nTotal Principal and Interest $ 32,450,000.00 $ 2,720,500.00 $ 2,052,492.40 \n \nNOTE 12: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $8,236,222.05 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 $7,867,176.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $37,582.05 \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 $331,464.00 \nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \nNOTE 13: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014. \n \nProject IT Infrastructure Upgrade/Data Centers Dougherty High School COE Phase II \n \nUnearned Executed Contracts \n \n$ \n \n1,864,368.25 \n \n10,840,098.79 \n \n$ \n \n12,704,467.04 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \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 believed to be material to the basic financial statements. \nNOTE 15: 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. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \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, 2014. For certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2013 - June 30, 2014 $945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2013 - June 30, 2014 $596.20 per member per month \nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nPercentage Fiscal Year Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% 100% 100% \n \n$ 16,535,080.12 $ 14,708,855.59 $ 14,352,395.01 \n \nNOTE 16: RETIREMENT PLANS \n \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \n \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 \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 \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \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, 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. Employer contributions will increase to 13.15% effective July 1, 2015. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nPercentage Fiscal Year Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% 100% 100% \n \n$ 9,743,172.49 $ 8,933,693.84 $ 8,086,748.31 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \n \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. \nDEFINED CONTRIBUTION PLAN \n \nIn August 1996, Dougherty County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe Board selected VALIC as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the Board matches 3% of employee's contribution. \n \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the Board. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nPercentage Fiscal Year Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n3% \n \n$ 163,989.90 \n \n3% \n \n$ 173,175.01 \n \n3% \n \n$ 173,373.75 \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNOTE 17: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. The authority's fiscal year is July 1 through June 30. \n \n- 27 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 Community Services Operations Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Transfers from Other Funds Sale or Compensation for Loss of Fixed Assets Other Sources Other Transfers to Other Funds \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$ 39,774,794.00 $ 40,589,871.00 $ 40,558,598.74 $ \n \n-31,272.26 \n \n45,000.00 \n \n306,506.00 \n \n306,506.20 \n \n0.20 \n \n81,342,294.00 \n \n82,693,214.43 \n \n82,670,371.97 \n \n-22,842.46 \n \n27,216,332.00 \n \n35,603,950.78 \n \n27,377,068.47 \n \n-8,226,882.31 \n \n1,519,380.63 \n \n1,066,247.13 \n \n1,534,175.48 \n \n467,928.35 \n \n32,000.00 \n \n10,478.00 \n \n12,491.38 \n \n2,013.38 \n \n1,829,559.37 \n \n2,870,756.42 \n \n1,911,864.15 \n \n-958,892.27 \n \n151,759,360.00 \n \n163,141,023.76 \n \n154,371,076.39 \n \n-8,769,947.37 \n \n91,346,229.79 \n4,836,194.38 8,244,909.87 2,895,170.00 2,172,195.21 9,104,177.82 1,523,907.00 13,573,333.14 6,089,931.22 3,804,498.00 \n783,876.57 349,000.00 428,718.00 10,179,950.00 \n155,332,091.00 \n-3,572,731.00 \n \n95,486,025.39 \n4,481,538.65 11,983,340.84 \n2,873,767.74 1,991,249.61 9,275,328.94 1,808,150.24 13,684,879.10 7,170,767.44 3,407,533.40 1,180,125.00 \n371,888.87 465,409.00 11,834,374.48 \n166,014,378.70 \n-2,873,354.94 \n \n91,969,680.91 \n4,334,171.74 7,677,805.25 2,911,533.19 1,611,840.27 9,820,180.06 1,891,428.10 13,382,006.62 6,469,009.90 3,446,573.24 \n711,159.25 408,630.13 498,129.08 9,345,020.60 622,540.00 \n155,099,708.34 \n-728,631.95 \n \n3,516,344.48 \n147,366.91 4,305,535.59 \n-37,765.45 379,409.34 -544,851.12 -83,277.86 302,872.48 701,757.54 -39,039.84 468,965.75 -36,741.26 -32,720.08 2,489,353.88 -622,540.00 \n10,914,670.36 \n2,144,722.99 \n \n608,436.00 12,000.00 \n1,233,710.00 -748,436.00 \n1,105,710.00 \n-2,467,021.00 \n13,897,420.00 \n \n683,305.00 39,695.00 \n1,069,715.00 -683,305.00 \n1,109,410.00 \n-1,763,944.94 \n18,277,703.83 \n-378,526.05 \n \n-57,026.11 -57,026.11 -785,658.06 18,283,915.51 \n \n-683,305.00 -39,695.00 \n-1,069,715.00 626,278.89 \n-1,166,436.11 \n978,286.88 \n6,211.68 \n378,526.05 \n \nFund Balances - Ending \n \n$ 11,430,399.00 $ 16,135,232.84 $ 17,498,257.45 $ 1,363,024.61 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \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 $821,758.10 and $814,861.03 respectively. \n \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- 29 - \n \n DOUGHERTY 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 U. S. Department of Agriculture \nEducation, U. S. Department of Educational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSchool Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants School Improvement Grants \nTotal School Improvement Grants Cluster \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 ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Special Education State Personnel Development Title I Grants to Local Educational Agencies Pass-Through From Georgia Professional Standards Commission Transition to Teaching \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 Georgia Department of Behavorial Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Southwest Georgia Development Center Workforce Investment Act Youth Activities \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$ 9,873,882.10 (1) \n \n9,873,882.10 \n \n84.318 \n \nN/A \n \n84.388 \n \nN/A \n \n84.377 \n \nN/A \n \n1,184.00 \n444,083.11 490,170.65 934,253.76 \n \n* 84.027 \n \nN/A \n \n* 84.173 \n \nN/A \n \n* 84.395 \n \nN/A \n \n84.048 \n \nN/A \n \n84.196 \n \nN/A \n \n84.365 \n \nN/A \n \n* 84.367 \n \nN/A \n \n84.011 \n \nN/A \n \n84.323 \n \nN/A \n \n* 84.010 \n \nN/A \n \n84.350 \n \nN/A \n \n3,532,761.53 125,451.00 \n3,658,212.53 \n2,173,148.99 172,532.98 18,855.52 44,156.96 \n1,130,992.08 45,683.13 \n40,033.86 8,007,080.12 \n1,500.00 \n11,633,983.64 \n16,227,633.93 \n \n93.959 \n \nN/A \n \n17.259 \n \nN/A \n \n81,550.83 68,298.30 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ \n \n58,765.07 \n \n126,528.46 \n \n185,293.53 \n \nTotal Expenditures of Federal Awards \n \n$ 26,436,658.69 \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 $676,803.92. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,778,821.64) were not maintained separately and are included in the 2014 National School Lunch Program. \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. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty 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- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \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 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 Food Services GNETS State Grant Math and Science Supplements Move on When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Technology to Support Digital Learning - State Bonds Vocational Education \nOffice of the State Treasurer Public School Employees Retirement \n \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 $7,867,176.00 are included as part of the Quality Basic Education revenue allotments. above. \n \nSee notes to the basic financial statements \n \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,118,561.89 \n \n6,273,531.00 536,241.00 \n13,410,235.00 2,679,327.00 5,651,734.00 1,942,120.00 \n10,642,159.00 8,984,709.00 2,454,406.00 6,702,194.00 1,658,654.00 613,996.00 716,812.00 224,411.00 1,823,913.00 582,031.00 318,838.00 \n1,558,872.00 3,649,520.00 4,022,822.00 \n304,989.00 -10,404,325.00 \n1,593,661.00 308,777.00 \n11,504,148.00 \n246,293.00 2,084,578.81 \n66,860.73 300.00 \n256,313.00 540,540.00 \n37,582.05 82,000.00 152,103.49 \n331,464.00 \n$ 82,670,371.97 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nSPLOST III \n \n(i) \n \nThe renovation and improvement of four high schools \n \nand five elementary schools, strategic land acquisition \n \nfor future school expansion, certain other capital repairs \n \nand modifications in system-wide schools, buildings \n \nand office (including carpet replacement, gym flooring \n \nand certain other capital repairs and modifications) \n \n(ii) \n \nThe provision of additional classroom technology \n \n(including hardware, software and computer furniture), \n \nregular system-wide replacement of computers five \n \nyears or older, installing six computers in all K-8th \n \ngrade classrooms and three computers in all 9th-12th \n \ngrade classrooms, providing system-wide teacher \n \nlaptop computers, system-wide \"wireless-connectivity\" \n \nin all classroom and other buildings, upgrading existing \n \ncomputer-aided instructional systems to \"Model \n \nClassroom\" standards and providing three additional \n \n\"Model Classrooms\" per school, providing system-wide \n \nupgraded or new servers and upgraded main data frame \n \n(MDF) rooms, installing \"voice-over-internet-protocol\" \n \n(VOIP) in various classrooms throughout the school \n \nsystem \n \n(iii) The provision of safety and security equipment, including system-wide communication equipment and card access systems at various system-wide buildings and the installation of radio signal-boosters (\"radio repeaters\") for West Dougherty tower \n \n(iv) Vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment, and other educational related equipment \n \nSubtotal SPLOST III \n \nSPLOST IV \n \n(a) The renovation and improvement of one or more existing schools, administration and related facilities, including the provision of safety and security equipment for these facilities \n \n(b) acquisition, construction and equipping of new schools, administration and related facilities \n \n(c) \n \nthe acquisition of school buses, vehicles for maintenance \n \nand transportation use and other transportation equipment \n \n(d) acquisition, construction and equipping of new athletic facilities \n \n(e) acquisition of software, hardware and computer equipment for the use of both staff and students \n \n(f) \n \nacquisition of real and personal property necessary for the \n \nforegoing \n \nSubtotal SPLOST III \n \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (4) (5) \n \nESTIMATED COMPLETION \nDATE \n \n$ 75,200,000.00 $ 61,187,834.94 $ 2,671,105.21 $ 58,516,729.73 $ 61,187,834.94 $ \n \n0.00 \n \nCompleted \n \n10,500,000.00 \n \n23,565,820.29 \n \n5,978,353.71 \n \n9,175,505.60 \n \n15,153,859.31 \n \nDecember 2015 \n \n5,700,000.00 \n \n6,180,686.12 \n \n20,671.44 \n \n6,160,014.68 \n \n6,180,686.12 \n \n0.00 \n \nCompleted \n \n3,600,000.00 95,000,000.00 \n \n4,252,667.13 95,187,008.48 \n \n1,280,714.03 9,950,844.39 \n \n2,971,953.10 76,824,203.11 \n \n4,252,667.13 86,775,047.50 \n \n0.00 0.00 \n \nCompleted \n \n83,400,000.00 \n \n83,400,000.00 \n \n4,893,280.01 \n \n0.00 \n \n4,893,280.01 \n \n0.00 \n \n0.00 \n \n0.00 \n \n6,200,000.00 \n \n6,200,000.00 \n \n0.00 \n \n0.00 \n \n0.00 \n \n0.00 \n \n10,000,000.00 \n \n10,000,000.00 \n \n0.00 \n \n400,000.00 \n \n400,000.00 \n \n0.00 \n \n100,000,000.00 \n \n100,000,000.00 \n \n4,893,280.01 \n \n0.00 \n \n4,893,280.01 \n \n$ 195,000,000.00 $ 195,187,008.48 $ 14,844,124.40 $ 76,824,203.11 $ 91,668,327.51 $ \n \n0.00 June 30, 2018 \n \nJune 30, 2018 \n \nJune 30, 2018 \n \nJune 30, 2018 \n \nJune 30, 2018 \n \n0.00 0.00 \n \nJune 30, 2018 \n \n(1) \n \nThe School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) \n \nThe School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) \n \nThe voters of Dougherty 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 \n \nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) \n \nIn addition to the expenditures shown above, the School District has incurred interest and other fees to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ \n \n0.00 \n \nCurrent Year \n \n717,039.38 \n \nTotal \n \n$ \n \n717,039.38 \n \n(5) \n \nSPLOST III Projects (ii), (iii), and (iv) were reported as completed at June 30, 2013 in error. Project (ii) is expected to be completed in December 2015. \n \nProjects (iii) and (iv) were completed as of June 30, 2014. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n DOUGHERTY 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 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 \n7,246,762.00 $ \n \n7,029,510.17 $ \n \n46,313.46 $ \n \n7,075,823.63 \n \n538,639.00 \n \n430,167.27 \n \n430,167.27 \n \n15,262,503.00 \n \n14,210,983.74 \n \n42,934.59 \n \n14,253,918.33 \n \n2,813,752.00 \n \n1,617,992.07 \n \n1,617,992.07 \n \n6,517,178.00 \n \n8,646,057.79 \n \n254,792.02 \n \n8,900,849.81 \n \n2,090,275.00 \n12,066,003.00 10,205,430.00 \n2,809,795.00 7,788,730.00 \n1,959,140.00 614,161.00 831,327.00 259,646.00 \n \n1,253,435.21 2,211,664.30 10,271,794.49 11,736,220.85 1,566,717.27 \n78,350.62 3,134,518.30 5,570,751.08 \n184,857.35 812,548.94 \n1,521,619.52 320,612.49 \n \n16,670.68 139,467.09 1,698,526.80 141,002.42 \n74.55 \n19,819.72 7,730.48 9,960.49 \n123,795.41 \n \n1,253,435.21 2,228,334.98 10,411,261.58 13,434,747.65 1,707,719.69 \n78,425.17 3,134,518.30 5,590,570.80 \n192,587.83 822,509.43 \n1,645,414.93 320,612.49 \n \n71,003,341.00 \n \n70,597,801.46 \n \n2,501,087.71 \n \n73,098,889.17 \n \n2,073,604.00 354,146.00 \n \n2,533,572.17 5,586.34 \n \n209,237.09 36,536.17 \n \n2,742,809.26 42,122.51 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n73,431,091.00 $ \n \n73,136,959.97 $ 2,746,860.97 $ 75,883,820.94 \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- 34 - \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 \nJanuary 19, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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, except as discussed in the following paragraph, 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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dougherty 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 Dougherty County Board of Education's basic financial statements and have issued our report thereon dated January 19, 2016. \nThe financial statements of Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as a part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Dougherty 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 Dougherty County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Dougherty 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 \n2014YB-50 \n \n (This page left intentionally blank) \n \n 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS-2014-002 that we consider to be a significant deficiency. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty 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 an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-2014-001. \nWe also noted certain matters that we have reported to management of Dougherty County Board of Education in a separate letter dated January 19, 2016. \nDougherty County Board of Education's Response to Findings \nDougherty County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:er 2014YB-50 \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 \nJanuary 19, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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, 2014. Dougherty 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 Dougherty 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 Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \n \n2014SA-40 \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 Dougherty County Board of Education's compliance. \nOpinion on Each Major Federal Program \nIn our opinion, the Dougherty 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, 2014. \nOther Matters \nThe results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA 2014-001. Our opinion on each major federal program is not modified with respect to this matter. \nDougherty County Board of Education's response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nReport on Internal Control over Compliance \nManagement of Dougherty 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 Dougherty 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 Dougherty 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. \n2014SA-40 \n \n (This page left intentionally blank) \n \n However, we identified a deficiency in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as item FA 2014-001 that we consider to be a significant deficiency. \nDougherty County Board of Education's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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:er 2014SA-40 \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 DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-12-01 Further Action Not Warranted FS-6471-13-01 Unresolved  See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-13-01 \n \nThe School District will implement procedures to strengthen its internal controls over Cash and Cash Equivalents. The School District will revise and monitor its procedures to ensure that accounting functions over custody, recordkeeping and authorization are separated and utilize management oversight of these activities. The School District will implement a monitoring process to ensure that transactions are processed according to established procedures. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nFA-6471-12-03 FA-6471-13-01 FA-6471-13-02 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved  See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES MATCHING, LEVEL OF EFFORT AND/OR EARMARKING PERIOD OF AVAILABILITY Inadequate Internal Control Procedures Finding Control Number: FA-6471-13-02 \n \nThe School District has implemented procedures to ensure that all expenditures charged to federal programs are allowable under OMB Circular A-87, approved by the Program Coordinator and properly documented. \n \n (This page left intentionally blank) \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n DOUGHERTY 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; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnmodified Disclaimer \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiencies identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nYes \n \nFederal Awards \n \nInternal Control over major programs: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \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 \nYes \n \nIdentification of major programs: \n \nCFDA Number \n \nName of Federal Program or Cluster \n \n84.010 84.027, 84.173 84.367 84.395 \n \nTitle I, Part A Special Education Cluster Improving Teacher Quality State Grants ARRA Race-to-the-Top Incentive Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$793,099.76 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2014-001 Uncollateralized Deposits \n \nControl Category: \n \nCash and Cash Equivalents \n \nCompliance Impact: \n \nMaterial Noncompliance \n \nDescription: The School District failed to have its bank balances fully collateralized. \n \nCriteria: The Official Code of Georgia Annotated (O.C.G.A.) 45-8-12 states in part: \"The collecting officer or officers holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. 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.\" \n \nQuestioned Cost: N/A \n \nCondition: As of June 30, 2014, the School District had $37,161,722.37 of bank balances that were not properly collateralized as required by O.C.G.A. 45-8-12. \n \nCause: In discussing this condition with management, they stated that management mistakenly relied on the financial institution's position that collateralization was not needed for bond proceeds as they are not appropriated by the State. \n \nEffect or Potential Effect: A financial loss could be incurred by the School District for the uncollateralized bank balances. \n \nRecommendation: The School District should implement procedures to monitor the collateralization of bank balances to ensure compliance with State laws governing deposits. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. Management will ensure that all bond proceeds are adequately collateralized according to O.C.G.A.  45-8-12. The School District has implemented procedures to monitor the collateralization of bank balances. This change will be implemented in fiscal year 2016. \n \nContact Person: Kenneth Dyer, Associate Superintendent \u0026 CFO Phone: (229) 431-1234 Fax: (229) 431-1239 Email: kenneth.dyer@docoschools.org \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2014-002 Inadequate Internal Control Procedures over School Activity Accounts \n \nControl Category: \n \nCash and Cash Equivalents \n \nRevenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nGeneral Ledger \n \nInternal Control Impact: \n \nSignificant Deficiency \n \nDescription: This is a repeat finding (FS-6471-13-01, FS-6471-12-01 and FS-6471-11-01) from the years ended June 30, 2013, June 30, 2012, and June 30, 2011, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nFinancial Management for Georgia Local Units of Administration Chapter 43, School Activity Accounts (Principal Accounts) states in part \"District Activity Funds (Governmental Funds 500) belong to the district, are used to support its co-curricular and extra-curricular activities, and are administered by the school district. ... Examples of Authorized District Activity Funds: Athletics...\" In addition, it states \"All activity funds should operate on a cash basis, meaning that no commitments or indebtedness may be incurred unless the fund contains sufficient cash. \n \nCondition: The following deficiencies were noted with the School District's school activity accounts: Cash and Cash Equivalents \n The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n Testing revealed bank reconciliations that were not approved by the appropriate personnel. \n \nRevenues/Receipts/Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of forty receipt transactions: 1. Three receipts were not deposited in a timely manner. 2. Two receipts did not agree to the deposit tickets. 3. Thirty of the receipts examined lacked information to be able to trace to recording on the general ledger. 4. Five receipts did not contain the signature of two employees as required by board policy. 5. Ten receipts could not be located. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of forty disbursement transactions: 1. Ten disbursements did not have original invoices attached. 2. Forty of the disbursements examined lacked information to be able to trace to recording on the general ledger. 3. Eight voucher packages did not have evidence of receipt of goods. \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n4. Sixteen vouchers did not have appropriately approved requisition requests as required by board policy. \n5. One check written did not agree to the attached invoice. 6. Nine disbursements examined lacked information to be able to determine if charged to \nthe correct period. \nGeneral Ledger  During testing of school activity accounts at three schools, the auditor noted twenty-two accounts with deficit balances. \nQuestioned Cost: None \nCause: In discussing this condition with management, they stated that school personnel have not been adequately following the policies and procedures set-forth in the School Districts \"Accounting Manual for Activity Funds\". \nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \nRecommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District will use Central Office Finance staff to provide a monthly review of school activity accounts. This change will be implemented February 2016. \nContact Person: Kenneth Dyer, Associate Superintendent \u0026 CFO Phone: (229) 431-1234 Fax: (229) 431-1239 Email: kenneth.dyer@docoschools.org \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2014-001 Inadequate Internal Control Procedures \n \nCompliance Requirements: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES MATCHING, LEVEL OF EFFORT AND/OR EARMARKING Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education CFDA 84.010 Title I, Part A \n \nDescription: This is a repeat finding (FA-6471-13-02 and FA-6471-12-02) from the years ended June 30, 2013 and June 30, 2012 respectively. A review of expenditures charged to the Title I Part A Custer (CFDA 84.010) program and monitoring reports performed by Georgia Department of Education (GDOE) revealed that the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements. \n \nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...necessary and reasonable for proper and efficient performance and administration of Federal awards\", \"conform to any limitations or exclusions set forth in the terms and conditions of the Federal award\", and \"be consistent with policies, regulations and procedures that apply uniformly to both Federal awards and other activities of the governmental unit\". \n \nThe Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments states, in part, \"where a funding period is specified, a grantee may charge to the award only costs resulting from obligations of the funding period\". \n \nCondition: A review of expenditures and the monitoring reports performed by GDOE revealed the following deficiencies: \n \n Title I, Part A Cluster operating expenditures totaling $71.96 were not authorized or did not meet program guidelines. \n Title I, Part A Cluster split-funded personnel did not provide acceptable time logs to support amounts paid. \n The School District paid travel for an employee to attend training and credentialing workshop totaling $311.44 and 45 cases of paper and 48 boxes of file folders totaling $1,276.51 for a target assistance school. These payments constitute supplanting and cannot be paid by Title I, Part A. \n \nQuestioned Cost: $1,659.91 \n \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Cause: In discussing these conditions with management, they stated the grant Program Coordinator and staff did not have adequate procedures in place to ensure that the stated regulations were followed. Effect or Potential Effect: Failure to ensure that program expenditures are properly documented and allowable resulted in noncompliance with the Federal grant. Recommendation: The School District should implement procedures to ensure that all expenditures charged to Federal programs are allowable as required by Federal guidelines. The Board reclassified $1,348.47 of the unallowable costs from Title I, Part A to the General Fund and $311.44 of the unallowable costs from Title I, Part A to Race to the Top prior to closing out the 2014 fiscal year. Views of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District has implemented internal control procedures to ensure expenditures are in compliance with grant requirements. The two unallowable costs for Title I and Race to the Top were reclassified to the General Fund in fiscal year 2014. Contact Person: Kenneth Dyer, Associate Superintendent \u0026 CFO Phone: (229) 431-1234 Fax: (229) 431-1239 Email: kenneth.dyer@docoschools.org \n- 6 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2012-h2013-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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. 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":["2013-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 3/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed January 23, 2023).","Fiscal year ended June 30, 2020 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, annual financial report for the fiscal year ended June 30, 2013 (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-bd7-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 \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 \ni \n1 2 4 5 6 7 8 9 \n27 \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n28 30 31 33 \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 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 \nJuly 21, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 H) of the Dougherty County Board of Education, as of and for the year ended June 30, 2013, 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 did not audit the financial statements of Dougherty County Stadium Authority, which is a discretely presented component unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority is based solely on the report of other auditors. \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. \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 \n2013ARL-12 \n \n  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. \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, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Dougherty County Board of Education, as of June 30, 2013, 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 2013, the Dougherty County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34 and GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to these matters. \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 x 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 Dougherty 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. \n2013ARL-12 \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 July 21, 2014, on our consideration of the Dougherty 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 Dougherty 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:as 2013ARL-12 \n \nGreg S. Griffin State Auditor \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2013. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nKey financial highlights for fiscal year 2013 are as follows: \n The School District's financial status continued to improve in fiscal year 2013.  The District maintained a stable general fund balance of $18.3 million.  Total Net Position increased nearly $7.8 million in fiscal year 2013.  The Unrestricted Net Position at June 30, 2013 remained steady at $14.2 million. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements \nThe Statement of Net Position and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net position are an indicator of whether the financial position of the district has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nThe Dougherty County School District has two major funds - Governmental Funds and Fiduciary Funds. \nGovernmental Funds \nMost of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds - not the School District as a whole. Governmental funds record how money flows in and out within the current period, and reports the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund and Capital Projects Fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds \nThe School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance its operations. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2012 and fiscal year 2013. \nStatement of Net Position (Analysis of the District as a Whole) \nAs previously stated above, the Statement of Net Position presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the District's net position for fiscal year 2013 and the comparative amount for fiscal year 2012. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nAssets Current and Other Assets Capital Assets, Net \nTotal Assets \nLiabilities Current and Other Liabilities Long-Term Liabilities \nTotal Liabilities \nNet Position Net Investment in Capital Assets Restricted Unrestricted \nTotal Net Position \n \nTable 1 Net Position (In Thousands) \nFiscal Year 2013 \n \nGovernmental Activities Fiscal \nYear 2012 \n \nIncrease (Decrease) \n \n$ \n \n62,193 $ \n \n52,697 $ \n \n9,496 \n \n246,007 \n \n249,406 \n \n-3,399 \n \n$ \n \n308,200 $ 302,103 $ \n \n6,097 \n \n$ \n \n19,390 $ \n \n20,919 $ \n \n-1,529 \n \n1,052 \n \n1,169 \n \n-117 \n \n$ \n \n20,442 $ \n \n22,088 $ \n \n-1,646 \n \n$ \n \n246,007 $ 249,406 $ \n \n-3,399 \n \n27,520 \n \n15,679 \n \n11,841 \n \n14,231 \n \n14,930 \n \n-699 \n \n$ \n \n287,758 $ 280,015 $ \n \n7,743 \n \nSee Table 5 for an analysis of the increase in Capital Assets. \nSee Table 6 for complete analysis of the decrease on Long-Term Debt at June 30. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted assets increased $11.8 million and include funds restricted for the continuation of Federal programs and for capital projects. \nUnrestricted Net Position for Governmental Activities decreased slightly from a $14.9 million balance at the end of fiscal year 2012 to a $14.2 million balance at the end of fiscal year 2013. \nStatement of Activities \nTable 2 shows the changes in net position for fiscal year 2013 and fiscal year 2012 as reported on the Statement of Activities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nTable 2 Change in Net Position \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nFiscal Year 2013 \n \nGovernmental Activities Fiscal Year 2012 \n \nIncrease (Decrease) \n \n$ \n \n2,026 $ \n \n2,078 $ \n \n-52 \n \n91,083 \n \n94,679 \n \n-3,596 \n \n762 \n \n839 \n \n-77 \n \nTotal Program Revenues \n \n$ \n \n93,871 $ \n \n97,596 $ \n \n-3,725 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ \n \nOther Taxes \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Capital Projects \n \nOther Sales Tax \n \nGrants and Contributions not \n \nRestricted to Specific Programs \n \nInvestment Earnings \n \nMiscellaneous \n \n40,205 $ 43 \n16,413 306 \n10,377 61 \n1,126 \n \n37,981 $ 50 \n17,412 241 \n9,478 58 \n1,448 \n \n2,224 -7 \n-999 65 \n899 3 \n-322 \n \nTotal General Revenues \n \n$ \n \n68,531 $ \n \n66,668 $ \n \n1,863 \n \nTotal Revenues \n \n$ \n \n162,402 $ \n \n164,264 $ \n \n-1,862 \n \nProgram Expenses: \n \nInstruction \n \n$ \n \n94,026 $ \n \n95,122 $ \n \n-1,096 \n \nSupport Services \n \nPupil Services \n \n4,430 \n \n4,620 \n \n-190 \n \nImprovement of Instructional Services \n \n5,672 \n \n6,936 \n \n-1,264 \n \nEducational Media Services \n \n3,295 \n \n3,371 \n \n-76 \n \nGeneral and School Administration \n \n11,566 \n \n11,389 \n \n177 \n \nBusiness Administration \n \n1,468 \n \n1,619 \n \n-151 \n \nMaintenance and Operation of Plant \n \n13,900 \n \n13,352 \n \n548 \n \nStudent Transportation Services \n \n6,744 \n \n6,479 \n \n265 \n \nCentral and Other Support Services \n \n3,408 \n \n3,647 \n \n-239 \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \n391 \n \n490 \n \n-99 \n \nCommunity Services \n \n527 \n \n540 \n \n-13 \n \nFood Services \n \n9,233 \n \n9,206 \n \n27 \n \nInterest on Long-Term Debt \n \n107 \n \n-107 \n \nTotal Expenses \n \n$ \n \n154,660 $ \n \n156,878 $ \n \n-2,218 \n \nIncrease in Net Position \n \n$ \n \n7,742 $ \n \n7,386 $ \n \n356 \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nNet Position increased $7.7 million from fiscal year 2012 to fiscal year 2013. \nProperty tax revenues increased by $2.2 million, while program revenues decreased by $3.7 million alluding to the increase in the 2012 property tax digest, the new TAVT (Title Ad Valorem Tax) and the decrease in Federal and State funding respectively. Sales tax revenue decreased by $934,000, indicating a continuation of the slow economic recovery. Although program revenues make up a majority of the total revenue, the District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses decreased $2.2 million for fiscal year 2013 compared to the previous fiscal year. The greatest decrease occurred in the categories of Instruction and Improvement of Instructional Services. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local school district. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the school district. \nMaintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. \nCentral and Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nFood Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nGovernmental Activities \n \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2012 and fiscal year 2013. This information is presented on the Statement of Activities. \n \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \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 \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n94,026 $ \n4,430 5,672 3,295 1,765 9,801 1,468 13,900 6,744 2,830 \n578 \n391 527 9,233 \n \n95,122 $ \n4,620 6,936 3,371 1,568 9,821 1,619 13,352 6,479 3,008 \n639 \n490 540 9,206 107 \n \n35,009 $ \n2,620 1,813 \n982 -648 4,601 1,367 8,282 3,512 2,772 \n11 \n391 527 -450 \n \n33,887 \n2,600 1,392 1,238 \n-709 5,038 1,506 7,581 3,169 2,924 \n1 \n490 540 -482 107 \n \nTotal Expenses \n \n$ \n \n154,660 $ \n \n156,878 $ \n \n60,789 $ \n \n59,282 \n \nThe Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \nThe School District's Funds \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(in Thousands) \n \nREVENUES \n \nGeneral Fund \n \nCapital Projects \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n39,787 \n \n$ \n \n306 $ \n \n16,413 \n \n80,028 \n \n22,195 \n \n2,026 \n \n30 \n \n31 \n \n1,126 \n \nTotal Revenues \n \n$ \n \n145,498 $ \n \n16,444 $ \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Service Operations \nCapital Outlay \n \n$ \n \n88,234 $ \n \n47,890 \n \n388 \n \n522 \n \n8,679 \n \n762 \n \n561 $ 1,254 \n117 3,325 \n \nTotal Expenditures \n \n$ \n \n146,475 $ \n \n5,257 $ \n \nExcess of Revenues over (under) Expenditures \n \n$ \n \n-977 $ \n \n11,187 $ \n \nOTHER FINANCING SOURCES (USES) \n \nTransfers In Transfers Out \n \n$ \n \n$ \n \n-108 \n \n108 $ \n \nTotal Other Financing Sources (Uses) $ \n \n-108 $ \n \n108 $ \n \nNet Change in Fund Balances \n \n$ \n \n-1,085 $ \n \n11,295 $ \n \nFund Balances - Beginning \n \n19,369 \n \n13,095 \n \nFund Balances - Ending \n \n$ \n \n18,284 $ \n \n24,390 $ \n \nTotals \n39,787 16,719 80,028 22,195 \n2,026 61 \n1,126 \n161,942 \n88,795 49,144 \n388 522 8,796 4,087 \n151,732 \n10,210 \n-108 108 \n0 \n10,210 \n32,464 42,674 \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nTotal Revenues for all governmental funds were $161.9 million and total expenditures were $151.7 million. Total Revenues were $10.2 million more than total expenditures. The fund balance for governmental funds increased from $32.4 million at the beginning of the fiscal year to $42.6 million at June 30, 2013 averaging an increase of over $6.0 million in the last two years. \nThe fund balance reported for the General Fund decreased from $19.3 million at the beginning of the fiscal year to $18.3 million at June 30, 2013. \nThe fund balance reported for the Capital Projects Fund increased from $13.0 million at the beginning of the fiscal year to $24.3 million at June 30, 2013. \nGeneral Fund Budgeting Highlights \nThe school district's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The district uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, \nExpenditures and Changes in Fund Balances - Budget to Actual - Schedule \"1.\" \nDuring fiscal year 2013, the district amended its general fund budget as needed. The Original Budget approved by the school district's Board in June, 2012, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the district later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds are restricted for a specific purpose can only be used to fund additional programs. Also, Federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nSome of the budgeting challenges the School District faced in fiscal year 2013 included a reduction of the State educational formula allotment coupled with a decline of Federal Funds received. In addition, the State has not provided inflationary adjustments to non-salary expenditure items since fiscal year 2002. \nCapital Assets \nSince fiscal year 2002, the school district has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nIn December, 2008, the district began receiving the proceeds from a newly approved Special Purpose Local Option Sales Tax referendum. The approved referendum provides for the renovation of three of the district's high schools. Most of the work on these projects was delayed until fiscal year 2009 when the district received additional start up proceeds from the issuance of a General Obligation Bond. However, fiscal year 2008 capital project activities included some preparation work on these renovation projects. \nAt the end of fiscal year 2013 the school district had invested $246.0 million in capital assets. Table 5 compares fiscal year 2013 Capital Asset balances to fiscal year 2012 balances. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2013 \n \n2012 \n \n(Decrease) \n \nLand Construction in Progress Buildings and Building Improvements Equipment \n \n$ \n \n9,051 $ \n \n9,051 $ \n \n685 \n \n9,308 \n \n232,619 \n \n228,425 \n \n3,652 \n \n2,622 \n \n0 -8,623 4,194 1,030 \n \nTotal \n \n$ 246,007 $ 249,406 $ \n \n-3,399 \n \nTable 5 shows that Total Capital Assets decrease $3.4 million in fiscal year 2013. The decrease in Construction in Progress and the increase in Buildings and Building Improvements are due to the completion of renovation at several schools. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. \n \nDebt \nTable 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2012 and fiscal year 2013. \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2013 \n \n2012 \n \n(Decrease) \n \nCompensated Absences \n \n$ \n \n1,052 $ \n \n1,169 $ \n \n-117 \n \nAs shown in Table 6, the $1 million debt for Compensated Absences is the District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nCurrent Financial Issues \n \nLike most school districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the rising costs in employee benefits, state mandated teacher salary increases, utilities and the continued state formula allotment reductions. Other challenges include a slow decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nTwice, since increasing the millage rate to 19 mills in fiscal year 2004, the School Board voted to roll the millage rate back, once in fiscal year 2007 (2006 digest) and again in fiscal year 2008 (2007 digest). The current millage rate has remained at 18.445 since fiscal year 2008 (2007 digest). \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. After a decrease in the previous five years, there was a small increase in the FTE count for fiscal year 2013. \nFY 2008 16,208 FY 2009 16,134 FY 2010 15,962 FY 2011 15,628 FY 2012 15,497 FY 2013 15,676 In August, 2008, the district was notified of the decline in State revenues and the resulting additional reduction in educational funding for fiscal year 2009. In total, State funding for fiscal year 2009 was reduced $5.2 million. Expenditure reduction measures were taken in all areas with the purpose of preserving the fund balance. Management has continued to monitor expenditures and identify additional costs savings and reductions on a monthly basis, which contributed to the preservation of the general fund balance. \nIn March of fiscal year 2007, the voters of Dougherty County approved the continuation of the one percent sales tax (Sales Tax for Educational Progress). These sales tax revenues will be used to complete the renovation of schools outlined by the long-range facilities plan. Other sales tax projects include the installation of safety and access controls, and the purchase of musical instruments and other academic/instruction related equipment. In the fall of fiscal year 2009 the School District issued General Obligation Bonds in the amount of $18.0 million. At the end of fiscal year 2013 there were no bonds outstanding. \nThe School District continues to be financially challenged by multiple years of reductions in State funding to local districts. Austerity reductions to State funding are budgeted again for fiscal year 2013. Even with these reductions in State resources (and the local tax digest), the School District has maintained the current millage of 18.445 mills since fiscal year 2009 and has been able to maintain a healthy General Fund Balance. \nIn spite of the continued challenges, The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars and State and Federal funds. There was a nominal increase in FTE in fiscal year 2013 with a slight increase in funding. The District has begun an occupancy and space utilization assessment aimed at ensuring the District is using its facilities space efficiently. Preliminary data indicates that up to three schools (two elementary and on middle) may be closed at the end of the 2013 school year, resulting in an operational cost savings of approximately $2 million. The School District strives to emphasize student achievement while maintaining sound fiscal management. \nContacting the District's Financial Management \nThis management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the district's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Kenneth Dyer, Executive Director for Finance and Operations, Dougherty County School System, P.O. Box 3170, 200 Pine Avenue, Albany, Georgia 31701. You may also email your questions to kenneth.dyer@docoschools.org. \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Payroll Withholdings Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET POSITION \nInvestment in Capital Assets Restricted for \nContinuation of Federal Programs Capital Projects Unrestricted \nTotal Net Position \n \nPRIMARY GOVERNMENTAL GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY (1) \n \n$ 12,407,242.97 $ 25,710,558.64 \n5,126,785.99 9,672,925.15 8,302,969.80 \n50,799.82 417,370.76 475,098.37 \n28,875.00 9,736,078.83 236,271,306.77 \n$ 308,200,012.10 $ \n \n150,340.00 \n410,000.00 2,223,877.00 2,784,217.00 \n \n$ \n \n253,551.82 $ \n \n17,292,131.06 \n \n1,110,722.97 \n \n625,583.78 \n \n29,719.43 \n \n78,421.31 \n \n73,662.84 978,663.37 \n \n$ 20,442,456.58 $ \n \n15,996.00 15,996.00 \n \n$ 246,007,385.60 $ \n3,129,951.84 24,389,968.13 14,230,249.95 \n \n2,633,878.00 134,343.00 \n \n$ 287,757,555.52 $ \n \n2,768,221.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activity for a two year period ending June 30, 2013. The notes to the basic financial statements are an integral part of this statement. \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2013 \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 Community Services Food Services \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \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$ 94,025,834.21 $ 1,081,705.71 \n \n4,429,616.63 5,672,269.88 3,294,623.38 1,765,203.78 9,800,706.62 1,468,284.75 13,900,360.53 6,744,169.21 2,829,997.56 \n578,313.13 \n \n92,390.45 192,224.79 \n \n391,250.67 527,036.78 9,232,951.76 \n \n659,634.87 \n \n$ 154,660,618.89 $ 2,025,955.82 \n \n$ \n \n471,648.00 $ \n \n200,000.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activity for a two year period ending June 30, 2013. The notes to the basic financial statements are an integral part of this statement. \n- 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \n \nAND CHANGES IN NET POSITION \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY (1) \n \n$ 57,934,736.72 \n1,809,989.31 3,859,487.30 2,312,613.02 2,413,034.12 5,199,573.80 \n101,236.51 5,526,510.40 2,277,525.50 $ \n58,442.38 567,466.61 \n9,022,667.46 \n$ 91,083,283.13 $ \n \n$ -35,009,391.78 \n \n762,195.00 \n \n-2,619,627.32 -1,812,782.58 \n-982,010.36 647,830.34 -4,601,132.82 -1,367,048.24 -8,281,459.68 -3,512,223.92 -2,771,555.18 -10,846.52 \n \n-391,250.67 -527,036.78 449,350.57 \n \n762,195.00 $ -60,789,184.94 \n \n$ \n \n271,648.00 \n \n$ 40,204,271.54 43,340.20 \n \n16,412,793.32 306,291.35 \n10,377,281.00 61,338.96 $ \n1,126,336.72 \n \n$ 68,531,653.09 $ \n \n$ \n \n7,742,468.15 $ \n \n280,015,087.37 \n \n$ 287,757,555.52 $ \n \n3,333.00 64,301.00 67,634.00 -204,014.00 2,972,235.00 \n2,768,221.00 \n \n- 3 - \n \n ASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nDOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2013 \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nEXHIBIT \"C\" TOTAL \n \n$ 14,520,003.50 \n \n$ 14,520,003.50 \n \n1,717,217.24 $ 23,993,341.40 \n \n25,710,558.64 \n \n2,537,441.26 9,672,925.15 8,302,969.80 \n50,799.82 417,370.76 475,098.37 \n28,875.00 \n \n2,589,344.73 \n \n5,126,785.99 9,672,925.15 8,302,969.80 \n50,799.82 417,370.76 475,098.37 \n28,875.00 \n \nTotal Assets \n \n$ 37,722,700.90 $ 26,582,686.13 $ 64,305,387.03 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \n$ \n \n$ \n \n203,313.78 \n \n17,292,131.06 \n \n625,583.78 \n \n1,317,756.77 \n \n$ 19,438,785.39 $ \n \n2,112,760.53 $ 50,238.04 \n29,719.43 \n \n2,112,760.53 253,551.82 \n17,292,131.06 625,583.78 29,719.43 \n1,317,756.77 \n \n2,192,718.00 $ 21,631,503.39 \n \n$ \n \n503,973.37 \n \n$ \n \n503,973.37 \n \n2,979,392.51 $ 24,389,968.13 \n \n27,369,360.64 \n \n2,450,990.55 \n \n2,450,990.55 \n \n3,058,735.86 \n \n3,058,735.86 \n \n9,290,823.22 \n \n9,290,823.22 \n \n$ 18,283,915.51 $ 24,389,968.13 $ 42,673,883.64 \n \nTotal Liabilities and Fund Balances \n \n$ 37,722,700.90 $ 26,582,686.13 $ 64,305,387.03 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \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 Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \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 at year-end consist of: \nCompensated Absences Payable Claims and Judgments Payable \nTotal Long-Term Liabilities \n \n$ 42,673,883.64 \n \n$ \n \n9,051,054.08 \n \n685,024.75 \n \n339,613,760.08 \n \n9,309,699.37 \n \n-112,652,152.68 \n \n246,007,385.60 \n \n1,239,335.46 \n \n$ \n \n-1,052,326.21 \n \n-1,110,722.97 \n \n-2,163,049.18 \n \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 287,757,555.52 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \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 Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ 39,786,682.58 \n \n$ 39,786,682.58 \n \n306,291.35 $ 16,412,793.32 \n \n16,719,084.67 \n \n80,028,038.70 \n \n80,028,038.70 \n \n22,194,720.43 \n \n22,194,720.43 \n \n2,025,955.82 \n \n2,025,955.82 \n \n30,060.90 \n \n31,278.06 \n \n61,338.96 \n \n1,126,336.72 \n \n1,126,336.72 \n \n$ 145,498,086.50 $ 16,444,071.38 $ 161,942,157.88 \n \n$ 88,234,304.89 $ \n \n561,028.12 $ 88,795,333.01 \n \n4,497,884.65 5,585,963.19 3,079,315.24 1,656,218.82 9,375,391.70 1,356,398.86 12,589,877.23 6,188,858.10 2,987,224.38 \n572,879.43 387,906.86 522,160.38 8,678,872.72 762,195.00 \n \n91,011.96 473.75 \n1,010,300.60 27,600.00 \n123,984.07 \n116,619.04 3,325,362.98 \n \n4,497,884.65 5,585,963.19 3,079,315.24 1,747,230.78 9,375,865.45 1,356,398.86 13,600,177.83 6,216,458.10 3,111,208.45 \n572,879.43 387,906.86 522,160.38 8,795,491.76 4,087,557.98 \n \n$ 146,475,451.45 $ 5,256,380.52 $ 151,731,831.97 \n \n$ \n \n-977,364.95 $ 11,187,690.86 $ 10,210,325.91 \n \n$ \n \n107,712.17 \n \n$ \n \n-107,712.17 \n \n107,712.17 -107,712.17 \n \n$ \n \n-107,712.17 $ \n \n107,712.17 $ \n \n0.00 \n \n$ \n \n-1,085,077.12 $ 11,295,403.03 $ 10,210,325.91 \n \n19,368,992.63 \n \n13,094,565.10 \n \n32,463,557.73 \n \n$ 18,283,915.51 $ 24,389,968.13 $ 42,673,883.64 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n DOUGHERTY 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, 2013 \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. \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 Decrease in Claims and Judgments \nTotal Additional Expenditures \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ 10,210,325.91 \n \n$ 4,087,557.98 -6,092,936.28 \n \n-2,005,378.30 \n \n-1,393,255.81 \n \n460,929.16 \n \n$ \n \n116,666.74 \n \n353,180.45 \n \n469,847.19 \n \n$ 7,742,468.15 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2013 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal \nTotal Assets \nLIABILITIES Accounts Payable Funds Held for Others \nTotal Liabilities \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n383,972.76 \n \n15,996.97 \n \n$ \n \n399,969.73 \n \n$ \n \n6,398.60 \n \n393,571.13 \n \n$ \n \n399,969.73 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Position and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 17 for additional component unit disclosures. \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 Dougherty 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 \n- 9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \n District-wide 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 to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds 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 and donations 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 long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34. The provisions of this Statement modify certain requirements for \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \ninclusion of component units in the financial reporting entity. The effects of the adoption of this statement did not change the reporting of the School District's discretely presented component unit, Dougherty County Stadium Authority. There were no other applicable reporting changes for the School District. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \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 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, concentration of credit risks, interest rate risks or foreign currency risks. \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \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 \nPROPERTY TAXES \nThe Dougherty County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on July 16, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on December 20, 2012 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Dougherty County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.1% 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, 2013, for maintenance and operations amounted to $39,322,879.72. \nThe tax millage rate levied for the 2012 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.445 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $420,462.66 during fiscal year ended June 30, 2013. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $16,412,793.32 and is to be used for capital outlay for educational purposes. 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). 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. \nConsumable Supplies \nOn the basic financial statements, consumable supplies are reported at cost (first in, first out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2013, are recorded as prepaid items. \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \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 Buildings and Improvements Equipment Intangible Assets \n \nAny amount \n \n$ \n \n100,000.00 \n \n$ \n \n50,000.00 \n \n$ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 10 years 4 to 8 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 4 to 8 years. \n \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 18 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 30 days. \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2011 2012 2013 \n \n$ 1,115,407.32 $ $ 1,194,069.27 $ $ 1,168,992.95 $ \n \n947,171.63 $ 870,137.27 $ 815,575.40 $ \n \n868,509.68 $ 895,213.59 $ 932,242.14 $ \n \n1,194,069.27 1,168,992.95 1,052,326.21 \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nNet investment 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. \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, 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 \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- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects \nCommitted Self-Insurance \nAssigned Subsequent Period Expenditures School Activity Accounts \nUnassigned \n \n$ \n \n475,098.37 \n \n28,875.00 $ \n \n503,973.37 \n \n$ 2,979,392.51 24,389,968.13 \n \n27,369,360.64 \n \n2,450,990.55 \n \n$ 2,734,985.00 323,750.86 \n \n3,058,735.86 9,290,823.22 \n \nFund Balance, June 30, 2013 \n \n$ 42,673,883.64 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end of 8% to 12% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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, 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 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 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. \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \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. \n \nNOTE 4: 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. \n \nCATEGORIZATION OF DEPOSITS \n \nPrimary Government \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, 2013, the bank balances were $17,502,075.39. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30, 2013, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n16,528,728.20 \n \nTotal \n \n$ 16,528,728.20 \n \nComponent Unit \nAt June 30, 2013, Dougherty County Stadium Authority's bank balance of $150,340.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2013, the carrying value of the School District's total investments was $25,685,246.96,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 \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 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, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nPRIMARY GOVERNMENT \n \nBalances July 1, 2012 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2013 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 9,051,054.08 9,307,583.15 $ \n \n571,558.73 $ \n \n$ 9,194,117.13 \n \n9,051,054.08 685,024.75 \n \nTotal Capital Assets Not Being Depreciated \n \n$ 18,358,637.23 $ \n \n571,558.73 $ 9,194,117.13 $ 9,736,078.83 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment \n \n$ 330,073,721.80 $ 11,168,778.88 $ \n \n7,768,361.87 \n \n1,541,337.50 \n \n1,628,740.60 $ 339,613,760.08 9,309,699.37 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment \n \n101,648,919.88 5,145,781.31 \n \n5,581,413.00 511,523.28 \n \n235,484.79 \n \n106,994,848.09 5,657,304.59 \n \nTotal Capital Assets, Being Depreciated, Net $ 231,047,382.48 $ 6,617,180.10 $ 1,393,255.81 $ 236,271,306.77 \n \nGovernmental Activity Capital Assets - Net $ 249,406,019.71 $ 7,188,738.83 $ 10,587,372.94 $ 246,007,385.60 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvements of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n$ \n \n14,801.63 \n \n25,441.04 \n \n186,328.45 \n \n337,484.03 \n \n99,067.94 \n \n175,852.17 \n \n468,358.41 \n \n41,457.26 \n \n$ \n \n4,392,231.26 \n1,348,790.93 351,914.09 \n6,092,936.28 \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nCOMPONENT UNIT \nCapital Assets, Not Being Depreciated: Land \n \nBalances July 1, 2011 (1) \n \nIncreases (1) \n \nDecreases \n \nBalances June 30, 2013 (1) \n \n$ \n \n410,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n410,000.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Stadium Improvements \n \n$ \n \n308,976.00 \n \n239,886.00 \n \n2,586,683.00 $ \n \n$ 21,300.00 \n \n0.00 $ \n \n308,976.00 239,886.00 2,607,983.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Stadium Improvements \n \n57,931.00 185,285.00 495,387.00 \n \n15,447.00 43,778.00 135,140.00 \n \n73,378.00 229,063.00 630,527.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n$ 2,396,942.00 $ -173,065.00 $ \n \n0.00 $ 2,223,877.00 \n \nCapital Assets - Net \n \n$ 2,806,942.00 $ -173,065.00 $ \n \n0.00 $ 2,633,877.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activity for a two year period ending June 30, 2013. \n \nNOTE 7: INTERFUND TRANSFERS \nInterfund transfers for the year ended June 30, 2013, consisted of the following: \n \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ \n \n107,712.17 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund to cover a portion of the employees' salaries not funded as part of the Education Special Purpose Local Option Sales Tax (ESPLOST) projects. \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 \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2012 2013 \n \n$ \n \n814,693.53 $ 1,293,911.32 $ \n \n644,701.43 $ 1,463,903.42 \n \n$ 1,463,903.42 $ \n \n934,091.09 $ 1,287,271.54 $ 1,110,722.97 \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. \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 \n2012 $ 2013 $ \n \n0.00 $ 0.00 $ \n \n87,162.00 $ 63,106.45 $ \n \n87,162.00 $ 63,106.45 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ \n \n50,000.00 \n \n$ \n \n100,000.00 \n \nNOTE 9: OPERATING LEASES \nDougherty County Board of Education has entered into various leases as lessee for copiers and fax machines. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2013, for governmental funds amounted to $353,108.16. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2014 2015 \n \n$ \n \n352,680.16 \n \n29,717.68 \n \nTotal \n \n$ \n \n382,397.84 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNOTE 10: SHORT-TERM DEBT \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ \n \n0.00 $ 9,000,000.00 $ 9,000,000.00 $ \n \n0.00 \n \nNOTE 11: LONG-TERM DEBT \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 \nGENERAL OBLIGATION DEBT OUTSTANDING \nVoters have authorized $40,000,000.00 in general obligation debt for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. These bonds have not been issued as of June 30, 2013. \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2013, were as follows: \n \nBalance July 1, 2012 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2013 \n \nDue Within One Year \n \nCompensated Absences $ 1,168,992.95 $ 815,575.40 $ 932,242.14 $ 1,052,326.21 $ \n \n73,662.84 \n \nNOTE 12: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $8,850,064.43 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 $8,508,720.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $41,870.43 \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \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 $299,474.00 \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 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: SUBSEQUENT EVENTS \nOn November 13, 2013, general obligation sales tax bonds in the amount of $32,450,000.00 were issued as authorized by the voters of Dougherty County. The proceeds of the bonds may be used for any of the following capital outlay projects: \n(a) Renovation and improvement of one or more existing schools, administration and related facilities, including the provision of safety and security equipment for these facilities. \n(b) Acquisition, construction and equipping of new schools, administration and related facilities. (c) Acquisition of school buses, vehicles for maintenance and transportation use and other \nmaintenance and transportation equipment. (d) Acquisition, construction and equipping of new athletic facilities. (e) Acquisition of software, hardware, and computer equipment for the use of both staff and \nstudents. (f) Acquisition of real and personal property necessary for the foregoing. (g) Paying cost of issuing the Bonds. \nNOTE 15: 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, 2013, contributions also vary based on years of service. On \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \naverage, members with five years or more of service as of January 1, 2013, 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, 2013, 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 \"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, 2013: \nFor certificated teachers, librarians and regional educational service agencies and certain other \neligible participants: \n \nJuly 2012 - February 2013 March 2013 - June 2013 \n \n$912.34 per member per month $937.34 per member per month \n \nFor non-certificated school personnel: \n \nJuly 2012 - June 2013 \n \n$446.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2013 2012 2011 \n \n100% 100% 100% \n \n$ 14,708,855.59 $ 14,352,395.01 $ 12,582,772.13 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNOTE 16: RETIREMENT PLANS \n \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 \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. \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, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \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 \n2013 2012 2011 \n \n100% 100% 100% \n \n$ \n \n8,933,693.84 \n \n$ \n \n8,086,748.31 \n \n$ \n \n8,168,630.90 \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \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 \nDEFINED CONTRIBUTION PLAN \nIn August 1996, Dougherty County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \nThe Board selected VALIC as the provider of this plan. For each employee covered under PSERS, employees contribute 1% of their base pay and the Board matches 3% of the employee's contribution. \nThe employee becomes vested in the plan with 5 years of experience. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of service to Dougherty County Board of Education. If an employee terminates employment prior to achieving 5 years of service, funds paid on behalf of the non-vested employee are credited back to the Board. \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 \n2013 2012 2011 \n \n100% 100% 100% \n \n$ \n \n173,175.01 \n \n$ \n \n173,373.75 \n \n$ \n \n152,167.86 \n \nNOTE 17: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirement of GASB Statements Nos. 33 and 34. The authority's fiscal year is July 1 through June 30. \n \n- 25 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2013 \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 Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Transfers From Other Funds Sale or Compensation of Fixed Assets Other Sources Other Transfers To Other Funds \nTotal Other Financing Sources (Uses) \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$ 38,167,233.00 $ 40,594,298.14 $ 39,786,682.58 $ -807,615.56 \n \n45,000.00 \n \n306,291.35 \n \n306,291.35 \n \n0.00 \n \n78,803,449.00 \n \n79,497,713.43 \n \n80,028,038.70 \n \n530,325.27 \n \n26,856,728.00 \n \n29,848,509.94 \n \n22,194,720.43 \n \n-7,653,789.51 \n \n1,650,312.63 \n \n1,047,222.61 \n \n2,025,955.82 \n \n978,733.21 \n \n32,000.00 \n \n17,501.90 \n \n30,060.90 \n \n12,559.00 \n \n1,608,455.37 \n \n2,099,610.28 \n \n1,126,336.72 \n \n-973,273.56 \n \n$ 147,163,178.00 $ 153,411,147.65 $ 145,498,086.50 $ -7,913,061.15 \n \n$ 87,756,886.21 $ 90,793,426.97 $ 88,234,304.89 $ 2,559,122.08 \n \n4,593,451.91 8,171,787.05 3,001,082.00 2,306,649.31 8,809,610.82 1,419,174.00 13,660,512.14 5,824,952.99 3,115,785.00 \n783,876.57 347,000.00 541,850.00 9,930,424.00 \n \n5,068,991.02 8,140,138.04 3,043,996.58 2,765,801.09 8,858,782.35 1,370,257.87 13,183,441.87 7,285,566.10 2,752,583.28 \n758,506.60 357,993.43 471,350.00 10,963,972.79 \n \n4,497,884.65 5,585,963.19 3,079,315.24 1,656,218.82 9,375,391.70 1,356,398.86 12,589,877.23 6,188,858.10 2,987,224.38 \n572,879.43 387,906.86 522,160.38 8,678,872.72 762,195.00 \n \n571,106.37 2,554,174.85 \n-35,318.66 1,109,582.27 \n-516,609.35 13,859.01 \n593,564.64 1,096,708.00 \n-234,641.10 185,627.17 -29,913.43 -50,810.38 2,285,100.07 -762,195.00 \n \n$ 150,263,042.00 $ 155,814,807.99 $ 146,475,451.45 $ 9,339,356.54 \n \n$ -3,099,864.00 $ -2,403,660.34 $ \n \n-977,364.95 $ 1,426,295.39 \n \n$ \n \n608,436.00 $ \n \n293,436.00 \n \n12,000.00 \n \n57,813.77 \n \n1,233,710.00 \n \n1,083,167.03 \n \n-748,436.00 \n \n-755,506.00 $ \n \n$ -107,712.17 \n \n-293,436.00 -57,813.77 \n-1,083,167.03 647,793.83 \n \n$ \n \n1,105,710.00 $ \n \n678,910.80 $ \n \n-107,712.17 $ -786,622.97 \n \n$ \n \n-1,994,154.00 $ \n \n-1,724,749.54 $ \n \n-1,085,077.12 $ \n \n639,672.42 \n \n16,586,802.00 \n \n19,495,849.17 \n \n19,368,992.63 \n \n-126,856.54 \n \n-342,504.25 \n \n342,504.25 \n \n$ 14,592,648.00 $ 17,428,595.38 $ 18,283,915.51 $ \n \n855,320.13 \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 actual revenues ($829,166.53) or expenditures ($813,180.29) 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- 27 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2013 \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 \nSchool Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants School Improvement Grants \nTotal School Improvement Grants Cluster \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Safe and Drug-Free Schools and Communities - State Grants Special Education State Program Improvement Twenty-First Century Community Learning Centers Pass-Through From Georgia Professional Standards Commission Transition to Teaching \nTotal Other Programs \nTotal U. S. Department of Education \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 $ 8,895,639.55 (1) \n \n$ 8,895,639.55 \n \n84.041 \n \n(3) \n \n* 84.388 * 84.377 \n \nN/A $ N/A \n$ \n \n58,627.96 260,332.86 \n318,960.82 \n \n84.027 84.173 \n \nN/A $ 4,107,640.15 \n \nN/A \n \n167,011.38 \n \n$ 4,274,651.53 \n \n* 84.010 \n \nN/A $ 6,036,486.24 \n \n* 84.395 84.048 84.196 84.410 84.365 \n* 84.367 84.011 84.186 \n84.323 84.287 \n84.350 \n \nN/A $ 1,283,754.56 \n \nN/A \n \n222,888.17 \n \nN/A \n \n9,657.91 \n \nN/A \n \n5,917.00 \n \nN/A \n \n21,866.59 \n \nN/A \n \n736,587.13 \n \nN/A \n \n43,033.96 \n \nN/A \n \n589.72 \n \nN/A \n \n71,604.54 \n \nN/A \n \n18,523.96 \n \nN/A \n \n3,000.00 \n \n$ 2,417,423.54 \n \n$ 13,047,522.13 \n \n- 28 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-Through From Bright From the Start: Child Care and Development Block Grant Pass-Through From Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \nTotal U. S. Department of Health and Human Services \nLabor, U. S. Department of Pass-Through From Southwest Georgia Development Center Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.575 93.959 \n \nN/A $ \n \n46,234.20 \n \nN/A $ \n \n62,842.13 109,076.33 \n \n17.259 \n \nN/A $ \n \n71,626.59 \n \n$ \n \n58,383.45 \n \n125,854.97 \n \n$ \n \n184,238.42 \n \nTotal Expenditures of Federal Awards \n \n$ 22,308,103.02 \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 $507,363.94. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,538,026.89) were not maintained separately and are included in the 2013 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $8,631.50 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. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty 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- 29 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \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 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 Food Services GNETS State Grant Math and Science Supplements Move on When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Vocational Education Vocational Construction Related Equipment - State Bonds \nOffice of the State Treasurer Public School Employees' Retirement \n \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 $8,508,720.00 are included as part of the Quality Basic Education revenue allotments above. \n \nSee notes to the basic financial statements. \n \n- 30 - \n \nSCHEDULE \"3\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ 1,017,817.77 \n7,012,643.00 77,256.00 \n13,378,064.00 1,237,597.00 6,952,112.00 1,186,077.00 1,598,600.00 7,831,098.00 8,848,617.00 2,581,706.00 7,906,762.00 2,001,568.00 94,519.00 811,942.00 255,429.00 1,817,854.00 570,284.00 311,922.00 \n1,821,253.00 3,844,364.00 4,055,866.00 \n147,796.00 -11,500,636.00 \n1,575,670.00 270,325.00 \n10,377,281.00 \n249,042.00 2,129,228.00 \n63,065.18 200.00 \n268,500.00 762,195.00 \n41,870.43 131,274.41 \n-597.09 \n299,474.00 \n$ 80,028,038.70 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2013 \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 \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED (4) (5) (6) \n \nESTIMATED COMPLETION \nDATE \n \nSPLOST III \n \n(i) The renovation and improvement of four high schools and five elementary schools, strategic land acquisition for future school expansion, certain other capital repairs and modifications in system-wide schools, buildings and office (including carpet replacement, gym flooring and certain other capital repairs and modifications) $ \n \n75,200,000.00 $ \n \n73,090,000.00 $ 3,694,125.83 $ 54,822,603.90 $ 58,516,729.73 \n \nDecember 2015 \n \n(ii) The provision of additional classroom technology (including hardware, software and computer furniture), regular system-wide replacement of computers five years or older, installing six computers in all K-8th grade classrooms and three computers in all 9th-12th grade classrooms, providing system-wide teacher laptop computers, system-wide \"wireless-connectivity\" in all classroom and other buildings, upgrading existing computer-aided instructional systems to \"Model Classroom\" standards and providing three additional \"Model Classrooms\" per school, providing system-wide upgraded or new servers and upgraded main data frame (MDF) rooms, installing \"voice-over-internet-protocol\" (VOIP) in various classrooms throughout the school system \n \n10,500,000.00 \n \n10,350,000.00 \n \n916,237.78 \n \n8,259,267.82 \n \n9,175,505.60 $ 1,174,494.40 \n \nCompleted \n \n(iii) The provision of safety and security equipment, including system-wide communication equipment and card access systems at various system-wide buildings and the installation of radio signal-boosters (\"radio repeaters\") for West Dougherty tower \n \n5,700,000.00 \n \n6,160,014.68 \n \n175,991.27 \n \n5,984,023.41 \n \n6,160,014.68 \n \n0.00 \n \nCompleted \n \n(iv) Vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment, and other educational related equipment \n \n3,600,000.00 \n \n3,600,000.00 \n \n355,988.47 \n \n2,615,964.63 \n \n2,971,953.10 \n \n628,046.90 \n \nCompleted \n \n(v) Funding certain financing, project management and election costs related thereto, the maximum cost of such projects not to exceed $95,000,000.00. \n \n1,813,000.00 \n \n6,325.00 \n \n1,806,666.52 \n \n1,812,991.52 \n \n8.48 \n \nCompleted \n \nSubtotal SPLOST III \n \n$ 95,000,000.00 $ 95,013,014.68 $ 5,148,668.35 $ 73,488,526.28 $ 78,637,194.63 $ 1,802,549.78 \n \nSPLOST IV \n \n(a) The renovation and improvement of one or more existing \n \nschools, administration and related facilities, including \n \nthe provision of safety and security equipment for these \n \nfacilities \n \n$ \n \n83,400,000.00 $ \n \n83,400,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 June 30, 2018 \n \n(b) acquisition, construction and equipping of new schools, administration and related facilities \n \n0.00 \n \n0.00 \n \nJune 30, 2018 \n \n(c) the acquisition of school buses, vehicles for maintenance and transportation use and other transportation equipme \n \n6,200,000.00 \n \n6,200,000.00 \n \nJune 30, 2018 \n \n(d) acquisition, construction and equipping of new athletic facilities \n \n0.00 \n \n0.00 \n \nJune 30, 2018 \n \n(e) acquisition of software, hardware and computer equipment \n \nfor the use of both staff and students \n \n10,000,000.00 \n \n10,000,000.00 \n \nJune 30, 2018 \n \n(f) acquisition of real and personal property necessary for the foregoing \n \n400,000.00 \n \n400,000.00 \n \nJune 30, 2018 \n \nSubtotal SPLOST IV Total \n \n$ 100,000,000.00 $ 100,000,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 195,000,000.00 $ 195,013,014.68 $ 5,148,668.35 $ 73,488,526.28 $ 78,637,194.63 $ 1,802,549.78 \n \n(1) \n \nThe School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) \n \nThe School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) \n \nThe voters of Dougherty 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 \n \nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) \n \nSPLOST III Project (ii) was completed in June 2013 with total actual expenditures of $9,175,505.60. \n \nThe previous estimated cost was $10,350,000.00. The surplus of SPLOST proceeds will be used to fund other approved SPLOST projects. \n \n(5) \n \nSPLOST III Project (iv) was completed in June 2013 with total actual expenditures of $2,971,953.10. \n \nThe previous estimated cost was $3,600,000.00. The surplus of SPLOST proceeds will be used to fund other approved SPLOST projects. \n \n(6) \n \nSPLOST III Project (v) was completed in June 2013 with total actual expenditures of $1,812,991.52. \n \nThe previous estimated cost was $1,813,000.00. The surplus of SPLOST proceeds will be used to fund other approved SPLOST projects. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \n \n$ \n \n7,891,112.00 $ \n \n101,992.00 \n \n15,242,609.00 \n \n1,374,935.00 \n \n7,022,221.00 \n \n1,358,428.00 1,849,462.00 9,916,979.00 10,052,802.00 2,913,401.00 8,797,397.00 \n \n2,395,441.00 97,622.00 \n924,000.00 285,440.00 \n \n$ \n \n70,223,841.00 $ \n \n2,064,787.00 355,161.00 \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n6,746,532.04 $ 201,928.05 \n14,094,579.76 990,964.78 \n8,904,216.12 \n702,480.01 2,367,792.94 10,550,080.96 11,298,394.80 1,888,088.39 \n76,868.36 3,176,115.61 5,506,868.51 \n186,399.54 864,583.41 \n855,313.03 337,386.15 \n68,748,592.46 $ \n2,648,271.56 821.05 \n \n38,581.91 $ \n62,223.29 \n399,406.49 \n16,260.06 319,888.04 1,694,067.82 115,751.11 \n561.65 1,266.27 18,493.08 7,168.89 12,425.10 \n92,012.56 \n2,778,106.27 $ \n261,257.19 32,213.84 \n \n6,785,113.95 201,928.05 \n14,156,803.05 990,964.78 \n9,303,622.61 \n702,480.01 2,384,053.00 10,869,969.00 12,992,462.62 2,003,839.50 \n77,430.01 3,177,381.88 5,525,361.59 \n193,568.43 877,008.51 \n947,325.59 337,386.15 \n71,526,698.73 \n2,909,528.75 33,034.89 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n72,643,789.00 $ \n \n71,397,685.07 $ 3,071,577.30 $ 74,469,262.37 \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. (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- 33 - \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 \nJuly 21, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 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 Dougherty County Board of Education as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise Dougherty County Board of Education's basic financial statements, and have issued our report thereon dated July 21, 2014. Our report includes a reference to other auditors who audited the financial statements of the discretely presented component unit, as described in our report on Dougherty County Board of Education's financial statements. This report does not include the results of other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Dougherty 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 Dougherty County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Dougherty County Board of Education's internal control. \n \n2013YB-30 \n \n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS-6471-13-01 that we consider to be a significant deficiency. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty 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 Dougherty County Board of Education in a separate letter dated July 21, 2014. \nDougherty County Board of Education's Response to Findings \nDougherty County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2013YB-30 \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 \nJuly 21, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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, 2013. Dougherty 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 Dougherty 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 Dougherty 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 Dougherty County Board of Education's compliance. \n2013SA-65 \n \n  Basis for Qualified Opinion on Title I, Part A Cluster and Improving Teacher Quality State Grants \nAs described in the accompanying Schedule of Findings and Questioned Costs, Dougherty County Board of Education did not comply with requirements regarding Title I, Part A Cluster as described in item FA-6471-13-02, for Activities Allowed/Unallowed, Allowable Costs/Cost Principles, Period of Availability, and Matching Level of Effort and/or Earmarking, and Improving Teacher Quality State Grants as described in item FA-6471-13-01 for Activities Allowed/Unallowed, and Allowable Costs/Cost Principles. Compliance with such requirements is necessary, in our opinion, for Dougherty County Board of Education to comply with requirements applicable to those programs. \nQualified Opinion on Title I, Part A Cluster and Improving Teacher Quality State Grants \nIn our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the Dougherty 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 Title I, Part A Cluster and Improving Teacher Quality State Grants for the year ended June 30, 2013. \nUnmodified Opinion on Each of the Other Major Federal Programs \nIn our opinion, Dougherty 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 other major Federal programs identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs for the year ended June 30, 2013. \nOther Matters \nDougherty County Board of Education's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nReport on Internal Control over Compliance \nManagement of Dougherty 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 Dougherty 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 Dougherty County Board of Education's internal control over compliance. \nOur consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses. \n2013SA-65 \n \n  A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as items FA-6471-13-01, and FA-6471-13-02 to be material weaknesses. \nDougherty County Board of Education's response to the internal control over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Dougherty County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \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:as 2013SA-65 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-12-01 FS-6471-12-02 \n \nUnresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-12-01 \n \nThe School District will implement procedures to strengthen its internal controls over Cash and Cash Equivalents. The School District will revise and monitor its procedures to ensure that accounting functions over custody, recordkeeping and authorization are separated and utilize management oversight of these activities. The School District will implement a monitoring process to ensure that transactions are processed according to established procedures. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-12-01 FA-6471-12-02 FA-6471-12-03 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Over Employee Compensation Finding Control Number: FA-6471-12-03 \n \nThe School District has implemented appropriate procedures to strengthen and monitor controls over processing employee compensation, to ensure that personnel files are properly maintained and all salary payments to employees are based on an approved rate of pay. All issues previously identified have been resolved, with the exception of the one related to the Title I, Part A Cluster. The School District is awaiting guidance from the Georgia Department of Education regarding final resolution. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \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, Discretely Presented Component Unit \n \nUnmodified \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weaknesses identified?  Significant deficiency identified? \n \nYes None Reported \n \nType of auditor's report issued on compliance for major programs: \n \nUnmodified for all major programs except for Improving Teacher Quality State Grant and Title I, Part A Cluster, which were qualified. \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nYes \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010 84.367 84.377, 84.388 84.395 \n \nChild Nutrition Cluster Title I, Part A Cluster Improving Teacher Quality State Grants School Improvement Grants Cluster ARRA Race-to-the-Top Incentive Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$669,502.04 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS-6471-13-01 Inadequate Internal Control Procedures over School Activity Accounts \n \nControl Category: Internal Control Impact: \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Significant Deficiency \n \nDescription: This is a repeat finding (FS-6471-12-01, FS-6471-11-01 and FS-6471-10-01) from the years ended June 30, 2012, June 30, 2011 and June 30, 2010, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \n \nCondition: The following deficiencies were noted with the School District's school activity accounts: \n \nCash and Cash Equivalents  The bank reconciliation function was not separate from the record keeping and voucher payment functions.  Testing revealed bank reconciliations that were not approved by the appropriate personnel.  Three bank accounts were noted through bank confirmation procedures which could possibly be school activity accounts that were not recorded on the general ledger. \n \nRevenues/Receipts/Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of forty receipt transactions: 1. Eight receipts were not deposited in a timely manner. 2. One receipt did not agree to the deposit ticket. 3. Twenty-three of the receipts examined lacked information to be able to trace to recording on the general ledger. 4. Ten receipts did not contain the signature of two employees as required by board policy. \n \nExpenditures/Liabilities/Disbursements \n The check writing function was not separated from the record keeping or processing of signed checks. \n The following deficiencies were noted during our test of forty disbursement transactions: 1. Four disbursements did not have invoices attached. 2. Twenty of the disbursements examined lacked information to be able to trace to recording on the general ledger. 3. Eighteen voucher packages did not have evidence of receipt of goods. 4. Fourteen vouchers did not have appropriately approved requisition requests as required by board policy. 5. One check written did not agree to the attached invoice. \n \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nDuring testing of school activity accounts, the auditor noted that cash balances were incorrectly recorded between Governmental Funds and Agency Funds. An audit adjustment of $17,636.36 was proposed and accepted by management to correct the misstatement. \n \nQuestioned Cost: None \n \nCause: In discussing this condition with management, they stated that school personnel have not been adequately following the policies and procedures set-forth in the School Districts \"Accounting Manual for Activity Funds\". \n \nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: The School District should implement necessary procedures to ensure that the key accounting functions of custody and record keeping are separated. In addition, the School District should implement procedures to ensure that disbursements and receipts of funds within the school activity accounts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The school district will implement procedures to strengthen its internal controls over Cash and Cash Equivalents. The school district will revise and monitor its procedures to ensure that accounting functions over custody, recordkeeping and authorization are separated and utilize management oversight of these activities. The school district will implement a monitoring process to ensure that transactions are processed according to established procedures. \n \nEstimated Corrective Action Date: Contact Person: Telephone: Fax: E-mail: \n \n07/01/14 Kenneth Dyer (229) 431-1234 (229) 431-1239 Kenneth.dyer@docoschools.org \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA-6471-13-01 Inadequate Internal Control Procedures \n \nCompliance Requirements: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Material Weakness Material Noncompliance U. S. Department of Education Georgia Department of Education CFDA 84.367 Title II-A, Improving Teacher Quality \n \nDescription: A review of expenditures charged to the Title II-A, Improving Teacher Quality (CFDA 84.367) program and monitoring reports performed by Georgia Department of Education (GDOE) revealed the School District did not meet the requirement that all Class Size Reduction teachers paid with Title II-A funds must be highly qualified. \n \nCriteria: Provisions of ESEA Section 2123(a)(7) provides for \"hiring highly qualified teachers, including teachers who become highly qualified through State and local alternative routes to certification, and special education teachers, in order to reduce class size, particularly in the early grades\". \n \nCondition: A review of expenditures and the monitoring report performed by GDOE for the Title II-A, Improving Teacher Quality (CFDA 84.367) program revealed that salaries and benefits paid in the amount of $105,174.38 were paid for three teachers who did not meet the definition of highly qualified. \n \nQuestioned Cost: $105,174.38 \n \nCause: In discussing these conditions with management, they stated the grant Program Coordinator and staff did not have adequate procedures in place to ensure that the stated regulations were followed. \n \nEffect or Potential Effect: Failure to ensure that program expenditures are allowable resulted in noncompliance with the Federal grant. \n \nRecommendation: The School District should implement procedures to ensure that all teachers paid with Title II-A funds meet the definition of highly qualified. The School District refunded $105,174.38 to the Georgia Department of Education in the subsequent fiscal year. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The school district has implemented procedures to ensure that all expenditures charged to federal programs are allowable under OMB Circular A-87, approved by the Program Coordinator and properly documented. \n \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nEstimated Corrective Action Date: Contact Person: Telephone: Fax: E-mail: \n \n7/01/13 Kenneth Dyer (229) 431-1234 (229) 431-1239 Kenneth.dyer@docoschools.org \n \nFA-6471-13-02 Inadequate Internal Control Procedures \n \nCompliance Requirements: \nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES MATCHING, LEVEL OF EFFORT AND/OR EARMARKING PERIOD OF AVAILABILITY Material Weakness Material Noncompliance U. S. Department of Education Georgia Department of Education CFDA 84.010 Title I, Part A Cluster \n \nDescription: A review of expenditures charged to the Title I Part A Custer (CFDA 84.010) program and monitoring reports performed by Georgia Department of Education (GDOE) revealed the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements. \n \nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...necessary and reasonable for proper and efficient performance and administration of Federal awards\", \"conform to any limitations or exclusions set forth in the...terms and conditions of the Federal award\", and \"be consistent with policies, regulations and procedures that apply uniformly to both Federal awards and other activities of the governmental unit\". \n \nThe Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments states, in part, \"where a funding period is specified, a grantee may charge to the award only costs resulting from obligations of the funding period\". \n \nProvisions of ESEA Section 1120A(b)(1) requires that a local educational agency \"shall use Federal funds received under this part only to supplement the funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs assisted under this part, and not to supplant such funds.\" \n \nProvisions of ESEA Section 1119(a)(1) requires that \"Beginning with the first day of the first school year after the date of enactment of the No Child Left Behind Act of 2001, each local educational agency receiving assistance under this part shall ensure that all teachers hired after such day and teaching in a program supported with funds under this part are highly qualified.\" \n \nProvisions of ESEA Section 1119(g)(3)(A) requires that a paraprofessional \"may not provide any instructional service to a student unless the paraprofessional is working under the direct supervision of a teacher...\". \n \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCondition: A review of expenditures and the monitoring reports performed by GDOE revealed the following deficiencies: \n \n Title I, Part A Cluster operating expenditures totaling $130,100.00 were not authorized or did not meet program guidelines. \n An expenditure in the amount of $7,990.00 occurred outside the period of availability.  Salary and benefits paid in the amount of $239,775.27 were for duties and activities which \nwere not permitted under program guidelines.  The School District paid several administrators' salaries and benefits totaling $27,437.50 to \nbe on site beyond the regular school day. These payments constitute supplanting and cannot be paid by Title 1, Part A.  Salaries and benefits paid in the amount of $93,043.70 was paid to one teacher who did not meet the definition of highly qualified and two paraprofessionals who were not under the direct supervision of a highly qualified teacher. \nQuestioned Cost: $498,346.47 \n \nCause: In discussing these conditions with management, they stated the grant Program Coordinator and staff did not have adequate procedures in place to ensure that the stated regulations were followed. \n \nEffect or Potential Effect: Failure to ensure that program expenditures are allowable resulted in noncompliance with the Federal grant. \n \nRecommendation: The School District should implement procedures to ensure that all expenditures charged to Federal programs are allowable as required by Federal guidelines. The School District reclassified $405,302.77 of the unallowable costs from the Title I, Part A Cluster to the General Fund prior to closing out the 2013 fiscal year and reclassified the remaining $93,043.70 in the subsequent fiscal year. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The school district has implemented procedures to ensure that all expenditures charged to federal programs are allowable under OMB Circular A-87, approved by the Program Director and properly documented. \n \nEstimated Corrective Action Date: Contact Person: Telephone: Fax: E-mail: \n \n07/1/13 Kenneth Dyer (229) 431-1234 (229) 431-1239 Kenneth.dyer@docoschools.org \n \n- 6 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2011-h2012-belec-p-btext","title":"Dougherty County Board of Education, Albany, Georgia, annual financial report for the fiscal year ended June 30, 2012 (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":["2012-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 3/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed January 23, 2023).","Fiscal year ended June 30, 2020 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, Georgia, annual financial report for the fiscal year ended June 30, 2012 (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-bd7-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-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":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 \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 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 \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 \ni \n1 2 4 5 6 7 9 10 \n29 \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n30 32 33 35 \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  DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \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 \nAugust 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 H) of the Dougherty County Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements of the Board's primary government as listed in the table of contents. These financial statements are the responsibility of the Dougherty County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nExcept as discussed in the following paragraph, 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. 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 Dougherty County Board of Education'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. \nThe financial statements of Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. Because the Authority's financial statements have not been audited, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Authority as of the year ended June 30, 2012. \n2012ARL-25X \n \n  In addition, in 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 Dougherty 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. \nIn accordance with Government Auditing Standards, we have also issued our report dated August 19, 2013, on our consideration of the Dougherty 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. \nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xi and page 29 respectively, are not a required part of the basic financial statements but are supplementary information required by the 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 Dougherty County Board of Education's financial statements. 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. \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 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. \n2012ARL-25X \n \n  A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:as 2012ARL-25X \n \nGreg S. Griffin State Auditor \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2012. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nKey financial highlights for fiscal year 2012 are as follows:  The School District's financial status continued to improve in fiscal year 2012.  Total Net Assets increased nearly $7.4 million in fiscal year 2012.  The Unrestricted Net Assets at June 30, 2012, was a positive $14.9 million. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-wide Statements \nThe Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the financial position of the School District has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the School District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-wide statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \nThe Dougherty County School District has two major fund types - Governmental Funds and Fiduciary Funds. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nGovernmental Funds \nMost of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds - not the School District as a whole. Governmental funds record how money flows in and out within the current period, and reports the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund, and Debt Service Fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the System-wide financial statements because these fund assets cannot be used to finance its operations. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2011 and fiscal year 2012. \nStatement of Net Assets (Analysis of the School District as a Whole) As previously stated above, the Statement of Net Assets presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2012 and the comparative amount for fiscal year 2011. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nAssets Current and Other Assets Capital Assets, Net \nTotal Assets \nLiabilities Current and Other Liabilities Long-Term Liabilities \nTotal Liabilities \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \nTotal Net Assets \n \nTable 1 Net Assets (In Thousands) \n \nFiscal Year 2012 \n \nGovernmental Activities Fiscal \nYear 2011 \n \nIncrease (Decrease) \n \n$ \n \n52,697 $ \n \n52,645 $ \n \n52 \n \n249,406 \n \n246,076 \n \n3,330 \n \n$ \n \n302,103 $ \n \n298,721 $ \n \n3,382 \n \n$ \n \n20,919 $ \n \n21,429 $ \n \n-510 \n \n1,169 \n \n4,663 \n \n-3,494 \n \n$ \n \n22,088 $ \n \n26,092 $ \n \n-4,004 \n \n$ \n \n249,406 $ \n \n242,607 $ \n \n6,799 \n \n15,679 \n \n13,223 \n \n2,456 \n \n14,930 \n \n16,799 \n \n-1,869 \n \n$ \n \n280,015 $ \n \n272,629 $ \n \n7,386 \n \nSee Table 5 for an analysis of the increase in Capital Assets. \nGeneral Obligation Bonds issued December 2008 for $18.0 million were a liability to the School District; however, the Bonds matured on March 1, 2012. As of June 30, 2012, the School District has no General Obligation debt. \nSee Table 6 for complete analysis of the increase on Long-Term Debt at June 30. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted assets increased $2.5 million and include funds restricted for the continuation of Federal programs and funds restricted for capital projects. \nUnrestricted Net Assets for Governmental Activities decreased from a $16.8 million balance at the end of fiscal year 2011 to a $14.9 million balance at the end of fiscal year 2012. \nStatement of Activities \nTable 2 shows the changes in net assets for fiscal year 2012 and fiscal year 2011 as reported on the Statement of Activities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 2 Change in Net Assets \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nFiscal Year 2012 \n \nGovernmental Activities Fiscal Year 2011 \n \nIncrease (Decrease) \n \n$ \n \n2,078 $ \n \n2,121 $ \n \n-43 \n \n94,679 \n \n100,791 \n \n-6,112 \n \n839 \n \n839 \n \nTotal Program Revenues \n \n$ \n \n97,596 $ \n \n102,912 $ \n \n-5,316 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ \n \nOther Taxes \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Services \n \nFor Capital Projects \n \nOther Sales Tax \n \nGrants and Contributions not \n \nRestricted to Specific Programs \n \nInvestment Earnings \n \nMiscellaneous \n \n37,981 $ 50 \n17,412 241 \n9,478 58 \n1,448 \n \n39,779 $ 45 \n7,670 8,998 \n221 \n9,559 67 \n1,908 \n \n-1,798 5 \n-7,670 8,414 \n20 \n-81 -9 \n-460 \n \nTotal General Revenues \n \n$ \n \n66,668 $ \n \n68,247 $ \n \n-1,579 \n \nTotal Revenues \n \n$ \n \n164,264 $ \n \n171,159 $ \n \n-6,895 \n \nProgram Expenses: \n \nInstruction \n \n$ \n \n95,122 $ \n \n93,724 $ \n \n1,398 \n \nSupport Services \n \nPupil Services \n \n4,620 \n \n4,527 \n \n93 \n \nImprovement of Instructional Services \n \n6,936 \n \n5,697 \n \n1,239 \n \nEducational Media Services \n \n3,371 \n \n3,616 \n \n-245 \n \nGeneral and School Administration \n \n11,389 \n \n10,842 \n \n547 \n \nBusiness Administration \n \n1,619 \n \n1,253 \n \n366 \n \nMaintenance and Operation of Plant \n \n13,352 \n \n12,675 \n \n677 \n \nStudent Transportation Services \n \n6,479 \n \n6,042 \n \n437 \n \nCentral and Other Support Services \n \n3,647 \n \n3,691 \n \n-44 \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \n490 \n \n469 \n \n21 \n \nCommunity Services \n \n540 \n \n552 \n \n-12 \n \nFood Services \n \n9,206 \n \n8,963 \n \n243 \n \nInterest on Long-Term Debt \n \n107 \n \n420 \n \n-313 \n \nTotal Expenses \n \n$ \n \n156,878 $ \n \n152,471 $ \n \n4,407 \n \nIncrease in Net Assets \n \n$ \n \n7,386 $ \n \n18,688 $ \n \n-11,302 \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nNet Assets increased $7.4 million from fiscal year 2011 to fiscal year 2012. \nProperty tax and program revenues decreased by $1.8 million and $5.3 million, respectively. Sales tax revenue, however, increased by $764,000, indicating a continuation of the slow economic recovery. Although program revenues make up a majority of the total revenue, the School District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses increased $4.4 million for fiscal year 2012 compared to the previous fiscal year. The greatest increases occurred in the categories of Instruction, Improvement of Instructional Services and Maintenance and Operation of Plant. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local School District. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the School District. \nMaintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. \nCentral \u0026 Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nFood Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nGovernmental Activities \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2011 and fiscal year 2012. This information is presented on the Statement of Activities. The Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nInstruction \n \n$ \n \n95,122 $ \n \n93,724 $ \n \n33,887 $ \n \n23,646 \n \nSupport Services: \n \nPupil Services \n \n4,620 \n \n4,527 \n \n2,600 \n \n2,886 \n \nImprovement of Instructional Services \n \n6,936 \n \n5,697 \n \n1,392 \n \n1,569 \n \nEducational Media Services \n \n3,371 \n \n3,616 \n \n1,238 \n \n1,257 \n \nGeneral Administration \n \n1,568 \n \n1,526 \n \n-709 \n \n-1,143 \n \nSchool Administration \n \n9,821 \n \n9,316 \n \n5,038 \n \n4,785 \n \nBusiness Administration \n \n1,619 \n \n1,253 \n \n1,506 \n \n1,246 \n \nMaintenance and Operation of Plant \n \n13,352 \n \n12,675 \n \n7,581 \n \n7,750 \n \nStudent Transportation Services \n \n6,479 \n \n6,042 \n \n3,169 \n \n3,791 \n \nCentral Support Services \n \n3,008 \n \n2,976 \n \n2,924 \n \n2,969 \n \nOther Support Services \n \n639 \n \n715 \n \n1 \n \n73 \n \nOperations of Non-Instructional Services: \n \nEnterprise Operations \n \n490 \n \n469 \n \n490 \n \n468 \n \nCommunity Services \n \n540 \n \n552 \n \n540 \n \n552 \n \nFood Services \n \n9,206 \n \n8,963 \n \n-482 \n \n-709 \n \nInterest on Short-Term and Long-Term Debt \n \n107 \n \n420 \n \n107 \n \n420 \n \nTotal Expenses \n \n$ \n \n156,878 $ \n \n152,471 $ \n \n59,282 $ \n \n49,560 \n \nThe School District's Funds \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. Capital Projects and Debt Service Funds are combined for presentation purposes. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nGeneral Fund \n \nCapital Projects and \nDebt Service \n \nREVENUES \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n38,741 \n \n$ \n \n241 $ \n \n17,412 \n \n76,967 \n \n28,028 \n \n2,078 \n \n40 \n \n19 \n \n1,448 \n \nTotal Revenues \n \n$ \n \n147,543 $ \n \n17,431 $ \n \nEXPENDITURES \n \nCurrent Instruction Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \n \n$ \n \n89,430 $ \n \n648 $ \n \n48,493 \n \n744 \n \n490 \n \n540 \n \n8,755 \n \n10,529 \n \n192 \n \n3,125 \n \n3 \n \n156 \n \nTotal Expenditures \n \n$ \n \n147,903 $ \n \n15,202 $ \n \nExcess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) \n \n$ \n \n-360 $ \n \n2,229 $ \n \nTransfers In/Out \n \n-112 \n \n112 \n \nNet Change in Fund Balances \n \n$ \n \n-472 $ \n \n2,341 $ \n \nFund Balances - Beginning (Restated) \n \n19,841 \n \n10,754 \n \nFund Balances - Ending \n \n$ \n \n19,369 $ \n \n13,095 $ \n \nTotals \n38,741 17,653 76,967 28,028 \n2,078 59 \n1,448 164,974 \n90,078 49,237 \n490 540 8,755 10,529 3,317 159 163,105 1,869 \n0 1,869 30,595 32,464 \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nTotal Revenues for all governmental funds were $165.0 million and total expenditures were $163.1 million. Total Revenues were $1.9 million more than total expenditures. The fund balance for governmental funds increased from $30.6 million at the beginning of the fiscal year to $32.5 million at June 30, 2012. \nThe fund balance reported for the General Fund decreased slightly from $19.8 million at the beginning of the fiscal year to $19.4 million at June 30, 2012. \nThe fund balance reported for the Capital Projects Fund and Debt Service Fund increased from $10.8 million at the beginning of the fiscal year to $13.1 million at June 30, 2012. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The School District uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual - Schedule \"1.\" \nDuring fiscal year 2012, the School District amended its General Fund budget as needed. The Original Budget approved by the School District's Board in June, 2011, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the School District later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds are restricted for a specific purpose can only be used to fund additional programs. Also, Federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nSome of the budgeting challenges the School District faced in fiscal year 2012 included a reduction of the State educational formula allotment, a decline in the student enrollment (FTE), mandated salary raises and a declining tax digest. In addition, the State has not provided inflationary adjustments to non-salary expenditure items since fiscal year 2002. \nCapital Assets and Debt Administration \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nIn December, 2008, the School District began receiving the proceeds from a newly approved Special Purpose Local Option Sales Tax referendum. The approved referendum provides for the renovation of three of the School District's high schools. Most of the work on these projects was delayed until fiscal year 2009 when the School District received additional start up proceeds from the issuance of a General Obligation Bond. However, fiscal year 2008 capital project activities included some preparation work on these renovation projects. \nAt the end of fiscal year 2012 the School District had invested $249.4 million in capital assets. Table 5 compares fiscal year 2012 Capital Asset balances to fiscal year 2011 balances. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year Fiscal Year \n \nIncrease \n \n2012 \n \n2011 \n \n(Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 9,308 228,425 2,622 \n \n9,051 $ 21,215 213,853 \n1,957 \n \n0 -11,907 14,572 \n665 \n \nTotal \n \n$ 249,406 $ 246,076 $ \n \n3,330 \n \nTable 5 shows that Total Capital Assets increased $3.3 million in fiscal year 2012. The decrease in Construction in Progress is due to the completion of renovation at several schools. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. \nDebt \nTable 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2011 and fiscal year 2012. \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \nIncrease \n \n2012 \n \n2011 \n \n(Decrease) \n \nGeneral Obligation Bonds Accrued Interest Unamortized Bond Premium Compensated Absences Capital Leases \n \n$ \n \n0$ \n \n3,125 $ \n \n-3,125 \n \n0 \n \n52 \n \n-52 \n \n0 \n \n152 \n \n-152 \n \n1,169 \n \n1,194 \n \n-25 \n \n0 \n \n192 \n \n-192 \n \nTotal \n \n$ \n \n1,169 $ \n \n4,715 $ \n \n-3,546 \n \nAs shown in Table 6, the debt associated with the School District's General Obligation Bonds was eliminated, as those bonds matured and were paid in March 2012. \nThe $1.2 million debt for Compensated Absences is the School District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nCurrent Financial Issues \n \nLike most School Districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the rising costs in employee benefits, state mandated teacher salary increases, utilities and the continued state formula allotment reductions. Other challenges include a slow decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nFor several years prior to fiscal year 2004 (2003 tax digest) the School District's millage rate remained unchanged at a rate of 17.70 mills. In fiscal year 2003 the rate was rolled back to 17.55. When faced with mid-year state allotment reductions in both fiscal year 2003 and fiscal year 2004 the School Board voted to increase the millage rate to 19.0 mills. However, the financial statements for the General Fund reported a negative fund balance for fiscal years 2005 and 2006. During this time, the School District also began implementing cost savings measures and spending reductions in all areas of support operations including Student Transportation, Maintenance, General Administration, School Food Service, Business Services, and Central Support Services. As a result, the School District recovered from the negative fund balances by fiscal year 2007 and reported a positive $4.4 million fund balance by the end of fiscal year 2008. \n \nTwice, since increasing the millage rate to 19.0 mills in fiscal year 2004, the School Board voted to roll the millage rate back, once in fiscal year 2007 (2006 digest) and again in fiscal year 2008 (2007 digest). The millage rate for fiscal year 2008 (2007 digest) was 18.45 mills. The millage rate for fiscal year 2009 (2008 digest) was 18.445 mills. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's \n \nfunding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student \n \nenrollment, or FTE, decreases, so does State funding. The FTE count for fiscal year 2012 and the \n \nfive years prior is as follows: \n \nfiscal year 2007 \n \n16,376 \n \nfiscal year 2008 \n \n16,208 \n \nfiscal year 2009 \n \n16,134 \n \nfiscal year 2010 \n \n15,962 \n \nfiscal year 2011 \n \n15,628 \n \nfiscal year 2012 \n \n15,497 \n \nIn August, 2008, the School District was notified of the decline in State revenues and the resulting additional reduction in educational funding for fiscal year 2009. In total, State funding for fiscal year 2009 was reduced $5.2 million. Expenditure reduction measures were taken in all areas with the purpose of preserving the fund balance. Management has continued to monitor expenditures and identify additional costs savings and reductions on a monthly basis, which contributed to the preservation of the general fund balance. \n \nIn March of fiscal year 2007, the voters of Dougherty County approved the continuation of the one percent sales tax (Sales Tax for Educational Progress). These sales tax revenues will be used to complete the renovation of schools outlined by the long-range facilities plan. Other sales tax projects include the installation of safety and access controls, and the purchase of musical instruments and other academic/instruction related equipment. In the fall of fiscal year 2009 the School District issued General Obligation Bonds in the amount of $18.0 million. The outstanding balance on these bonds was $3.1 million at the end of fiscal year 2011, which was repaid in March 2012. \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nAt the end of fiscal year 2005, Child Nutrition Services (food services operations) reported a deficit balance of $3.9 million. Operational cost controls implemented by program management, since that time, were successful in significantly reducing the deficit balance to $0.06 million by the end of fiscal year 2008. In October, of fiscal year 2009, the Child Nutrition Program began reporting a positive fund balance and continues to do so. The School District continues to be financially challenged by multiple years of reductions in State funding to local districts. Austerity reductions to State funding are budgeted again for fiscal year 2013. Even with these reductions in State resources (and the local tax digest), the School District has maintained the current millage of 18.445 mills since fiscal year 2009 and has been able to maintain a healthy General Fund Balance. In spite of the continued challenges, the Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars and State and Federal funds. Because of the continued decline in student FTE and an associated reduction in funding, the School District has begun an occupancy and space utilization assessment aimed at ensuring the School District is using its facilities space efficiently. Preliminary data indicates that up to three schools (two elementary and one middle) may be closed at the end of the 2013 school year, resulting in an operational cost savings of approximately $2.0 million. The School District strives to emphasize student achievement while maintaining sound fiscal management. Contacting the School District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Kenneth Dyer, Executive Director for Finance and Operations, Dougherty County School System, P.O. Box 1470, 200 Pine Avenue, Albany, Georgia 31702. You may also email your questions to kenneth.dyer@docoschools.org. \nxi \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY \n \n$ 17,064,865.01 $ 15,157,596.78 \n4,829,133.41 9,536,265.49 5,230,429.27 \n157,049.22 237,613.16 424,725.92 \n59,318.00 18,358,637.23 231,047,382.48 \n \n160,107.85 \n410,000.00 2,300,083.00 \n \n$ 302,103,015.97 $ \n \n2,870,190.85 \n \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due 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 Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \n$ \n \n528,601.38 $ \n \n17,269,946.23 \n \n1,463,903.42 \n \n258,742.80 \n \n862,474.69 \n \n496,161.46 \n \n39,105.67 \n \n81,829.51 1,087,163.44 \n \n$ 22,087,928.60 $ \n \n$ 249,406,019.71 $ \n2,584,980.14 13,094,565.10 14,929,522.42 \n$ 280,015,087.37 $ \n \n$ 302,103,015.97 $ \n \n12,902.52 \n12,902.52 2,710,083.00 \n147,205.33 2,857,288.33 2,870,190.85 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n DOUGHERTY 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 Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Other Taxes 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 \n95,121,986.88 $ \n \n4,620,193.02 6,935,585.97 3,371,287.26 1,568,126.45 9,820,817.97 1,618,654.04 13,351,914.59 6,479,494.51 3,008,054.41 \n639,216.09 \n \n489,668.36 540,322.46 9,205,976.63 106,956.35 \n \n$ 156,878,254.99 $ \n \n1,185,624.36 \n77,118.03 124,493.16 \n691,202.46 2,078,438.01 \n \n$ \n \n262,327.82 $ \n \n100,000.00 \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 \n \nAND CHANGES IN NET ASSETS \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL DOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY \n \n$ 60,049,420.05 \n2,020,014.25 5,542,899.02 2,132,858.07 2,277,372.69 4,782,906.00 \n112,413.70 5,693,907.83 2,347,436.27 $ \n84,171.75 638,558.56 \n8,996,696.89 \n$ 94,678,655.08 $ \n \n$ -33,886,942.47 \n \n838,994.50 \n \n-2,600,178.77 -1,392,686.95 -1,238,429.19 \n709,246.24 -5,037,911.97 -1,506,240.34 -7,580,888.73 -3,168,570.58 -2,923,882.66 \n-657.53 \n \n-489,668.36 -540,322.46 481,922.72 -106,956.35 \n \n838,994.50 $ -59,282,167.40 \n \n$ \n \n-162,327.82 \n \n$ 37,980,711.89 43,399.88 6,725.39 \n17,412,083.36 241,244.20 \n9,477,873.00 58,460.24 $ \n1,447,832.41 \n$ 66,668,330.37 $ \n$ 7,386,162.97 $ \n272,628,924.40 \n \n1,979.57 45,402.58 47,382.15 -114,945.67 2,972,234.00 \n \n$ 280,015,087.37 $ \n \n2,857,288.33 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2012 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 18,909,764.52 \n \n$ \n \n1,689,270.98 $ 13,468,325.80 \n \n1,995,128.15 9,536,265.49 5,230,429.27 \n157,049.22 237,613.16 424,725.92 \n59,318.00 \n \n2,834,005.26 \n \n0.00 $ 18,909,764.52 15,157,596.78 \n4,829,133.41 9,536,265.49 5,230,429.27 \n157,049.22 237,613.16 424,725.92 \n59,318.00 \n \n$ 38,239,564.71 $ 16,302,331.06 $ \n \n0.00 $ 54,541,895.77 \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 Committed Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ $ 524,371.08 \n17,269,946.23 258,742.80 \n817,511.97 \n \n1,844,899.51 4,230.30 \n862,474.69 496,161.46 \n \n$ 18,870,572.08 $ 3,207,765.96 \n \n$ 484,043.92 \n \n$ \n \n2,470,340.48 $ 13,094,565.10 \n \n2,266,268.83 \n \n2,258,392.98 \n \n11,889,946.42 \n \n$ 19,368,992.63 $ 13,094,565.10 $ \n \n$ 38,239,564.71 $ 16,302,331.06 $ \n \n$ 1,844,899.51 528,601.38 \n17,269,946.23 258,742.80 862,474.69 496,161.46 817,511.97 \n$ 22,078,338.04 \n \n0.00 \n \n484,043.92 15,564,905.58 \n2,266,268.83 2,258,392.98 11,889,946.42 \n \n0.00 $ 32,463,557.73 \n \n0.00 $ 54,541,895.77 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n DOUGHERTY 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 Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \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 at year-end consist of: \nCompensated Absences Payable Claims and Judgments Payable \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 32,463,557.73 \n \n$ \n \n9,051,054.08 \n \n9,307,583.15 \n \n330,073,721.80 \n \n7,768,361.87 \n \n-106,794,701.19 \n \n249,406,019.71 \n \n778,406.30 \n \n$ -1,168,992.95 -1,463,903.42 \n \n-2,632,896.37 \n \n$ 280,015,087.37 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n DOUGHERTY 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 Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 38,740,613.42 \n \n$ \n \n241,244.20 $ 17,412,083.36 \n \n76,967,363.08 \n \n28,028,159.50 \n \n2,078,438.01 \n \n40,037.34 \n \n18,422.90 \n \n1,447,832.41 \n \n$ 147,543,687.96 $ 17,430,506.26 $ \n \n0.00 $ \n \n38,740,613.42 17,653,327.56 76,967,363.08 28,028,159.50 \n2,078,438.01 58,460.24 \n1,447,832.41 \n \n0.00 $ 164,974,194.22 \n \n$ 89,430,256.77 $ \n \n647,557.74 \n \n$ 90,077,814.51 \n \n4,611,190.88 6,698,168.46 3,107,033.06 1,553,270.03 9,164,412.28 1,282,340.85 12,177,675.26 6,949,844.35 2,309,992.88 \n639,216.09 489,668.36 540,322.46 8,755,071.49 \n \n1,054.38 \n14,856.42 5,775.10 189.86 \n396,031.66 311,264.32 \n14,735.12 \n10,529,129.74 \n \n4,612,245.26 6,698,168.46 3,107,033.06 1,568,126.45 9,170,187.38 1,282,530.71 12,573,706.92 7,261,108.67 2,324,728.00 \n639,216.09 489,668.36 540,322.46 8,755,071.49 10,529,129.74 \n \n191,942.20 3,039.68 \n \n$ 3,125,000.00 250.00 \n156,000.00 \n \n3,316,942.20 250.00 \n159,039.68 \n \n$ 147,903,445.10 $ 11,920,594.34 $ 3,281,250.00 $ 163,105,289.44 \n \n$ \n \n-359,757.14 $ 5,509,911.92 $ -3,281,250.00 $ 1,868,904.78 \n \n$ 7,274,442.44 \n \n$ 7,274,442.44 \n \n$ \n \n-112,010.56 \n \n$ -7,162,431.88 $ -7,274,442.44 \n \n$ \n \n-112,010.56 $ 7,274,442.44 $ -7,162,431.88 $ \n \n0.00 \n \n$ \n \n-471,767.70 $ 12,784,354.36 $ -10,443,681.88 $ 1,868,904.78 \n \n19,840,760.33 \n \n310,210.74 \n \n10,443,681.88 \n \n30,594,652.95 \n \n$ 19,368,992.63 $ 13,094,565.10 $ \n \n0.00 $ 32,463,557.73 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n DOUGHERTY 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, 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 \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments Amortized Bond Premium \nTotal Long-Term Debt Repayments \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: \nNet Decrease in Accrued Interest on Issuance of Bonds Decrease in Compensated Absences Increase in Claims and Judgments \nTotal Additional Expenditures \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,868,904.78 \n \n$ 10,295,051.69 -6,965,141.97 \n \n3,329,909.72 \n \n-709,776.26 \n \n$ 3,125,000.00 191,942.20 152,232.77 \n \n3,469,174.97 \n \n$ \n \n52,083.33 \n \n25,076.32 \n \n-649,209.89 \n \n-572,050.24 \n \n$ 7,386,162.97 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 355,163.95 36,189.16 $ 391,353.11 \n$ 391,353.11 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 18 for additional component unit disclosures. \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 Dougherty 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. \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental, 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 Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds 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 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. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds 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, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nthey 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. \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 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: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n(7) Repurchase agreements, and \n(8) 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 \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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 Dougherty County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on July 18, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $38,690,488.15. \n \nThe tax millage rate levied for the 2011 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.445 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $17,412,083.36 and is to be used for capital outlay for educational purposes. 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 On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). 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 \nConsumable Supplies On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2012, are recorded as prepaid items. \n \n- 13 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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. 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. \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount $ 100,000.00 $ 50,000.00 $ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 12 years 4 to 8 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 \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 4 to 8 years. \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 \nA maximum of 18 days of vacation leave 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 30 days. \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2010 2011 2012 \n \n$ 1,137,997.35 $ $ 1,115,407.32 $ $ 1,194,069.27 $ \n \n961,768.21 $ 947,171.63 $ 870,137.27 $ \n \n984,358.24 $ 868,509.68 $ 895,213.59 $ \n \n1,115,407.32 1,194,069.27 1,168,992.95 \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. \nIn the fund financial statements, the School District recognizes bond premiums and discounts during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. \nIn the District-wide and fund financial statements, the School District recognizes bond issuance costs during the fiscal year bonds are issued. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond issuance costs should be amortized over the life of the bonds on the District-wide statements. The effect of this deviation is deemed immaterial to the fair presentation of the basic financial statements. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \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 \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. \n- 15 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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, 2012, are as follows: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects \nCommitted Self-Insurance \nAssigned School Activity Accounts Subsequent Period Expenditures \nUnassigned \n \n$ \n \n424,725.92 \n \n59,318.00 $ \n \n484,043.92 \n \n$ 2,470,340.48 13,094,565.10 \n \n15,564,905.58 \n \n2,266,268.83 \n \n$ \n \n325,400.98 \n \n1,932,992.00 \n \n2,258,392.98 11,889,946.42 \n \nFund Balance, June 30, 2012 \n \n$ 32,463,557.73 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end of 8% to 12% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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 \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. \n \nNote 3: BUDGETARY DATA \n \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 \n \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nthe 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 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 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. At June 30, 2012, $46,991.17 of deposits is 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: \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 \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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. \n \nCATEGORIZATION OF DEPOSITS \n \nPRIMARY GOVERNMENT \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 deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $22,165,890.16. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial credit risk category at June 30, 2012, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n46,991.17 \n \n2 \n \n0.00 \n \n3 \n \n21,185,772.97 \n \nTotal \n \n$ 21,232,764.14 \n \nCOMPONENT UNIT \n \nAt June 30, 2012, Dougherty County Stadium Authority's bank balance of $160,107.85 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \n \nCATEGORIZATION OF INVESTMENTS \n \nAt June 30, 2012, the carrying value of the School District's total investments was $15,157,596.78, 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 www.audits.ga.gov/SGD/CAFR.html. \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \n \nNote 5: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nPRIMARY GOVERNMENT \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \n$ \n \n9,051,054.08 \n \n21,215,399.16 $ \n \n7,785,116.41 $ \n \n$ 19,692,932.42 \n \n9,051,054.08 9,307,583.15 \n \nTotal Capital Assets, Not Being Depreciated $ 30,266,453.24 $ \n \n7,785,116.41 $ 19,692,932.42 $ 18,358,637.23 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment \n \n$ 308,946,640.40 $ 6,692,575.57 \n \n21,127,081.40 $ 1,075,786.30 \n \n0.00 $ 330,073,721.80 7,768,361.87 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment \n \n95,093,779.49 4,735,779.73 \n \n6,555,140.39 410,001.58 \n \n101,648,919.88 5,145,781.31 \n \nTotal Capital Assets, Being Depreciated, Net $ 215,809,656.75 $ 15,237,725.73 $ \n \n0.00 $ 231,047,382.48 \n \nGovernmental Activity Capital Assets - Net $ 246,076,109.99 $ 23,022,842.14 $ 19,692,932.42 $ 249,406,019.71 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \nCOMPONENT UNIT \n \n$ \n \n4,220,304.21 \n \n$ \n \n6,251.56 \n \n186,747.81 \n \n210,293.72 \n \n579,608.37 \n \n330,556.09 \n \n640,414.63 \n \n383,843.46 \n \n35,124.87 \n \n2,372,840.51 371,997.25 \n \n$ \n \n6,965,141.97 \n \nCapital Assets, Not Being Depreciated: Land \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \n$ \n \n410,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n410,000.00 \n \nCapital Assets, Being Depreciated: Buildings Equipment Stadium Improvements \n \n$ \n \n308,976.00 \n \n239,886.00 \n \n2,586,683.00 \n \n$ \n \n0.00 $ \n \n308,976.00 \n \n239,886.00 \n \n2,586,683.00 \n \nLess: Accumulated Depreciation: Buildings Equipment Stadium Improvements \n \n57,931.00 $ 185,285.00 495,387.00 \n \n7,724.00 22,631.00 66,504.00 \n \n65,655.00 207,916.00 561,891.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 2,396,942.00 $ \n \n-96,859.00 $ \n \n0.00 $ 2,300,083.00 \n \nCapital Assets - Net \n \n$ 2,806,942.00 $ \n \n-96,859.00 $ \n \n0.00 $ 2,710,083.00 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2012, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nGeneral \n \nDebt Service \n \nFund \n \nFund \n \nDistrict-wide Capital Projects \n \n$ 112,010.56 $ 7,162,431.88 \n \nTransfers are used (1) to move property tax revenues collected by the General Fund to the Districtwide Capital Projects Fund to cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects and (2) to move excess funds collected by the Debt Service Fund to the District-wide Capital Projects Fund as supplemental funding sources for capital construction projects. \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \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 \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \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 \n2011 $ 2012 $ \n \n889,507.81 $ 814,693.53 $ \n \n1,048,978.10 $ 1,293,911.32 $ \n \n1,123,792.38 $ 644,701.43 $ \n \n814,693.53 1,463,903.42 \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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 \n \nfollows: \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 \n2011 $ 2012 $ \n \n0.00 $ 0.00 $ \n \n161,243.68 $ 87,162.00 $ \n \n161,243.68 $ 87,162.00 $ \n \n0.00 0.00 \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \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 Other Employees \nNote 9: OPERATING LEASES \n \n$ \n \n50,000.00 \n \n$ 100,000.00 \n \nDougherty County Board of Education has entered into various leases as lessee for copiers and fax machines. 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 $351,194.76. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2013 2014 2015 \n \n$ 353,108.16 352,680.16 29,717.68 \n \nTotal \n \n$ 735,506.00 \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes $ \n \n0.00 $ 10,000,000.00 $ 10,000,000.00 $ \n \n0.00 \n \nNote 11: LONG-TERM DEBT \n \nCAPITAL LEASES \n \nThe Dougherty County Board of Education entered into an agreement for buses. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \n \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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 to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nVoters have authorized the School District to issue general obligation bonds in the amount of $40,000,000.00. The proceeds from these bonds will be used by the School District for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and related facilities, (c) acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. These bonds have not been issued as of June 30, 2012. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2012, were as follows: \n \nBalance July 1, 2011 \n \nAdditions \n \nGovernmental Funds Deductions \n \nBalance June 30, 2012 \n \nDue Within One Year \n \nG. O. Bonds \n \n$ \n \nCapital Leases \n \nCompensated Absences \n \nBond Premiums Amortized \n \n3,125,000.00 191,942.20 \n1,194,069.27 $ 152,232.77 \n \n$ 870,137.27 \n \n3,125,000.00 $ 191,942.20 895,213.59 152,232.77 \n \n0.00 0.00 1,168,992.95 $ 0.00 \n \n81,829.51 \n \n$ 4,663,244.24 $ \nNote 12: ON-BEHALF PAYMENTS \n \n870,137.27 $ 4,364,388.56 $ 1,168,992.95 $ \n \n81,829.51 \n \nThe School District has recognized revenues and costs in the amount of $10,052,172.62 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 $9,817,468.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $44,085.62 \nOffice of State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $190,619.00 \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNote 13: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2012: \n \nUnearned \n \nExecuted \n \nProject \n \nContracts \n \nAlbany Early College Dougherty High School Monroe High School Security Access Control System Phase II \n \n$ \n \n203,864.00 \n \n1,177,652.23 \n \n343,792.67 \n \n165,187.95 \n \n$ \n \n1,890,496.85 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 14: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. During fiscal year 2012, the Georgia Department of Education began a program review in response to allegations of the falsification of free and reduced lunch program applications. During fiscal year 2012 and 2013, the Department expanded its review to include additional Federal programs. As a result of the expanded review, the Board refunded $92,851.05 and $116,544.21 in the subsequent fiscal year to the Georgia Department of Education for costs disallowed for the fiscal years 2011 and 2012, respectively. The School District also agreed to reclassify an additional $126,856.54 of expenditures from the School District's Federal program fund to the School District's General operating fund in fiscal year 2013. The amount of questioned costs associated with Georgia Department of Education's review of fiscal year 2013 Federal programs has not been disclosed at this time. 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. \n \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. \n \nNote 15: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, the School District's Board of Education voted to approve the closing of three schools (two elementary and one middle). This action was taken in part due to a continued decline in student FTE and an associated reduction in funding and to ensure the School District is using its facilities space efficiently. \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 \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nand 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. 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, 2012: \n \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 $296.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \n2012 2011 2010 \n \n100% \n \n$ \n \n14,352,395.01 \n \n100% \n \n$ \n \n12,582,772.13 \n \n100% \n \n$ \n \n12,087,093.02 \n \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNote 17: 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 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, 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. \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% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n8,086,748.31 8,168,630.90 8,303,432.60 \n \n- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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. \nNote 18: COMPONENT UNIT \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. The Authority's fiscal year is July 1 through June 30. \n \n- 27 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 Community Services Operations \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers From Other Funds Sale or Compensation For Loss Of Fixed Assets Other Source Operating Transfers To Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 38,075,779.00 $ 38,740,613.42 $ 38,740,613.42 $ \n \n0.00 \n \n45,000.00 \n \n241,244.20 \n \n241,244.20 \n \n0.00 \n \n76,213,276.24 \n \n76,841,556.64 \n \n76,967,363.08 \n \n125,806.44 \n \n27,891,528.00 \n \n36,940,953.39 \n \n28,028,159.50 \n \n-8,912,793.89 \n \n1,633,612.63 \n \n1,856,116.20 \n \n2,078,438.01 \n \n222,321.81 \n \n32,000.00 \n \n28,611.17 \n \n40,037.34 \n \n11,426.17 \n \n1,690,337.37 \n \n2,623,129.95 \n \n1,447,832.41 \n \n-1,175,297.54 \n \n$ 145,581,533.24 $ 157,272,224.97 $ 147,543,687.96 $ -9,728,537.01 \n \n$ 89,335,894.16 $ 94,294,022.37 $ 89,430,256.77 $ 4,863,765.60 \n \n4,673,809.50 7,136,998.97 3,087,435.69 2,022,463.53 8,662,630.10 1,350,979.00 13,322,256.16 6,438,308.91 3,179,912.00 \n790,530.72 347,000.00 9,774,305.00 524,850.00 \n \n5,122,699.04 9,456,260.80 3,059,409.30 2,541,479.94 9,676,824.59 1,449,767.72 12,302,802.55 6,318,621.22 3,480,244.63 \n945,177.47 359,982.61 11,050,679.51 603,772.00 \n \n4,611,190.88 6,698,168.46 3,107,033.06 1,553,270.03 9,164,412.28 1,282,340.85 12,177,675.26 6,949,844.35 2,309,992.88 \n639,216.09 489,668.36 8,755,071.49 540,322.46 194,981.88 \n \n511,508.16 2,758,092.34 \n-47,623.76 988,209.91 512,412.31 167,426.87 125,127.29 -631,223.13 1,170,251.75 305,961.38 -129,685.75 2,295,608.02 \n63,449.54 -194,981.88 \n \n$ 150,647,373.74 $ 160,661,743.75 $ 147,903,445.10 $ 12,758,298.65 \n \n$ -5,065,840.50 $ -3,389,518.78 $ \n \n-359,757.14 $ 3,029,761.64 \n \n$ \n \n592,000.00 $ \n \n480,703.00 \n \n50,500.00 \n \n8,055.13 \n \n1,233,710.00 \n \n1,435,710.00 \n \n-732,000.00 \n \n-460,000.00 $ \n \n$ -112,010.56 \n \n-480,703.00 -8,055.13 \n-1,435,710.00 347,989.44 \n \n$ 1,144,210.00 $ 1,464,468.13 $ \n \n-112,010.56 $ -1,576,478.69 \n \n$ -3,921,630.50 $ -1,925,050.65 $ \n \n-471,767.70 $ 1,453,282.95 \n \n11,020,556.28 \n \n14,480,320.00 \n \n19,840,760.33 \n \n5,360,440.33 \n \n$ 7,098,925.78 $ 12,555,269.35 $ 19,368,992.63 $ 6,813,723.28 \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 actual revenues ($844,423.95) or expenditures ($876,529.91) 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- 29 - \n \n DOUGHERTY 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 \nSchool Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement 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 ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant Education - State Grant Program Safe and Drug-Free Schools and Communities - State Grants Special Education State Personnel Development Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \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 $ 8,946,953.44 (1) \n \n$ 8,946,953.44 \n \n84.041 \n \n(3) \n \n84.318 \n \nN/A $ \n \n10,187.00 \n \n* 84.388 \n \nN/A $ 764,759.64 \n \n84.391 84.392 84.027 84.173 \n \nN/A $ 230,989.87 \n \nN/A \n \n7,275.82 \n \nN/A \n \n4,663,401.40 \n \nN/A \n \n121,509.40 \n \n$ 5,023,176.49 \n \n* 84.389 * 84.010 \n \nN/A $ 115,795.26 \n \nN/A \n \n9,805,252.81 \n \n$ 9,921,048.07 \n \n* 84.395 84.048 84.410 84.365 \n* 84.367 84.366 84.011 84.186 \n84.323 84.287 \n \nN/A $ 1,403,300.28 \n \nN/A \n \n208,825.00 \n \nN/A \n \n36,568.00 \n \nN/A \n \n10,336.27 \n \nN/A \n \n1,190,857.57 \n \nN/A \n \n8,792.24 \n \nN/A \n \n63,648.29 \n \nN/A \n \n486.28 \n \nN/A \n \n30,982.31 \n \nN/A \n \n240,640.05 \n \n$ 3,194,436.29 \n \n$ 18,913,607.49 \n \n- 30 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \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 \nOther Programs Pass-Through From Georgia Department of Revenue Block Grants for Prevention and Treatment of Substance Abuse Pass-Through From Office of Planning and Budget Affordable Care Act (ACA) Abstinence Education Program \nTotal Other Programs \nTotal U. S. Department of Health and Human Services \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Georgia Department of Labor Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marines R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.575 \n \nN/A $ \n \n43,309.01 \n \n93.959 93.235 \n \nN/A $ N/A \n$ $ \n \n20,346.10 2,000.00 \n22,346.10 65,655.11 \n \n17.259 \n \nN/A $ \n \n73,338.10 \n \n$ \n \n71,024.73 \n \n117,748.82 \n \n$ 188,773.55 \n \nTotal Expenditures of Federal Awards \n \n$ 28,188,327.69 \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 $464,677.72. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,531,903.07) 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 $34,126.36, 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. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty 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- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \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 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 Vocational Construction Related Equipment - State Bonds \nOffice of the State Treasurer Public School Employees' Retirement \n \nSee notes to the basic financial statements. \n \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n948,537.34 \n \n5,377,813.00 163,916.00 \n11,234,132.00 866,394.00 \n5,447,940.00 1,053,509.00 1,502,426.00 7,470,468.00 7,392,352.00 2,017,596.00 6,454,848.00 1,509,517.00 \n20,411.00 679,401.00 177,379.00 1,544,931.00 478,509.00 305,696.00 \n1,533,316.00 3,260,653.00 4,000,862.00 -11,690,779.00 \n1,595,518.00 9,477,873.00 \n244,038.00 230,245.00 \n37,697.00 2,195,853.00 9,817,468.00 \n22,962.56 228,837.00 838,994.50 \n44,085.62 2,575.00 \n146,428.66 144,341.40 \n190,619.00 \n$ 76,967,363.08 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2012 \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 \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n(i) The renovation and improvement of four high schools and five elementary schools, strategic land acquisition for future school expansion, certain other capital repairs and modifications in system-wide schools, buildings and office (including carpet replacement, gym flooring and certain other capital repairs and modifications) $ 75,200,000.00 $ 73,090,000.00 $ 10,089,173.72 $ 44,733,430.18 \n \n(ii) The provision of additional classroom technology \n \n(including hardware, software and computer furniture), \n \nregular system-wide replacement of computers five \n \nyears or older, installing six computers in all K-8th \n \ngrade classrooms and three computers in all 9th-12th \n \ngrade classrooms, providing system-wide teacher \n \nlaptop computers, system-wide \"wireless-connectivity\" \n \nin all classroom and other buildings, upgrading existing \n \ncomputer-aided instructional systems to \"Model \n \nClassroom\" standards and providing three additional \n \n\"Model Classrooms\" per school, providing system-wide \n \nupgraded or new servers and upgraded main data frame \n \n(MDF) rooms, installing \"voice-over-internet-protocol\" \n \n(VOIP) in various classrooms throughout the school \n \nsystem \n \n10,500,000.00 \n \n10,500,000.00 \n \n658,557.08 7,600,710.74 \n \n(iii) The provision of safety and security equipment, including system-wide communication equipment and card access systems at various system-wide buildings and the installation of radio signal-boosters (\"radio repeaters\") for West Dougherty tower \n \n5,700,000.00 \n \n6,000,000.00 \n \n750,155.65 5,233,867.76 \n \n(iv) Vehicle and equipment replacement, including school buses and departmental trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical instruments, playground equipment, and other educational related equipment \n \n3,600,000.00 \n \n3,600,000.00 \n \n296,897.16 2,319,067.47 \n \n(v) Funding certain financing, project management and election costs related thereto, the maximum cost of such projects not to exceed $95,000,000.00. \n \n1,810,000.00 \n \n169,800.17 1,636,866.35 \n \nESTIMATED COMPLETION \nDATE December 2014 \nJune 2013 June 2013 June 2013 June 2013 \n \n$ 95,000,000.00 $ 95,000,000.00 $ 11,964,583.78 $ 61,523,942.50 \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 Dougherty 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 \nSee notes to the basic financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 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 \n6,287,871.00 $ \n \n160,875.00 \n \n13,160,236.00 \n \n1,001,642.00 \n \n6,395,772.00 \n \n1,207,711.00 1,745,053.00 8,732,536.00 8,550,175.00 2,385,465.00 7,451,344.00 \n \n1,691,305.00 31,523.00 \n792,397.00 216,732.00 \n$ 59,810,637.00 $ \n1,802,654.00 356,569.00 \n \n6,517,209.25 $ 172,108.52 \n14,522,870.71 788,980.83 \n8,668,574.78 \n680,850.22 2,269,491.40 10,258,018.76 11,979,395.77 2,220,121.89 \n75,105.21 3,370,968.73 5,416,216.23 \n164,238.19 700,717.19 \n577,911.25 266,042.40 \n68,648,821.33 $ \n2,725,519.31 3,567.15 \n \n32,242.04 $ 65,461.95 257,576.90 \n \n6,549,451.29 172,108.52 \n14,588,332.66 788,980.83 \n8,926,151.68 \n \n30,318.61 73,034.34 158,513.24 152,922.59 \n \n680,850.22 2,299,810.01 10,331,053.10 12,137,909.01 2,373,044.48 \n \n895.00 4,660.00 14,129.51 14,636.09 21,170.69 \n \n76,000.21 3,375,628.73 5,430,345.74 \n178,874.28 721,887.88 \n \n17,445.61 \n \n595,356.86 266,042.40 \n \n843,006.57 $ 69,491,827.90 \n \n152,076.63 65,947.57 \n \n2,877,595.94 69,514.72 \n \nTOTAL QBE FORMULA FUNDS \n \n$ 61,969,860.00 $ 71,377,907.79 $ 1,061,030.77 $ 72,438,938.56 \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- 35 - \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 \nAugust 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Dougherty County Board of Education's basic financial statements and have issued our report thereon dated August 19, 2013. This report was qualified for a scope limitation, as identified in the auditor's report on the basic financial statements. Except as discussed in the following paragraph, 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. \nThe financial statements of Dougherty County Stadium Authority (Authority) have not been audited, and we were not engaged to audit the Authority's financial statements as a part of our audit of the School District's basic financial statements. The Authority's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \nInternal Control Over Financial Reporting \nManagement of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Dougherty 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 Dougherty County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dougherty 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 \n2012YB-30X \n \n  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. However, we consider items FS-6471-12-01, and FS-647112-02, described in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or 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. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty 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 Dougherty County Board of Education in a separate letter dated August 19, 2013. \nDougherty County Board of Education's responses to the findings identified in our audit are described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's responses and, accordingly, we express no opinion on the responses. \nThis report is intended solely for the information and use of the finance committee, management, members of the Dougherty 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-30X \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 \nAugust 19, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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. Dougherty 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 Dougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty 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 Dougherty 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 Dougherty County Board of Education's compliance with those requirements. \n \n2012SA-55 \n \n  As described in item FA-6471-12-01 in the accompanying Schedule of Findings and Questioned Costs, Dougherty County Board of Education did not comply with requirements regarding Activities Allowed or Unallowed and Allowable Costs/Cost Principles that are applicable to its Title II-A Improving Teacher Quality State Grant. Compliance with such requirements is necessary, in our opinion, for Dougherty County Board of Education to comply with requirements applicable to that program. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Dougherty 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. The results of our auditing procedures also disclosed another instance of noncompliance with those requirements, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6471-12-02. \nInternal Control Over Compliance \nManagement of Dougherty 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 Dougherty 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 Dougherty County Board of Education's internal control over compliance. \nOur consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. \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. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA-6471-12-01 to be a material weakness. \nA 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. We consider the deficiencies in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as items FA-6471-12-02 and FA-6471-12-03 to be significant deficiencies. \n2012SA-55 \n \n  Dougherty County Board of Education's responses to the findings identified in our audit are described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's responses and, accordingly, we express no opinion on the responses. \nThis report is intended solely for the information and use of the finance committee, management, members of the Dougherty 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-55 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-10-01 FS-6471-11-01 FS-6471-11-02 FS-6471-11-03 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-11-01 \n \nThe number of staff available for assignment of accounting functions is limited in the schools; however, the School District's internal auditor will continue to work with the available staff in each school to develop compensating controls and ensure proper separation of duties at the school level. In addition, during the 2014 fiscal year, the School District will conduct training on the management of school activity accounts for principals and the appropriate school office staff. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY 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; Debt Service Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \n \nUnqualified Disclaimer \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiencies identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs: \n \n Material weakness identified? \n \nYes \n \n Significant deficiencies identified? \n \nYes \n \nType of auditor's report issued on compliance for major programs: Unqualified for all major programs except for Improving Teacher Quality State Grant, which was qualified. \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nYes \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010, 84.389 84.367 84.388 84.395 \n \nChild Nutrition Cluster Title I, Part A Cluster Improving Teacher Quality State Grants School Improvement Grants Cluster ARRA - Race-to-the-Top Incentive Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$846,673.62 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-12-01 \nCondition: This is a repeat finding (FS-6471-11-01, FS-6471-10-01 and FS-6471-09-01) from the years ended June 30, 2011, June 30, 2010, and June 30, 2009, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \n The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n Testing revealed bank reconciliations that were not approved by the appropriate personnel.  Three bank accounts were noted through bank confirmation procedures which could possibly \nbe school activity accounts that were not recorded on the general ledger. \nRevenues and Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during a test of thirty receipt transactions: 1. Eighteen receipts were not deposited in a timely manner. 2. Two receipts did not have adequate supporting documentation. 3. All of the receipts examined lacked information to be able to trace to recording on the general ledger. 4. Fifteen receipts did not contain the signature of two employees as required by Board policy. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of thirty disbursement transactions: 1. Six disbursements did not have invoices attached. 2. All of the disbursements examined lacked information to be able to trace to recording on the general ledger. 3. Three voucher packages did not have evidence of receipt of goods. 4. Four vouchers did not have appropriately approved requisition requests as required by Board policy. \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCause: These deficiencies were a result of management's failure to ensure internal controls were established, implemented and functioning at the school level. \nEffect: Errors and /or fraud may not be detected in a timely manner. \nRecommendation: The School District should implement procedures to ensure the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance transactions are processed according to established procedures. \nEMPLOYEE COMPENSATION Inadequate Controls over Payroll Process Significant Deficiency Finding Control Number: FS-6471-12-02 \nCondition: The School District failed to implement procedures to ensure that salary payments were appropriately paid. In addition, the School District failed to maintain documentation to support pay for all employees. \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance employees are paid according to actual hours worked and contracts, timesheets or other forms of acceptable documentation are maintained to support the payments. \nQuestioned Cost: N/A \nInformation: Weaknesses in internal controls related to employee compensation records were noted during a review of ninety-six employees' salaries as follows: \n Contracts, additional pay documentation or some other form of support was not made available for review for eight of the employees tested. \n One employee was not paid according to the actual hours worked.  Two employees continued to be paid for duties that were no longer being performed.  Three employees were underpaid due to being paid incorrectly based on step, grade, and/or \nnumber of days worked.  Three employees were overpaid due to being paid incorrectly based on step, grade, and/or \nnumber of days worked  One employee was paid for work not performed and this employee was able to pay \nthemselves for this additional unapproved pay. \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCause: Management failed to implement and adequately monitor procedures to ensure that payments made to employees were for time actually worked and based on an approved rate of pay that was adequately documented. \nEffect: Errors and/or irregularities may occur and not be detected in a timely manner. \nRecommendation: Management should develop and implement controls to ensure that payments made to employees are based on approved rates of pay that are adequately documented and based on time actually worked. Additionally, the School District should review this matter to determine if recovery or payment of funds is needed. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES PERIOD OF AVAILABILITY Inadequate Internal Control Procedures Material Weakness Material Noncompliance U. S. Department of Education Through Georgia Department of Education Title II-A, Improving Teacher Quality (CFDA 84.367) Finding Control Number: FA-6471-12-01 \nCondition: A review of expenditures charged to the Improving Teacher Quality (CFDA 84.367) program and a monitoring report performed by Georgia Department of Education (GDOE) revealed the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements and charged to the correct grant period. \nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...necessary and reasonable for proper and efficient performance and administration of Federal awards\" and \"conform to any limitations or exclusions set forth in the...terms and conditions of the Federal award\". \nThe Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments states, in part, \"where a funding period is specified, a grantee may charge to the award only costs resulting from obligations of the funding period\". \nQuestioned Cost: $106,534.21 \n- 4 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nInformation: A review of expenditures and the monitoring report performed by GDOE teams for the Improving Teacher Quality (CFDA 84.367) program revealed the following deficiencies: \n Salary and benefits paid in the amount of $103,911.97 were for duties and activities which were not permitted under program guidelines. \n Payments for salary and benefits of $882.93 were made to substitute teachers who were not substituting for teachers participating in the program. \n Expenditures totaling $605.31 occurred outside the period of availability.  Payments for professional development in the amount of $900.00 did not meet program \nguidelines.  Operating expenditures totaling $234.00 were not necessary for the administration of the \nprogram. \nCause: Management failed to monitor compliance with Federal guidelines to ensure that expenditures charged to the Federal Program were necessary, conformed to limitations or exclusions set forth in the terms and conditions of the Federal award, and charged to the approved funding period. \nEffect: Failure to ensure that program expenditures are allowable and charged to the approved funding period resulted in noncompliance with the Federal grant. \nRecommendation: The School District should implement procedures to ensure that all expenditures charged to the Federal program are allowable and are charged to the appropriate funding period as required by Federal guidelines. The School District refunded $106,534.21 to the Georgia Department of Education in the subsequent fiscal year. \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES PROCUREMENT AND SUSPENSION AND DEBARMENT Inadequate Internal Control Procedures Significant Deficiency U. S. Department of Education Through Georgia Department of Education School Improvement Grants Cluster (CFDA 84.388) Title I Part A Cluster (CFDA 84.010 and 84.389) ARRA  Race-to-the-Top Incentive Grants (CFDA 84.395) Finding Control Number: FA-6471-12-02 \nCondition: A review of expenditures charged to the School Improvement Grants Cluster (CFDA 84.388), Title I, Part A Cluster (CFDA 84.010 and 84.389), and ARRA  Race-to-the-Top Incentive Grants (CFDA 84.395) programs and monitoring reports performed by Georgia Department of Education (GDOE) revealed the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements. Additionally, the School District did not follow their own procurement procedures. \n- 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...necessary and reasonable for proper and efficient performance and administration of Federal awards\", \"conform to any limitations or exclusions set forth in the...terms and conditions of the Federal award\", and \"be consistent with policies, regulations and procedures that apply uniformly to both Federal awards and other activities of the governmental unit\". \nThe Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments states, in part, \"Grantees and subgrantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procedures conform to applicable Federal law\". \nQuestioned Cost: $136,866.54  Title I, Part A Cluster (CFDA 84.010 and 84.389) \nInformation: A review of expenditures and the monitoring reports performed by GDOE revealed the following deficiencies: \n Title I, Part A Cluster expenditures totaling $27,866.54 were not authorized or did not meet program guidelines. \n Title I, Part A Cluster expenditures totaling $109,000.00 did not meet program guidelines and were not necessary and reasonable for the administration of the program. The School District did not follow their own procedures for the approval of contracts, which required Board approval for contracts exceeding $40,000.00. \nCause: Management failed to monitor compliance with Federal guidelines to ensure expenditures charged to the Federal Program were necessary and reasonable, conformed to limitations or exclusions set forth in the terms and conditions of the Federal awards, and were consistently applied uniformly to both Federal awards and other activities of the School District. \nEffect: Failure to ensure that program expenditures are allowable resulted in noncompliance with the requirements of the Federal grants. \nRecommendation: The School District should implement procedures to ensure that all expenditures charged to Federal programs are allowable as required by Federal guidelines. The School District reclassified $126,856.54 of the unallowable costs from the Title I, Part A Cluster to the General Fund and refunded $10,010.00 to the Georgia Department of Education in the subsequent fiscal year. \n- 6 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control over Employee Compensation Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) U. S. Department of Education Through Georgia Department of Education School Improvement Grants Cluster (CFDA 84.388) Title I, Part A Cluster (CFDA 84.010 and 84.389) ARRA - Race-to-the-Top Incentive Grants (CFDA 84.395) Finding Control Number: FA-6471-12-03 \nCondition: A review of employee compensation charged to various Federal programs revealed that internal controls procedures were not in place to ensure employee compensation expenditures were properly documented and calculated. \nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...allocable\" and \"be adequately documented\". \nQuestioned Cost: $1,753.56 Child Nutrition Cluster (CFDA 10.553 and 10.555) $2,810.68 Title I, Part A Cluster (CFDA 84.010 and 84.389) \nInformation: A review of employee compensation revealed several instances where employee pay was incorrect due to calculation errors, additional pay was not supported by adequate documentation, pay for additional work was not terminated once fully paid and contracts could not be provided to support pay. For additional information see FS-6471-12-02. \nCause: Management did not have controls and procedures in place to ensure that compensation charged to Federal programs and paid to personnel were supported by timesheets, contracts, and accurate calculations. \nEffect: Failure to monitor employee compensation expenditures resulted in noncompliance with the requirements of the Federal grants. \nRecommendation: The School District should establish and implement appropriate procedures to strengthen internal controls over processing employee compensation. The Georgia Department of Education should review this matter to determine if a reclaim of grant funds is appropriate. \n- 7 - \n \n  SECTION V MANAGEMENT'S RESPONSES \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2012 \n \nFinding Control Number: FS-6471-12-01 \n \nWe concur with this finding. The school district will implement procedures to strengthen its internal controls over Cash and Cash Equivalents. The school district will revise and monitor its procedures to ensure that accounting functions of custody, record keeping and authorization are separated and utilize management oversight of these activities. The school district will strengthen its internal controls to make sure expenditures are properly documented and approved prior to payment. \n \nFinding Control Number: FS-6471-12-02 \n \nWe concur with this finding. The school district will strengthen its controls to ensure that payments made to employees are based on approved rates of pay that are adequately documented and based on time actually worked. \n \nFinding Control Number: FA-6471-12-01 \n \nWe concur with this finding. The school district has implemented procedures to ensure that all expenditures charged to federal programs are allowable under OMB Circular A-87 and are charged to the appropriate funding period as required by federal guidelines. \n \nFinding Control Number: FA-6471-12-02 \n \nWe concur with this finding. The school district has implemented procedures to ensure that all expenditures charged to federal programs are allowable under OMB Circular A-87, approved by program director and properly documented. \n \nFinding Control Number: FA-6471-12-03 \n \nWe concur with this finding. The school district will implement appropriate procedures to strengthen and monitor controls over processing employee compensation. The school district will ensure that personnel files are properly maintained and all salary payments to employees are based on an approved rate of pay. \n \nContact Person: Telephone: Fax: Email: \n \nKenneth Dyer, Executive Director for Finance and Operations (229) 431-1234 (229) 431-1239 kenneth.dyer@docoschools.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-b2010-h2011-belec-p-btext","title":"Dougherty County Board of Education, Albany, 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.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP 3/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed January 23, 2023).","Fiscal year ended June 30, 2020 (online surrogate); (Georgia Government Publications database, viewed January 23, 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":["Dougherty County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dougherty County--Auditing--Periodicals","Education--Georgia--Dougherty County--Finance--Statistics--Periodicals"],"dcterms_title":["Dougherty County Board of Education, Albany, 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-bd7-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd7-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":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOUGHERTY COUNTY BOARD OF EDUCATION \nALBANY, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n(Including Independent Auditor's Reports) \n \n DOUGHERTY 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 \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 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 \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 \ni \n1 2 4 5 6 7 8 9 \n29 \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n30 32 33 35 \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  DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \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 \nAugust 10, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 H) of the Dougherty 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 Dougherty County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Dougherty County Stadium Authority. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Dougherty County Stadium Authority is based on the report of other auditors. \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 and the report of other auditors provide a reasonable basis for our opinions. \nIn our opinion, based on our audit and the report of other auditors, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Dougherty 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. \n2011ARL-12 \n \n  In accordance with Government Auditing Standards, we have also issued our report dated August 10, 2012, on our consideration of the Dougherty 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. \nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xi and page 29, respectively, are not a required part of the basic financial statements but are supplementary information required by the 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 and the other auditors 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 Dougherty 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 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 by us and the other auditors in the audit of the basic financial statements, and in our opinion, based on our audit and the report of other auditors, 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 \nGSG:as 2011ARL-12 \n \nGreg S. Griffin State Auditor \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nManagement's discussion and analysis of the Dougherty County School District's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to present the School District's overall financial performance. Readers should also review the financial statements and notes to the financial statements to further enhance their understanding of the School District's financial performance. \nFinancial Highlights \nKey financial highlights for fiscal year 2011 are as follows: \n The School District's financial status continued to improve in fiscal year 2011.  Total Net Assets increased nearly $18.7 million in fiscal year 2011.  The Unrestricted Net Assets at June 30, 2011, was a positive $16.8 million.  Fund balance for the Governmental Funds - General Fund increased $8.2 million in fiscal \nyear 2011. \nUsing the Basic Financial Statements \nThe annual report consists primarily of a series of financial statements and notes to those statements. These statements are organized and presented in a manner intended to assist the reader in understanding the Dougherty County School District as a complete operating entity. \nSystem-Wide Statements \nThe Statement of Net Assets and Statement of Activities provide information about the School District as a whole using accounting methods similar to those used by industry. The increases and decreases in the School District's net assets are an indicator of whether the financial position of the district has improved or diminished. There are many factors that can affect the overall financial condition of the School District such as the District's property tax base, State and Federal funding, and the condition of buildings and equipment. \nAll of the School District's programs and activities included in the System-Wide Statements are reported as Governmental Activities. These include instruction, support services, staff development, operation and maintenance of facilities, pupil transportation, food service, after school programs, school administration, and various others functions. \nThese statements report all assets and liabilities using the accrual basis of accounting. The basis of accounting determines when transactions are reported on the financial statements. The accrual basis of accounting records revenues when they are earned regardless of when payment (cash) is received. Expenditures are recorded at the time the liability is incurred regardless of when the actual payment is made. \nThe Statement of Activities reflects the governmental activities of the School by programs and services and distinguishes the revenue sources for these activities. The statement also helps identify how much local revenue is required to support the School's activities. \nFund Financial Statements \nFund financial reports provide detail information about the School District's major funds. Funds are accounting devices the School District uses to keep track of general operations, Federal and state grants, building programs, debt payments, worker's compensation claims, and student activity funds. \ni \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nThe Dougherty County School District has two major fund types - Governmental Funds and Fiduciary Funds. \nGovernmental Funds \nMost of the School District's financial activities are reported in governmental funds. The fund statements provide more detailed information about the School District's funds, focusing on its most significant \"major\" funds - not the School District as a whole. Governmental funds record how money flows in and out within the current period, and reports the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a short-term view of the School District's general governmental operations and the basic services they provide. This governmental fund information can be used to identify financial resources available for financing educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nThe School District's governmental funds are the General Fund, Capital Projects Fund, and Debt Service Fund. General operations, school food services, other Federal and State grant programs, the general operating portion of principal accounts, and workers compensation claims are consolidated in the General Fund. \nFiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to others. An example is funds belonging to school clubs and organizations whose records are maintained at the individual schools. These funds are generally referred to as \"Activity Funds\". The School District is responsible for ensuring that the assets recorded in these funds are used only for their intended purposes and only by those to whom the assets belong. The School District excludes these fund activities from the system-wide financial statements because these fund assets cannot be used to finance its operations. \nPresentation of Financial Data \nThe next section of this discussion will provide more specific information as reported on the financial statements discussed above. For comparison purposes, this information will be presented for both fiscal year 2010 and fiscal year 2011. \nStatement of Net Assets (Analysis of the District as a Whole) As previously stated above, the Statement of Net Assets presents consolidated financial data for the School District as a whole. Table 1 provides a summary of the District's net assets for fiscal year 2011 and the comparative amount for fiscal year 2010. \nii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nAssets Current and Other Assets Capital Assets, Net \n \nTable 1 Net Assets (In Thousands) \n \nFiscal Year 2011 \n \nGovernmental Activities \n \nFiscal \n \nIncrease \n \nYear 2010 \n \n(Decrease) \n \n$ \n \n52,645 $ \n \n45,531 $ \n \n246,076 \n \n243,390 \n \n7,114 2,686 \n \nTotal Assets \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n298,721 $ \n \n288,921 $ \n \n$ \n \n21,429 $ \n \n22,284 $ \n \n4,663 \n \n12,695 \n \n9,800 \n-855 -8,032 \n \nTotal Liabilities \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \nTotal Net Assets \n \n$ \n \n26,092 $ \n \n34,979 $ \n \n-8,887 \n \n$ \n \n242,607 $ \n \n231,811 $ \n \n13,223 \n \n11,634 \n \n16,799 \n \n10,497 \n \n$ \n \n272,629 $ \n \n253,942 $ \n \n10,796 1,589 6,302 \n18,687 \n \nSee Table 5 for an analysis of the increase in Capital Assets. \nGeneral Obligation Bonds issued December 2008 for $18.0 million is a liability to the School District. The Bonds have a maturity date of March 1, 2012, and is reported as a Current Liability and LongTerm Debt. The Note will be paid from the 1 percent special purpose sales tax proceeds received between January 2009 and March 2012. The remaining Current Liabilities include, in part, balances due to Contractors and Architects for major capital projects. \nSee Table 6 for complete analysis of the increase on Long-Term Debt at June 30. \nRestricted or designated assets are assets that must be used for a specific purpose. Restricted assets increased $1.6 million and include funds restricted for the continuation of Federal programs ($2.5 million), funds restricted for future debt service, $10.4 million; and funds restricted for capital projects ($0.31 million). \nUnrestricted Net Assets for Governmental Activities increased from $10.5 million balance at the end of fiscal year 2010 to a $16.8 million balance at the end of fiscal year 2011. This can be primarily attributed to the increase in fund balances for both the General Fund and the District-wide Capital Project Funds. \nStatement of Activities \nTable 2 shows the changes in net assets for fiscal year 2011 and fiscal year 2010 as reported on the Statement of Activities. \n \niii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 2 Change in Net Assets \n(In Thousands) \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions \n \nFiscal Year 2011 \n \nGovernmental Activities Fiscal Year 2010 \n \nIncrease (Decrease) \n \n$ \n \n2,121 $ \n \n100,791 \n \n2,120 $ 98,271 \n \n1 2,520 \n \nTotal Program Revenues \n \n$ \n \n102,912 $ \n \n100,391 $ \n \n2,521 \n \nGeneral Revenues: \n \nTaxes \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ \n \nOther Taxes \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Services \n \nFor Capital Projects \n \nOther Sales Tax \n \nGrants and Contributions not \n \nRestricted to Specific Programs \n \nInvestment Earnings \n \nMiscellaneous \n \nSpecial Items \n \nLoss on Disposal of Building \n \n39,779 $ 45 \n7,670 8,998 \n221 \n9,559 67 \n1,908 \n \n39,807 $ 48 \n7,611 8,545 \n202 \n10,393 111 -624 \n-998 \n \n-28 -3 \n59 453 \n19 \n-834 -44 \n2,532 \n998 \n \nTotal General Revenues and Special Items \n \n$ \n \n68,247 $ \n \n65,095 $ \n \n3,152 \n \nTotal Revenues \n \n$ \n \n171,159 $ \n \n165,486 $ \n \n5,673 \n \nProgram Expenses: \n \nInstruction \n \n$ \n \n93,724 $ \n \n97,308 $ \n \n-3,584 \n \nSupport Services \n \nPupil Services \n \n4,527 \n \n4,447 \n \n80 \n \nImprovement of Instructional Services \n \n5,697 \n \n5,317 \n \n380 \n \nEducational Media Services \n \n3,616 \n \n3,450 \n \n166 \n \nGeneral and School Administration \n \n10,842 \n \n11,461 \n \n-619 \n \nBusiness Administration \n \n1,253 \n \n1,391 \n \n-138 \n \nMaintenance and Operation of Plant \n \n12,675 \n \n12,092 \n \n583 \n \nStudent Transportation Services \n \n6,042 \n \n5,662 \n \n380 \n \nCentral and Other Support Services \n \n3,691 \n \n3,309 \n \n382 \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \n469 \n \n392 \n \n77 \n \nCommunity Services \n \n552 \n \n546 \n \n6 \n \nFood Services \n \n8,963 \n \n8,597 \n \n366 \n \nInterest on Long-Term Debt \n \n420 \n \n1,097 \n \n-677 \n \nTotal Expenses \n \n$ \n \n152,471 $ \n \n155,069 $ \n \n-2,598 \n \nIncrease in Net Assets \n \n$ \n \n18,688 $ \n \n10,417 $ \n \n8,271 \n \niv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nNet Assets increased $8.3 million from fiscal year 2010 to fiscal year 2011. \nAlthough property tax revenue remained relatively flat, program revenues and sales tax revenues increased by $2.5 million and $531,000, respectively, indicating a continuation of the slow economic recovery. Although program revenues make up a majority of the total revenue, the District is still dependent upon tax revenues for the funding of governmental activities. \nTotal Program Expenses decreased $2.6 million for fiscal year 2011 compared to the previous fiscal year. The greatest decreases occurred in the categories of Instruction, General and School Administration, Business Administration and Interest on Long-Term Debt. \nDescriptions of Expense Categories \nInstruction includes activities relating to the teaching of pupils and the interaction between teacher and pupil. \nPupil Services are activities designed to assess and improve the well being of students and to supplement the teaching process. \nImprovement of Instructional Services are activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. \nEducational Media Services are activities that direct, manage and operate educational media centers. \nGeneral Administration establishes and administers policy for operating the local school district. \nSchool Administration includes the activities of principals, assistant principals, and clerical staff in administering school operations. \nBusiness Administration includes the financial and warehouse operations of the school district. \nMaintenance and Operation of Plant Activities involve keeping the schools grounds, buildings, and equipment in an effective working condition. \nStudent Transportation includes activities associated with the transporting of students to and from school, as well as to and from school activities, as provided by state law. \nCentral and Other Support Services include all other support services including personnel services, management information services, and public relations services. \nEnterprise Operations are activities that are operated in a manner similar to business enterprises where the intent is to recover costs through user charges. This would include athletic events and child nutrition catering activities. \nCommunity Services are activities concerned with providing community services to staff or students such as after school programs and student activity accounts. \nFood Services are activities associated with the preparation and serving of meals for students. The school food service program is funded by Federal and State grants and revenues from the sale of meals to students and teachers. The cost of meals for students and teachers is determined by the School District. \nv \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nGovernmental Activities \nTable 3 shows, for governmental activities, the total cost of services and the net cost of services for fiscal year 2010 and fiscal year 2011. This information is presented on the Statement of Activities. The Net Cost of Services reflects the balance of costs that were funded by taxes and other General Revenues. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \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 \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n93,724 $ \n4,527 5,697 3,616 1,526 9,316 1,253 12,675 6,042 2,976 \n715 \n469 552 8,963 420 \n \n97,308 $ \n4,447 5,317 3,450 1,805 9,656 1,391 12,092 5,662 2,714 \n595 \n392 546 8,597 1,097 \n \n23,646 $ \n2,886 1,569 1,257 -1,143 4,785 1,246 7,750 3,791 2,969 \n73 \n468 552 -709 420 \n \n29,591 \n3,054 1,848 1,400 \n-717 5,292 1,914 7,439 3,252 3,421 \n585 \n484 532 -849 125 \n \nTotal Expenses \n \n$ \n \n152,471 $ \n \n155,069 $ \n \n49,560 $ \n \n57,371 \n \nThe School District's Funds \nTable 4 shows the change in fund balance for Governmental Funds as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances. Capital Projects and Debt Service Funds are combined for presentation purposes. \n \nvi \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 4 Governmental Funds Net Change in Fund Balance \n(In Thousands) \n \nGeneral Fund \n \nCapital Projects and \nDebt Service \n \nTotals \n \nREVENUES \n \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \n \n$ \n \n39,216 \n \n$ \n \n39,216 \n \n221 $ \n \n16,668 \n \n16,889 \n \n78,879 \n \n78,879 \n \n31,470 \n \n31,470 \n \n2,121 \n \n2,121 \n \n42 \n \n25 \n \n67 \n \n1,908 \n \n1,908 \n \nTotal Revenues \n \n$ \n \nEXPENDITURES \n \nCurrent \n \nInstruction \n \n$ \n \nSupport Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services Operation \n \nCapital Outlay \n \nDebt Services \n \nPrincipal \n \nInterest \n \nTotal Expenditures \n \n$ \n \nExcess of Revenues over (under) Expenditures $ \n \nOTHER FINANCING SOURCES (USES) \n \nTransfers In/Out \n \nNet Change in Fund Balances $ \n \n153,857 $ \n89,064 $ 46,522 \n469 552 8,659 \n249 11 \n145,526 $ 8,331 $ \n-112 8,219 $ \n \n16,693 $ 170,550 \n \n569 $ 712 \n83 8,380 \n7,585 536 \n17,865 $ -1,172 $ \n \n89,633 47,234 \n469 552 8,742 8,380 \n7,834 547 \n163,391 \n7,159 \n \n112 -1,060 $ \n \n0 7,159 \n \nFund Balances - Beginning (Restated) \n \n11,622 \n \n11,814 \n \n23,436 \n \nFund Balances - Ending \n \n$ \n \n19,841 $ \n \n10,754 $ \n \n30,595 \n \nvii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nTotal Revenues for all governmental funds totaled $170.6 million and total expenditures totaled $163.4 million. Total Revenues were $7.2 million more than total expenditures. The fund balance for governmental funds increased from $23.4 million at the beginning of the fiscal year to $30.6 million at June 30, 2011. \nThe fund balance reported for the General Fund increased from $11.6 million at the beginning of the fiscal year to $19.8 million at June 30, 2011. \nThe fund balance reported for the Capital Projects Fund and Debt Service Fund decreased from $11.8 million at the beginning of the fiscal year to $10.8 million at June 30, 2011. \nGeneral Fund Budgeting Highlights \nThe School District's budget is prepared according to Georgia law and in compliance with Georgia Department of Education requirements. The district uses site-based budgeting. The budgeting process is designed to control site budgeted expenditures while providing spending flexibility to site administration. General Fund Budget compared to Actual is presented in the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual - Schedule \"1.\" \nDuring fiscal year 2011, the district amended its general fund budget as needed. The Original Budget approved by the School District's Board in June, 2010, included revenues and expenditures for State and Federal Grants that were known at the time. Amendments are made to the budget to include grants awarded to the district later in the fiscal year. The receipt of these additional grants requires an increase in revenues and expenditures. This is because grant funds are restricted for a specific purpose can only be used to fund additional programs. Also, Federal grants cannot be used to fund State mandated programs or replace local funds that previously funded the same activities. \nSome of the budgeting challenges the School District faced in fiscal year 2011 included a reduction of the State educational formula allotment, a decline in the student enrollment (FTE), mandated salary raises and a declining tax digest. In addition, the State has not provided inflationary adjustments to non-salary expenditure items since fiscal year 2002. \nCapital Assets and Debt Administration \nCapital Assets \nSince fiscal year 2002, the School District has developed ongoing capital programs that have aggressively sought to upgrade its aging school facilities, many of which are 50 to 60 years old. \nIn December, 2008, the district began receiving the proceeds from a newly approved special purpose local option sales tax referendum. The approved referendum provides for the renovation of three of the district's high schools. Most of the work on these projects was delayed until fiscal year 2009 when the district received additional start up proceeds from the issuance of a General Obligation Bond. However, fiscal year 2008 capital project activities included some preparation work on these renovation projects. \nAt the end of fiscal year 2011 the School District had invested $246.0 million in capital assets. Table 5 compares fiscal year 2011 Capital Asset balances to fiscal year 2010 balances. \nviii \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 5 Capital Assets at June 30 (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal Year Fiscal Year \n \nIncrease \n \n2011 \n \n2010 \n \n(Decrease) \n \nLand \n \n$ \n \nConstruction in Progress \n \nBuildings and Building Improvements \n \nEquipment \n \n9,051 $ 21,215 213,853 \n1,957 \n \n9,096 $ 30,403 201,515 \n2,376 \n \n-45 -9,188 12,338 \n-419 \n \nTotal \n \n$ 246,076 $ 243,390 $ \n \n2,686 \n \nTable 5 shows that Total Capital Assets increased $2.7 million in fiscal year 2011. The decrease in Construction in Progress is due to the completion of renovation at several schools. All construction projects were funded by a one percent special purpose local option sales tax approved by the voters of Dougherty County. \nDebt \nTable 6 summarizes the long-term debt outstanding at June 30 for fiscal year 2010 and fiscal year 2011. \nTable 6 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal Year Fiscal Year \n \nIncrease \n \n2011 \n \n2010 \n \n(Decrease) \n \nGeneral Obligation Bonds Accrued Interest Unamortized Bond Premium Compensated Absences Capital Leases \n \n$ \n \n3,125 $ 10,710 $ \n \n-7,585 \n \n52 \n \n179 \n \n-127 \n \n152 \n \n429 \n \n-277 \n \n1,194 \n \n1,115 \n \n79 \n \n192 \n \n441 \n \n-249 \n \nTotal \n \n$ \n \n4,715 $ 12,874 $ \n \n-8,159 \n \nAs shown in Table 6, the debt associated with the District's General Obligation Bonds decreased $7.6 million from $10.7 million at June 30, 2010, to $3.1 million at June 30, 2011. The balance is scheduled to be paid in March 2012. \nThe $1.2 million debt for Compensated Absences is the District's estimated financial obligation for future payments to employees for accumulated unused vacation leave. \n \nix \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nCurrent Financial Issues \n \nLike most school districts in Georgia, the Dougherty County School District has faced several financial challenges in the recent years. Such challenges include the rising costs in employee benefits, state mandated teacher salary increases, utilities and the continued state formula allotment reductions. Other challenges include a slow decline in student enrollment (FTE) over the years and a stagnant local tax digest. \n \nFor several years prior to fiscal year 2004 (2003 tax digest) the district's millage rate remained unchanged at a rate of 17.70 mills. In fiscal year 2003 the rate was rolled back to 17.55. When faced with mid-year state allotment reductions in both fiscal year 2003 and fiscal year 2004 the School Board voted to increase the millage rate to 19 mills. However, the financial statements for the General Fund reported a negative fund balance for fiscal years 2005 and 2006. During this time, the district also began implementing cost savings measures and spending reductions in all areas of support operations including Student Transportation, Maintenance, General Administration, School Food Service, Business Services, and Central Support Services. As a result, the district recovered from the negative fund balances by fiscal year 2007 and reported a positive $4.4 million fund balance by the end of fiscal year 2008. \n \nTwice, since increasing the millage rate to 19 mills in fiscal year 2004, the School Board voted to roll the millage rate back, once in fiscal year 2007 (2006 digest) and again in fiscal year 2008 (2007 digest). The millage rate for fiscal year 2008 (2007 digest) was 18.45 mills. The millage rate for fiscal year 2009 (2008 digest) was 18.445. \n \nStudent enrollment is a factor in the State's education funding formula. According to the State's funding formula, student enrollment is converted to a \"Full Time Equivalent (FTE)\" count. As student enrollment, or FTE, decreases, so does State funding. The FTE count for fiscal year 2011 and the five years prior is as follows: \n \nFiscal Year 2006 Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Fiscal Year 2010 Fiscal Year 2011 \n \n16,731 16,376 16,208 16,134 15,962 15,628 \n \nIn August, 2008, the district was notified of the decline in State revenues and the resulting additional reduction in educational funding for fiscal year 2009. In total, State funding for fiscal year 2009 was reduced $5.2 million. Expenditure reduction measures were taken in all areas with the purpose of preserving the fiscal year 2009 fund balance. Management has continued to monitor expenditures and identify additional costs savings and reductions on a monthly basis, which contributed to an increase in the general fund balance of over $4.6 million and $8.2 million for fiscal years 2010 and 2011, respectively. \n \nIn March of fiscal year 2007, the voters of Dougherty County approved the continuation of the one percent sales tax (Sales Tax for Educational Progress). These sales tax revenues will be used to complete the renovation of schools outlined by the long-range facilities plan. Other sales tax projects include the installation of safety and access controls, and the purchase of musical instruments and other academic/instruction related equipment. In the fall of fiscal year 2009, the School District issued General Obligation Bonds in the amount of $18.0 million. At the end of fiscal year 2011, the outstanding balance on those bonds was $3.1 million, which is scheduled to be repaid in March 2012. \n \nx \n \n DOUGHERTY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nAt the end of fiscal year 2005, Child Nutrition Services (food services operations) reported a deficit balance of $3.9 million. Operational cost controls implemented by program management, since that time, were successful in significantly reducing the deficit balance to $0.06 million by the end of fiscal year 2008. In October, of fiscal year 2009, the Child Nutrition Program began reporting a positive fund balance and continues to do so. The School District continues to be financially challenged by multiple years of reductions in State funding to local districts. Austerity reductions to State funding are budgeted again for fiscal year 2012. Even with these reductions in State resources (and the local tax digest), the School District has maintained the current millage of 18.445 mills since fiscal year 2009 and has been able to maintain a healthy General Fund Balance. In spite of the continued challenges, The Dougherty County School District recognizes its responsibility as a steward of taxpayer dollars and State and Federal funds. The School District strives to emphasize student achievement while maintaining sound fiscal management. Contacting the District's Financial Management This management's discussion and analysis report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the district's finances, and to document the Board's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Kenneth Dyer, Director of Finance, Dougherty County School System, P.O. Box 1470, 200 Pine Avenue, Albany, Georgia 31702. You may also email your questions to kenneth.dyer@docoschools.org. \nxi \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \n \nEXHIBIT \"A\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \n \nPRIMARY GOVERNMENT GOVERNMENTAL \nACTIVITIES \n \nCOMPONENT UNIT DOUGHERTY COUNTY STADIUM AUTHORITY (1) \n \n$ 15,658,619.42 $ 17,753,312.30 \n5,621,190.22 9,381,646.54 3,331,190.41 \n64,394.89 369,068.73 465,457.43 \n350.00 30,266,453.24 215,809,656.75 \n \n236,102.00 \n410,000.00 2,396,942.00 \n \n$ 298,721,339.93 $ \n \n3,043,044.00 \n \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Payroll Withholdings Payable Interest Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \n$ 1,675,807.06 $ 16,580,777.50 814,693.53 519,918.54 52,083.33 989,040.80 751,377.52 45,473.01 \n3,556,937.95 1,106,306.29 \n$ 26,092,415.53 $ \n$ 242,606,935.02 $ \n2,521,235.75 10,391,598.55 \n310,210.74 16,798,944.34 \n$ 272,628,924.40 $ \n$ 298,721,339.93 $ \n \n70,810.00 \n70,810.00 2,806,942.00 \n165,292.00 2,972,234.00 3,043,044.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activiity for a two year period ending June 30, 2011. \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n DOUGHERTY 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 Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nCOMPONENT UNIT \nDougherty County Stadium Authority \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services 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 \nPROGRAM \nCHARGES FOR SERVICES \n \n$ \n \n93,724,339.06 $ \n \n4,526,986.05 5,697,248.14 3,616,071.81 1,525,759.37 9,316,383.13 1,252,824.29 12,674,885.85 6,042,440.73 2,975,620.21 \n714,972.50 \n \n468,694.27 552,374.04 8,963,409.02 420,081.86 \n \n$ 152,472,090.33 $ \n \n1,185,617.53 \n65,299.09 175,269.70 \n694,745.13 2,120,931.45 \n \n$ \n \n420,529.00 $ \n \n200,000.00 \n \n(1) Financial information for the Dougherty County Stadium Authority contains activity for a two year period ending June 30, 2011. \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nREVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nNET (EXPENSES) \n \nREVENUES \n \nAND CHANGES IN \n \nNET ASSETS \n \nPRIMARY \n \nGOVERNMENT \n \nCOMPONENT UNIT \n \nGOVERNMENTAL \n \nDOUGHERTY COUNTY \n \nACTIVITIES \n \nSTADIUM AUTHORITY (1) \n \n$ \n \n68,892,857.40 $ \n \n1,640,609.73 4,128,014.41 2,358,601.62 2,669,011.28 4,531,698.82 \n7,279.53 4,859,223.59 2,076,209.45 \n7,072.17 642,333.01 \n \n8,977,670.64 $ 100,790,581.65 $ \n \n-23,645,864.13 \n-2,886,376.32 -1,569,233.73 -1,257,470.19 1,143,251.91 -4,784,684.31 -1,245,544.76 -7,750,363.17 -3,790,961.58 -2,968,548.04 \n-72,639.49 \n-468,694.27 -552,374.04 709,006.75 -420,081.86 \n-49,560,577.23 \n \n$ \n \n-220,529.00 \n \n$ \n \n39,778,989.59 \n \n45,379.73 \n \n7,669,911.16 8,997,699.46 \n221,370.14 9,558,626.00 \n66,939.00 $ 1,907,707.74 \n \n$ \n \n68,246,622.82 $ \n \n$ \n \n18,686,045.59 $ \n \n253,942,878.81 \n \n$ \n \n272,628,924.40 $ \n \n6,636.00 35,006.00 41,642.00 -178,887.00 3,151,121.00 \n2,972,234.00 \n \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2011 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 20,847,843.84 \n \n$ \n \n2,986.90 $ 20,850,830.74 \n \n2,686,993.22 $ 7,464,372.23 \n \n7,601,946.85 17,753,312.30 \n \n2,782,442.09 9,381,646.54 3,331,190.41 \n64,394.89 369,068.73 465,457.43 \n350.00 \n \n2,838,748.13 \n \n5,621,190.22 9,381,646.54 3,331,190.41 \n64,394.89 369,068.73 465,457.43 \n350.00 \n \n$ 39,929,387.15 $ 7,464,372.23 $ 10,443,681.88 $ 57,837,441.26 \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 Committed Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 5,192,211.32 \n \n$ 1,454,275.21 \n \n221,531.85 \n \n16,580,777.50 \n \n519,918.54 \n \n989,040.80 \n \n751,377.52 \n \n1,533,655.57 \n \n$ 20,088,626.82 $ 7,154,161.49 \n \n$ 5,192,211.32 1,675,807.06 \n16,580,777.50 519,918.54 989,040.80 751,377.52 \n1,533,655.57 \n$ 27,242,788.31 \n \n$ 465,807.43 2,354,465.66 $ 2,085,191.18 4,020,521.77 \n10,914,774.29 \n \n310,210.74 $ \n \n$ 10,443,681.88 \n \n465,807.43 13,108,358.28 \n2,085,191.18 4,020,521.77 10,914,774.29 \n \n$ 19,840,760.33 $ 310,210.74 $ 10,443,681.88 $ 30,594,652.95 \n \n$ 39,929,387.15 $ 7,464,372.23 $ 10,443,681.88 $ 57,837,441.26 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n DOUGHERTY 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 Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nProperty Taxes \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Accrued Interest Capital Leases Payable Compensated Absences Payable Unamortized Bond Premiums Claims and Judgments Payable \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 30,594,652.95 \n \n$ 9,051,054.08 21,215,399.16 \n308,946,640.40 6,692,575.57 \n-99,829,559.22 \n \n246,076,109.99 \n \n1,488,182.56 \n \n$ -3,125,000.00 -52,083.33 \n-191,942.20 -1,194,069.27 \n-152,232.77 -814,693.53 \n \n-5,530,021.10 \n \n$ 272,628,924.40 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPEENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMETNAL 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 39,216,358.77 \n \n$ \n \n221,370.14 $ 8,997,699.46 $ 7,669,911.16 \n \n78,879,492.04 \n \n31,469,715.61 \n \n2,120,931.45 \n \n41,912.21 \n \n5,361.12 \n \n19,665.67 \n \n1,907,707.74 \n \n39,216,358.77 16,888,980.76 78,879,492.04 31,469,715.61 \n2,120,931.45 66,939.00 \n1,907,707.74 \n \n$ 153,857,487.96 $ 9,003,060.58 $ 7,689,576.83 $ 170,550,125.37 \n \n$ 89,064,117.89 $ 569,007.21 \n \n$ 89,633,125.10 \n \n4,517,741.78 5,478,296.76 3,397,309.81 1,518,951.25 9,038,859.36 1,228,282.13 12,296,441.03 5,589,607.53 2,759,716.43 \n697,148.50 468,694.27 552,374.04 8,658,817.73 \n \n1,695.00 \n1,589.04 6,808.12 \n540.00 1,536.00 356,730.22 2,867.26 321,970.68 17,824.00 \n82,747.50 8,380,662.58 \n \n4,519,436.78 5,478,296.76 3,398,898.85 1,525,759.37 9,039,399.36 1,229,818.13 12,653,171.25 5,592,474.79 3,081,687.11 \n714,972.50 468,694.27 552,374.04 8,741,565.23 8,380,662.58 \n \n248,977.31 10,998.53 \n \n$ 7,585,000.00 535,500.00 \n \n7,833,977.31 546,498.53 \n \n$ 145,526,334.35 $ 9,743,977.61 $ 8,120,500.00 $ 163,390,811.96 \n \n$ 8,331,153.61 $ -740,917.03 $ -430,923.17 $ \n \n7,159,313.41 \n \n$ 112,055.53 \n \n$ \n \n$ \n \n-112,055.53 \n \n$ \n \n-112,055.53 $ 112,055.53 \n \n$ \n \n$ 8,219,098.08 $ -628,861.50 $ -430,923.17 $ \n \n11,621,662.25 \n \n939,072.24 10,874,605.05 \n \n112,055.53 -112,055.53 \n0.00 7,159,313.41 23,435,339.54 \n \nFund Balances - Ending \n \n$ 19,840,760.33 $ 310,210.74 $ 10,443,681.88 $ 30,594,652.95 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n DOUGHERTY 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 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 provide current financial resources are not reported as revenues in the funds. \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to increase net assets. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments Amortized Bond Premium \nTotal Long-Term Debt Repayments \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: \nNet Increase in Accrued Interest Increase in Compensated Absences Decrease in Claims and Judgments \nTotal Additional Expenditures \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 7,159,313.41 \n \n$ 7,663,198.60 -4,988,278.39 \n \n2,674,920.21 \n \n608,010.55 \n \n10,586.98 \n \n$ 7,585,000.00 248,977.31 276,668.07 \n \n8,110,645.38 \n \n$ 126,416.67 -78,661.95 74,814.34 \n \n122,569.06 \n \n$ 18,686,045.59 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nLocal Other \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 416,450.50 14,454.74 \n105.00 $ 431,010.24 \n$ 431,010.24 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n DOUGHERTY 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 Dougherty 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. \nDISCRETELY PRESENTED COMPONENT UNIT \nThe non-profit organization, Dougherty County Stadium Authority, operates the Hugh Mills Memorial Stadium. The School District has a contract with Dougherty County Stadium Authority relative to the use, maintenance, and control of the Stadium. \nThe Stadium Authority's financial data (Statement of Net Assets and Statement of Activities) is included within the School District's basic financial statements as a discretely presented component unit. See Note 17 for additional component unit disclosures. \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 Dougherty 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. \n \n- 9 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements 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 Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds 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 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. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds 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, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 principal and interest on general long-term debt, claims \n \n- 10 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nand judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. \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 \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 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: \n \n- 11 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n \n(7) Repurchase agreements, and \n \n(8) 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, 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 Dougherty County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on July 19, 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 Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1% 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 $39,170.979.04. \n \nThe tax millage rate levied for the 2010 tax year (calendar year) for the Dougherty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.445 mills \n \n- 12 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $16,667,610.62 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 Food Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). 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 \nConsumable Supplies On the basic financial statements, consumable supplies are reported at cost (first in, first out). The School District uses the consumption method to account for consumable supplies inventory whereby as asset is recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed. \n \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2011, are recorded as prepaid items. \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 Buildings and Improvements Equipment Intangible Assets \n \nAny Amount \n \n$ 100,000.00 \n \n$ \n \n50,000.00 \n \n$ 1,000,000.00 \n \nN/A 20 to 80 years \n4 to 12 years 4 to 8 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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \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 4 to 8 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. \nA maximum of 18 days of vacation leave 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 30 days. \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2009 2010 2011 \n \n$ 1,113,252.03 $ 1,038,412.92 $ 1,013,667.60 $ 1,137,997.35 \n \n$ 1,137,997.35 $ \n \n961,768.21 $ \n \n984,358.24 $ 1,115,407.32 \n \n$ 1,115,407.32 $ \n \n947,171.63 $ \n \n868,509.68 $ 1,194,069.27 \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. \n \nIn the District-wide and fund financial statements, the School District recognizes bond issuance costs during the fiscal year bonds are issued. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond issuance costs should be amortized over the life of the bonds on the District-wide statements. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \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. \n \n- 14 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \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 \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 DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \n \nNonspendable Inventories Prepaid Assets \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted Self-Insurance \nAssigned School Activity Accounts Subsequent Period Expenditures \nUnassigned \n \n$ 465,457.43 350.00 $ \n \n465,807.43 \n \n$ 2,354,465.66 310,210.74 \n10,443,681.88 \n \n13,108,358.28 \n \n2,085,191.18 \n \n$ 284,470.77 3,736,051.00 \n \n4,020,521.77 10,914,774.29 \n \nFund Balance, June 30, 2011 \n \n$ 30,594,652.95 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end of 8% to 12% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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 \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. \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 \n- 16 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \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(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \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. \n \nCATEGORIZATION OF DEPOSITS \n \nPRIMARY GOVERNMENT \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 deposit policy for custodial credit risk. At June 30, 2011, the bank balances were $19,397,705.52. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial credit risk category at June 30, 2010, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n18,674,371.77 \n \nTotal \n \n$ 18,674,371.77 \n \n- 17 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCOMPONENT UNIT \nAt June 30, 2011, Dougherty County Stadium Authority's bank balance of $236,102.00 was insured through Federal Depository Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2011, the carrying value of the School District's total investments was $17,753,312.30, 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 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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 18 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nPRIMARY GOVERNMENT \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \n$ 9,095,554.08 30,402,736.15 $ \n \n$ \n \n44,500.00 $ 9,051,054.08 \n \n5,835,607.13 \n \n15,022,944.12 \n \n21,215,399.16 \n \nTotal Capital Assets, Not Being Depreciated $ 39,498,290.23 $ 5,835,607.13 $ 15,067,444.12 $ 30,266,453.24 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment \n \n$ 292,105,588.68 $ 16,850,535.59 $ 6,692,575.57 \n \n9,483.87 $ 308,946,640.40 6,692,575.57 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment \n \n90,590,440.81 4,315,410.87 \n \n4,567,909.53 420,368.86 \n \n64,570.85 \n \n95,093,779.49 4,735,779.73 \n \nTotal Capital Assets, Being Depreciated, Net $ 203,892,312.57 $ 11,862,257.20 $ \n \n-55,086.98 $ 215,809,656.75 \n \nGovernmental Activity Capital Assets - Net $ 243,390,602.80 $ 17,697,864.33 $ 15,012,357.14 $ 246,076,109.99 \nCapital assets being acquired under capital leases as of June 30, 2011, are as follows: \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ \n \n988,970.00 \n \n247,242.50 \n \n$ \n \n741,727.50 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ \n \n$ \n \n6,461.76 \n \n186,623.04 \n \n185,155.45 \n \n236,553.35 \n \n19,597.18 \n \n18,496.99 \n \n393,079.25 \n \n35,397.36 \n \n$ \n \n3,577,444.24 \n1,081,364.38 329,469.77 \n4,988,278.39 \n \n- 19 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCOMPONENT UNIT \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \n$ \n \n410,000.00 $ \n \n0.00 $ \n \n0.00 $ \n \n410,000.00 \n \nCapital Assets, Being Depreciated: Buildings Equipment Stadium Improvements \n \n$ \n \n308,976.00 \n \n239,886.00 \n \n2,586,683.00 \n \n$ \n \n0.00 $ \n \n308,976.00 \n \n239,886.00 \n \n2,586,683.00 \n \nLess: Accumulated Depreciation: Buildings Equipment Stadium Improvements \n \n42,483.00 $ 138,620.00 362,378.00 \n \n15,448.00 46,665.00 133,009.00 \n \n57,931.00 185,285.00 495,387.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 2,592,064.00 $ -195,122.00 $ \n \n0.00 $ 2,396,942.00 \n \nGovernmental Activity Capital Assets - Net \nNote 6: INTERFUND TRANSFERS \n \n$ 3,002,064.00 $ -195,122.00 $ \n \n0.00 $ 2,806,942.00 \n \nInterfund transfers for the year ended June 30, 2011, consisted of the following: \n \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ 112,055.33 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund to cover a portion of employee's salaries not funded as a part of the Special Purpose Local Option Sales Tax (SPLOST) projects. \n \nNote 7: RISK MANAGEMENT \n \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 \n \n- 20 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nthe 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 \nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $350,000.00 loss per occurrence, up to the statutory limit. \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 \n853,278.85 $ 889,507.81 $ \n \n662,507.56 $ 1,048,978.10 $ \n \n626,278.60 $ 1,123,792.38 $ \n \n889,507.81 814,693.53 \n \nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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 \n \nfollows: \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 \n2010 $ 2011 $ \n \n0.00 $ 0.00 $ \n \n250,012.76 $ 161,243.68 $ \n \n250,012.76 $ 161,243.68 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Other Employees \n \n$ \n \n50,000.00 \n \n$ \n \n100,000.00 \n \nNote 8: OPERATING LEASES \n \nDougherty County Board of Education has entered into various leases as lessee for copiers and fax machines. These leases are considered for accounting purposes to be operating leases. Lease \n \n- 21 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nexpenditures for the year ended June 30, 2011, for governmental funds amounted to $321,688.00. \n \nFuture minimum lease payments for these leases are as follows: \n \nGovernmental \n \nYear Ending \n \nFunds \n \n2012 2013 2014 2015 \n \n$ 348,516.00 348,516.00 348,516.00 29,335.00 \n \nTotal \n \n$ 1,074,883.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n0.00 $ 11,500,000.00 $ 11,500,000.00 $ \n \n0.00 \n \nNote 10: LONG-TERM DEBT \nCAPITAL LEASES \nThe Dougherty County Board of Education entered into an agreement for buses. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \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 \n- 22 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nGeneral Government - Series 2008 \n \n5.00% \n \n$ 3,125,000.00 \n \nVoters have authorized $22,000,000.00 in general obligation debt for the purpose of funding (1) the school renovations and improvements, land acquisition for future expansion, certain capital repairs and modifications, (2) additional classroom technology, system-wide replacement of computers, upgrading of technology, (3) additional safety and security equipment, (4) vehicle and equipment replacement and (5) related financing, project management and elections costs, which was not issued as of June 30, 2011. \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \n \nBalance July 1, 2010 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2011 \n \nDue Within One Year \n \nG. O. Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \n$ 10,710,000.00 440,919.51 \n1,115,407.32 $ 428,900.84 \n \n$ 947,171.63 \n \n7,585,000.00 $ 248,977.31 868,509.68 276,668.07 \n \n3,125,000.00 $ 191,942.20 \n1,194,069.27 152,232.77 \n \n3,125,000.00 191,942.20 87,762.98 152,232.77 \n \n$ 12,695,227.67 $ 947,171.63 $ 8,979,155.06 $ 4,663,244.24 $ 3,556,937.95 \n \nAt June 30, 2011, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \n2012 \n \n$ \n \n191,942.20 $ \n \n3,039.68 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2012 \n \n$ \n \n3,125,000.00 $ \n \n156,000.00 $ \n \n152,232.77 \n \nNote 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $430,157.90 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \n- 23 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certificated Personnel In the amount of $283,972.08 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $51,483.82 \nOffice of State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $94,702.00 \nNote 12: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011: \n \nProject \n \nUnearned Executed Contracts \n \nAlbany High School Dougherty High School Dougherty International Studies Middle School Security Access Control System Phase II \n \n$ \n \n181,039.43 \n \n8,503,642.47 \n \n89,207.75 \n \n7,269.83 \n \n$ \n \n8,781,159.48 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \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. Based on the legal proceeding currently being conducted associated with alleged falsifying of free and reduced lunch program applications during fiscal year 2012, the Georgia Department of Education is reviewing documentation provided by the School District to determine if the number of students reported as eligible for the Federal meal assistance program is accurate. The results of this investigation could potentially result in the School District incurring a liability for return of Federal program funds. The ultimate disposition of this issue is not presently determinable. \n \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. \n \n- 24 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNote 14: SUBSEQUENT EVENTS \nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $40,000,000.00. The proceeds from these bonds will be used by the School District for (a) renovation and improvement of one or more existing schools, administration and related facilities, (b) acquisition, construction and equipping of new schools, administration and \nrelated facilities, (c) the acquisition of school buses, vehicles and other transportation equipment, (d) acquisition, construction and equipping of new athletic facilities, (e) acquisition of software, hardware and computer equipment for the use of both staff and students and (f) acquisition of real and personal property necessary for the foregoing. \nNote 15: 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. 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 \n- 25 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFor certificated teachers, librarians and regional educational service agencies: \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 $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \n \nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \n2011 2010 2009 \nNote 16: RETIREMENT PLANS \n \n100% \n \n$ \n \n12,582,772.13 \n \n100% \n \n$ \n \n12,087,093.02 \n \n100% \n \n$ \n \n9,362,930.73 \n \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 \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- 26 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \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. \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. \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% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \n \n8,168,630.90 8,303,432.60 8,048,893.85 \n \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 \nNote 17: COMPONENT UNIT \n \nThe Dougherty County Stadium Authority (Authority) is a legally separate tax-exempt component unit of the Dougherty County Board of Education (School District). Because the Authority has a fiscal dependency on the School District, it is considered a component unit of the School District and is discretely presented in the School District's financial statements. \n \nThe Authority utilizes the modified accrual method of accounting. The Authority has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. The Authority's fiscal year is July 1 through June 30. In fiscal year 2011, the audited financial statements provided by the Authority were for a two year period ending June 30, 2011. \n \n- 27 - \n \n (This page left intentionally blank) \n \n DOUGHERTY 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 Enterprise Operations Community Services Operations Food Services Operation \nDebit Service \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 \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 38,180,500.00 $ 39,216,361.00 $ 39,216,358.77 \n \n160,000.00 \n \n221,371.00 \n \n221,370.14 \n \n77,060,874.00 \n \n77,801,162.37 \n \n78,879,492.04 \n \n30,359,651.14 \n \n37,304,038.51 \n \n31,469,715.61 \n \n1,817,912.91 \n \n1,488,136.44 \n \n2,120,931.45 \n \n55,000.00 \n \n36,374.00 \n \n41,912.21 \n \n2,248,664.46 \n \n2,441,010.17 \n \n1,907,707.74 \n \n$ 149,882,602.51 $ 158,508,453.49 $ 153,857,487.96 \n \n$ 90,469,657.95 $ 91,905,284.41 $ 89,064,117.89 \n \n5,174,482.95 5,497,753.77 3,112,760.00 1,955,983.83 8,430,194.45 1,458,744.00 12,877,809.44 5,748,821.10 3,390,182.00 1,412,458.01 \n347,000.00 854,975.01 10,996,888.00 \n \n5,153,303.83 8,283,461.18 3,489,784.64 2,392,660.98 8,954,354.10 1,330,537.24 12,916,248.76 6,234,318.84 3,497,111.48 \n851,032.91 371,085.62 463,186.61 11,344,698.76 \n \n4,517,741.78 5,478,296.76 3,397,309.81 1,518,951.25 9,038,859.36 1,228,282.13 12,296,441.03 5,589,607.53 2,759,716.43 \n697,148.50 468,694.27 552,374.04 8,658,817.73 259,975.84 \n \n$ 151,727,710.51 $ 157,187,069.36 $ 145,526,334.35 \n \n$ \n \n-1,845,108.00 $ \n \n1,321,384.13 $ \n \n8,331,153.61 \n \n$ \n \n2,128,638.00 $ \n \n1,649,938.99 \n \n-661,703.00 \n \n-1,315,000.00 $ \n \n-112,055.53 \n \n$ \n \n1,466,935.00 $ \n \n334,938.99 $ \n \n-112,055.53 \n \n$ \n \n-378,173.00 $ \n \n1,656,323.12 $ \n \n8,219,098.08 \n \n7,935,547.00 \n \n11,021,480.68 \n \n11,621,662.25 \n \n$ \n \n7,557,374.00 $ 12,677,803.80 $ 19,840,760.33 \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 \nSee notes to the basic financial statements. \n \n- 29 - \n \n DOUGHERTY 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 \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs \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 \nSchool Improvement Grants Cluster Pass-Through From Georgia Department of Education School Improvement 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 Direct Funds for the Improvement of Education Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Charter Schools Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant Education - State Grant Program Safe and Drug-Free Schools and Communities - State Grants Special Education State Personnel Development Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \n \n- 30 - \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 \n8,800,016.09 (1) \n \n$ \n \n8,800,016.09 \n \n94.004 \n \nN/A \n \n$ \n \n12,500.00 \n \n84.041 \n \n(3) \n \n84.318 \n \nN/A \n \n$ \n \n80,326.89 \n \n84.377 \n \nN/A \n \n$ \n \n49,232.95 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n \nN/A \n \n1,690,758.83 \n \nN/A \n \n21,705.25 \n \nN/A \n \n3,417,634.13 \n \nN/A \n \n130,561.15 \n \n$ \n \n5,260,659.36 \n \n* 84.389 * 84.010 \n \nN/A \n \n$ \n \n3,720,300.13 \n \nN/A \n \n7,947,186.65 \n \n$ 11,667,486.78 \n \n84.215 \n84.395 84.048 84.282 * 84.410 84.365 84.367 84.366 84.011 84.186 \n84.323 84.287 \n \n$ \n \n43,504.68 \n \nN/A \n \n35,082.44 \n \nN/A \n \n277,315.51 \n \nN/A \n \n74,398.61 \n \nN/A \n \n3,020,731.00 \n \nN/A \n \n16,624.22 \n \nN/A \n \n1,262,520.84 \n \nN/A \n \n254,363.21 \n \nN/A \n \n44,394.45 \n \nN/A \n \n2,181.75 \n \nN/A \n \n32,217.62 \n \nN/A \n \n272,497.68 \n \n$ \n \n5,335,832.01 \n \n$ 22,393,537.99 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nGeorgia Professional Standards Commission Transition to Teaching \nHealth and Human Services, U. S. Department of Other Programs Pass-Through From Georgia Department of Revenue Block Grants for Prevention and Treatment of Substance Abuse \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Southwest Georgia Regional Development Center Workforce Investment Act Youth Activities \nDefense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corp R.O.T.C. Program \nTotal U. S. Department of Defense \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n84.350 \n \nN/A \n \n$ \n \n4,000.00 \n \n93.959 \n \nN/A \n \n$ \n \n18,172.50 \n \n17.259 \n \nN/A \n \n$ \n \n60,982.06 \n \n$ \n \n82,110.61 \n \n123,277.64 \n \n$ \n \n205,388.25 \n \nTotal Expenditures of Federal Awards \n \n$ 31,494,596.89 \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 $527,097.31. \n(2) Expenditures for the funds earned on the School Breakfast Program ($2,507,484.48) 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 $59,270.78, 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. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty 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- 31 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \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 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 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 Mid-term Adjustment Hold-Harmless Vocational Supervisors 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 Virtual Schools Grant Vocational Construction Related Equipment - State Bonds \nOffice of the State Treasurer Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n1,113,568.60 \n \n6,453,546.11 -10,249.00 \n13,491,453.48 969,747.00 \n6,671,938.86 1,145,196.84 1,828,451.66 9,293,498.66 8,768,057.39 2,528,335.00 \n7,014,931.00 1,332,230.00 \n64,750.00 794,292.00 287,920.00 1,785,823.00 563,600.00 308,480.00 \n1,720,680.00 3,734,399.00 4,064,591.00 \n1,675,470.00 778,380.00 29,270.00 234,544.00 \n9,558,626.00 266,983.64 132,112.00 \n-11,051,841.00 \n8,065.00 2,286,065.00 \n283,972.08 49,128.14 \n346,682.00 51,483.82 900.00 \n209,708.76 \n94,702.00 \n$ 78,879,492.04 \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe renovation and improvement of four high schools and five elementary schools, strategic land acquisition for future school expansion, certain other capital repairs and modifications in systemwide schools, buildings and office (including carpet replacement gym flooring and certain other capital repairs and modifications) (ii) the provisions of additional classroom technology (including hardware, software and computer furniture) regular system-wide replacement of computers five years or older, installing six computers in all K-8th grade classrooms and three computers in all 9th-12th grade classrooms, providing system-wide teacher laptop computers, system-wide \"wireless-connectivity\" in all classroom and other buildings, upgrading existing computeraided instructional systems to \"Model Classroom\" standards and providing three additional \"Model Classrooms \"per school providing system-wide upgraded or new severs and upgraded main data frame (MDF) rooms, installing \"voice-over-internetprotocol\" (VOIP) in various classrooms throughout the school system, (iii) the provision of safety and security equipment , including system-wide communication equipment and card access systems at various system-wide building and the installation of radio signal-boosters (\"radio repeaters\") for West Dougherty tower, (iv) vehicle and equipment replacement, including school buses and department trucks, vans and sedans for system-wide use, major maintenance, supply and service equipment, musical equipment, playground equipment, and other educational related equipment, and (v) funding certain financing, project management and election costs related thereto, the maximum cost of such projects not to exceed $95,000,000.00. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 95,000,000.00 $ 95,000,000.00 $ 10,279,441.61 $ 51,235,552.95 Ongoing \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 project. Includes all cost from project inception to completion. \n(3) The voters of Dougherty County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (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 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 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 \n7,322,356.00 $ 6,240,029.21 $ 61,439.68 $ \n \n6,301,468.89 \n \n7,117.00 \n \n152,459.81 \n \n152,459.81 \n \n15,463,554.00 13,505,774.65 \n \n145,946.41 \n \n13,651,721.06 \n \n1,099,821.00 \n \n836,082.72 \n \n836,082.72 \n \n7,596,145.00 \n \n8,266,580.05 \n \n86,066.15 \n \n8,352,646.20 \n \n1,266,006.00 1,962,110.00 10,152,338.00 9,372,941.00 2,919,066.00 8,102,862.00 \n1,534,526.00 81,584.00 \n911,336.00 307,056.00 \n \n628,287.25 1,926,941.52 8,799,904.95 10,962,197.57 2,220,568.90 \n74,504.14 3,092,709.39 5,065,876.24 \n211,184.55 1,043,066.11 \n559,131.48 177,284.88 \n \n26,921.57 68,982.47 413,052.75 149,251.68 \n986.70 5,081.25 31,693.31 11,352.07 10,788.40 \n9,798.97 \n \n628,287.25 1,953,863.09 8,868,887.42 11,375,250.32 2,369,820.58 \n75,490.84 3,097,790.64 5,097,569.55 \n222,536.62 1,053,854.51 \n568,930.45 177,284.88 \n \n$ 68,098,818.00 $ 63,762,583.42 $ 1,021,361.41 $ 64,783,944.83 \n \n2,048,112.00 353,452.00 \n \n2,687,577.92 77,448.08 \n \n219,407.19 140,581.00 \n \n2,906,985.11 218,029.08 \n \nTOTAL QBE FORMULA FUNDS \n \n$ 70,500,382.00 $ 66,527,609.42 $ 1,381,349.60 $ 67,908,959.02 \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- 35 - \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 \nAugust 10, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Dougherty County Board of Education's basic financial statements and have issued our report thereon dated August 10, 2012. Our report was modified to include a reference to other auditors. 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. Other auditors audited the financial statements of the Dougherty County Board of Education's discretely presented component unit, as described in our report on the Dougherty County Board of Education's financial statements. This report does not include the results of other auditor's testing of internal controls over financial reporting or compliance and other matters that are reported on separately by those auditors. \nInternal Control Over Financial Reporting \nManagement of Dougherty County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Dougherty 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 Dougherty County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dougherty 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. \n2011YB-30X \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. However, we consider items FS-6471-11-01, FS-6471-1102, and FS-6471-11-03, described in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or 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. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dougherty 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. \nDougherty County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Dougherty County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of the finance committee, management, members of the Dougherty 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 2011YB-30X \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 \nAugust 10, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dougherty 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 Dougherty 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. Dougherty 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 Dougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty 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 Dougherty 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 Dougherty County Board of Education's compliance with those requirements. \nIn our opinion, the Dougherty 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. \n2011SA-10 \n \n  Internal Control Over Compliance \nManagement of Dougherty 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 Dougherty 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 Dougherty 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 Dougherty 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 2011SA-10 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6471-09-01 FS-6471-10-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6471-10-01 \n \nThe number of staff available for assignment to conduct accounting functions in the schools is limited. The School District's internal auditor will continue to work with the available staff in each school to develop compensating controls. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6471-08-02 \n \nPreviously Reported Corrective Action Implemented \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  DOUGHERTY 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; Debt Service Fund; Aggregate Remaining Fund Information; Discretely Presented Component Unit \n \nUnqualified \n \nInternal control over financial reporting: \n \n Material weakness identified? \n \nNo \n \n Significant deficiencies identified? \n \nYes \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$946,616.03 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6471-11-01 \nCondition: This is a repeat finding (FS-6471-10-01, FS-6471-09-01, and FS-6471-08-01) from the years ended June 30, 2010, June 30, 2009, and June 30, 2008, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \n The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n Testing revealed bank reconciliations that were not approved by the appropriate personnel. \nRevenues and Receivables  Deposit preparation was not separated from the record keeping and cash custody functions.  The following deficiencies were noted during our test of transactions: 1. Receipts were not deposited in a timely manner. 2. Receipts did not have adequate supporting documentation in order to trace to recording on the general ledger. 3. Deposits did not agree with receipts/supporting documentation. 4. Receipt documentation did not contain the signature of two employees as required by board policy. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  The following deficiencies were noted during our test of transactions: 1. Several expenditures did not have invoices attached. 2. Several expenditures were not paid the correct amount per the invoice attached. 3. Expenditures lacked information to be able to trace to recording on the general ledger. 4. Several did not have evidence of receipt of goods. 5. Expenditures did not have approved requisitions. \n- 2 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCause: These deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \nEffect: Errors and/or fraud may not be detected in a timely manner. \nRecommendation: The School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Number: FS-6471-11-02 \nCondition: The School District failed to adequately maintain the capital asset records. \nCriteria: Chapter 37, Implementing a Capital Assets Management System, of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement fixed asset system and maintain fixed asset inventory records. \nQuestioned Costs: N/A \nInformation: A review of the School District's capital asset records noted the following deficiencies and errors or omissions: \n Several assets meeting the threshold were not properly capitalized.  Items included in buildings were not removed from construction in progress.  Additions to the capital assets listing were recorded at incorrect amounts.  The School District failed to provide an accurate and complete listing of buildings.  The School District did not accurately calculate depreciation expense for numerous assets. \nCause: The School District failed to ensure that adequate accounting procedures were in place to process, record and report capital assets and the related activity. \nEffect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \n- 3 - \n \n DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nRecommendation: The School District should review its capital asset records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Significant Deficiency Finding Control Number: FS-6471-11-03 \nCondition: The School District did not have adequate controls in place to ensure that all required activity was properly included in the financial statement information presented for audit. \nCriteria: Chapter 22A, Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration proposes that the School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \nQuestioned Costs: N/A \nInformation: Notable audit entries were proposed by the auditor and accepted by the client to properly present the entity's financial statements in accordance with Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. \nCause: The School District did not implement an adequate system of internal controls over the financial statement reporting process. \nEffect: The School District did not comply with the requirements of the Georgia Department of Education regarding financial reporting. Adjustments were necessary in order for the School District's financial statements, notes to the financial statements and schedules to be properly stated. \nRecommendation: The School District should develop and implement internal controls over the financial statement reporting process to ensure that all required activity (including note disclosures) is properly recorded in the financial statement information presented for audit. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n- 4 - \n \n SECTION V MANAGEMENT'S RESPONSES \n \n  DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2011 \n \nFinding Control Number: FS-6471-11-01 \n \nWe concur with this finding. The number of staff available for assignment of accounting functions is limited in the schools; however, the School District's internal auditor will continue to work with the available staff in each school to develop compensating controls and ensure proper separation of duties at the school level. In addition, during the 2013 fiscal year, the District will conduct training on the management of school activity accounts for principals and the appropriate school office staff. \n \nFinding Control Number: FS-6471-11-02 \n \nWe concur with this finding. Management will implement procedures to review its capital asset records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. \n \nFinding Control Number: FS-6471-11-03 \n \nWe concur with this finding. Management will provide additional employee training, as well as develop and implement internal controls over the financial statement reporting process to ensure that all required activity is properly recorded in the financial statement information presented for audit. \n \nContact Person: Telephone: Fax: Email: \n \nKenneth Dyer, Executive Director of Finance and Operational Services (229) 431-1234 (229) 431-1239 kenneth.dyer@docoschools.org \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":12,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":12}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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