{"response":{"docs":[{"id":"dlg_ggpd_1369159216-2025-03-03","title":"Annual financial report, fiscal year 2024, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report.","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Elbert County, 34.11679, -82.8401"],"dcterms_creator":null,"dc_date":["2025-03-03"],"dcterms_description":["Began with: Fiscal year 2021.","Report year covers fiscal year.","May have supplement: Salaries and travel reimbursement (Elbert County Board of Education (Ga.))","Fiscal year 2021, released 2022?; title from PDF cover (Georgia Government Publications database, viewed February 8, 2023).","Fiscal year 2021, released 2022? (Georgia Government Publications database, viewed February 8, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Georgia : Georgia Department of Audits \u0026 Accounts, [2022?]-"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Elbert County--Auditing--Periodicals.","Education--Georgia--Elbert County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Elbert County--fast","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, fiscal year 2024, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report."],"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_1369159216-2025-03-03"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1369159216-2025-03-03"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2024 \nElbert County Board of Education \nElberton, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Elbert County Board of Education \n \nTable of Contents \n \nSection I Financial \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 in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG Notes to the Basic Financial Statements \n \n7 \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 Contributions  Teachers 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 \n Required Supplementary Information (Continued) \n \n4 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n38 \n \n5 Schedule of Contributions  School OPEB Fund \n \n39 \n \n6 Notes to the Required Supplementary Information \n \n40 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n41 \n \nSupplementary Information \n \n8 Schedule of Expenditures of Federal Awards \n \n42 \n \n9 Schedule of State Revenue \n \n44 \n \n10 Schedule of Approved Local Option Sales Tax Projects \n \n46 \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 \n \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 \nSummary Schedule of Prior Audit Findings \n \nSection IV Findings and Questioned Costs \nSchedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District) as of and for the year ended June 30, 2024, 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. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2024, 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. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nEmphasis of Matter \nAs discussed in Note 13 to the financial statements, in 2024, the School District restated the prior period financial statements to correct misstatements. Our opinions are not modified with respect to this matter. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. \nIn preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \n \n We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \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 is the responsibility of management and, 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 GAAS, 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 appropriate evidence to express an opinion or provide any assurance. \nSupplementary 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 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 GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 3, 2025 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 \n \n or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. Respectfully submitted, \nGreg S. Griffin State Auditor \nMarch 3, 2025 \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2024 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2024 are as follows: \nOn the government-wide financial statements: \n The School District's net position at June 30, 2024 was $8.8 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, 2024 of $8.8 million represented an increase of $6.1 million when compared to the prior year. The increase in net position of $6.1 million in fiscal year 2024 was about the same as the increase in net position that occurred from fiscal year 2022 to fiscal year 2023. \n The School District had $50.6 million in expenses relating to governmental activities; about $36.6 million of the $50.6 million in expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) and a special item of almost $20.2 million were adequate to provide for these programs. \n As stated above, general revenues and a special item accounted for almost $20.2 million or about 35.5% of all revenues totaling almost $56.8 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.) \ni \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nSource of Revenues \nProgram Revenues \n64.5% \n \nGeneral Revenue Property Taxes 21.9% \nGeneral Revenue Sales Taxes 6.0% \n \nGeneral Revenue All Other 7.6% \nOn the fund financial statements: \n Among major funds, the general fund had $53.3 million in revenues and almost $47.2 million in expenditures. The general fund balance of about $23.0 million at June 30, 2024, represented roughly a $6.6 million increase from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consist of three parts: management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Elbert County School District, the general fund, capital projects fund and debt service fund are all considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. \n \nii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nAdditionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nGovernment-Wide Statements \nSince Elbert County School District has no operations that have been classified as \"Business Activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets, deferred outflows, liabilities and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt, including pension and post-employment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position is amounts with constraints placed on the use by external \nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use \niii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \nThe School District has one kind of fund as discussed below: \nGovernmental Funds  All of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets and deferred outflows of resources, and total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \nIn the case of the Elbert County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $8.8 million at June 30, 2024. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $8.8 million of net position, $3.5 million was restricted for continuation of various State and Federal programs, debt service and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \niv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nIn addition, the School District had $38.8 million (net of related debt) invested in capital assets e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \nBecause of the restrictions on net position as discussed above, the School District had an unrestricted (deficit) of about $33.5 million at June 30, 2024. The reader should remember this deficit includes pension related charges recorded because of the implementation (fiscal year 2015) of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB Statement No. 68; and also includes charges recorded because of the implementation (fiscal year 2018) of GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other than Pensions. The School District believes it is also meaningful to view the School District's net position in the following manner: \n \nNet position associated with pension obligations \n \n$ (28,592,054) \n \nNet position associated with postemployment benefits other than pension obligations \n \n(26,022,170) \n \nNet position exclusive of pension obligations and post-employment benefits \n \n63,412,123 \n \nNet Position, June 30, 2024 \n \n$ \n \n8,797,899 \n \nThe above analysis reflects, exclusive of pension obligations and post-employment benefits, the School District's net position is a positive $8.8 million and management believes the School District's financial position is sound. \n \nv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net \nTotal Assets \n \nGovernmental Activities \n \nFiscal Year 2024 \n \nFiscal Year 2023 (1) \n \n$ \n \n29,999,218 \n \n$ \n \n24,294,414 \n \n46,476,435 \n \n44,338,537 \n \n76,475,653 \n \n68,632,951 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nTotal Assets and Deferred Outflows of Resources \n \n13,317,298 6,319,466 \n19,636,764 \n96,112,417 \n \n22,276,856 5,652,477 \n27,929,333 \n96,562,284 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability Total Liabilities \n \n3,879,355 9,184,175 40,908,273 22,668,087 76,639,890 \n \n3,851,617 9,868,307 46,583,586 20,371,638 80,675,148 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nTotal Liabilities and Deferred Inflows of Resources \n \n1,001,079 9,673,549 10,674,628 \n87,314,518 \n \n599,869 12,607,722 13,207,591 \n93,882,739 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n38,822,949 3,489,005 \n(33,514,055) \n \n35,755,153 4,818,227 \n(37,893,835) \n \nTotal Net Position \n \n$ \n \n8,797,899 \n \n$ \n \n2,679,545 \n \n(1) Fiscal Year 2023 balances do not reflect the effect of the restatement of balances. 'See Note 13 in the Notes to the Basic Financial Statements for additional information. \n \nvi \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nIn connection with the unrestricted deficit at June 30, 2024, as shown above, management presents the following additional information: \n \nTotal unrestricted net position (deficit) Add: \n \n$ \n \n(33,514,055) \n \nUnrestricted deficit in net position resulting from recognition of net pension obligations \n \n28,592,054 \n \nUnrestricted deficit in net position resulting from recognition of post-employment benefits other than pension obligations \n \n26,022,170 \n \nUnrestricted net position, exclusive of the net pension obligation and post-employment benefits effect \n \n$ \n \n21,100,169 \n \nThe above analysis shows that the recognition of liabilities for pension obligations and postemployment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \n \nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \n \nvii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted Investment Earnings Miscellaneous \nSpecial Item: Loss of Disposal of Capital Assets \nTotal General Revenues and Special Item \nTotal Revenues and Special Item \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \nTotal Expenses \nIncrease in Net Position \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 (1) \n \n$ \n \n370,377 $ \n \n402,802 \n \n35,347,644 \n \n32,645,620 \n \n882,748 \n \n2,563,876 \n \n36,600,769 \n \n35,612,298 \n \n12,428,440 3,421,935 2,679,759 466,903 1,370,725 \n(213,558) \n20,154,204 \n56,754,973 \n \n10,449,965 3,340,528 2,604,650 99,468 1,549,008 \n- \n18,043,619 \n53,655,917 \n \n31,028,101 \n \n28,949,882 \n \n3,037,329 1,906,641 \n456,063 1,156,783 2,986,599 \n434,167 3,180,164 2,700,122 \n154,117 345,195 \n \n2,579,416 1,798,261 \n436,682 777,771 2,763,702 447,542 3,284,655 2,562,643 192,013 422,647 \n \n39,480 3,102,997 \n121,045 \n50,648,803 \n \n36,181 2,891,909 \n127,679 \n47,270,983 \n \n$ \n \n6,106,170 $ \n \n6,384,934 \n \n(1) Fiscal Year 2023 balances do not reflect the effect of the restatement of balances. 'See Note 13 in the Notes to the Basic Financial Statements for additional information. \n \nviii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 (1) \n \nNet Cost of Services \n \nFiscal Year Fiscal Year \n \n2024 \n \n2023 (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 Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \n \n$ 31,028,101 $ 28,949,882 $ 6,205,306 $ \n \n3,037,329 1,906,641 \n456,063 1,156,783 2,986,599 \n434,167 3,180,164 2,700,122 \n154,117 345,195 \n \n2,579,416 1,798,261 \n436,682 777,771 2,763,702 447,542 3,284,655 2,562,643 192,013 422,647 \n \n1,936,524 742,012 (42,838) 296,692 \n1,659,148 413,485 \n1,627,140 369,382 149,378 236,454 \n \n39,480 3,102,997 \n121,045 \n \n36,181 2,891,909 \n127,679 \n \n39,480 294,827 121,045 \n \n4,471,410 \n1,280,471 705,612 (13,413) (9,457) \n1,497,538 422,355 \n1,681,988 1,151,942 \n125,861 330,230 \n36,181 (149,712) 127,679 \n \nTotal Expenses \n \n$ 50,648,803 $ 47,270,983 $ 14,048,035 $ 11,658,685 \n \n(1) Fiscal Year 2023 balances do not reflect the effect of the restatement of balances. 'See Note 13 in the Notes to the Basic Financial Statements for additional information. \nThe overall School District expenses increased almost $3.4 million from the prior year while the net costs of providing those services increased by about $2.4 million. The $2.4 million shortfall in covering net costs of services in fiscal year 2024 was the result of a net increase in combined costs for pension and OPEB expenses as compared to the prior year. These expenses were calculated by professional actuaries. \n \nix \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2024. The percentages are rounded to one decimal place. \nGovernmental Activities -- Cost of Services \n \nIn st ru ctio nal 61.3% \n \nSupport Services 32.3% \n \nInterest on Debt 0.2% \n \nAll Others 0.1% \nFood Services 6.1% \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $57.0 million and total expenditures of roughly $51.8 million in fiscal year 2024. Total governmental fund balances of $25.8 million at June 30, 2024, increased about $5.7 million from the prior year. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2024, the School District amended its general fund budget as needed. \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $53.3 million exceeded the final budgeted revenues by $4.2 million. The primary reason overall revenues exceeded the budget was property taxes exceeded the final budgeted by almost $2.1 million and State funds exceeded the final budgeted amount by $1.7 million. Additionally, the School District did not budget for the activities of the school principal's accounts and those revenues are reported as miscellaneous revenues and totaled almost $1.1 million during the fiscal year. \n \nx \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nThe general fund's final actual expenditures of $47.2 million were less than the final budget by almost $2.0 million. The primary reason expenditures were less than the final budget was expenditures for Instruction were about $2.0 million less than the final budget. Additionally, expenditures in certain areas were constrained because Federal revenues were $1.1 million less than anticipated. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets and Right-to-Use Assets \n \nAt fiscal year ended June 30, 2024, the School District had almost $46.5 million invested in capital assets and right-to-use assets, net of accumulated depreciation and amortization, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; intangible assets; and instructional, food service, transportation, maintenance equipment, and other right-to-use assets. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \n \nTable 4 Capital Assets at June 30 (Net of Depreciation and Amortization) \n \nGovernmental Activities \n \nFiscal Year 2024 \n \nFiscal Year 2023 (1) \n \nLand \n \n$ \n \n1,410,022 $ \n \nConstruction in Progress \n \n- \n \nLand Improvements \n \n4,181,189 \n \nBuildings and Improvements \n \n35,157,186 \n \nEquipment \n \n5,171,985 \n \nRight-to-Use Equipment \n \n346,971 \n \nRight-to-Use Subscription Software \n \n209,082 \n \n1,497,522 4,827 \n2,673,714 36,022,481 \n3,807,068 137,400 195,525 \n \nTotal \n \n$ \n \n46,476,435 $ \n \n44,338,537 \n \n(1) Fiscal Year 2023 balances do not reflect the effect of the restatement of balances. 'See Note 13 in the Notes to the Basic Financial Statements for additional information. \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nxi \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nLong-Term Debt \n \nAt June 30, 2024, the School District had almost $9.2 million in total debt outstanding which consisted of bond debt of $8.8 million, lease liability debt of about $359,000, and software subscription debt of about $45,000. Table 5 reflects a summary of these balances. \nTable 5 Change in Long-Term Debt \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 (1) \n \nGeneral Obligation Bonds Lease Debt Software Subscription Debt \n \n$ \n \n8,780,000 $ \n \n359,321 \n \n44,854 \n \n9,600,000 143,545 124,762 \n \n$ \n \n9,184,175 $ \n \n9,868,307 \n \n(1) Fiscal Year 2023 balances do not reflect the effect of the restatement of balances. 'See Note 13 in the Notes to the Basic Financial Statements for additional information. \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \n \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n \n The School District is financially stable. The School District's operating millage for fiscal year 2024 was 14.00 which was a slight decrease from the prior year. This millage rate produced almost $809,000 per mill not including TAVT Tax. \n \n School District general fund revenues in fiscal year 2024 increased when compared to the prior year. Revenues from property tax increased about $2.0 million or about 19.5% while state funds increased about $2.7 million or about 11.0%. The general fund had an unassigned fund balance of over $21.2 million June 30, 2024, which was an increase of almost $6.9 million from the prior year. \n \n The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees, as well as inflationary increases for utilities, fuel, and other supplies and materials. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. \n \nxii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. W. Keith Martin, Chief Financial Officer for Elbert County Board of Education, 50 Laurel Drive, Elberton, Georgia, 30635 or by phone at 706-213-4000. You may also email your questions to Mr. Martin at keith.martin@elbert.k12.ga.us. \nxiii \n \n Elbert County Board of Education \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2024 \nASSETS Cash and Cash Equivalents 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 Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest 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 Related to Defined Benefit Pension Plans Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n23,386,686.92 \n \n872,971.04 3,293,594.00 2,291,124.45 \n89,876.86 39,658.30 25,306.18 1,410,022.00 45,066,413.59 76,475,653.34 \n \n13,317,298.00 6,319,466.00 \n19,636,764.00 \n \n869,480.10 2,937,755.76 \n36,583.33 35,536.00 40,908,273.00 22,668,087.00 \n949,295.47 8,234,879.29 76,639,889.95 \n \n1,001,079.00 9,673,549.00 10,674,628.00 \n \n38,822,949.34 \n \n1,255,685.58 925,541.67 \n1,307,777.46 (33,514,054.66) \n \n$ \n \n8,797,899.39 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2024 \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 \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nFood Services \n \nInterest on Long-Term Debt \n \n31,028,100.70 $ \n3,037,328.77 1,906,641.47 \n456,063.12 1,156,783.06 2,986,599.03 \n434,167.06 3,180,164.10 2,700,121.88 \n154,116.79 345,194.76 \n39,479.85 3,102,997.51 \n121,045.32 \n \n224,151.21 $ \n- \n146,225.79 \n- \n \n24,401,810.90 $ \n1,061,196.47 1,164,629.23 \n498,901.50 859,773.01 1,319,764.17 \n20,681.71 1,539,335.93 1,713,970.36 \n4,739.33 105,604.48 \n2,657,236.83 \n- \n \n196,832.47 $ \n39,608.32 - \n318.29 7,686.55 \n13,687.79 616,770.00 \n3,136.44 \n4,708.14 \n- \n \n(6,205,306.12) \n(1,936,523.98) (742,012.24) 42,838.38 (296,691.76) \n(1,659,148.31) (413,485.35) \n(1,627,140.38) (369,381.52) (149,377.46) (236,453.84) \n(39,479.85) (294,826.75) (121,045.32) \n \nTotal Governmental Activities \n \n$ \n \n50,648,803.42 $ \n \n370,377.00 $ \n \n35,347,643.92 $ \n \n882,748.00 \n \n(14,048,034.50) \n \nGeneral Revenues Taxes Property Taxes Special Purpose Local Option Sales Tax For Capital Projects/Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Net Loss on Disposal of Capital Assets Total General Revenues and Special Item \n \n12,428,439.99 \n3,265,422.31 156,513.13 \n2,679,759.00 466,902.86 \n1,370,725.71 \n(213,558.06) 20,154,204.94 \n \nChange in Net Position \n \n6,106,170.44 \n \nNet Position, as Previously Presented \n \n2,679,545.12 \n \nError Correction \n \n12,183.83 \n \nNet Position, as Restated \n \n2,691,728.95 \n \nNet Position - End of Year \n \n$ \n \n8,797,899.39 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n ASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Due from Other Funds Inventories \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds Deposits and Unearned Revenues \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nELBERT COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2024 \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nEXHIBIT \"C\" TOTAL \n \n$ \n \n17,918,006.46 $ \n \n588,724.58 3,293,594.00 2,291,124.45 \n89,876.86 39,658.30 2,980,822.48 25,306.18 \n \n$ \n \n27,227,113.31 $ \n \n4,506,555.46 $ \n284,246.46 - \n4,790,801.92 $ \n \n962,125.00 $ \n- \n962,125.00 $ \n \n23,386,686.92 \n872,971.04 3,293,594.00 2,291,124.45 \n89,876.86 39,658.30 2,980,822.48 25,306.18 \n32,980,040.23 \n \n$ \n \n869,480.10 $ \n \n- $ \n \n2,937,755.76 \n \n- \n \n- \n \n2,980,822.48 \n \n35,536.00 \n \n- \n \n3,842,771.86 \n \n2,980,822.48 \n \n- $ - \n \n869,480.10 2,937,755.76 2,980,822.48 \n35,536.00 6,823,594.34 \n \n350,290.42 \n \n- \n \n- \n \n350,290.42 \n \n25,306.18 1,230,379.40 \n573,171.82 21,205,193.63 23,034,051.03 \n \n1,809,979.44 \n1,809,979.44 \n \n962,125.00 \n962,125.00 \n \n25,306.18 4,002,483.84 \n573,171.82 21,205,193.63 25,806,155.47 \n \n$ \n \n27,227,113.31 $ \n \n4,790,801.92 $ \n \n962,125.00 $ \n \n32,980,040.23 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n ELBERT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2024 \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. Land Buildings and improvements Equipment Land improvements Intangible assets Right-to-use assets - equipment Right-to-use assets - subscriptions Accumulated depreciation and amortization \nCertain revenues will be collected after year end but are not available soon enough to pay for the current periods expenditures. Property Taxes \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net 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. Related to pensions Related to OPEB \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Bonds payable Accrued interest payable Lease and subscription liability payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n25,806,155.47 \n \n$ \n \n1,410,022.00 \n \n52,860,128.03 \n \n12,248,221.12 \n \n5,313,695.32 \n \n281,766.25 \n \n414,987.43 \n \n322,609.13 \n \n(26,374,993.69) \n \n46,476,435.59 \n \n350,290.42 \n \n$ \n \n(40,908,273.00) \n \n(22,668,087.00) \n \n(63,576,360.00) \n \n$ \n \n12,316,219.00 \n \n(3,354,083.00) \n \n8,962,136.00 \n \n$ \n \n(8,780,000.00) \n \n(36,583.33) \n \n(404,174.76) \n \n(9,220,758.09) \n \n$ \n \n8,797,899.39 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Sale of Capital Assets Lease Liability Proceeds Transfers In Transfers Out Total 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$ \n \n12,445,978.32 $ \n \n156,513.13 \n \n27,702,646.68 \n \n10,934,798.24 \n \n370,377.00 \n \n290,312.63 \n \n1,370,725.71 \n \n53,271,351.71 \n \n- $ 3,265,422.31 \n265,978.00 - \n176,590.23 - \n3,707,990.54 \n \n- $ - \n \n12,445,978.32 3,421,935.44 \n27,968,624.68 10,934,798.24 \n370,377.00 466,902.86 1,370,725.71 56,979,342.25 \n \n27,700,860.16 \n2,561,784.21 1,804,085.47 \n424,860.12 1,093,008.45 2,703,174.23 \n393,540.06 3,178,478.85 3,074,886.49 \n98,097.53 361,172.47 \n39,479.85 3,033,272.36 \n390,736.14 \n312,598.38 6,993.24 \n47,177,028.01 6,094,323.70 \n \n302,824.60 \n208,181.35 419,720.00 9,476.49 82,605.52 2,688,281.43 \n3,711,089.39 (3,098.85) \n \n- \n- \n820,000.00 117,468.75 937,468.75 (937,468.75) \n \n28,003,684.76 \n2,561,784.21 1,804,085.47 \n424,860.12 1,093,008.45 2,703,174.23 \n393,540.06 3,386,660.20 3,494,606.49 \n98,097.53 370,648.96 \n39,479.85 3,115,877.88 3,079,017.57 \n1,132,598.38 124,461.99 \n51,825,586.15 5,153,756.10 \n \n146,695.00 390,736.14 \n537,431.14 \n \n6,631,754.84 \n \n16,402,296.19 \n \n$ \n \n23,034,051.03 $ \n \n(962,125.00) (962,125.00) \n(965,223.85) \n2,775,203.29 \n1,809,979.44 $ \n \n962,125.00 962,125.00 \n24,656.25 \n937,468.75 \n962,125.00 $ \n \n146,695.00 390,736.14 962,125.00 (962,125.00) 537,431.14 \n5,691,187.24 \n20,114,968.23 \n25,806,155.47 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n ELBERT 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, 2024 \nNet change in fund balances total governmental funds (Exhibit \"E\") \n \nAmounts reported for governmental activities in the Statement of Activities are different because: \n \nGovernmental funds report capital outlays as expenditures. However, \n \nin the Statement of Activities, the cost of capital assets is allocated over \n \ntheir estimated useful lives as depreciation expense. \n \nCapital outlay \n \n$ \n \nDepreciation and amortization expense \n \nIn the Statement of Activities, only the gain or loss on the sale or disposal of the capital assets equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balances by the carrying value of the capital assets sold or disposed of. \n \nProceeds Received from leases are reported as liabilities in the Statement of Activities whereas in the Governmental Funds these proceeds are reported as Other Financing Sources. Proceeds from lease liability \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 \n \ngovernmental funds, while the repayment of the principal of long-term debt \n \nconsumes the current financial resources of governmental funds. Neither \n \ntransaction, however, has any effect on net position. Also, governmental funds \n \nreport the effect of premiums, discounts and the difference between the \n \ncarrying value of refunded debt and the acquisition cost of refunded debt when \n \ndebt is first issued. These amounts are deferred and amortized in the Statement \n \nof Activities. \n \nBond principal retirements \n \n$ \n \nLease liability payments \n \nSubscription liability payments \n \nDistrict pension/OPEB contributions are reported as expenditures in the \n \ngovernmental funds when made. However, they are reported as deferred \n \noutflows of resources in the Statement of Net Position because the reported \n \nnet pension/OPEB liability is measured a year before the District's report date. \n \nPension/OPEB expense, which is the change in the net pension/OPEB liability \n \nadjusted for changes in deferred outflows and inflows of resources related \n \nto pensions/OPEB, is reported in the Statement of Activities. \n \nPension expense \n \n$ \n \nOPEB expense \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. Net decrease in accrued interest \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n5,024,682.58 (2,596,444.90) \n820,000.00 174,959.82 137,638.56 \n(3,685,455.00) 1,304,713.00 \n$ \n \nEXHIBIT \"F\" 5,691,187.24 \n2,428,237.68 (360,253.06) (390,736.14) \n(17,538.33) \n1,132,598.38 \n(2,380,742.00) 3,416.67 \n6,106,170.44 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL AND REPORTING DISTRICT ENTITY \nReporting Entity \nThe Elbert County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBasis of Presentation \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGovernment-Wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. 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 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 \nassets, 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 \ncontractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n- 7 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \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. Eliminations have been made to minimize the double counting of internal activities. 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 longterm principal and interest. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and 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 certain revenues reported in the governmental funds to be \n- 8 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \navailable if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after fiscal 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, 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 leases and subscription-based technology arrangements 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 2024, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. The objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for making decisions or assessing accountability. The adoption of this statement did not have a material impact on the School District's financial statements. This statement will be applied prospectively. \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. \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \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 \n- 9 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nwhen received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCapital Assets \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 \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. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAny Amount 5,000.00 5,000.00 5,000.00 5,000.00 \n \nN/A 20 years \nUp to 50 years 2 to 25 years 3 to 6 years \n \nIntangible Right-To-Use Assets \nLeases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. Subscription-based information technology arrangements (SBITAs) result in an intangible right-to use subscription asset and a subscription liability on the Statement of Net Position. \nAn intangible right-to-use asset represents the School District's right to use an underlying asset for the lease or subscription term. Lease and subscription obligations represent the School District's liability to make lease and subscription payments arising from the lease or subscription agreement. Intangible right-to-use assets, lease obligations and subscription liabilities are recognized based on the present value of lease or subscription payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease or subscription are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease or subscription liability. \n \n- 10 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nIntangible right-to-use assets are amortized using a straight-line basis over the shorter of the lease or subscription term or useful life of the underlying asset. \nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \nCapitalization Policy \n \nLand \n \n$ \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nSubscription Assets \n \n$ \n \n5,000.00 5,000.00 5,000.00 5,000.00 50,000.00 \n \nLeases as Lessee \nThe School District is a lessee for noncancellable leases of copiers, printers and postage machines owned by third parties. \nAt the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the lease term. \nKey estimates and judgments related to leases include how the School District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments: \nThe lease agreements entered into by the School District as lessee do not contain stated interest rates. Therefore, the School District has used its estimated incremental borrowing rate as the discount rate for the leases. The School District has estimated this incremental borrowing rate to be 2.25% for the leases in which the School District is currently involved as the lessee. \nThe lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments the School District will make over the lease term. \nThe School District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability. \nLease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the Statement of Net Position. \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- 11 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \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. \nLong-Term Liabilities \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \nPensions \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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 \n- 12 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nfund 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 Elbert County Board of Commissioners adopted the property tax levy for the 2023 tax digest year (calendar year) on October 4, 2023 (levy date) based on property values as of January 1, 2023. Taxes were due on December 20, 2023 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2023 tax digest are reported as revenue in the governmental funds for fiscal year 2024. The Elbert County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2024, for maintenance and operations amounted to $12,445,978.32. \nThe tax millage rate levied for the 2023 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.00 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which is included in the property taxes revenue shown above, amounted to $1,123,967.21 during fiscal year ended June 30, 2024. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,265,422.31 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expires June 30, 2027. \n \n- 13 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and various other minor programs, is prepared and adopted by fund and function. 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 fiscal year 2024. \nNOTE 4: DEPOSITS \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- 14 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCategorization of Deposits \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2024, School District had deposits with a carrying amount of $23,386,686.92, and a bank balance of $23,596,046.98. The bank balances insured by Federal depository insurance were $655,031.46. \nAt June 30, 2024, $22,941,015.52 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 15 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \n \nThe following is a summary of changes in the capital assets and intangible right-to-use assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nRestated Balances July 1, 2023 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2024 \n \n$ 1,497,522.00 $ \n \n- $ \n \n4,827.28 1,765,599.27 \n \n87,500.00 $ \n \n- $ \n \n- \n \n(1,770,426.55) \n \n1,410,022.00 - \n \nTotal Capital Assets Not Being Depreciated \n \n1,502,349.28 1,765,599.27 \n \n87,500.00 \n \n(1,770,426.55) \n \n1,410,022.00 \n \nCapital Assets, Being Depreciated/Amortized Buildings and Improvements Equipment Land Improvements Intangible Assets Right-To-Use Assets Leases Subscriptions \nLess Accumulated Depreciation/Amortization: Buildings and Improvements Equipment Land Improvements Intangible Assets Right-To-Use Assets Leases Subscriptions \n \n52,741,912.45 10,946,792.59 \n3,712,561.83 306,516.25 \n \n312,352.73 2,390,532.97 \n165,457.94 - \n \n379,138.49 322,609.13 \n \n390,739.67 - \n \n528,888.15 1,089,104.44 \n24,750.00 \n354,890.73 - \n \n334,751.00 - \n1,435,675.55 - \n- \n \n52,860,128.03 12,248,221.12 \n5,313,695.32 281,766.25 \n414,987.43 322,609.13 \n \n16,720,134.91 7,240,376.14 937,492.65 306,516.25 \n \n1,364,032.07 891,037.87 195,013.43 - \n \n249,904.10 49,005.00 \n \n81,839.70 64,521.83 \n \n381,224.67 1,055,178.57 \n24,750.00 \n263,727.02 - \n \n- \n \n17,702,942.31 \n \n- \n \n7,076,235.44 \n \n- \n \n1,132,506.08 \n \n- \n \n281,766.25 \n \n- \n \n68,016.78 \n \n- \n \n113,526.83 \n \nTotal Capital Assets, Being Depreciated/Amortized, Net \n \n42,906,101.69 \n \n662,638.41 \n \n272,753.06 \n \n1,770,426.55 \n \n45,066,413.59 \n \nGovernmental Activities Capital Assets - Net \n \n$ 44,408,450.97 $ 2,428,237.68 $ \n \n360,253.06 $ \n \n- $ 46,476,435.59 \n \n- 16 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nDepreciation \n \nAmortization \n \nTotal \n \nInstruction \n \n$ 1,473,329.91 $ \n \nSupport Services \n \nPupil Services \n \n386,244.20 \n \nGeneral Administration \n \n3,103.89 \n \nSchool Administration \n \n74,956.17 \n \nMaintenance and Operation of Plant \n \n133,477.78 \n \nStudent Transportation Services \n \n302,474.28 \n \nOther Support Services \n \n30,585.26 \n \nFood Services \n \n45,911.88 \n \n81,839.70 $ 1,555,169.61 \n \n49,005.00 15,516.83 \n- \n \n435,249.20 18,620.72 74,956.17 \n133,477.78 302,474.28 \n30,585.26 45,911.88 \n \n$ 2,450,083.37 $ 146,361.53 $ 2,596,444.90 \n \nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \n \nInterfund Assets and Liabilities \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2024, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Capital Projects Fund \n \n$ 2,980,822.48 $ \n \n- \n \n- \n \n2,980,822.48 \n \n$ 2,980,822.48 $ 2,980,822.48 \n \nThe capital projects fund owes the general fund for expenditures paid by the general fund on construction projects on behalf of the capital projects fund. These funds will be reimbursed to the general fund in the subsequent fiscal year. \n \nInterfund Transfers \n \nInterfund transfers for the year ended June 30, 2024, consisted of the following: \n \nTransfers to \n \nTransfers From Capital Projects \nFund \n \nDebt Service Fund \n \n$ \n \n962,125.00 \n \n- 17 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nTransfers of sales tax revenues of $962,125.00 were made from the capital projects fund to the debt service fund to provide funds to pay debt service on general obligation debt in the subsequent fiscal year. \nNOTE 7: LONG-TERM LIABILITIES \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2023 \nRestated \n \nGovernmental Activities \n \nAdditions \n \nDeductions \n \nBalance June 30, 2024 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ 9,600,000.00 $ \n \n- $ \n \nLeases \n \n143,544.72 390,736.14 \n \nSubscription Liabilities \n \n182,492.28 \n \n- \n \n820,000.00 $ 8,780,000.00 $ \n \n174,959.82 \n \n359,321.04 \n \n137,638.56 \n \n44,853.72 \n \n855,000.00 80,420.93 13,874.54 \n \n$ 9,926,037.00 $ 390,736.14 $ 1,132,598.38 $ 9,184,174.76 $ 949,295.47 \n \nGeneral Obligation Bonds \n \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation 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 from direct borrowings and direct placements related to governmental activities as of June 30, 2024. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2021 \n \n1.25% \n \n12/16/2021 9/1/2032 \n \n$ 10,000,000.00 $ 8,780,000.00 \n \n- 18 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \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 \n2025 2026 2027 2028 2029 2030 - 2033 \n \n$ \n \n855,000.00 $ \n \n895,000.00 \n \n940,000.00 \n \n990,000.00 \n \n1,040,000.00 \n \n4,060,000.00 \n \n107,125.00 96,312.50 84,968.75 73,062.50 60,531.25 \n103,906.25 \n \nTotal Principal and Interest $ 8,780,000.00 $ \n \n525,906.25 \n \nLeases \nThe School District has acquired various copiers, printers and postage machines under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes. \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2024: \nGovernmental Activities \n \nEquipment Less: Accumulated Amortization \n \n$ 414,987.43 68,016.78 \n \n$ 346,970.65 \n \nDuring the current fiscal year, the School District entered into new lease agreements as lessee for rightto-use copiers and postage machines at a cost of $390,736.14. These agreements qualify as leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of inception. \n \nLeases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nTwenty-Seven Copier Lease Finisher Lease Three Copier Lease Postage Machine - District Office Postage Machine - High School \n \n2.25% 2.25% 2.25% 2.25% 2.25% \n \n1/12/2024 5/17/2022 12/28/2021 7/31/2023 7/30/2022 \n \n12/31/2029 $ 4/22/2026 3/23/2026 2/28/2030 6/30/2027 \n \n373,468.91 $ 1,468.46 \n21,968.95 9,661.85 4,209.63 \n \n337,982.46 703.46 \n9,854.89 8,235.55 2,544.68 \n \n$ 410,777.80 $ 359,321.04 \n \n- 19 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe following is a schedule of total lease payments: \nFiscal Year Ended June 30: \n \nPrincipal \n \n2025 2026 2027 2028 2029 2030 \n \n$ \n \n80,420.93 $ \n \n80,706.67 \n \n77,805.02 \n \n78,674.99 \n \n40,730.87 \n \n982.56 \n \nTotal Principal and Interest \n \n$ \n \n359,321.04 $ \n \nInterest \n7,099.93 5,311.77 3,575.56 1,847.00 \n269.10 2.76 \n18,106.12 \n \nSubscription Liabilities \nThe School District has entered into certain subscription-based contracts to use vendor-provided information technology (IT) under the provisions of various contracts that convey control of the rightto-use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as subscription liabilities for accounting purposes. The subscription asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the subscriptionbased information technology arrangement term. \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2024: \nGovernmental Activities \n \nSubscription Assets \n \n$ \n \nLess: Accumulated Amortizaion \n \n77,584.13 15,516.83 \n \n$ \n \n62,067.30 \n \nAt the commencement of the subscription-based information technology arrangement (SBITA), the School District initially measures the subscription liability at the present value of payments expected to be made during the term of the SBITA. Subsequently, the subscription liability is reduced by the principal portion of SBITA payments made. The right-to-use subscription asset is initially measured as the initial amount of the subscription liability, adjusted for SBITA payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the SBITA term. \n \n- 20 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nSubscription liabilities currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nSoftdocs \n \n2.25% \n \n6/5/2023 \n \n6/1/2027 $ 77,584.13 $ 44,853.72 \n \nThe following is a schedule of total subscription liability payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2025 2026 2027 \n \n$ \n \n13,874.54 $ \n \n14,930.91 \n \n16,048.27 \n \nInterest \n1,009.21 697.03 361.09 \n \nTotal Principal and Interest $ \n \n44,853.72 $ \n \n2,067.33 \n \nNOTE 8: RISK MANAGEMENT \nInsurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \nGeorgia School Boards Association Risk 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 contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \nWorkers' Compensation \nGeorgia School Boards Association Workers' Compensation Fund \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \n \n- 21 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nUnemployment Compensation \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures with the related liability and liability reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not paid unemployment claims during the past two fiscal years. \n \nSurety Bond The School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Drivers Education \n \n$ \n \n100,000.00 \n \n$ \n \n10,000.00 \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2024: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Continuation of State Programs Capital Projects Debt Service \nAssigned School Activity Accounts Banquet Fund Scholarship Fund \nUnassigned \n \n$ \n \n25,306.18 \n \n$ 1,219,745.06 10,634.34 \n1,809,979.44 962,125.00 \n \n4,002,483.84 \n \n$ 523,394.27 8,453.74 \n41,323.81 \n \n573,171.82 21,205,193.63 \n \nFund Balance, June 30, 2024 \n \n$ 25,806,155.47 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nNOTE 10: SIGNIFICANT 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- 22 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \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 11: 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 post-employment 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 $778,184.00 for the year ended June 30, 2024. 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, 2024, the School District reported a liability of $22,668,087.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2023. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2022. An expected total OPEB liability as of June 30, 2023 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, 2023. At June 30, 2023, the School District's proportion was 0.206950%, which was an increase of 0.001242% from its proportion measured as of June 30, 2022. \n \n- 23 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nFor the year ended June 30, 2024, the School District recognized OPEB expense of ($526,529.00). At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n660,737.00 $ 6,510,541.00 \n \nChanges of assumptions \n \n4,118,346.00 \n \n2,830,900.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n13,600.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n748,599.00 \n \n332,108.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n778,184.00 \n \n- \n \nTotal \n \n$ 6,319,466.00 $ 9,673,549.00 \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, 2025. 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 \n2025 2026 2027 2028 2029 Thereafter \n \n$ (1,468,226.00) \n \n$ (1,075,102.00) \n \n$ (1,378,047.00) \n \n$ \n \n(471,234.00) \n \n$ \n \n219,785.00 \n \n$ \n \n40,557.00 \n \n- 24 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022 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, 2023: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate \n \n7.00% \n \nUltimate trend rate \n \n4.50% \n \nYear of Ultimate trend rate \n \n2032 \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General \nEmployee Mortality Table, with no adjustment, with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 104% for males and 99% for females) with the MP-2019 Projection scale applied generationally. \n \n- 25 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \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, 2022 valuation were based on a review of recent plan experience done concurrently with the June 30, 2022 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. 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 Equities \n \n30.00% 70.00% \n \n1.50% 9.40% \n \nTotal \n \n100.00% \n \n* Net of inflation \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.68% was used as the discount rate, as compared with last year's rate of 3.57%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (3.65% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers 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 2128. \n \n- 26 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \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 3.68%, 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 (2.68%) or 1-percentage-point higher (4.68%) than the current discount rate: \n \n1% Decrease (2.68%) \n \nCurrent Discount Rate (3.68%) \n \n1% Increase (4.68%) \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n25,695,322.00 $ \n \n22,668,087.00 $ \n \n20,118,515.00 \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 1percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n19,525,551.00 $ \n \n22,668,087.00 $ \n \n26,542,155.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 12: RETIREMENT PLANS \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) \n \nPlan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \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 \n \n- 27 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \ncompensation 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. 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 2024. The School District's contractually required contribution rate for the year ended June 30, 2024 was 19.98% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $4,067,370.00 from the School District. \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 $16.00, 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. \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 by the State of Georgia was $62,975.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2024, the School District reported a liability of $40,908,273.00 for its proportionate share of the net pension liability for TRS. \n- 28 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe net pension liability for TRS was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2023. \n \nAt June 30, 2023, the School District's TRS proportion was 0.138558%, which was a decrease of 0.004900% from its proportion measured as of June 30, 2022. \n \nAt June 30, 2024, 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 $386,196.00. \n \nThe PSERS net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 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, 2023. \n \nFor the year ended June 30, 2024, the School District recognized pension expense of $7,756,203.00 for TRS and $69,703.00 for PSERS and revenue of $69,703.00 for PSERS. The revenue is support provided by the State of Georgia. \n \nAt June 30, 2024, 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 \nDifferences between expected and actual experience $ 2,077,267.00 $ 169,142.00 \n \nChanges of assumptions \n \n4,208,583.00 \n \n- \n \nNet difference between projected and actual earnings on pension plan investments \n \n2,877,189.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n86,889.00 \n \n831,937.00 \n \nSchool District contributions subsequent to the \n \nmeasurement date \n \n4,067,370.00 \n \n- \n \nTotal \n \n$ 13,317,298.00 $ 1,001,079.00 \n \n- 29 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe School District contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. 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 \n2025 2026 2027 2028 \n \n$ 2,446,696.00 $ 1,536,345.00 $ 5,381,116.00 $ (1,115,308.00) \n \nActuarial Assumptions: The total pension liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022, 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 \n6.90%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \n \nPublic School Employees Retirement System: \n \nInflation Salary increases Investment rate of return \nPost-retirement benefit increases \n \n2.50% \nN/A 7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 30 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type \n \nMembership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees \n \nGeneral Healthy Below- Male: +2; Female: +2 Median Annuitant \n \nMale: 101%; Female: 103% \n \nDisability Retirees \n \nGeneral Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Male: +2; Female: +2 Contingent Survivors \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTRS/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% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n \n0.90% 9.40% 13.40% 9.40% 11.40% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total PSERS pension liability was 7.00%. 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 and PSERS pension plans' fiduciary net position were projected to be \n \n- 31 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \navailable 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 6.90%, 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 (5.90%) or 1-percentage-point higher (7.90%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n1% Increase (7.90%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ \n \n64,680,738.00 $ \n \n40,908,273.00 $ 21,494,854.00 \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 publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \nDefined Contribution Plan \n \nThe School District maintains 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 has selected Lincoln Financial Services as the provider of this plan. For each employee covered under PSERS, the Board contributes an amount equal to 3% of the employee's base pay. The employee becomes vested in the plan from the enrollment date. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment. \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 \n2024 2023 2022 \n \n3% \n \n$ \n \n3% \n \n$ \n \n3% \n \n$ \n \n10,148.00 10,006.00 \n9,139.00 \n \n- 32 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 13: RESTATEMENT OF PRIOR YEAR NET POSITION \nDuring fiscal year 2024, the School District identified two errors in the reporting of its financial statements for fiscal year 2023. \n1. SBITA Recognition Error: The School District did not properly recognize a subscription-based information technology arrangement (SBITA) in accordance with GASB Statement No. 96, \"Subscription-Based Information Technology Arrangements.\" This resulted in the omission of a right-to-use asset and corresponding SBITA liability, as well as the related amortization expense. \n2. Capital Asset Depreciation Error: The School District also identified an error in the carrying values of its capital assets due to incorrect calculations of accumulated depreciation. This misstatement resulted in an understatement of capital assets, net and an understatement of depreciation expense in the prior year. \nAs a result of these correction, the beginning net position of July 1, 2023 has been restated as follows: \n \nNet Position, July 1, 2023, as previously reported \n \n$ \n \n2,679,545.12 \n \nError Corrections: Correction of SBITA liability at July 1, 2023 Corrections and Reclassifications of Capital Assets carrying values and associated accumulated depreciation \n \n(57,729.78) 69,913.61 \n \nNet Position, July 1, 2023, as restated \n \n$ \n \n2,691,728.95 \n \nNOTE 14: TAX ABATEMENTS \nElbert County has entered into a property tax abatement agreement with a local business for the purpose of attracting or retaining businesses within their jurisdiction. The abatements may be granted to any business located within or promising to relocate to Elbert County. \nFor the fiscal year ended June 30, 2024, Elbert County abated property taxes due to the School District that were levied on October 4, 2023 and due on December 20, 2023. This abatement resulted in loss tax revenue to the School District in fiscal year 2024 of $283,938.72. This abatement was a 95% property tax abatement granted to a green energy company residing in Elbert County and will continue with decreasing abatement percentages through 2042. \nNOTE 15: SPECIAL ITEM \nDuring fiscal year 2024, the School District disposed of various equipment and transferred title to a parcel of land and old school buildings and equipment to the City of Bowman. These items were removed from the capital assets records at their net carrying values and combined with the proceeds received resulted in a net loss of $213,558.06. This amount is reflected as a net loss on disposal of capital assets and is reported as a special item on the Statement of Activities. \n \n- 33 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.138558% $ 40,908,273.00 $ 0.143458% $ 46,583,586.00 $ 0.142602% $ 12,612,196.00 $ 0.143212% $ 34,691,552.00 $ 0.144087% $ 30,982,601.00 $ 0.150555% $ 27,946,233.00 $ 0.142965% $ 26,568,441.00 $ 0.146132% $ 30,148,661.00 $ 0.151458% $ 23,057,977.00 $ 0.158677% $ 20,046,746.00 $ \n \n- \n \n$ 40,908,273.00 $ 20,179,359.36 \n \n- \n \n$ 46,583,586.00 $ 19,383,807.14 \n \n- \n \n$ 12,612,196.00 $ 18,553,704.46 \n \n- \n \n$ 34,691,552.00 $ 18,464,037.77 \n \n- \n \n$ 30,982,601.00 $ 17,549,418.52 \n \n- \n \n$ 27,946,233.00 $ 17,943,982.57 \n \n- \n \n$ 26,568,441.00 $ 16,431,083.38 \n \n- \n \n$ 30,148,661.00 $ 16,034,314.13 \n \n- \n \n$ 23,057,977.00 $ 16,023,377.62 \n \n- \n \n$ 20,046,746.00 $ 16,202,581.03 \n \n202.72% 240.32% \n67.98% 187.89% 176.54% 155.74% 161.70% 188.03% 143.90% 123.73% \n \n76.29% 72.85% 92.03% 77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \n \n- 35 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2024 \n \n$ \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n4,067,370.00 $ 4,031,836.00 $ 3,839,932.00 $ 3,536,336.00 $ 3,903,298.00 $ 3,667,282.47 $ 3,016,383.47 $ 2,344,715.60 $ 2,288,096.62 $ 2,106,396.50 $ \n \n4,067,370.00 $ 4,031,836.00 $ 3,839,932.00 $ 3,536,336.00 $ 3,903,298.00 $ 3,667,282.47 $ 3,016,383.47 $ 2,344,715.60 $ 2,288,096.62 $ 2,106,396.50 $ \n \n- \n \n$ \n \n20,357,206.23 \n \n- \n \n$ \n \n20,179,359.36 \n \n- \n \n$ \n \n19,383,807.14 \n \n- \n \n$ \n \n18,553,704.46 \n \n- \n \n$ \n \n18,464,037.77 \n \n- \n \n$ \n \n17,549,418.52 \n \n- \n \n$ \n \n17,943,982.57 \n \n- \n \n$ \n \n16,431,083.38 \n \n- \n \n$ \n \n16,034,314.13 \n \n- \n \n$ \n \n16,023,377.62 \n \n19.98% 19.98% 19.81% 19.06% 21.14% 20.90% 16.81% 14.27% 14.27% 13.15% \n \n- 36 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 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 \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n386,196.00 $ 507,140.00 $ \n50,934.00 $ 345,473.00 $ 353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $ \n \n386,196.00 $ 507,140.00 $ \n50,934.00 $ 345,473.00 $ 353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $ \n \n951,664.37 849,191.57 807,849.42 805,734.41 809,074.92 845,484.37 852,404.01 794,053.46 773,148.31 717,174.57 \n \nN/A \n \n85.67% \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \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 \n- 37 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB \nliability \n \n2024 2023 2022 2021 2020 2019 2018 \n \n0.206950% $ 22,668,087.00 $ 0.205708% $ 20,371,638.00 $ 0.201195% $ 21,791,083.00 $ 0.203962% $ 29,957,268.00 $ 0.205774% $ 25,252,885.00 $ 0.201274% $ 25,581,307.00 $ 0.202548% $ 28,457,913.00 $ \n \n- \n \n$ 22,668,087.00 \n \n- \n \n$ 20,371,638.00 \n \n- \n \n$ 21,791,083.00 \n \n- \n \n$ 29,957,268.00 \n \n- \n \n$ 25,252,885.00 \n \n- \n \n$ 25,581,307.00 \n \n- \n \n$ 28,457,913.00 \n \n19,957,139.77 19,891,998.56 17,927,791.04 17,114,840.48 16,227,984.46 16,850,692.05 15,389,820.86 \n \n113.58% 102.41% 121.55% 175.04% 155.61% 151.81% 184.91% \n \n6.05% 6.17% 6.14% 3.99% 4.63% 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- 38 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2024 \n \n$ \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n778,184.00 $ 795,606.00 $ 743,789.00 $ 748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n778,184.00 $ 795,606.00 $ 743,789.00 $ 748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n- \n \n$ \n \n19,417,847.94 \n \n- \n \n$ \n \n19,957,139.77 \n \n- \n \n$ \n \n19,891,998.56 \n \n- \n \n$ \n \n17,927,791.04 \n \n- \n \n$ \n \n17,114,840.48 \n \n- \n \n$ \n \n16,227,984.46 \n \n- \n \n$ \n \n16,850,692.05 \n \n- \n \n$ \n \n15,389,820.88 \n \n4.01% 3.99% 3.74% 4.17% 4.03% 6.83% 6.19% 6.86% \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 ELBERT BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \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 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). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. 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 and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2022 valuation: The tobacco use assumption and aging factors were revised. \nJune 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \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, back to 3.58% as of June 30, 2019, to 2.22% as of June 30, 2020, to 2.20% as of June 30, 2021, to 3.57% as of June 30, 2022, and to 3.68% as of June 30, 2023. \n- 40 - \n \n ELBERT COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2024 \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \n \n$ \n \n10,380,235.00 $ \n \n10,380,235.00 $ \n \n12,445,978.32 $ \n \n177,000.00 \n \n177,000.00 \n \n156,513.13 \n \n25,840,820.60 \n \n25,961,554.87 \n \n27,702,646.68 \n \n9,986,825.30 \n \n12,015,497.80 \n \n10,934,798.24 \n \n183,550.00 \n \n183,550.00 \n \n370,377.00 \n \n5,100.00 \n \n5,100.00 \n \n290,312.63 \n \n333,759.00 \n \n333,759.00 \n \n1,370,725.71 \n \n46,907,289.90 \n \n49,056,696.67 \n \n53,271,351.71 \n \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operation Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nExcess of Revenues over (under) Expenditures \n \n29,367,967.68 \n2,337,663.71 1,702,355.76 \n447,449.85 974,646.12 2,897,665.82 480,343.84 2,830,768.54 2,377,148.36 104,356.47 466,582.75 \n2,774,541.00 \n120,000.00 \n75,000.00 15,000.00 46,971,489.90 (64,200.00) \n \n29,703,938.01 \n2,682,716.13 2,527,495.56 \n437,857.85 952,455.73 2,792,747.46 479,044.08 3,244,991.39 2,960,315.24 \n98,435.47 453,194.75 \n2,715,205.00 \n- \n75,000.00 15,000.00 49,138,396.67 (81,700.00) \n \n27,700,860.16 \n2,561,784.21 1,804,085.47 \n424,860.12 1,093,008.45 2,703,174.23 \n393,540.06 3,178,478.85 3,074,886.49 \n98,097.53 361,172.47 \n39,479.85 3,033,272.36 \n390,736.14 \n312,598.38 6,993.24 \n47,177,028.01 6,094,323.70 \n \nOTHER FINANCING SOURCES(USES) Sale of Capital Assets Proceeds from Lease Liabilities Total Other Financing Sources (Uses) \n \n- \n \n- \n \n146,695.00 \n \n- \n \n- \n \n390,736.14 \n \n- \n \n- \n \n537,431.14 \n \nNet Change in Fund Balances \n \n(64,200.00) \n \n(81,700.00) \n \n6,631,754.84 \n \nFund Balances - Beginning (Restated) \n \n16,403,026.67 \n \n16,403,026.67 \n \n16,402,296.19 \n \nAdjustments \n \n33,514.78 \n \n(14,464.62) \n \n- \n \nFund Balances - Ending \n \n$ \n \n16,372,341.45 $ \n \n16,306,862.05 $ \n \n23,034,051.03 $ \n \nSCHEDULE \"7\" \nVARIANCE OVER/UNDER \n2,065,743.32 (20,486.87) \n1,741,091.81 (1,080,699.56) \n186,827.00 285,212.63 1,036,966.71 4,214,655.04 \n2,003,077.85 \n120,931.92 723,410.09 \n12,997.73 (140,552.72) \n89,573.23 85,504.02 66,512.54 (114,571.25) \n337.94 92,022.28 (39,479.85) (318,067.36) (390,736.14) \n(237,598.38) 8,006.76 \n1,961,368.66 6,176,023.70 \n146,695.00 390,736.14 537,431.14 \n6,713,454.84 \n(730.48) \n14,464.62 \n6,727,188.98 \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 funds and programs: The actual revenues and expenditures of the various principal accounts are shown below: \n \nSchool Activity Accounts E-Rate Program GNET Program Various other Local Programs \n \nRevenues \n \nExpenditures \n \n$ \n \n1,103,941.41 $ \n \n1,088,494.83 \n \n123,525.00 \n \n123,525.00 \n \n76,838.90 \n \n76,838.90 \n \n113,457.92 \n \n140,080.96 \n \n$ \n \n1,417,763.23 $ \n \n1,428,939.69 \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- 41 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2024 \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 COVID-19- National School Lunch Program Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Child Nutrition Discretionary Grants Limited Availability Total Other Programs Total U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development Migrant Education State Grant Program Rural and Low-Income School Program Rural and Low-Income School Program Student Support and Academic Enrichment Program 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 Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n10.555 \n \n245GA324N1199 $ 245GA324N1199 \n225GA324N1099 \n \n720,554.95 2,053,023.18 \n81,164.66 2,854,742.79 \n \n10.560 10.579 \n \n245GA904N2533 202321I500345 \n \n4,939.53 59,260.62 64,200.15 2,918,942.94 \n \n84.425U 84.425W \n \nS425U210012 S425W210011 \n \n3,325,557.57 \n10,698.21 3,336,255.78 \n \n84.027A 84.027A 84.173A \n \nH027A220073 H027A230073 H173A230081 \n \n84.048A 84.371C 84.011A 84.358B 84.358B 84.424A 84.424A 84.424F 84.367A 84.367A 84.010A 84.010A \n \nV048A230010 S371C190016 S011A230011 S358F220010 S358F230010 S424A220011 S424A230011 S424F220011 S367A220001 S367A230001 S010A220010 S010A230010 \n \n89,426.00 818,562.05 \n28,134.00 936,122.05 \n52,802.27 821,537.04 \n11,155.62 5,419.00 \n86,613.49 77.00 \n139,197.08 185,556.69 116,472.00 \n93,339.68 295,666.00 1,763,473.88 3,571,309.75 7,843,687.58 \n- 42 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Pass-Through From Y.M.C.A Head Start \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.600 \n \n04CH010232 \n \n398,201.87 \n \n12. UNKNOWN \n \n59,677.39 \n \n$ \n \n11,220,509.78 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Elbert County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2024. 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 Expenditures 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 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 ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"9\" \n \nAGENCY/FUNDING \n \nGRANTS \n \nBright From the Start: \n \nGeorgia Department of Early Care and Learning \n \nPre-Kindergarten Program \n \n$ \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \nKindergarten Program - Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades - Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades - Early Intervention (4-5) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nCareer Technical and Agricultural Education Program 9-12 (CTAE) \n \nStudents with Disabilities \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \nMedia Center Program \n \n20 Days Additional Instruction \n \nStaff and Professional Development \n \nPrincipal Staff and Professional Development \n \nIndirect Cost \n \nCentral Administration \n \nSchool Administration \n \nFacility Maintenance and Operations \n \nMid-Term Adjustment Hold-Harmless \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nNursing Services \n \nVocational Supervisors \n \nEducation Equalization Funding Grant \n \nOther State Programs \n \nCareer, Technical and Agricultural Education (CTEA) \n \nDyslexia Services Grant \n \nFood Services \n \nHygiene Products \n \nMath and Science Supplements \n \nOne Time QBE Adjustment \n \nPreschool Disability Services \n \nSchool Security Grant \n \nGeorgia State Finance and Investment Commission \n \nReimbursement of Construction Projects \n \nOffice of the State Treasurer \n \nPublic School Employees Retirement \n \nOther State Agencies \n \nCriminal Justice Coordinating Council \n \nLaw Enforcement Grant \n \nOTHER \n \nGeorgia Chamber of Commerce Fundation \n \nRural Development Grant \n \n$ \n \nSee notes to the basic financial statements. \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL \n \nCAPITAL PROJECTS \n \nFUND \n \nFUND \n \n1,078,561.50 $ \n \n- $ \n \n944,708.00 637,947.00 1,886,469.00 1,569,589.00 962,828.00 1,000,252.00 2,551,002.00 2,265,506.00 1,114,328.00 4,197,844.00 904,545.00 141,543.00 199,486.00 179,372.00 436,988.00 141,269.00 \n73,263.00 1,610.00 \n661,757.00 971,057.00 774,739.00 \n29,004.00 \n688,938.00 616,770.00 \n68,868.00 14,438.00 2,679,759.00 \n45,506.07 6,072.00 \n73,474.00 2,641.00 \n21,045.03 337,380.00 104,462.72 125,237.50 \n- \n62,975.00 \n91,392.86 \n40,020.00 \n27,702,646.68 $ \n \n- \n- \n- \n- \n265,978.00 \n- \n- \n- \n265,978.00 $ \n \nTOTAL \n1,078,561.50 \n944,708.00 637,947.00 1,886,469.00 1,569,589.00 962,828.00 1,000,252.00 2,551,002.00 2,265,506.00 1,114,328.00 4,197,844.00 904,545.00 141,543.00 199,486.00 179,372.00 436,988.00 141,269.00 \n73,263.00 1,610.00 \n661,757.00 971,057.00 774,739.00 \n29,004.00 \n688,938.00 616,770.00 \n68,868.00 14,438.00 2,679,759.00 \n45,506.07 6,072.00 \n73,474.00 2,641.00 \n21,045.03 337,380.00 104,462.72 125,237.50 \n265,978.00 \n62,975.00 \n91,392.86 \n40,020.00 \n27,968,624.68 \n- 44 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Renovating, modernizing, equipping, repairing, improving, planning, and acquiring other system facilities to include elementary, middle, high, athletic and operational facilities. (2) Purchasing textbooks and software. (3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities. (4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices. (5) Purchasing, upgrading, renovating, improving, planning and modernizing HVAC and associated systems. (6) Acquiring and preparing land for the construction of new or replacement facilities and the expansion of existing School District facilities as well as replacing, purchasing, upgrading or supplementing capital equipment. \nSubtotal 2016 Projects \nSPLOST 2021 (1) Adding to, renovating, repairing, improving and equipping existing school buildings and School District facilities, including early learning center, primary school, elementary school, middle school and high school facilities, athletic facilities, operations facilities and parking facilities. (2) Acquiring textbooks, e-books, e-book readers, computers, laptops, tablets, and peripherals for the school system. (3) Acquiring school buses and transportation and maintenance equipment. (4) Acquiring miscellaneous new equipment , fixtures and and furnishings for the school system, including but not limited to technology equipment and safety and security equipment. (5) Renovating, repairing, improving, and equipping heating, air conditioning and associated systems at facilities throughout the School District. (6) Paying a portion of the debt service on the General Obligation Debt of the School District. (7) Paying expenses incident to accomplishing the foregoing. \nSubtotal 2021 Projects \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n6,747,219.00 $ \n \n5,112,361.57 \n \n725,000.00 \n \n684,020.07 \n \n805,000.00 \n \n1,247,204.64 \n \nCompleted Completed \nCompleted \n \n3,400,000.00 2,616,219.00 \n \n1,110,581.88 1,512,983.15 \n \nCompleted Completed \n \n125,000.00 14,418,438.00 \n \n157,317.26 9,824,468.57 \n \nCompleted \n \n3,287,296.00 924,650.00 \n1,500,000.00 \n \n13,557,328.57 924,650.00 \n1,500,000.00 \n \n1,488,054.00 \n \n1,488,054.00 \n \n300,000.00 \n \n300,000.00 \n \n6,500,000.00 - \n14,000,000.00 \n \n6,500,000.00 - \n24,270,032.57 \n \n$ \n \n28,418,438.00 $ 34,094,501.14 \n \n6/30/2027 6/30/2027 6/30/2027 \n6/30/2027 \n6/30/2027 6/30/2027 6/30/2027 \n \n- 46 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"10\" \n \nAMOUNT \n \nAMOUNT \n \nEXPENDED \n \nEXPENDED \n \nTOTAL \n \nEXCESS \n \nIN CURRENT \n \nIN PRIOR \n \nCOMPLETION \n \nPROCEEDS NOT \n \nPROJECT \n \nYEAR (3) (4) \n \nYEARS (3) (4) \n \nCOST (5) (6) \n \nEXPENDED \n \nSPLOST 2016 \n \n(1) Renovating, modernizing, equipping, repairing, improving, \n \nplanning, and acquiring other system facilities to include \n \nelementary, middle, high, athletic and operational facilities. \n \n$ \n \n- $ \n \n5,112,361.57 $ \n \n5,112,361.57 $ \n \n- \n \n(2) Purchasing textbooks and software. \n \n12,750.00 \n \n671,270.07 \n \n684,020.07 \n \n- \n \n(3) Purchasing, acquiring and improving school buses, \n \nvehicles, and improvements to parking facilities. \n \n121,010.45 \n \n1,126,194.19 \n \n1,247,204.64 \n \n- \n \n(4) Purchasing, upgrading and supporting existing and future \n \ntechnology initiatives to include but not be limited to \n \ncomputers, computer peripheral devices, infrastructure, \n \nsecurity, and end user devices. \n \n- \n \n1,110,581.88 \n \n1,110,581.88 \n \n- \n \n(5) Purchasing, upgrading, renovating, improving, planning \n \nand modernizing HVAC and associated systems. \n \n- \n \n1,512,983.15 \n \n1,512,983.15 \n \n- \n \n(6) Acquiring and preparing land for the construction of new or \n \nreplacement facilities and the expansion of existing School \n \nDistrict facilities as well as replacing, purchasing, upgrading or \n \nsupplementing capital equipment. \n \n- \n \n157,317.26 \n \n157,317.26 \n \n- \n \nSubtotal 2016 Projects \n \n133,760.45 \n \n9,690,708.12 \n \n9,824,468.57 \n \n- \n \nSPLOST 2021 \n \n(1) Adding to, renovating, repairing, improving and equipping \n \nexisting school buildings and School District facilities, including early \n \nlearning center, primary school, elementary school, middle school \n \nand high school facilities, athletic facilities, operations facilities \n \nand parking facilities. \n \n2,787,324.64 \n \n10,422,146.02 \n \n- \n \n- \n \n(2) Acquiring textbooks, e-books, e-book readers, computers, \n \nlaptops, tablets, and peripherals for the school system. \n \n62,246.60 \n \n16,555.57 \n \n- \n \n- \n \n(3) Acquiring school buses and transportation and \n \nmaintenance equipment. \n \n387,059.55 \n \n85,063.00 \n \n- \n \n- \n \n(4) Acquiring miscellaneous new equipment , fixtures and \n \nand furnishings for the school system, including but not limited \n \nto technology equipment and safety and security equipment. \n \n221,860.00 \n \n8,690.00 \n \n- \n \n- \n \n(5) Renovating, repairing, improving, and equipping heating, \n \nair conditioning and associated systems at facilities throughout \n \nthe School District. \n \n118,838.15 \n \n- \n \n- \n \n- \n \n(6) Paying a portion of the debt service on the General Obligation \n \nDebt of the School District. \n \n937,468.75 \n \n525,000.00 \n \n- \n \n- \n \n(7) Paying expenses incident to accomplishing the foregoing. \n \n- \n \n- \n \n- \n \nSubtotal 2021 Projects \n \n4,514,797.69 \n \n11,057,454.59 \n \n- \n \n- \n \nTotal \n \n$ \n \n4,648,558.14 $ \n \n20,748,162.71 $ \n \n9,824,468.57 $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Elbert County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \n \nPrior Years \n \n$ \n \nCurrent Year \n \n272,001.50 - \n \nTotal \n \n$ \n \n272,001.50 \n \n(5) All projects in SPLOST 2016 are appropriately funded as of June 30, 2024. (6) Projects 5 and 6 have been completed as of June 30, 2022. Project 2 was completed as of June 30, 2023. All other projects in SPLOST 2016 \nwere completed on or before June 30, 2024. \nSee notes to the basic financial statements. \n \n- 47 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nWe have audited the financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 3, 2025. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal 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 basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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 or significant deficiencies may exist that were not identified. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Report on 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 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, \nGreg S. Griffin State Auditor \nMarch 3, 2025 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Elbert County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2024. 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. \nIn our opinion, the School District 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, 2024. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \n \n 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 Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \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 \nMarch 3, 2025 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2024 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n Section IV Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2024 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities and Each Major Fund \n \nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs:  Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n84.010 84.371 \n \nTitle I Grants to Local Educational Agencies Comprehensive Literacy Development \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 Yes \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n "},{"id":"dlg_ggpd_1369159216-2024-03-05","title":"Annual financial report, 2023 June 30, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report.","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Elbert County, 34.11679, -82.8401"],"dcterms_creator":null,"dc_date":["2024-03-05"],"dcterms_description":["Began with: Fiscal year 2021.","Report year covers fiscal year.","May have supplement: Salaries and travel reimbursement (Elbert County Board of Education (Ga.))","Fiscal year 2021, released 2022?; title from PDF cover (Georgia Government Publications database, viewed February 8, 2023).","Fiscal year 2021, released 2022? (Georgia Government Publications database, viewed February 8, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Georgia : Georgia Department of Audits \u0026 Accounts, [2022?]-"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Elbert County--Auditing--Periodicals.","Education--Georgia--Elbert County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Elbert County--fast","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, 2023 June 30, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report."],"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_1369159216-2024-03-05"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1369159216-2024-03-05"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2023 \nElbert County Board of Education \nElberton, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Elbert County Board of Education \n \nTable of Contents \n \nSection I Financial \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 in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG Notes to the Basic Financial Statements \n \n7 \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 Contributions  Teachers 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 Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n38 \n \n5 Schedule of Contributions  School OPEB Fund \n \n39 \n \n6 Notes to the Required Supplementary Information \n \n40 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n41 \n \n Supplementary Information \n \n8 Schedule of Expenditures of Federal Awards \n \n42 \n \n9 Schedule of State Revenue \n \n44 \n \n10 Schedule of Approved Local Option Sales Tax Projects \n \n46 \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 Audit Findings \nSection IV Findings and Questioned Costs Schedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District) as of and for the year ended June 30, 2023, 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. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2023, 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. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \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 is the responsibility of management and, 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 \n \n historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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 appropriate evidence to express an opinion or provide any assurance. \nSupplementary 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 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 GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated March 5, 2024 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 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 \nMarch 5, 2024 \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2023 include a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2023 are as follows: \nOn the government-wide financial statements: \n The School District's net position at June 30, 2023 was $2.7 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2023 of $2.7 million represented an increase of $6.4 million when compared to the prior year. The increase in net position of $6.4 million in fiscal year 2023 was about $5.0 million less than the increase in net position that occurred in the prior year. This situation occurred primarily because actuarial estimates for pension and OPEB expense increased about $5.4 million from the prior year. \n The School District had $47.3 million in expenses relating to governmental activities; about $35.6 million of the $47.3 million in expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $18.0 million were adequate to provide for these programs. \n As stated above, general revenues accounted over for $18.0 million or about 33.6% of all revenues totaling almost $53.7 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in chart below have been rounded to one decimal place.) \n \nSource of Revenues \nProgram Revenues \n66.4% \n \nGeneral Revenue Property Taxes 19.5% \nGeneral Revenue Sales Taxes 6.2% \n \nGeneral Revenue All Other 7.9% \n \ni \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nOn the fund financial statements: \n Among major funds, the general fund had $48.0 million in revenues and almost $44.9 million in expenditures. The general fund balance of about $16.4 million at June 30, 2023 increased roughly $2.4 million from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consist of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Elbert County School District, the general fund, capital projects fund and debt service fund are all considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nGovernment-Wide Statements \nSince Elbert County School District has no operations that have been classified as \"Business Activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all the School District's assets, deferred outflows, liabilities and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most privatesector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt, including pension and postemployment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the accrual \nbasis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position is amounts with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \nThe School District has one kind of fund as discussed below: \nGovernmental Funds  All of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position- as measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \nIn the case of the Elbert County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.7 million at June 30, 2023. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $2.7 million of net \niii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nposition, $4.8 million was restricted for continuation of various State and Federal programs, debt service and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \n \nIn addition, the School District had almost $35.8 million (net of related debt) invested in capital assets e.g., \nland, buildings, and equipment). The School District uses these capital assets to provide educational \nservices to students within geographic boundaries served by the School District. Because of the very nature \nand on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \n \nBecause of the restrictions on net position as discussed above, the School District had an unrestricted \n(deficit) of about $37.9 million at June 30, 2023. The reader should remember this deficit includes pension related charges recorded because of the implementation (fiscal year 2015) of GASB No. 68, Accounting and Financial Reporting for Pensions and GASB No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an Amendment to GASB No. 68; and also includes charges recorded because of the implementation (fiscal year 2018) of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The School District believes it is also meaningful to view the \nSchool District's net position in the following manner: \n \nNet position associated with pension obligations \n \n$ \n \n(24,906,599) \n \nNet position associated with postemployment benefits other than pension obligations \n \n(27,326,883) \n \nNet position exclusive of pension obligations and postemployment benefits \n \n54,913,027 \n \nNet Position, June 30, 2023 (deficit) \n \n$ \n \n2,679,545 \n \nThe above analysis reflects, exclusive of pension obligations and postemployment benefits, the School District's Net Position is a positive $54.9 million and management believes the School District's financial position is sound. \n \niv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net Total Assets \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \n$ 24,294,414 $ 31,487,542 \n \n44,338,537 \n \n29,783,205 \n \n68,632,951 \n \n61,270,747 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan Total Deferred Outflows of Resources \nTotal Assets and Deferred Outflows of Resources \n \n22,276,856 5,652,477 \n27,929,333 \n96,562,284 \n \n9,580,516 5,099,824 14,680,340 \n75,951,087 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability Total Liabilities \n \n3,851,617 9,868,307 46,583,586 20,371,638 80,675,148 \n \n3,532,589 10,216,179 12,612,196 21,791,083 48,152,047 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan Total Deferred Inflows of Resources \nTotal Liabilities and Deferred Inflows of Resources \n \n599,869 12,607,722 13,207,591 93,882,739 \n \n19,104,875 12,399,553 31,504,428 79,656,475 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n35,755,153 4,818,227 \n(37,893,835) \n \n28,286,236 7,208,556 \n(39,200,180) \n \nTotal Net Position \n \n$ \n \n2,679,545 $ (3,705,388) \n \nv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nIn connection with the unrestricted deficit at June 30, 2023, as shown above, management presents the following additional information: \n \nTotal unrestricted net position (deficit) Add: \nUnrestricted deficit in net position resulting from recognition of net pension obligations \n \n$ \n \n(37,893,835) \n \n24,906,599 \n \nUnrestricted deficit in net position resulting from recognition of postemployment benefits other than pension obligations \n \n27,326,883 \n \nUnrestricted net position, exclusive of the net pension obligation and postemployment benefits effect \n \n$ \n \n14,339,647 \n \nThe above analysis shows that the recognition of liabilities for pension obligations and postemployment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \n \nvi \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \n$ \n \n402,802 $ \n \n32,645,620 \n \n2,563,876 \n \n35,612,298 \n \n276,509 32,185,322 \n1,122,052 \n33,583,883 \n \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted Investment Earnings Miscellaneous \nSpecial Item Loss of Disposal of Capital Assets Total General Revenues and Special Item \nTotal Revenues and Special Item \n \n10,449,965 3,340,528 2,604,650 99,468 1,549,008 \n18,043,619 53,655,917 \n \n9,959,416 3,073,586 3,062,129 \n10,868 1,636,994 \n(104,250) 17,638,743 51,222,626 \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \nTotal Expenses \n \n28,949,882 \n2,579,416 1,798,261 \n436,682 777,771 2,763,702 447,542 3,284,655 2,562,643 192,013 422,647 \n36,181 2,891,909 \n127,679 47,270,983 \n \n24,156,540 \n2,156,411 1,567,406 \n346,679 564,601 2,220,557 448,792 2,741,222 2,218,645 272,235 658,233 \n27,731 2,457,096 \n46,758 39,882,906 \n \nIncrease in Net Position \n \n$ 6,384,934 $ 11,339,720 \n \nvii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \n \n$ 28,949,882 $ 24,156,540 $ 4,471,410 $ \n \n2,579,416 1,798,261 \n436,682 777,771 2,763,702 447,542 3,284,655 2,562,643 192,013 422,647 \n \n2,156,411 1,567,406 \n346,679 564,601 2,220,557 448,792 2,741,222 2,218,645 272,235 658,233 \n \n1,280,471 705,612 (13,413) (9,457) \n1,497,538 422,355 \n1,681,988 1,151,942 \n125,861 330,230 \n \n36,181 2,891,909 \n127,679 \n \n27,731 2,457,096 \n46,758 \n \n36,181 (149,712) 127,679 \n \n1,165,220 \n1,212,317 411,437 (96,785) (154,088) 987,502 418,409 \n1,538,250 1,036,006 \n252,404 400,346 \n27,731 (946,483) \n46,758 \n \nTotal Expenses \n \n$ 47,270,983 $ 39,882,906 $ 11,658,685 $ 6,299,024 \n \nThe overall School District expenses increased almost $7.4 million from the prior year while the net costs of providing those services increased by about $5.4 million. The increase in fiscal year 2023 expenses was primarily the result of actuarial estimates for higher pension and OPEB expenses for fiscal 2023 by a net amount of about $5.4 million as compared to the prior year. Other expenses rose as were expected. The increase in the net costs of providing services for fiscal year 2023 of $5.4 million resulted primarily from an increase in operating revenues from the prior year of about $2.0 million that partially minimized the increase in expenses. \n \nviii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2023. The percentages are rounded to one decimal place. \n \nGovernmental Activities -- Cost of Services \n \nInstructional 61.2% \n \nSupport Services 32.3% \n \nInterest on Debt 0.3% \n \nAll Others 0.1% \nFood Services 6.1% \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $53.6 million and total expenditures of roughly $61.4 million in fiscal year 2023. Total governmental fund balances of $20.1 million at June 30, 2023, decreased about $7.5 million from the prior year. The decrease in fund balance of $7.5 million was primarily attributable to the fact the School District sold bonds in the amount of $10.0 million during fiscal year 2022 and has begun the process of spending those funds on capital projects. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2023, the School District amended its general fund budget as needed. \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $48.0 million exceeded the final budgeted revenues by $2.9 million. The primary reason revenues exceeded the budget was State funds exceeded the final budgeted amount by almost $1.6 million. Additionally, the School District did not budget for the activities of the school principals accounts and those revenues are primarily reported as miscellaneous revenues and totaled over $1.0 million during the fiscal year. \nThe general fund's final actual expenditures of $44.9 million exceeded the final budget by about $0.4 million. This budget over expenditure of less than 1% indicates the School District's management did a creditable job on managing its finances during the fiscal year. \n \nix \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets and Right-to-Use Assets \n \nAt fiscal year ended June 30, 2023, the School District had almost $44.3 million invested in capital assets and right-to-use assets, net of accumulated depreciation and amortization, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; intangible assets; and instructional food service, transportation, maintenance equipment; and other right-to-use assets. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \nTable 4 Capital Assets at June 30 (Net of Depreciation and Amortization) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nLand Construction in Progress Land Improvements Buildings and Improvements Equipment Right-to-Use Equipment Right-to-Use - Subscription Software \n \n$ 1,497,522 $ 1,497,522 \n \n4,827 \n \n2,870,981 \n \n2,673,714 \n \n2,388,526 \n \n36,022,481 \n \n19,867,510 \n \n3,807,068 \n \n2,943,454 \n \n137,400 \n \n215,212 \n \n195,525 \n \n- \n \nTotal \n \n$ 44,338,537 $ 29,783,205 \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nLong-Term Debt \n \nAt June 30, 2023, the School District had almost $9.9 million in total debt outstanding which consisted of bond debt of $9.6 million, lease liability debt of about $144 thousand, and software subscription debt of $125 thousand. Table 5 reflects a summary of these balances. \nTable 5 Change in Long-Term Debt \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nGeneral Obligation Bonds Lease Debt Software Subscription Debt \n \n$ 9,600,000 $ 10,000,000 \n \n143,545 \n \n216,179 \n \n124,762 \n \n- \n \n$ 9,868,307 $ 10,216,179 \n \nx \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 Additional information about the School District's debt can be found in the Notes to the Basic Financial Statements. FACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows:  The School District is financially stable. The School District's operating millage for fiscal year 2023 was 14.228, which was a slight decrease from the prior year. This millage rate produced over $650,000 per mill. The School District is currently expending the balance of a $10.0 million bond issue sold in fiscal year 2022 to renovate and upgrade exiting school facilities.  School District revenues have remained relatively flat when compared to the prior year. General fund revenues increased about $0.5 million from the prior year mainly due a slight increase in property tax revenue. The general fund had an unassigned fund balance of almost $14.3 million at June 30, 2023, which was an increase of almost $2.4 million from the prior year.  The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees, as well as inflationary increases for utilities, fuel, and other supplies and materials. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. W. Keith Martin, Chief Financial Officer for Elbert County Board of Education, 50 Laurel Drive, Elberton, Georgia, 30635 or by phone at 706-213-4000. You may also email your questions to Mr. Martin at keith.martin@elbert.k12.ga.us. \nxi \n \n Elbert County Board of Education \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation/Amortization) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n18,463,763.81 \n \n916,596.86 2,984,656.50 1,855,845.58 \n33,779.80 39,770.80 1,502,349.28 42,836,188.08 68,632,950.71 \n \n22,276,856.00 5,652,477.00 \n27,929,333.00 \n \n701,820.17 2,278,701.98 \n40,000.00 686,819.59 144,274.63 46,583,586.00 20,371,638.00 \n1,021,938.78 8,846,368.44 80,675,147.59 \n \n599,869.00 12,607,722.00 13,207,591.00 \n \n35,755,153.13 \n \n1,496,137.45 897,468.75 \n2,424,620.98 (37,893,835.19) \n \n$ \n \n2,679,545.12 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2023 \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 \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nFood Services \n \nInterest on Long-Term Debt \n \n28,949,882.46 $ \n2,579,415.68 1,798,260.79 \n436,681.63 777,770.67 2,763,702.21 447,542.38 3,284,655.03 2,562,642.88 192,013.28 422,646.65 \n36,181.40 2,891,909.40 \n127,678.63 \n \n230,873.40 $ \n- \n171,928.90 \n- \n \n22,811,435.93 $ \n772,529.57 1,092,648.60 \n450,094.64 782,358.00 1,157,634.81 \n25,186.96 1,384,773.98 1,234,481.03 \n7,314.28 92,417.14 \n2,834,745.07 \n- \n \n1,436,162.74 $ \n526,415.02 - \n4,870.11 108,529.90 \n217,892.78 176,220.00 \n58,837.55 - \n34,947.86 \n- \n \n(4,471,410.39) \n(1,280,471.09) (705,612.19) 13,413.01 9,457.44 \n(1,497,537.50) (422,355.42) \n(1,681,988.27) (1,151,941.85) \n(125,861.45) (330,229.51) \n(36,181.40) 149,712.43 (127,678.63) \n \nTotal Governmental Activities \n \n$ \n \n47,270,983.09 $ \n \n402,802.30 $ \n \n32,645,620.01 $ \n \n2,563,875.96 \n \n(11,658,684.82) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects/Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Total General Revenues \n \n10,449,964.91 \n3,167,969.77 172,558.04 \n2,604,650.00 99,467.60 \n1,549,008.14 18,043,618.46 \n \nChange in Net Position \n \n6,384,933.64 \n \nNet Position - Beginning of Year \n \n(3,705,388.52) \n \nNet Position - End of Year \n \n$ \n \n2,679,545.12 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n ASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Other Due from Other Funds Inventories \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nELBERT COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2023 \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nEXHIBIT \"C\" TOTAL \n \n$ \n \n14,475,318.64 $ \n \n625,922.88 2,984,656.50 1,855,845.58 \n33,779.80 - \n39,770.80 \n \n$ \n \n20,015,294.20 $ \n \n3,050,976.42 $ \n290,673.98 - \n836,506.05 - \n4,178,156.45 $ \n \n937,468.75 $ \n- \n937,468.75 $ \n \n18,463,763.81 \n916,596.86 2,984,656.50 1,855,845.58 \n33,779.80 836,506.05 \n39,770.80 \n25,130,919.40 \n \n$ \n \n129,961.23 $ \n \n571,858.94 $ \n \n2,278,701.98 \n \n- \n \n836,506.05 \n \n- \n \n- \n \n686,819.59 \n \n- \n \n144,274.63 \n \n3,245,169.26 \n \n1,402,953.16 \n \n- $ - \n \n701,820.17 2,278,701.98 \n836,506.05 686,819.59 144,274.63 4,648,122.42 \n \n367,828.75 \n \n- \n \n- \n \n367,828.75 \n \n39,770.80 1,456,366.65 \n575,977.69 14,330,181.05 16,402,296.19 \n \n2,775,203.29 \n2,775,203.29 \n \n937,468.75 \n937,468.75 \n \n39,770.80 5,169,038.69 \n575,977.69 14,330,181.05 20,114,968.23 \n \n$ \n \n20,015,294.20 $ \n \n4,178,156.45 $ \n \n937,468.75 $ \n \n25,130,919.40 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n ELBERT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2023 \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 and Right-to-use assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Construction in progress Buildings and improvements Equipment Land improvements Intangible assets Right-to-use assets - equipment Right-to-use assets - subscriptions Accumulated depreciation and amortization \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net 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. Related 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. Bonds payable Accrued interest payable Lease and subscription liability payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n20,114,968.23 \n \n$ \n \n1,497,522.00 \n \n4,827.28 \n \n52,912,461.72 \n \n10,892,939.32 \n \n3,595,865.83 \n \n306,516.25 \n \n382,935.78 \n \n245,025.00 \n \n(25,499,555.82) \n \n44,338,537.36 \n \n$ \n \n(46,583,586.00) \n \n(20,371,638.00) \n \n(66,955,224.00) \n \n$ \n \n21,676,987.00 \n \n(6,955,245.00) \n \n14,721,742.00 367,828.75 \n \n$ \n \n(9,600,000.00) \n \n(40,000.00) \n \n(268,307.22) \n \n(9,908,307.22) \n \n$ \n \n2,679,545.12 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Lease Liability Proceeds Subscription Liability Proceeds Transfers In Transfers Out Total 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$ \n \n10,417,928.33 $ \n \n172,558.04 \n \n24,988,075.60 \n \n10,373,945.41 \n \n402,802.30 \n \n74,176.44 \n \n1,549,008.14 \n \n47,978,494.26 \n \n- $ 3,167,969.77 2,387,655.96 \n25,291.16 5,580,916.89 \n \n- $ - \n \n10,417,928.33 3,340,527.81 \n27,375,731.56 10,373,945.41 \n402,802.30 99,467.60 \n1,549,008.14 53,559,411.15 \n \n26,924,412.28 \n2,216,094.98 1,720,851.79 \n419,398.63 739,703.36 2,597,866.46 425,459.38 3,328,760.16 2,564,453.55 141,488.28 388,793.46 \n36,181.40 3,039,566.53 \n117,395.98 \n197,106.48 4,345.30 \n44,861,878.02 3,116,616.24 \n \n101,061.54 \n19,500.00 - \n5,386.70 10.00 \n153,889.77 85,063.00 27,346.71 - \n136,178.67 15,439,190.41 \n15,967,626.80 (10,386,709.91) \n \n- \n- \n400,000.00 125,000.00 525,000.00 (525,000.00) \n \n27,025,473.82 \n2,235,594.98 1,720,851.79 \n419,398.63 739,703.36 2,603,253.16 425,469.38 3,482,649.93 2,649,516.55 141,488.28 416,140.17 \n36,181.40 3,175,745.20 15,556,586.39 \n597,106.48 129,345.30 61,354,504.82 (7,795,093.67) \n \n4,209.63 245,025.00 \n(1,000,000.00) \n(750,765.37) \n \n1,000,000.00 (1,399,968.75) (399,968.75) \n \n2,365,850.87 \n \n(10,786,678.66) \n \n14,036,445.32 \n \n13,561,881.95 \n \n$ \n \n16,402,296.19 $ \n \n2,775,203.29 $ \n \n1,399,968.75 1,399,968.75 \n874,968.75 \n62,500.00 \n937,468.75 $ \n \n4,209.63 245,025.00 2,399,968.75 (2,399,968.75) 249,234.63 \n(7,545,859.04) \n27,660,827.27 \n20,114,968.23 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n ELBERT 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, 2023 \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. Capital outlay Depreciation and amortization 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. Subscription liability proceeds Lease liability proceeds Bond principal retirements Lease liability payments Subscription liability payments \nDistrict pension/OPEB 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. Pension 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. Net decrease in accrued interest \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n(7,545,859.04) \n \n$ \n \n16,525,191.96 \n \n(1,969,859.38) \n \n14,555,332.58 32,036.58 \n \n$ \n \n(245,025.00) \n \n(4,209.63) \n \n400,000.00 \n \n76,843.98 \n \n120,262.50 \n \n347,871.85 \n \n$ \n \n(2,770,044.00) \n \n1,763,929.00 \n \n(1,006,115.00) \n \n1,666.67 \n \n$ \n \n6,384,933.64 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Elbert County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of aboard elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBasis of Presentation \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGovernment-Wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. 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 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. \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. \n- 7 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \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. Eliminations have been made to minimize the double counting of internal activities. 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 longterm principal and interest. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all \n- 8 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nintergovernmental revenues to be available if they are collected within 120 days after fiscal 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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from general long-term liabilities and acquisitions under leases and subscription-based technology arrangements 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 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have a material 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. \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. \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \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, fist-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 \n- 9 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nwhen received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCapital Assets \n \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. \n \nDepreciation is computed using the straight-line method for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \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. \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 Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \n \nN/A 20 years up to 50 years 2 to 25 years 3 to 6 years \n \nIntangible Right-To-Use Assets \nLeases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. Subscription-based information technology arrangements (SBITAs) result in an intangible right-to use subscription asset and a subscription liability on the Statement of Net Position. \nAn intangible right-to-use asset represents the School District's right to use an underlying asset for the lease or subscription term. Lease and subscription liabilities represent the School District's obligation to make lease and subscription payments arising from the lease or subscription agreement. Intangible right-to-use assets, lease obligations, and subscription liabilities are recognized based on the present value of lease or subscription payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease or subscription are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease or subscription liability. Intangible right-to-use assets are amortized using a straight-line basis over the shorter of the lease or subscription term or useful life of the underlying asset. \n- 10 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \nCapitalization Policy \n \nLand \n \n$ \n \nLand Improvements \n \n$ \n \nBuildings and \n \n$ \n \nEquipment \n \n$ \n \nSubscription Assets \n \n$ \n \n5,000.00 5,000.00 5,000.00 5,000.00 50,000.00 \n \nLeases as Lessee \nThe School District is a lessee for noncancellable leases of copier, printers and postage machines owned by 3rd parties. \nAt the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the lease term. \nKey estimates and judgments related to leases include how the School District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. \nThe lease agreements entered into by the School District as lessee do not contain stated interest rates. Therefore, the School District has used its' estimated incremental borrowing rate as the discount rate for the leases. The School District has estimated this incremental borrowing rate to be 2.25% for the leases in which the School District is currently involved as the lessee. \nThe lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments the School District will make over the lease term. \nThe School District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability. \nLease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the Statement of Net Position. \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- 11 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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. \nLong-Term Liabilities \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt 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. \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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 \n \n- 12 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nfund 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. \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 Elbert County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on October 7, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on January 6, 2023 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Elbert County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5%of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2023, for maintenance and operations amounted to $10,417,928.33. \n \nThe tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.228 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in the property tax revenue as shown above, amounted to $1,149,040.87 during fiscal year ended June 30, 2023. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,167,969.77 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expires June 30, 2027. \n \n- 13 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and various other minor programs, is prepared and adopted by fund and function. The legal level of \nbudgetary 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 fiscal year 2023. \nNOTE 4: DEPOSITS \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- 14 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCategorization of Deposits \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2023, the School District had deposits with a carrying amount of $18,463,763.81, and a bank balance of $19,489,480.62. The bank balances insured by Federal depository insurance were $598,603.69. \nAt June 30, 2023, $18,890,876.93 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 15 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \nThe following is a summary of changes in the capital assets and intangible right-to-use assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2022 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2023 \n \n$ 1,497,522.00 $ \n \n- $ \n \n2,870,980.73 14,197,720.62 \n \n- $ \n \n- $ 1,497,522.00 \n \n- \n \n(17,063,874.07) \n \n4,827.28 \n \nTotal Capital Assets Not Being Depreciated \n \n4,368,502.73 14,197,720.62 \n \n- \n \n(17,063,874.07) \n \n1,502,349.28 \n \nCapital Assets, Being Depreciated/Amortized Buildings and Improvements Equipment Land Improvements Intangible Assets Right-To-Use Assets - Equipment Right-To-Use Assets - Subscriptions \n \n35,730,156.41 9,727,496.18 3,143,819.43 306,516.25 382,935.78 - \n \n118,431.24 1,511,968.70 \n452,046.40 - \n245,025.00 \n \n346,525.56 \n- \n \n17,063,874.07 - \n \n52,912,461.72 10,892,939.32 \n3,595,865.83 306,516.25 382,935.78 245,025.00 \n \nLess Accumulated Depreciation/Amortization: Buildings and Improvements Equipment Land Improvements Intangible Assets Right-To-Use Assets - Equipment Right-To-Use Assets - Subscriptions \n \n15,862,646.72 6,784,041.92 755,293.19 306,516.25 167,723.92 - \n \n1,027,333.79 648,354.78 166,858.86 77,811.95 49,500.00 \n \n346,525.56 \n- \n \n- \n \n16,889,980.51 \n \n- \n \n7,085,871.14 \n \n- \n \n922,152.05 \n \n- \n \n306,516.25 \n \n- \n \n245,535.87 \n \n- \n \n49,500.00 \n \nTotal Capital Assets, Being Depreciated/Amortized, Net \n \n25,414,702.05 \n \n357,611.96 \n \nGovernmental Activities Capital Assets - Net \n \n$ 29,783,204.78 $ 14,555,332.58 $ \n \n- \n \n17,063,874.07 \n \n42,836,188.08 \n \n- $ \n \n- $ 44,338,537.36 \n \n- 16 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nDepreciation \n \nAmortization \n \nTotal \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nGeneral Administration \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nOther Support Services \n \nFood Services \n \n965,573.80 $ \n354,859.44 3,108.28 \n75,062.06 154,749.62 226,445.73 \n32,189.90 30,558.60 \n \n127,311.95 $ 1,092,885.75 \n \n- \n \n354,859.44 \n \n- \n \n3,108.28 \n \n- \n \n75,062.06 \n \n- \n \n154,749.62 \n \n- \n \n226,445.73 \n \n- \n \n32,189.90 \n \n- \n \n30,558.60 \n \n$ 1,842,547.43 $ \n \n127,311.95 $ 1,969,859.38 \n \nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \n \nInterfund Assets and Liabilities \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2023, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund \n \n$ \n \nCapital Projects Fund \n \n- $ 836,506.05 \n \n836,506.05 - \n \n$ \n \n836,506.05 $ \n \n836,506.05 \n \nThe general fund owes the capital projects fund for expenditures made on construction projects that were paid from the capital projects fund. \n \n- 17 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nInterfund Transfers \n \nInterfund transfers for the year ended June 30, 2023, consisted of the following: \n \nTransfers to \n \nTransfers From Capital Projects \n \nGeneral Fund \n \nFund \n \nCapital Projects Fund Debt Service Fund \n \n1,000,000.00 - \n \n1,399,968.75 \n \nTotal \n \n$ \n \n1,000,000.00 $ 1,399,968.75 \n \n1) Transfers of $1,000,000.00 were made from the general fund to the capital projects fund to provide supplemental funding for capital construction projects. \n2) Transfers of $1,399,968.75 were made from the capital projects fund to the debt service fund to provide funding for debt services for fiscal year 2023 and to establish a balance to fund fiscal year 2024 debt services. \n \nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2022 \n \nGovernmental Activities \n \nAdditions \n \nDeductions \n \nBalance June 30, 2023 \n \nDue Within One Year \n \nGeneral Obligation (G.O.) Bonds $ 10,000,000.00 $ \n \nLeases \n \n216,179.07 \n \nSubscription Liabilities \n \n- \n \n- $ 4,209.63 245,025.00 \n \n400,000.00 $ 9,600,000.00 $ \n \n76,843.98 \n \n143,544.72 \n \n120,262.50 \n \n124,762.50 \n \n820,000.00 77,176.28 \n124,762.50 \n \n$ 10,216,179.07 $ 249,234.63 $ 597,106.48 $ 9,868,307.22 $ 1,021,938.78 \nGeneral Obligation Bonds \nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2023. In the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \n \n- 18 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nGeneral obligation bonds outstanding at June 30, 2023 are as follows: \n \nDescription \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2021 \n \n1.25% 12/16/2021 9/1/2032 $ 10,000,000.00 $ 9,600,000.00 \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 \n2024 2025 2026 2027 2028 2029 - 2033 \n \n$ \n \n820,000.00 $ \n \n855,000.00 \n \n895,000.00 \n \n940,000.00 \n \n990,000.00 \n \n5,100,000.00 \n \n117,468.75 107,125.00 \n96,312.50 84,968.75 73,062.50 164,437.50 \n \nTotal Principal and Interest \n \n$ 9,600,000.00 $ \n \n643,375.00 \n \nLeases \nThe School District has acquired various copiers and postage machines under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes. \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2023: \nGovernmental Activities \n \nEquipment Less: Accumulated Amortizaion \n \n382,935.78 245,535.87 \n \n$ \n \n137,399.91 \n \nDuring the current fiscal year, the School District entered into a new lease agreement as lessee for the right-to-use postage machine at a cost of $4,209.63. This agreement qualifies as a 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- 19 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nLeases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nTwenty-Two Copier Lease Finisher Lease Three Copier Lease Postage Machine - District Office Postage Machine - High School \n \n2.25% 2.25% 2.25% 2.25% 2.25% \n \n7/1/2021 5/17/2022 12/28/2021 \n7/1/2021 7/30/2022 \n \n3/20/2025 $ 4/22/2026 3/23/2026 12/29/2023 6/30/2027 \n \n338,713.12 $ 1,468.46 \n21,968.95 8,568.70 4,209.63 \n \n122,903.30 1,075.13 \n15,314.63 871.39 \n3,380.27 \n \nThe following is a schedule of total lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n$ \n \n374,928.86 $ \n \n143,544.72 \n \nInterest \n \n2024 2025 2026 2027 \n \n$ \n \n77,176.28 $ \n \n60,071.24 \n \n5,442.61 \n \n854.59 \n \n2,384.43 693.64 53.87 4.01 \n \nTotal Principal and Interest $ \n \n143,544.72 $ \n \n3,135.95 \n \nSubscription Liabilities \nThe School District has entered into certain subscription-based contracts to use vendor-provided information technology (IT) under the provisions of various contracts that convey control of the rightto-use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as subscription liabilities for accounting purposes. The subscription asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the subscriptionbased information technology arrangement term. \nDuring the current fiscal year, the School District entered into a subscription agreement for the rightto-use certain software-based technology at a cost of $245,025.00. This agreement qualifies as a subscription liability for accounting purposes, and, therefore, has been recorded at the present value of the future minimum subscription payments as of the date of inception. \nFor the fiscal year 2023, there were no variable payments based on performance nor termination penalties expensed. \n \n- 20 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2023: \nGovernmental Activities \n \nSubscription Assets \n \n$ \n \nLess: Accumulated Amortizaion \n \n245,025.00 49,500.00 \n \n$ \n \n195,525.00 \n \nAt the commencement of the subscription-based information technology arrangement (SBITA), the School District initially measures the subscription liability at the present value of payments expected to be made during the term of the SBITA. Subsequently, the subscription liability is reduced by the principal portion of SBITA payments made. The right-to-use subscription asset is initially measured as the initial amount of the subscription liability, adjusted for SBITA payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the SBITA term. \n \nSubscription liabilities currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nCentegix Agreement \n \n2.25% \n \n4/19/2023 \n \n4/19/2028 $ \n \n245,025.00 $ \n \n124,762.50 \n \nThe following is a schedule of total subscription liability payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2024 \n \n$ \n \n124,762.50 \n \nNOTE 8: RISK MANAGEMENT \nInsurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \nGeorgia School Boards Association Risk 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 contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \n- 21 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nWorkers' Compensation \n \nGeorgia School Boards Association Workers' Compensation Fund \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \n \nUnemployment Compensation \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not paid unemployment compensation claims during the past two fiscal years. \n \nSurety Bond \n \nThe School District purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n100,000.00 \n \nDrivers Education \n \n$ \n \n10,000.00 \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2023: \n \nNonspendable \n \nInventories \n \nRestricted \n \nContinuation of Federal Programs $ \n \nCapital Projects \n \nDebt Service \n \nAssigned \n \nSchool Activity Accounts \n \n$ \n \nBanquet Fund \n \nScholarship Account \n \nUnassigned \n \n$ \n1,456,366.65 2,775,203.29 \n937,468.75 \n507,947.39 25,868.53 42,161.77 \n \n39,770.80 \n5,169,038.69 \n575,977.69 14,330,181.05 \n \nFund Balance, June 30, 2023 \n \n$ 20,114,968.23 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n- 22 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 10: SIGNIFICANT COMMITMENTS \n \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, 2023: \n \nProject \n \nUnearned Executed Contracts (1) \n \nElbert County Middle School Tennis Courts \n \n$ 1,098,000.00 \n \n(1) The amounts described are not reflected in the basic financial statements. \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFederal Grants \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nLitigation \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGeorgia School Personnel Post-Employment Health Benefit Fund \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment 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- 23 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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. \n \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 $795,606.00 for the year ended June 30, 2023. 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 \nAt June 30, 2023, the School District reported a liability of $20,371,638.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 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, 2022. At June 30, 2022, the School District's proportion was 0.205708%, which was an increase of 0.004513% from its proportion measured as of June 30, 2021. \nFor the year ended June 30, 2023, the School District recognized OPEB expense of ($968,323.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience $ \n \nChanges of assumptions \n \nNet difference between projected and actual earnings on OPEB plan investments \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \nSchool District contributions subsequent to the measurement date \n \nTotal \n \n$ \n \n813,146.00 $ 8,006,671.00 \n \n3,102,642.00 \n \n4,120,192.00 \n \n124,261.00 \n \n- \n \n816,822.00 \n \n480,859.00 \n \n795,606.00 \n \n- \n \n5,652,477.00 $ 12,607,722.00 \n \n- 24 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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, 2024. 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 \n2024 2025 2026 2027 2028 Thereafter \n \n$ (2,239,615.00) \n \n$ (1,728,179.00) \n \n$ (1,337,649.00) \n \n$ (1,638,899.00) \n \n$ (737,153.00) \n \n$ \n \n(69,356.00) \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 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, 2022: \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \nHealthcare cost trend rate \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nPre-Medicare Eligible Medicare Eligible Ultimate trend rate \n \n6.50% 5.00% \n \nPre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \n \n4.50% 4.50% \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the \n- 25 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nPub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 104% for males and 99% for females) with the MP-2019 Projection scale applied generationally. \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \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, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 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 ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTarget Allocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n2.00% 9.40% \n \nTotal \n \n100.00% \n \n* Net of inflation \n \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers 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 2128. \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 3.57%, 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 (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate: \n \n1% Decrease (2.57%) \n \nCurrent Discount Rate (3.57%) \n \n1% Increase (4.57%) \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n23,042,768.00 $ \n \n20,371,638.00 $ 18,107,737.00 \n \n- 27 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 1percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n17,552,601.00 $ \n \n20,371,638.00 $ 23,836,222.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 13: RETIREMENT PLANS \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 O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \nBenefits 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. 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 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $4,031,836.00 from the School District. \n \n- 28 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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/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 $15.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $62,975.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2023, the School District reported a liability of $46,583,586.00 for its proportionate share of the net pension liability for TRS. \nThe net pension liability for TRS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2022. \nAt June 30, 2022, the School District's TRS proportion was 0.143458%, which was an increase of 0.000856% from its proportion measured as of June 30, 2021. \nAt June 30, 2023, 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 PSERS pension liability associated with the School District at June 30, 2023, is $507,140.00. \n- 29 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022was 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, 2022. \n \nFor the year ended June 30, 2023, the School District recognized pension expense of $6,801,880.00 for TRS and $127,444.00 for PSERS and revenue of $127,444.00 for PSERS. The revenue is support provided by the State of Georgia. \n \nAt June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 1,933,696.00 $ 242,478.00 \n \nChanges of assumptions \n \n7,012,316.00 \n \n- \n \nNet difference between projected and actual earnings on \n \npension plan investments \n \n9,152,349.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n146,659.00 \n \n357,391.00 \n \nSchool District contributions subsequent to the measurement date \n \n4,031,836.00 \n \n- \n \nTotal \n \n$ 22,276,856.00 $ 599,869.00 \n \nThe School District contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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 \n2024 2025 2026 2027 \n \n$ 4,605,473.00 $ 3,648,828.00 $ 2,705,142.00 $ 6,685,708.00 \n \n- 30 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2022, was determined by an actuarial valuation as of June 30, 2021, 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 \n6.90%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates were assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018, with the exception of the investment rate of return and payroll growth assumption. \n \nPublic School Employees Retirement System: \n \nInflation Salary increases Investment rate of return \nPost-retirement benefit increases \n \n2.50% \nN/A 7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 31 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type \n \nMembership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees \n \nGeneral Healthy Below- Male: +2; Female: +2 Median Annuitant \n \nMale: 101%; Female: 103% \n \nDisability Retirees \n \nGeneral Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nTRS/PSERS \n \nLong-Term \n \nAsset Class \n \nTarget Allocation \n \nExpected 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% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n \n0.20% 9.40% 13.40% 9.40% 11.40% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total PSERS pension liability was 7.00%. 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 and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n- 32 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \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 6.90%, 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 (5.90%) or 1-percentage-point higher (7.90%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n1% Increase (7.90%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ \n \n70,279,203.00 $ \n \n46,583,586.00 $ 27,232,979.00 \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 publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \nDefined Contribution Plan \nThe School District maintains 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 has selected Lincoln Financial Services as the provider of this plan. For each employee covered under PSERS, the Board contributes an amount equal to 3% of the employee's base pay. The employee becomes vested in the plan from the enrollment date. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment. \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 \n2023 2022 2021 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n10,006.00 9,139.00 \n10,947.00 \n \n- 33 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.143458% $ 46,583,586.00 $ 0.142602% $ 12,612,196.00 $ 0.143212% $ 34,691,552.00 $ 0.144087% $ 30,982,601.00 $ 0.150555% $ 27,946,233.00 $ 0.142965% $ 26,568,441.00 $ 0.146132% $ 30,148,661.00 $ 0.151458% $ 23,057,977.00 $ 0.158677% $ 20,046,746.00 $ \n \n- \n \n$ 46,583,586.00 $ 19,383,807.14 \n \n- \n \n$ 12,612,196.00 $ 18,553,704.46 \n \n- \n \n$ 34,691,552.00 $ 18,464,037.77 \n \n- \n \n$ 30,982,601.00 $ 17,549,418.52 \n \n- \n \n$ 27,946,233.00 $ 17,943,982.57 \n \n- \n \n$ 26,568,441.00 $ 16,431,083.38 \n \n- \n \n$ 30,148,661.00 $ 16,034,314.13 \n \n- \n \n$ 23,057,977.00 $ 16,023,377.62 \n \n- \n \n$ 20,046,746.00 $ 16,202,581.03 \n \n240.32% 67.98% \n187.89% 176.54% 155.74% 161.70% 188.03% 143.90% 123.73% \n \n72.85% 92.03% 77.01% 78.56% 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- 35 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n2014 \n \n$ \n \n4,031,836.00 $ 3,839,932.00 $ 3,536,336.00 $ 3,903,298.00 $ 3,667,282.47 $ 3,016,383.47 $ 2,344,715.60 $ 2,288,096.62 $ 2,106,396.50 $ 1,989,676.95 $ \n \n4,031,836.00 $ 3,839,932.00 $ 3,536,336.00 $ 3,903,298.00 $ 3,667,282.47 $ 3,016,383.47 $ 2,344,715.60 $ 2,288,096.62 $ 2,106,396.50 $ 1,989,676.95 $ \n \n- \n \n$ \n \n20,179,359.36 \n \n- \n \n$ \n \n19,383,807.14 \n \n- \n \n$ \n \n18,553,704.46 \n \n- \n \n$ \n \n18,464,037.77 \n \n- \n \n$ \n \n17,549,418.52 \n \n- \n \n$ \n \n17,943,982.57 \n \n- \n \n$ \n \n16,431,083.38 \n \n- \n \n$ \n \n16,034,314.13 \n \n- \n \n$ \n \n16,023,377.62 \n \n- \n \n$ \n \n16,202,581.03 \n \n19.98% 19.81% 19.06% 21.14% 20.90% 16.81% 14.27% 14.27% 13.15% 12.28% \n \n- 36 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 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 \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n507,140.00 $ 50,934.00 $ \n345,473.00 $ 353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $ \n \n507,140.00 $ 50,934.00 $ \n345,473.00 $ 353,129.00 $ 330,043.00 $ 298,154.00 $ 378,484.00 $ 249,672.00 $ 224,650.00 $ \n \n849,191.57 807,849.42 805,734.41 809,074.92 845,484.37 852,404.01 794,053.46 773,148.31 717,174.57 \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \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- 37 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB \nliability \n \n2023 2022 2021 2020 2019 2018 \n \n0.205708% $ 20,371,638.00 $ 0.201195% $ 21,791,083.00 $ 0.203962% $ 29,957,268.00 $ 0.205774% $ 25,252,885.00 $ 0.201274% $ 25,581,307.00 $ 0.202548% $ 28,457,913.00 $ \n \n- \n \n$ 20,371,638.00 $ 19,891,998.56 \n \n- \n \n$ 21,791,083.00 $ 17,927,791.04 \n \n- \n \n$ 29,957,268.00 $ 17,114,840.48 \n \n- \n \n$ 25,252,885.00 $ 16,227,984.46 \n \n- \n \n$ 25,581,307.00 $ 16,850,692.05 \n \n- \n \n$ 28,457,913.00 $ 15,389,820.86 \n \n102.41% 121.55% 175.04% 155.61% 151.81% 184.91% \n \n6.17% 6.14% 3.99% 4.63% 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- 38 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n795,606.00 $ 743,789.00 $ 748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n795,606.00 $ 743,789.00 $ 748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n- \n \n$ \n \n19,957,139.77 \n \n- \n \n$ \n \n19,891,998.56 \n \n- \n \n$ \n \n17,927,791.04 \n \n- \n \n$ \n \n17,114,840.48 \n \n- \n \n$ \n \n16,227,984.46 \n \n- \n \n$ \n \n16,850,692.05 \n \n- \n \n$ \n \n15,389,820.88 \n \n3.99% 3.74% 4.17% 4.03% 6.83% 6.19% 6.86% \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 ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \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 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). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. 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 and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \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, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n \n- 40 - \n \n ELBERT COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"7\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total 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 \n9,674,047.00 $ \n \n9,674,047.00 $ \n \n10,417,928.33 $ \n \n743,881.33 \n \n177,000.00 \n \n177,000.00 \n \n172,558.04 \n \n(4,441.96) \n \n23,348,760.82 \n \n23,427,120.13 \n \n24,988,075.60 \n \n1,560,955.47 \n \n11,182,124.22 \n \n11,382,960.96 \n \n10,373,945.41 \n \n(1,009,015.55) \n \n191,950.00 \n \n191,950.00 \n \n402,802.30 \n \n210,852.30 \n \n5,100.00 \n \n5,100.00 \n \n74,176.44 \n \n69,076.44 \n \n254,500.00 \n \n254,500.00 \n \n1,549,008.14 \n \n1,294,508.14 \n \n44,833,482.04 \n \n45,112,678.09 \n \n47,978,494.26 \n \n2,865,816.17 \n \n26,742,643.88 \n2,244,137.87 1,893,003.98 \n423,358.15 727,793.76 2,740,788.98 568,447.37 2,596,722.44 2,342,262.79 143,122.21 433,147.00 \n2,571,941.00 \n120,000.00 \n75,000.00 15,000.00 43,637,369.43 1,196,112.61 \n \n27,108,757.44 \n2,353,404.23 2,060,111.06 \n418,933.35 774,886.03 2,685,856.58 546,962.95 2,857,605.56 2,392,868.61 137,201.21 433,141.40 \n2,531,447.46 \n105,287.67 \n75,000.00 2,726.60 \n44,484,190.15 628,487.94 \n \n26,924,412.28 \n2,216,094.98 1,720,851.79 \n419,398.63 739,703.36 2,597,866.46 425,459.38 3,328,760.16 2,564,453.55 141,488.28 388,793.46 \n36,181.40 3,039,566.53 \n117,395.98 \n197,106.48 4,345.30 \n44,861,878.02 3,116,616.24 \n \n184,345.16 \n137,309.25 339,259.27 \n(465.28) 35,182.67 87,990.12 121,503.57 (471,154.60) (171,584.94) (4,287.07) 44,347.94 (36,181.40) (508,119.07) (12,108.31) \n(122,106.48) (1,618.70) \n(377,687.87) 2,488,128.30 \n \n- \n \n- \n \n249,234.63 \n \n249,234.63 \n \n- \n \n- \n \n(1,000,000.00) \n \n(1,000,000.00) \n \n- \n \n- \n \n(750,765.37) \n \n(750,765.37) \n \n1,196,112.61 \n \n628,487.94 \n \n2,365,850.87 \n \n1,737,362.93 \n \n14,134,464.89 \n \n14,134,464.89 \n \n14,036,445.32 \n \n(98,019.57) \n \n32,261.13 \n \n7,599.16 \n \n- \n \n(7,599.16) \n \n$ \n \n15,362,838.63 $ \n \n14,770,551.99 $ \n \n16,402,296.19 $ \n \n1,631,744.20 \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 $1,047,047.86 and $1,042,515.25, 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- 41 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development English Language Acquisition State Grants Migrant Education State Grant Program Rural and Low-Income School Program Rural and Low-Income School Program 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 Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.555 \n \n235GA324N1199 $ 235GA324N1199 225GA324N1099 \n \n741,664.56 2,030,587.02 \n93,807.82 2,866,059.40 \n \n10.560 \n \n235GA904N2533 \n \n3,442.82 2,869,502.22 \n \n84.425D 84.425U 84.425W \n \nS425D210012 S425U210012 S425W210011 \n \n790,637.82 \n2,603,417.92 \n42,705.31 3,436,761.05 \n \n84.027A 84.027A 84.027X 84.173A 84.173A \n \nH027A210073 H027A220073 H027X210073 H173A210081 H173A220081 \n \n84.048A 84.371C 84.365A 84.011A 84.358B 84.358B 84.424A 84.424A 84.367A 84.367A 84.010A 84.010A \n \nV048A220010 S371C190016-19A \nS365A210010 S011A220011 S358B210010 S358F220010 S424A210011 S424A220011 S367A210001 S367A220001 S010A210010-21A S010A220010 \n \n107,289.00 690,468.93 \n30,679.00 1,603.00 \n28,513.00 858,552.93 \n63,041.45 684,870.41 \n221.00 9,870.78 7,757.00 80,118.93 20,745.00 87,872.88 40,943.00 115,688.38 106,531.00 1,602,849.24 2,820,509.07 7,115,823.05 \n- 42 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Pass-Through From Y.M.C.A. Headstart Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant Total U.S. Department of Health and Human Services \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n93.600 \n93.575 \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n04CH010232 \n2110GACCC5 \n \nEXPENDITURES IN PERIOD \n496,866.16 \n40,000.00 536,866.16 \n \n12. UNKNOWN \n \n91,079.26 \n \n$ \n \n10,613,270.69 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Elbert County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2023. 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 Expenditures 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 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 ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"9\" \n \nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities 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 Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Sparsity Education Equalization Funding Grant Other State Programs Career Technical and Agricultural Education (CTAE) Food Services Hygiene Products Math and Science Supplements Preschool Disability Services School Security Grant Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of the State Treasurer Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nGENERAL \n \nCAPITAL PROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n949,071.13 $ \n \n- $ \n \n949,071.13 \n \n739,918.00 689,497.00 1,588,161.00 1,526,340.00 943,758.00 768,956.00 2,380,406.00 1,897,531.00 925,045.00 3,782,231.00 764,985.00 \n49,243.00 176,347.00 149,111.00 390,954.00 117,981.00 \n75,610.00 1,533.00 \n593,980.00 869,224.00 774,188.00 910,410.00 \n \n625,687.00 176,220.00 \n65,227.00 14,333.00 2,604,650.00 \n \n49,890.70 83,680.00 \n1,522.54 25,587.73 89,060.00 124,762.50 \n \n- \n \n62,975.00 \n \n$ \n \n24,988,075.60 $ \n \n- \n \n739,918.00 \n \n- \n \n689,497.00 \n \n- \n \n1,588,161.00 \n \n- \n \n1,526,340.00 \n \n- \n \n943,758.00 \n \n- \n \n768,956.00 \n \n- \n \n2,380,406.00 \n \n- \n \n1,897,531.00 \n \n- \n \n925,045.00 \n \n- \n \n3,782,231.00 \n \n- \n \n764,985.00 \n \n- \n \n49,243.00 \n \n- \n \n176,347.00 \n \n- \n \n149,111.00 \n \n- \n \n390,954.00 \n \n- \n \n117,981.00 \n \n- \n \n75,610.00 \n \n- \n \n1,533.00 \n \n- \n \n593,980.00 \n \n- \n \n869,224.00 \n \n- \n \n774,188.00 \n \n- \n \n910,410.00 \n \n- \n- \n2,387,655.96 \n- \n2,387,655.96 $ \n \n625,687.00 176,220.00 \n65,227.00 14,333.00 2,604,650.00 \n49,890.70 83,680.00 \n1,522.54 25,587.73 89,060.00 124,762.50 \n2,387,655.96 \n62,975.00 \n27,375,731.56 \n \nSee notes to the basic financial statements. \n \n- 44 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Renovating, modernizing, equipping, repairing, improving, planning, and acquiring other system facilities to include elementary, middle, high, athletic and operational facilities. (2) Purchasing textbooks and software. (3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities. (4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices. (5) Purchasing, upgrading, renovating, improving, planning and modernizing HVAC and associated systems. (6) Acquiring and preparing land for the construction of new or replacement facilities and the expansion of existing School District facilities as well as replacing, purchasing, upgrading or supplementing capital equipment. \nSubtotal 2016 Projects \nSPLOST 2021 (1) Adding to, renovating, repairing, improving and equipping existing school buildings and school system facilities, including early learning center, primary school, elementary school, middle school and high school facilities, athletic facilities, operations facilities and parking facilities. (2) Acquiring textbooks, e-books, e-book readers, computers, laptops, tablets, and peripherals for the school system. (3) Acquiring school buses and transportation and maintenance equipment. (4) Acquiring miscellaneous new equipment, fixtures and furnishings for the school system, including but not limited to technology equipment and safety and security equipment. (5) Renovating, repairing, improving, and equipping heating, air conditioning and associated systems at facilities throughout the School District. (6) Paying a portion of the debt service on the General Obligation Debt of the School District. (7) Paying expenses incident to accomplishing the foregoing. \nSubtotal 2021 Projects \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n6,747,219.00 $ \n \n5,406,562.44 \n \n725,000.00 \n \n671,270.07 \n \n805,000.00 \n \n1,126,194.19 \n \n12/31/2023 Completed \n12/31/2023 \n \n3,400,000.00 2,616,219.00 \n \n1,161,064.84 1,512,983.15 \n \n12/31/2023 Completed \n \n125,000.00 14,418,438.00 \n \n157,317.26 10,035,391.95 \n \nCompleted \n \n3,287,296.00 924,650.00 \n1,500,000.00 \n \n13,557,328.57 924,650.00 \n1,500,000.00 \n \n1,488,054.00 \n \n1,488,054.00 \n \n300,000.00 \n \n300,000.00 \n \n6,500,000.00 - \n14,000,000.00 \n \n6,500,000.00 - \n24,270,032.57 \n \n$ \n \n28,418,438.00 $ \n \n34,305,424.52 \n \n6/30/2027 6/30/2027 6/30/2027 \n6/30/2027 \n6/30/2027 6/30/2027 6/30/2027 \n \n- 46 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Renovating, modernizing, equipping, repairing, improving, planning, and acquiring other system facilities to include elementary, middle, high, athletic and operational facilities. (2) Purchasing textbooks and software. (3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities. (4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices. (5) Purchasing, upgrading, renovating, improving, planning and modernizing HVAC and associated systems. (6) Acquiring and preparing land for the construction of new or replacement facilities and the expansion of existing School District facilities as well as replacing, purchasing, upgrading or supplementing capital equipment. \nSubtotal 2016 Projects \nSPLOST 2021 (1) Adding to, renovating, repairing, improving and equipping existing school buildings and school system facilities, including early learning center, primary school, elementary school, middle school and high school facilities, athletic facilities, operations facilities and parking facilities. (2) Acquiring textbooks, e-books, e-book readers, computers, laptops, tablets, and peripherals for the school system. (3) Acquiring school buses and transportation and maintenance equipment. (4) Acquiring miscellaneous new equipment, fixtures and furnishings for the school system, including but not limited to technology equipment and safety and security equipment. (5) Renovating, repairing, improving, and equipping heating, air conditioning and associated systems at facilities throughout the School District. (6) Paying a portion of the debt service on the General Obligation Debt of the School District. (7) Paying expenses incident to accomplishing the foregoing. \nSubtotal 2021 Projects \nTotal \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ \n \n638,487.57 $ \n \n4,473,874.00 $ \n \n- $ \n \n- \n \n65,455.97 \n \n605,814.10 \n \n671,270.07 \n \n- \n \n- \n \n1,126,194.19 \n \n- \n \n- \n \n- \n \n1,110,581.88 \n \n- \n \n- \n \n- \n \n1,512,983.15 \n \n1,512,983.15 \n \n- \n \n- \n \n157,317.26 \n \n157,317.26 \n \n- \n \n703,943.54 \n \n8,986,764.58 \n \n2,341,570.48 \n \n- \n \n10,422,146.02 \n \n- \n \n- \n \n- \n \n16,555.57 \n \n- \n \n- \n \n- \n \n85,063.00 \n \n- \n \n- \n \n- \n \n8,690.00 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n525,000.00 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n11,057,454.59 \n \n- \n \n- \n \n- \n \n$ 11,761,398.13 $ \n \n8,986,764.58 $ \n \n2,341,570.48 $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Elbert County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \n \nPrior Years Current Year \nTotal \n \n$ \n \n272,001.50 \n \n- \n \n$ \n \n272,001.50 \n \nSee notes to the basic financial statements. \n \n- 47 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \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 \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nWe have audited the financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 5, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal 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 basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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 or significant deficiencies may exist that were not identified. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Report on 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 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, \nGreg S. Griffin State Auditor \nMarch 5, 2024 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Mr. Robert Wheeler, Superintendent and Members of the Elbert County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Elbert County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. 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. \nIn our opinion, the School District 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, 2023. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \n \n 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 Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \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 \nMarch 5, 2024 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n Section IV Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities and Each Major Fund \n \nInternal control over financial reporting:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n10.553, 10.555 84.425 \n \nChild Nutrition Cluster Education Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 Yes \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be3-b2022-belec-p-btext","title":"Annual financial report, 2022 June 30, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report","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":["2023-03-16"],"dcterms_description":["Annual financial report for the Elbert 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":["Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Elbert County--Auditing--Periodicals","Education--Georgia--Elbert County--Finance--Statistics--Periodicals"],"dcterms_title":["Annual financial report, 2022 June 30, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report"],"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-be3-b2022-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be3-b2022-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-be3-b2021-belec-p-btext","title":"Annual financial report, fiscal year 2021, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report","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":["2022-05-25"],"dcterms_description":["Financial report of the Elbert 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":["Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Elbert County--Auditing--Periodicals","Education--Georgia--Elbert County--Finance--Statistics--Periodicals"],"dcterms_title":["Annual financial report, fiscal year 2021, Elbert County Board of Education, Elberton, Georgia, including independent auditor's report"],"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-be3-b2021-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-be3-b2021-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 statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2021 \nElbert County Board of Education \nElberton, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor Kristina A. Turner | Deputy State Auditor \n \n Elbert 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 \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 in Fund \n \nBalances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG Notes to the Basic Financial Statements \n \n8 \n \nSchedules \n \nRequired Supplementary Information \n \n1 Schedule of Proportionate Share of the Net Pension Liability \n \nTeachers Retirement System of Georgia \n \n33 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n34 \n \n3 Schedule of Proportionate Share of the Net Pension Liability Public \n \nSchool Employees Retirement System of Georgia \n \n35 \n \n4 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n36 \n \n Elbert County Board of Education Table of Contents Section I Schedules Required Supplementary Information \n \n5 Schedule of Contributions  School OPEB Fund \n \n37 \n \n6 Notes to the Required Supplementary Information \n \n38 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n39 \n \nSupplementary Information \n \n8 Schedule of Expenditures of Federal Awards \n \n40 \n \n9 Schedule of State Revenue \n \n42 \n \n10 Schedule of Approved Local Option Sales Tax Projects \n \n44 \n \nSection II \n \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 \nSummary Schedule of Prior Year Findings \nSection IV Findings and Questioned Costs \nSchedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \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 Mr. Jon Jarvis, Superintendent and Members of the Elbert County Board of Education \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter. \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 \n \n 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 May 25, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA 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, \nGreg S. Griffin State Auditor \nMay 25, 2022 \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2021 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2021 are as follows: \nOn the government-wide financial statements: \n The School District's net position (deficit) at June 30, 2021 was almost ($15.1) 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 (deficit) at June 30, 2021 of ($15.1) million represented an increase of about $2.2 million, without consideration of the restatement, when compared to the prior year. The $2.2 million increase in net position for fiscal year 2021 was primarily attributable to general fund revenues and other financing sources exceeding the final budget by almost $3.9 million and a reduction in net position of $2.4 million caused by recognizing the fiscal year 2021 OPEB and pension activity on the financial statements. \n The School District had almost $42.7 million in expenses relating to governmental activities; about $28.2 million of the $42.7 million in expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $16.5 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $16.5 million or about 36.9% of all revenues totaling $44.7 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in the table below have been rounded to one decimal place.) \ni \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nSource of Revenues \n \nProgram Revenues \n63.1% \n \nGeneral Revenue Property Taxes 22.3% \nGeneral Revenue Sales Taxes 6.2% \nGeneral Revenue All Other 8.4% \n \nOn the fund financial statements: \n Among major funds, the general fund had $42.6 million in revenues and other financing sources and $39.2 million in expenditures and other financing uses. The general fund balance of almost $12.4 million at June 30, 2021 increased roughly $3.4 million from the prior year, largely due to significant increases in federal revenues as compared to the prior year. \n \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consist of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \n \nThe government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \n \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Elbert County School District, the general fund and capital projects fund are both considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \n \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \n \nii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nGovernment-Wide Statements \nSince Elbert County Board of Education has no operations that have been classified as \"Business Activities,\" the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the governmentwide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets, deferred outflows, liabilities and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt, including pension and postemployment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net position as follows: \no Net Investment in capital assets o Restricted net position is amounts with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \niii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \nThe School District has one kind of fund as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nDuring fiscal year 2021, the School District implemented GASB Statement No. 84, Fiduciary Activities. Based on the criteria outlined in this statement, the School District determined it has no fiduciary funds. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position- as measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \nIn the case of the Elbert County Board of Education, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by about $15.1 million at June 30, 2021. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the (deficit) $15.1 million of net position, over $2.9 million was restricted for continuation of various Federal programs and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \nIn addition, the School District had almost $25.8 million (net of related debt) invested in capital assets e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \niv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nBecause of the restrictions on net position as discussed above, the School District had an unrestricted (deficit) of about $43.8 million at June 30, 2021. The reader should remember this deficit includes pension related charges recorded because of the implementation (fiscal year 2015) of GASB No. 68, Accounting and Financial Reporting for Pensions and GASB No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB No. 68; and also includes charges recorded because of the implementation (fiscal year 2018) of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The School District believes it is also meaningful to view the School District's net position in the following manner: \n \nNet position associated with pension obligations \n \n$ \n \n(25,646,846.00) \n \nNet position associated with postemployment benefits other than pension obligations \n \n(30,016,326.00) \n \nNet position exclusive of pension obligations and postemployment benefits \nNet Position, June 30, 2021 (deficit) \n \n40,587,137.19 \n \n$ \n \n(15,076,034.81) \n \nThe above analysis reflects, exclusive of pension obligations and postemployment benefits, the School District's net position is a positive $40,587,137.19 and management believes the School District's financial position is sound. \n \nv \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net Total Assets \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 (1) \n \n$ \n \n16,986,454 $ \n \n12,695,372 \n \n26,542,797 \n \n27,251,574 \n \n43,529,251 \n \n39,946,946 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources \n \n10,009,361 6,251,614 \n16,260,975 59,790,226 \n \n9,439,707 2,197,689 11,637,396 51,584,342 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability Total Liabilities \n \n2,320,345 621,769 \n34,691,552 29,957,268 67,590,934 \n \n2,261,633 1,751,441 \n30,982,601 25,252,885 60,248,560 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources \n \n964,655 6,310,672 7,275,327 74,866,261 \n \n2,135,609 6,501,505 8,637,114 68,885,674 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n25,785,691 2,889,607 (43,751,333) \n \n25,662,396 1,725,928 \n(44,689,656) \n \nTotal Net Position \n \n$ \n \n(15,076,035) $ \n \n(17,301,332) \n \n(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \n \nvi \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nIn connection with the unrestricted deficit at June 30, 2021 as shown above, management presents the following additional information: \n \nTotal unrestricted net position (deficit) \n \n$ \n \n(43,751,333) \n \nAdd: \n \nUnrestricted deficit in net position resulting from recognition \n \nof net pension obligations \n \n25,646,846 \n \nUnrestricted deficit in net position resulting from recognition of postemployment benefits other than pension obligations \n \n30,016,326 \n \nUnrestricted net position, exclusive of the net pension obligation \n \nand postemployment benefits effect \n \n$ \n \n11,911,839 \n \nThe above analysis shows that the recognition of liabilities for pension obligations and postemployment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \n \nvii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 (1) \n \n$ \n \n204,075 $ \n \n27,778,680 \n \n231,660 \n \n28,214,415 \n \n158,125 24,869,895 \n223,355 25,251,375 \n \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted Investment Earnings Miscellaneous \nSpecial Item Loss of Disposal of Capital Assets \nTotal General Revenues and Special Item Total Revenues and Special Item \n \n9,969,019 2,754,712 2,503,224 \n11,649 1,280,207 \n(15,683) 16,503,128 44,717,543 \n \n9,123,947 2,313,440 2,349,683 \n12,425 490,257 \n14,289,752 39,541,127 \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt Total Expenses \n \n27,076,757 \n2,051,810 1,541,207 \n488,161 658,307 2,748,040 452,011 2,489,145 2,043,423 403,535 458,813 \n12,355 2,211,673 \n40,944 42,676,181 \n \n23,508,230 \n1,696,286 1,480,972 \n571,039 696,321 2,766,817 440,526 2,502,875 1,955,189 451,100 326,491 \n4,305 2,150,149 \n57,029 38,607,329 \n \nIncrease in Net Position \n \n$ \n \n2,041,362 $ \n \n933,798 \n \n(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 13 in the Notes to the Basic Financial Statements for additional information. \nviii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nCost of Providing Services \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \n \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 (1) \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 (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 Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \n \n$ \n \n27,076,757 $ \n \n23,508,230 $ \n \n2,051,810 1,541,207 \n488,161 658,307 2,748,040 452,011 2,489,145 2,043,423 403,535 458,813 \n \n1,696,286 1,480,972 \n571,039 696,321 2,766,817 440,526 2,502,875 1,955,189 451,100 326,491 \n \n12,355 2,211,673 \n40,944 \n \n4,305 2,150,149 \n57,029 \n \n7,303,114 $ \n1,431,835 701,571 55,672 (28,603) \n1,644,744 425,522 1,418,226 804,109 381,641 414,983 \n12,355 (144,348) \n40,944 \n \n5,595,926 \n1,468,078 765,564 138,113 (165,738) \n1,679,656 420,210 1,359,891 \n1,227,676 432,951 303,505 \n4,305 68,788 57,029 \n \nTotal Expenses \n \n$ \n \n42,676,181 $ \n \n38,607,329 $ \n \n14,461,765 $ \n \n13,355,954 \n \n(1) Fiscal year 2020 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \n \nThe overall School District expenses increased almost $4.1 million from the prior year while the net costs of providing those services increased by about $1.1 million. The disproportionate increase in total costs of services vs. the net costs of services was primarily the result of expenses rising faster than funding provided from various State and Federal sources. \n \nix \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2021. The percentages are rounded to one decimal place. \n \nGovernmental Activities - Cost of Services \n \nInstructional 63.5% \n \nSupport Services \n31.2% \n \nInterest on Debt 0.1% \n \nAll Others Food Services 0.0% \n5.2% \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of almost $45.9 million and total expenditures and other financing uses of roughly $41.9 million in fiscal year 2021. Total governmental fund balances of $14.2 million at June 30, 2021, increased about $4.0 million from the prior year. The increase in fund balance of $4.0 million was primarily attributable to the fact general fund revenues exceeded expectations by almost $3.9 million. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia law. The most significant budgeted fund is the general fund. During the course of fiscal year 2021, the School District amended its general fund budget as needed. \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues and other financing sources of $42.6 million exceeded the final budgeted revenues and other financing uses by $3.9 million. The primary reason revenues exceeded the budget was property taxes exceeded the final budget by over $1.3 million, and State funds exceeded the final budgeted amount by $1.8 million coupled with the fact Federal revenues fell short of the budgeted amount by about $526,000.00. Additionally, the School District did not budget for the activities of the school principals accounts and those revenues totaled $971,000.00 during the fiscal year. \nThe general fund's final actual expenditures and other financing uses of $39.2 million were less than the final budget by almost $84,000. This budget under expenditures of just over 2.0% indicates the School District's management did a creditable job on managing its finances during the fiscal year. \nx \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2021, the School District had over $26.5 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; intangible assets; and instructional food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \nTable 4 Capital Assets at June 30 (Net of Depreciation and Amortization) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 \n \nLand \n \n$ \n \nConstruction in Progress \n \nLand Improvements \n \nBuildings and Improvements \n \nEquipment \n \nIntangible Assets \n \n1,497,522 $ 145,263 \n2,023,464 20,297,054 \n2,579,494 - \n \n1,497,522 - \n2,128,075 21,220,399 2,403,336 \n2,242 \n \nTotal \n \n$ \n \n26,542,797 $ \n \n27,251,574 \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nxi \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \n \nLong-Term Debt \nAt June 30, 2021, the School District had $621,769 in total debt outstanding which consisted of balances due on capital leases. The School District had no bond debt at June 30, 2021. \nTable 5 Change in Long-Term Debt \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2021 \n \n2020 \n \nCapital Leases \n \n$ \n \nEnergy Efficiency Leases \n \nRevenue Bonds \n \nInstallment Sales Agreement \n \n621,769 $ - \n \n333,749 698,960 \n20,422 698,310 \n \n$ \n \n621,769 $ \n \n1,751,441 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n \n The School District is financially stable. The School District's operating millage for fiscal year 2021 was 15.932 per mill, which was a slight decrease from the prior year. This millage rate produced over $621,000.00 per mill. The School District's student enrollment has remained fairly stable; however, a new primary school will be constructed and grade level re-structuring will happen in the next two years to relieve overcrowding at the elementary school and provide a newer facility for primary. \n \n The economy has continued to improve from the prior year. The School District's revenues from property taxes increased about 4.7% from the prior year, despite a slight decrease in the millage rate. Additionally, revenues from the Federal government increased by 81.9% from the prior year, primarily in response for providing services associated with Covid 19. Management expects this level of funding to be temporary and not be sustained into the near future. The general fund had an unassigned fund balance of almost $11.0 million at June 30, 2021, which was an increase of $2.9 million from the prior year. \n \n The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. \n \nxii \n \n ELBERT COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizen's taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. W. Keith Martin, Chief Financial Officer for Elbert County Board of Education, 50 Laurel Drive, Elberton, Georgia, 30635 or by phone at 706-213-4000. You may also email your questions to Mr. Martin at keith.martin@elbert.k12.ga.us. \nxiii \n \n Elbert County Board of Education \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021 \nASSETS Cash and Cash Equivalents 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 Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nBus Replacement Continuation of Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n12,178,633.89 \n \n961,518.81 2,742,731.39 \n885,497.29 97,020.96 89,979.32 \n31,072.12 1,642,784.85 24,900,012.05 43,529,250.68 \n \n10,009,361.00 6,251,614.00 \n16,260,975.00 \n \n119,183.14 2,065,814.49 \n121,813.60 13,533.73 34,691,552.00 29,957,268.00 \n153,408.54 468,359.99 67,590,933.49 \n \n964,655.00 6,310,672.00 7,275,327.00 \n \n25,785,691.04 \n \n154,440.00 746,344.96 1,988,821.85 (43,751,332.66) \n \n$ \n \n(15,076,034.81) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2021 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND CONTRIBUTIONS \n \nGRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nFood Services \n \nInterest on Long-Term Debt \n \n27,076,756.39 $ \n2,051,809.47 1,541,207.36 \n488,160.95 658,307.23 2,748,039.88 \n452,011.31 2,489,145.23 2,043,422.95 \n403,535.17 458,812.45 \n12,355.19 2,211,673.24 \n40,943.74 \n \n94,914.59 $ 19,678,727.91 $ \n \n- \n \n619,974.78 \n \n- \n \n839,636.01 \n \n- \n \n432,489.00 \n \n- \n \n686,910.15 \n \n- \n \n1,103,296.20 \n \n- \n \n26,489.64 \n \n- \n \n1,070,919.25 \n \n- \n \n1,007,653.33 \n \n- \n \n21,894.09 \n \n- \n \n43,829.11 \n \n109,160.78 \n- \n \n2,246,860.23 \n- \n \n- \n \n$ \n \n231,660.00 - \n \n- \n \n(7,303,113.89) \n(1,431,834.69) (701,571.35) (55,671.95) 28,602.92 \n(1,644,743.68) (425,521.67) \n(1,418,225.98) (804,109.62) (381,641.08) (414,983.34) \n(12,355.19) 144,347.77 (40,943.74) \n \nTotal Governmental Activities \n \n$ 42,676,180.56 $ \n \n204,075.37 $ 27,778,679.70 $ \n \n231,660.00 \n \n(14,461,765.49) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Net Loss on Disposal of Capital Assets Total General Revenues and Special Item \n \n9,969,018.61 \n2,568,641.10 186,070.79 \n2,503,224.00 11,648.90 \n1,280,206.93 \n(15,682.75) 16,503,127.58 \n \nChange in Net Position \n \n2,041,362.09 \n \nNet Position - Beginning of Year (Restated) \n \n(17,117,396.90) \n \nNet Position - End of Year \n \n$ (15,076,034.81) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n ELBERT COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2021 \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Due from Other Funds Inventories \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \nFUND BALANCES Nonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nGENERAL FUND \n \n$ \n \n10,238,867.56 $ \n \n729,619.66 2,742,731.39 \n885,497.29 97,020.96 89,979.32 153,532.13 \n31,072.12 \n \n$ \n \n14,968,320.43 $ \n \n$ \n \n89,871.64 $ \n \n2,065,814.49 \n \n- \n \n- \n \n- \n \n2,155,686.13 \n \n430,070.03 \n \n31,072.12 869,712.84 499,217.20 10,982,562.11 12,382,564.27 \n \n$ \n \n14,968,320.43 $ \n \nCAPITAL PROJECTS \nFUND \n1,939,766.33 $ \n231,899.15 - \n2,171,665.48 $ \n29,311.50 $ - \n153,532.13 121,813.60 13,533.73 318,190.96 \n- \n1,853,474.52 \n1,853,474.52 \n2,171,665.48 $ \n \nEXHIBIT \"C\" \nTOTAL \n12,178,633.89 961,518.81 \n2,742,731.39 885,497.29 97,020.96 89,979.32 153,532.13 31,072.12 \n17,139,985.91 \n119,183.14 2,065,814.49 \n153,532.13 121,813.60 13,533.73 2,473,877.09 \n430,070.03 \n31,072.12 2,723,187.36 \n499,217.20 10,982,562.11 14,236,038.79 \n17,139,985.91 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n ELBERT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2021 \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. Land Construction in progress Buildings and improvements Equipment Land improvements Intangible assets Accumulated depreciation \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net 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. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Lease liability payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n14,236,038.79 \n \n$ \n \n1,497,522.00 \n \n145,262.85 \n \n35,161,659.17 \n \n9,497,427.08 \n \n2,631,726.43 \n \n306,516.25 \n \n(22,697,316.88) \n \n26,542,796.90 \n \n$ \n \n(34,691,552.00) \n \n(29,957,268.00) \n \n(64,648,820.00) \n \n$ \n \n9,044,706.00 \n \n(59,058.00) \n \n8,985,648.00 430,070.03 \n \n(621,768.53) \n \n$ \n \n(15,076,034.81) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n ELBERT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Lease Liability Proceeds Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances \nFund Balances - Beginning (Restated) \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \n$ \n \n9,895,421.34 $ \n \n186,070.79 \n \n22,582,589.59 \n \n7,924,660.11 \n \n204,075.37 \n \n8,863.44 \n \n1,289,055.43 \n \n42,090,736.07 \n \n- $ 2,568,641.10 \n2,785.46 2,571,426.56 \n \n23,828,073.54 \n1,684,588.46 1,444,710.36 \n436,324.95 609,087.25 2,432,697.51 427,643.31 2,133,458.53 2,070,069.56 373,654.17 288,894.48 \n12,355.19 2,135,410.00 462,495.00 \n97,423.71 - \n38,436,886.02 3,653,850.05 \n \n462,495.00 - \n(760,529.40) (298,034.40) 3,355,815.65 \n \n9,026,748.62 \n \n$ \n \n12,382,564.27 $ \n \n688,537.29 \n176,566.04 42,938.00 123,942.50 145,262.85 \n1,494,743.31 40,943.74 \n2,712,933.73 (141,507.17) \n760,529.40 \n760,529.40 619,022.23 \n1,234,452.29 \n1,853,474.52 $ \n \nEXHIBIT \"E\" \nTOTAL \n9,895,421.34 2,754,711.89 22,582,589.59 7,924,660.11 204,075.37 \n11,648.90 1,289,055.43 44,662,162.63 \n24,516,610.83 \n1,684,588.46 1,444,710.36 \n436,324.95 609,087.25 2,432,697.51 427,643.31 2,310,024.57 2,113,007.56 373,654.17 412,836.98 \n12,355.19 2,135,410.00 \n607,757.85 \n1,592,167.02 40,943.74 \n41,149,819.75 3,512,342.88 \n462,495.00 760,529.40 (760,529.40) 462,495.00 3,974,837.88 \n10,261,200.91 \n14,236,038.79 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n ELBERT 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, 2021 \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \n \nAmounts reported for governmental activities in the Statement of Activities are different because: \n \nGovernmental funds report capital outlays as expenditures. However, \n \nin the Statement of Activities, the cost of capital assets is allocated over \n \ntheir estimated useful lives as depreciation expense. \n \nCapital outlay \n \n$ \n \nDepreciation expense \n \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \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 \n \ngovernmental funds, while the repayment of the principal of long-term debt \n \nconsumes the current financial resources of governmental funds. Neither \n \ntransaction, however, has any effect on net position. Also, governmental funds \n \nreport the effect of premiums, discounts and the difference between the \n \ncarrying value of refunded debt and the acquisition cost of refunded debt when \n \ndebt is first issued. These amounts are deferred and amortized in the Statement \n \nof Activities. \n \nLease liability proceeds \n \n$ \n \nFinanced purchase arrangement payments \n \nInstallment sale agreement payments \n \nLease liability payments \n \nRevenue bond payments \n \nDistrict pension/OPEB contributions are reported as expenditures in the \n \ngovernmental funds when made. However, they are reported as deferred \n \noutflows of resources in the Statement of Net Position because the reported \n \nnet pension/OPEB liability is measured a year before the District's report date. \n \nPension/OPEB expense, which is the change in the net pension/OPEB liability \n \nadjusted for changes in deferred outflows and inflows of resources related \n \nto pensions/OPEB, is reported in the Statement of Activities. \n \nPension expense \n \n$ \n \nOPEB expense \n \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n1,011,069.00 (1,695,314.83) \n(462,495.00) 698,960.00 698,309.63 \n174,475.43 20,421.96 \n(1,968,343.00) (459,625.00) $ \n \nEXHIBIT \"F\" 3,974,837.88 \n(684,245.83) (24,531.25) 73,597.27 \n1,129,672.02 \n(2,427,968.00) 2,041,362.09 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Elbert County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBasis of Presentation \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGovernment-Wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. 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 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. \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- 8 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \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. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded \n- 9 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nwhen the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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 2021, the School District 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 the GASB Statement No. 84 is described in the restatement note. \nIn fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \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- 10 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \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 \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 and amortization 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 fund statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \n \nN/A 20 years \nup to 50 years 2 to 25 years 3 to 6 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- 11 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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. \nLong-Term Liabilities \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. \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. \nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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. \n- 12 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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. \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 Elbert County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on September 16, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 17, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Elbert County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $9,895,421.34. \n \nThe tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n15.932 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in the property tax revenue as shown above, amounted to $1,027,551.88 during fiscal year ended June 30, 2021. \nSales Taxes \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,568,641.10 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expires June 30, 2027. \n \n- 13 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and various other minor programs, is prepared and adopted by fund and function. 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. \nThe 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 fiscal year 2021. \nNOTE 4: DEPOSITS \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, - 14 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCategorization of Deposits \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, School District had deposits with a carrying amount of $12,178,633.89, and a bank balance of $13,296,040.07. The bank balances insured by Federal depository insurance were $667,329.70 and the remaining bank balances of $ 12,628,710.37 were in the State's Secure Deposit Program. \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 criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 15 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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, 2020 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2021 \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \n$ \n \n1,497,522.00 $ \n \n- \n \n- $ 145,262.85 \n \n- $ - \n \n1,497,522.00 145,262.85 \n \nTotal Capital Assets Not Being Depreciated \n \n1,497,522.00 \n \n145,262.85 \n \n- \n \n1,642,784.85 \n \nCapital Assets Being Depreciated and Amortized Buildings and Improvements Equipment Land Improvements Intangible Assets \nLess Accumulated Depreciation and Amortization: Buildings and Improvements Equipment Land Improvements Intangible Assets \n \n35,098,241.17 9,161,296.33 \n2,609,282.68 306,516.25 \n \n63,418.00 779,944.40 \n22,443.75 - \n \n443,813.65 \n- \n \n35,161,659.17 9,497,427.08 2,631,726.43 \n306,516.25 \n \n13,877,842.33 6,757,959.89 \n481,207.75 304,274.48 \n \n986,763.26 579,255.24 127,054.56 \n2,241.77 \n \n419,282.40 \n- \n \n14,864,605.59 6,917,932.73 608,262.31 306,516.25 \n \nTotal Capital Assets, Being Depreciated and Amortized, Net \n \n25,754,051.98 \n \n(829,508.68) \n \n24,531.25 \n \n24,900,012.05 \n \nGovernmental Activities Capital Assets - Net \n \n$ 27,251,573.98 $ (684,245.83) $ \n \n24,531.25 $ 26,542,796.90 \n \n- 16 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nInstruction Support Services \nPupil Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \n \n$ 301,510.76 2,342.98 74,751.37 \n165,012.66 109,709.79 45,975.47 \n \n$ 973,582.56 \n699,303.03 22,429.24 \n \n$ 1,695,314.83 \n \nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \n \nInterfund Assets and Liabilities \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2021, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund \n \n$ \n \nCapital Projects Fund \n \n153,532.13 $ - \n \n153,532.13 \n \n$ \n \n153,532.13 $ \n \n153,532.13 \n \nThe capital projects fund owed the general fund for expenditures made on construction projects that were paid out of the general fund. \n \nInterfund Transfers \n \nInterfund transfers for the year ended June 30, 2021, consisted of the following: \n \nTransfers to \n \nTransfers From General Fund \n \nCapital Projects Fund $ 760,529.40 \n \nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as required match or supplemental funding source for capital construction projects. \n \n- 17 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nNOTE 7: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2020 \n \nGovernmental Activities \n \nAdditions \n \nDeductions \n \nBalance June 30, 2021 \n \nDue Within One Year \n \nRevenue Bonds Installment Sales Agreement Capital Leases Energy Efficient Lease \n \n$ \n \n20,421.96 $ \n \n- $ \n \n20,421.96 $ \n \n698,309.63 \n \n- \n \n698,309.63 \n \n333,748.96 \n \n462,495.00 \n \n174,475.43 \n \n698,960.00 \n \n- \n \n698,960.00 \n \n- $ 621,768.53 - \n \n153,408.54 - \n \n$ 1,751,440.55 $ 462,495.00 $ 1,592,167.02 $ 621,768.53 $ 153,408.54 \n \nCapital Leases \nThe School District has acquired various assets 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 \nEquipment \n \n$ \n \nLess: Accumulated Depreciation \n \n801,208.12 147,419.38 \n \n$ \n \n653,788.74 \n \nDuring fiscal year 2021, the School District entered into a new lease agreement as lessee for financing the acquisition of school buses at a cost of $462,495.00. 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 Maturity Date Amount Issued \n \nAmount Outstanding \n \nLeaf Copier Lease Leaf Copier Lease Leaf Copier Lease School Buses \n \n0.00% 0.00% 2.25% 2.69% \n \n10/17/2018 4/29/2019 3/17/2020 \n8/1/2020 \n \n6/17/2021 $ 6/17/2022 3/20/2025 \n8/1/2024 \n \n6,360.00 $ 12,748.32 338,713.12 462,495.00 \n \n198.75 4,128.77 252,419.69 365,021.32 \n \n$ \n \n820,316.44 $ \n \n621,768.53 \n \n- 18 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2022 2023 2024 2025 \n \n$ \n \n153,408.54 $ \n \n158,102.50 \n \n162,071.75 \n \n148,185.74 \n \n14,930.61 11,059.18 7,089.93 3,053.95 \n \nTotal Principal and Interest $ \n \n621,768.53 $ \n \n36,133.67 \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; and natural disasters. \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 contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \nWorkers' Compensation \nGeorgia School Boards Association Workers' Compensation Fund \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \nUnemployment Compensation \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and the related liability reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has paid no unemployment compensation claims for the past two fiscal years. \n- 19 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2021: \n \nNonspendable \n \nInventories \n \nRestricted \n \nBus Replacement \n \n$ \n \nContinuation of Federal Programs \n \nCapital Projects \n \nAssigned \n \nSchool Activity Accounts \n \n$ \n \nOther Local Projects \n \nUnassigned \n \n$ \n154,440.00 715,272.84 1,853,474.52 \n490,864.16 8,353.04 \n \n31,072.12 \n2,723,187.36 499,217.20 \n10,982,562.11 \n \nFund Balance, June 30, 2021 \n \n$ 14,236,038.79 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nNOTE 10: SIGNIFICANT COMMITMENTS \n \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, 2021. \n \nProject \n \nUnearned Executed Contracts (1) \n \nExpenditures through \nJune 30, 2021 \n \nECCHS Renovation Project \n \n$ \n \n164,293.67 $ \n \n135,347.33 \n \n(1) The amounts described are not reflected in the basic financial statements. \n \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFederal Grants \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \n- 20 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGeorgia School Personnel Post-Employment Health Benefit Fund \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment 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 $748,412.00 for the year ended June 30, 2021. 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, 2021, the School District reported a liability of $29,957,268.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.203962%, which was a decrease of 0.001812% from its proportion measured as of June 30, 2019. \n \n- 21 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nFor the year ended June 30, 2021, the School District recognized OPEB expense of $1,208,037.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and \n \nactual experience \n \n$ \n \n- $ 3,270,404.00 \n \nChanges of assumptions \n \n4,954,267.00 \n \n2,665,552.00 \n \nNet difference between projected and \n \nactual earnings on OPEB plan \n \ninvestments \n \n78,080.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n470,855.00 \n \n374,716.00 \n \nSchool District contributions \n \nsubsequent to the measurement date \n \n748,412.00 \n \n- \n \nTotal \n \n$ 6,251,614.00 $ 6,310,672.00 \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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2022 2023 2024 2025 2026 2027 \n \n$ (577,354.00) $ (579,449.00) $ (406,449.00) $ 100,845.00 $ 487,729.00 $ 167,208.00 \n \n- 22 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nActuarial assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return 7.30%, compounded annually, net of investment \n \nHealthcare cost trend rate \n \nexpense, and including inflation \n \nPre-Medicare Eligible \n \n7.00% \n \nMedicare Eligible \n \n5.25% \n \nUltimate trend rate \n \nPre-Medicare Eligible \n \n4.50% \n \nMedicare Eligible \n \n4.50% \n \nYear of Ultimate trend rate \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \nMortality rates were based on the mortality tables, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \n \n For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate. \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. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan. \n \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n \n- 23 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 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. 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 Equities \nTotal \n \n30.00% 70.00% 100.00% \n \n0.50% 9.20% \n \n*Net of Inflation \n \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 2.22% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal 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. \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 2.22%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1-percentage-point higher (3.22%) than the current discount rate: \n \n1% Decrease (1.22%) \n \nCurrent Discount Rate (2.22%) \n \n1% Increase (3.22%) \n \nSchool District's proportionate share of the Net OPEB liability \n \n$ 35,194,847.00 $ \n \n29,957,268.00 $ 25,768,667.00 \n \n- 24 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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 collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint 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$ 24,942,437.00 $ \n \n29,957,268.00 $ 36,450,017.00 \n \nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 13: 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) \n \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \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. 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 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll. For the current fiscal year, employer contributions to the pension plan were $3,536,336.00 from the School District. \n \n- 25 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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/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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 by the State of Georgia was $63,207.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2021, the School District reported a liability of (amount) for its proportionate share of the net pension liability for TRS of $34,691,552.00. \nThe net pension liability for TRS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2020. \nAt June 30, 2020, the School District's TRS proportion was 0.143212%, which was a decrease of 0.000875% from its proportion measured as of June 30, 2019. \nAt June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the PSERS net pension liability associated with the School District is $345,473.00. \n- 26 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nThe PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020. \n \nFor the year ended June 30, 2021, the School District recognized pension expense of $5,504,677.00 for TRS and $69,521.00 for PSERS and revenue of $69,521.00 for PSERS. The revenue is support provided by the State of Georgia. \n \nAt June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n1,510,828.00 $ \n \n- \n \nChanges of assumptions \n \n3,573,270.00 \n \n- \n \nNet difference between projected and actual \n \nearnings on pension plan investments \n \n835,552.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n553,375.00 \n \n964,655.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n3,536,336.00 \n \n- \n \nTotal \n \n$ 10,009,361.00 $ \n \n964,655.00 \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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \n2022 2023 2024 2025 \n \n$ 1,090,228.00 \n \n$ \n \n1,917,411.00 \n \n$ 1,727,686.00 \n \n$ \n \n773,045.00 \n \n- 27 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nActuarial assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \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 \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement immortality rates were assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \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 \nPost-retirement benefit increases 1.50% semi-annually \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. \n \n- 28 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \n \nTRS Target allocation \n \nPSERS Target allocation \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 the 2.75% assumed rate of inflation with the exception of TRS, which assumed \na rate of 2.50% 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 PSERS pension liability was 7.30%.The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and non employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension 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- 29 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \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 7.25%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) 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$ 55,012,520.00 $ 34,691,552.00 $ 18,034,184.00 \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 publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials. \n \nDefined Contribution Plan \n \nThe School District maintains 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 has selected Lincoln Financial Services as the provider of this plan. For each employee covered under PSERS, the Board contributes an amount equal to 3% of the employee's base pay. The employee becomes vested in the plan from the enrollment date. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment. \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 \n2021 2020 2019 \n \n100% \n \n$ \n \n10,947.00 \n \n100% \n \n$ \n \n11,286.00 \n \n100% \n \n$ \n \n13,583.00 \n \n- 30 - \n \n ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2021 \n \nEXHIBIT \"G\" \n \nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE \n \nFor fiscal year 2021, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2020 net position in 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, 2020 as previously reported \n \n$ \n \n(17,301,332.34) \n \nPrior Period Adjustment - Implementation of GASB No. 84: Private Purpose Trust Fund Account Reclassification Custodial Funds Account Reclassification \n \n44,547.53 139,387.91 \n \nNet Position, July 1, 2020, as restated \n \n$ \n \n(17,117,396.90) \n \nFund Balance (General Fund), July 1, 2020, as previously reported \n \n$ \n \n8,842,813.18 \n \nPrior Period Adjustment - Implementation of GASB No. 84: Private Purpose Trust Fund Account Reclassification Custodial Funds Account Reclassification \n \n44,547.53 139,387.91 \n \nFund Balance (General Fund), July 1, 2020, as restated \n \n$ \n \n9,026,748.62 \n \nNet Position (Fiduciary Funds), July 1, 2020 as previously reported \n \n$ \n \n44,547.53 \n \nPrior Period Adjustment - Implementation of GASB No. 84: Private Purpose Trust Funds Beginning Net Position \n \n(44,547.53) \n \nNet Position (Fiduciary Funds), July 1, 2020, as restated \n \n$ \n \n- \n \nFunds Held for Others of $139,387.91, previously presented in Fiduciary Funds, was reclassified to Net Position and Fund Balance (General Fund). \nNOTE 15: SUBSEQUENT EVENTS \nDuring the current fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $10,000,000.00 and continue the Special Option Sales tax through June 30, 2027 to raise not more than $12,000,000.00 for the purpose of renovating, repairing, improving, and equipping school facilities throughout the School District. On December 16, 2021, $10,000,000.00 in general obligation bonds were issued. \nNOTE 16: SPECIAL ITEM \nDuring fiscal year 2021, the School District sold or otherwise disposed of certain capital assets. These items were removed from the capital assets records at their net carrying values and combined with the proceeds received resulted in a net loss of $15,682.75. This amount is reflected as a net loss on disposal of capital assets and is reported as a special item on Exhibit B of this report. \n- 31 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share of the NPL \n \nState of Georgia's proportionate \nshare of the NPL associated with \nthe School District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered \npayroll \n \nPlan fiduciary net position \nas a percentage of the total \npension liability \n \n2021 2020 2019 2018 2017 2016 2015 \n \n0.143212% $ 34,691,552.00 $ 0.144087% $ 30,982,601.00 $ 0.150555% $ 27,946,233.00 $ 0.142965% $ 26,568,441.00 $ 0.146132% $ 30,148,661.00 $ 0.151458% $ 23,057,977.00 $ 0.158677% $ 20,046,746.00 $ \n \n- \n \n$ 34,691,552.00 $ 18,464,037.77 \n \n- \n \n$ 30,982,601.00 $ 17,549,418.52 \n \n- \n \n$ 27,946,233.00 $ 17,943,982.57 \n \n- \n \n$ 26,568,441.00 $ 16,431,083.38 \n \n- \n \n$ 30,148,661.00 $ 16,034,314.13 \n \n- \n \n$ 23,057,977.00 $ 16,023,377.62 \n \n- \n \n$ 20,046,746.00 $ 16,202,581.03 \n \n187.89% 176.54% 155.74% 161.70% 188.03% 143.90% 123.73% \n \n77.01% 78.56% 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- 33 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \n2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 \n \n$ \n \n3,536,336.00 $ \n \n$ \n \n3,903,298.00 $ \n \n$ \n \n3,667,282.47 $ \n \n$ \n \n3,016,383.47 $ \n \n$ \n \n2,344,715.60 $ \n \n$ \n \n2,288,096.62 $ \n \n$ \n \n2,106,396.50 $ \n \n$ \n \n1,989,676.95 $ \n \n$ \n \n1,839,965.90 $ \n \n$ \n \n1,773,669.56 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n3,536,336.00 $ 3,903,298.00 $ 3,667,282.47 $ 3,016,383.47 $ 2,344,715.60 $ 2,288,096.62 $ 2,106,396.50 $ 1,989,676.95 $ 1,839,965.90 $ \n1,773,669.56 $ \n \n18,553,704.46 18,464,037.77 17,549,418.52 17,943,982.57 16,431,083.38 16,034,314.13 16,023,377.62 16,202,581.03 16,125,906.22 17,253,594.96 \n \nContribution as a percentage of covered payroll \n19.06% 21.14% 20.90% 16.81% 14.27% 14.27% 13.15% 12.28% 11.41% 10.28% \n \n- 34 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share of the NPL \n \nState of Georgia's proportionate \nshare of the NPL associated with the School District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered \npayroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n345,473.00 $ 345,473.00 $ \n \n805,734.41 \n \n- \n \n$ \n \n353,129.00 $ 353,129.00 $ 809,074.92 \n \n- \n \n$ 330,043.00 $ 330,043.00 $ 845,484.37 \n \n- \n \n$ \n \n298,154.00 $ 298,154.00 $ 852,404.01 \n \n- \n \n$ \n \n378,484.00 $ 378,484.00 $ 794,053.46 \n \n- \n \n$ \n \n249,672.00 $ 249,672.00 $ \n \n773,148.31 \n \n- \n \n$ 224,650.00 $ 224,650.00 $ \n \n717,174.57 \n \nN/A \n \n84.45% \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- 35 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share of the NOL \n \nState of Georgia's proportionate share of the NOL associated with the School \nDistrict \n \nTotal \n \nSchool District's covered- \nemployee payroll \n \nSchool District's proportionate share of the NOL as a percentage of its covered- \nemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB liability \n \n2021 2020 2019 2018 \n \n0.203962% $ 29,957,268.00 $ 0.205774% $ 25,252,885.00 $ 0.201274% $ 25,581,307.00 $ 0.202548% $ 28,457,913.00 $ \n \n- \n \n$ 29,957,268.00 $ 17,114,840.48 \n \n- \n \n$ 25,252,885.00 $ 16,227,984.46 \n \n- \n \n$ 25,581,307.00 $ 16,850,692.05 \n \n- \n \n$ 28,457,913.00 $ 15,389,820.86 \n \n175.04% 155.61% 151.81% 184.91% \n \n3.99% 4.63% 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- 36 - \n \n ELBERT COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required contribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n748,412.00 $ 689,753.00 $ 1,108,237.00 $ 1,043,181.00 $ 1,056,097.00 $ \n \n- \n \n$ 17,927,791.04 \n \n- \n \n$ 17,114,840.48 \n \n- \n \n$ 16,227,984.46 \n \n- \n \n$ 16,850,692.05 \n \n- \n \n$ 15,389,820.88 \n \n4.17% 4.03% 6.83% 6.19% 6.86% \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 ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2021 \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 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). \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%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nPublic School Employees Retirement System \nChanges of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \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. \nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation. School 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 June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study. \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, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n- 38 - \n \n ELBERT COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"7\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Service Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Other Sources Other Uses Total Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n8,546,095.00 $ \n \n8,546,095.00 $ \n \n9,895,421.34 $ \n \n- \n \n- \n \n186,070.79 \n \n20,747,449.29 \n \n20,747,449.29 \n \n22,582,589.59 \n \n6,148,458.00 \n \n8,451,145.03 \n \n7,924,660.11 \n \n190,150.00 \n \n190,150.00 \n \n204,075.37 \n \n5,300.00 \n \n5,300.00 \n \n8,863.44 \n \n299,300.00 \n \n299,300.00 \n \n1,289,055.43 \n \n35,936,752.29 \n \n38,239,439.32 \n \n42,090,736.07 \n \n1,349,326.34 186,070.79 \n1,835,140.30 (526,484.92) \n13,925.37 3,563.44 989,755.43 3,851,296.75 \n \n22,775,083.50 \n1,658,310.17 1,566,700.10 \n446,952.79 687,951.45 2,596,450.28 481,748.41 2,116,120.43 1,962,227.39 366,116.54 285,043.80 \n1,928,696.55 \n90,000.00 36,961,401.41 (1,024,649.12) \n \n24,408,151.79 \n1,731,866.21 1,554,999.53 \n451,736.89 687,329.89 2,629,948.49 486,092.59 2,301,864.18 2,268,441.39 368,818.54 319,336.63 \n1,983,189.74 \n90,000.00 39,281,775.87 (1,042,336.55) \n \n23,828,073.54 \n1,684,588.46 1,444,710.36 \n436,324.95 609,087.25 2,432,697.51 427,643.31 2,133,458.53 2,070,069.56 373,654.17 288,894.48 \n12,355.19 2,135,410.00 462,495.00 \n97,423.71 38,436,886.02 \n3,653,850.05 \n \n425,000.00 - \n425,000.00 \n \n425,000.00 - \n425,000.00 \n \n462,495.00 (760,529.40) (298,034.40) \n \n(599,649.12) 9,068,815.37 \n \n(617,336.55) 9,068,815.37 \n \n3,355,815.65 9,026,748.62 \n \n173,460.00 \n \n117,159.16 \n \n- \n \n$ \n \n8,642,626.25 $ \n \n8,568,637.98 $ \n \n12,382,564.27 $ \n \n580,078.25 \n47,277.75 110,289.17 \n15,411.94 78,242.64 197,250.98 58,449.28 168,405.65 198,371.83 (4,835.63) 30,442.15 (12,355.19) (152,220.26) (462,495.00) \n(7,423.71) 844,889.85 4,696,186.60 \n37,495.00 (760,529.40) (723,034.40) \n3,973,152.20 \n(42,066.75) \n(117,159.16) \n3,813,926.29 \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 certain programs that are reported as \n \npart of the general fund. The actual revenues and expenditures of those programs are as follows: \n \nRevenues \n \nExpenditures \n \nSchool Principals Accounts Various other Local Programs \n \n$ \n \n970,811.95 $ \n \n888,948.33 \n \n5,737.82 \n \n31,286.32 \n \n$ \n \n976,549.77 $ \n \n920,234.65 \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- 39 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2021 \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 Total Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Comprehensive Literacy Development English Language Acquisition State Grants Rural Education Rural Education 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 Total Other Programs Total U. S. Department of Education \nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start Georgia Department of Early Care and Learning COVID-19 - Child Care and Development Block Grant \nOther Programs Pass-Through From Y.M.C.A. Head Start Total U. S. Department of Health and Human Services \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \n215GA324N1199 $ 215GA324N1199 \n \n596,721.68 1,406,180.99 2,002,902.67 \n \n10.560 \n \n205GA904N2533 \n \n1,916.02 2,004,818.69 \n \n84.425D 84.425U \n \nS425D210012 S425U210012 \n \n2,540,544.30 \n65,994.11 2,606,538.41 \n \n84.027A 84.027A 84.173A \n \nH027A190073 H027A200073 H173A200081 \n \n84.048A 84.371C 84.365A 84.358B 84.358B 84.424A 84.367A 84.367A 84.010A 84.010A \n \nV048A200010 S371C1900016-19A \nS365A200010 S365B190010 S365B200010 S424A200011 S367A190001 S367A200001 S010A190010 S010A200010 \n \n157,548.00 567,750.10 26,914.00 752,212.10 \n36,778.70 546,584.38 \n11,652.96 8,988.00 51,169.12 106,231.82 28,048.00 104,029.70 74,081.00 1,044,795.14 2,012,358.82 5,371,109.33 \n \n93.575 \n \n2100GACCC5 $ \n \n16,232.00 \n \n93.600 \n \n04CH010232 \n \n329,960.32 346,192.32 \n \n- 40 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n12. UNKNOWN \n \n90,863.61 \n \n$ \n \n7,812,983.95 \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 Elbert County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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. \nNote 4. Donated Personal Protective Equipment \nIn response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management and Homeland Security Agency (GEMA/HS). GEMA/HS, then, donated PPE with an estimated fair market value of $2,790.00 to the Elbert County Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021 \nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Sparsity Education Equalization Funding Grant Other State Programs Career Technical and Agricultural Education (CTAE) Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Georgia Emergency Management Agency Donations to LEA for COVID Office of the State Treasurer Public School Employees Retirement \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE \nGENERAL FUND \n \n$ \n \n893,980.40 \n \n781,812.00 552,669.00 1,452,045.00 1,671,343.00 724,908.00 927,791.00 2,530,642.00 1,629,548.00 850,275.00 3,739,811.00 564,160.00 109,402.00 163,394.00 146,272.00 377,126.00 \n114,335.00 71,730.00 \n1,471.00 \n568,273.00 834,686.00 775,084.00 (604,760.00) \n \n592,562.00 154,440.00 \n61,255.00 13,649.00 2,503,224.00 \n \n49,370.00 54,172.00 19,109.00 81,264.97 77,220.00 \n \n37,119.22 \n \n63,207.00 \n \n$ \n \n22,582,589.59 \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n (This page left intentionally blank) \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"10\" \n \nPROJECT \n(1) Renovating, modernizing, equipping, repairing, improving, planning, and acquiring other system facilities to include elementary, middle, high, athletic and operational facilities; \n(2) Purchasing textbooks and software; \n(3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities; \n(4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices; \n(5) Purchasing, upgrading, renovating, improving, planning, and modernizing HVAC and associated systems; \n(6) Acquiring and preparing land for the construction of new or replacement facilities and the expansion of existing School District facilities as well as replacing, purchasing, upgrading or supplementing capital equipment. \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n6,747,219.00 $ 6,303,062.69 \n \n725,000.00 \n \n594,816.62 \n \n805,000.00 \n \n641,095.50 \n \n6/30/2022 6/30/2022 \n6/30/2022 \n \n3,400,000.00 \n \n1,407,460.84 \n \n6/30/2022 \n \n2,616,219.00 \n \n1,512,983.15 \n \n6/30/2022 \n \n125,000.00 \n \n181,672.00 \n \n$ 14,418,438.00 $ 10,641,090.80 \n \n6/30/2022 \n \n- 44 - \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2021 \n \nSCHEDULE \"10\" \n \nPROJECT \n(1) Renovating, modernizing, equipping, repairing, improving, planning, and acquiring other system facilities to include elementary, middle, high, athletic and operational facilities; \n(2) Purchasing textbooks and software; \n(3) Purchasing, acquiring and improving school buses, vehicles, and improvements to parking facilities; \n(4) Purchasing, upgrading and supporting existing and future technology initiatives to include but not be limited to computers, computer peripheral devices, infrastructure, security, and end user devices; \n(5) Purchasing, upgrading, renovating, improving, planning, and modernizing HVAC and associated systems; \n(6) Acquiring and preparing land for the construction of new or replacement facilities and the expansion of existing School District facilities as well as replacing, purchasing, upgrading or supplementing capital equipment. \nTotal \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 \n$ \n \n379,495.50 $ 2,827,983.28 $ \n \n- $ \n \n- \n \n239,055.37 \n \n226,935.27 \n \n- \n \n- \n \n136,312.67 \n \n307,483.75 \n \n- \n \n- \n \n269,531.94 \n \n840,131.87 \n \n- \n \n- \n \n225,000.00 \n \n1,287,983.15 \n \n- \n \n- \n \n- \n \n157,317.26 \n \n- \n \n- \n \n$ \n \n1,249,395.48 $ 5,647,834.58 $ \n \n- $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Elbert County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \n \nPrior Years Current Year \n \n$ \n \n244,317.53 \n \n27,683.97 \n \nTotal \n \n$ \n \n272,001.50 \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 State Auditor \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 \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 Mr. Jon Jarvis, Superintendent and Members of the Elbert County Board of Education \nWe have audited the financial statements of the governmental activities and each major fund of the Elbert County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 25, 2022. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \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 basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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 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, \nGreg S. Griffin State Auditor \nMay 25, 2022 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Mr. Jon Jarvis, Superintendent and Members of the Elbert County Board of Education \nReport on Compliance for Each Major Federal Program \nWe have audited the Elbert County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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, 2021. \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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \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 \nMay 25, 2022 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n Section IV Findings and Questioned Costs \n \n ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2021 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities and Each Major Fund \nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness(es) identified?  Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n84.425 \n \nEducation Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 Yes \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":4,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":4}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":2}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Education--Auditing","hits":2},{"value":"Education--Finance","hits":2},{"value":"Education--Georgia--Elbert County--Auditing--Periodicals","hits":2},{"value":"Education--Georgia--Elbert County--Auditing--Periodicals.","hits":2},{"value":"Education--Georgia--Elbert County--Finance--Statistics--Periodicals","hits":2},{"value":"Education--Georgia--Elbert County--Finance--Statistics--Periodicals.","hits":2},{"value":"Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","hits":2},{"value":"Elbert County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","hits":2},{"value":"Expenditures, Public","hits":2},{"value":"Georgia Government Documents--Serial","hits":2},{"value":"Georgia--Elbert County--fast","hits":2}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, 32.75042, -83.50018","hits":2},{"value":"United States, Georgia, Elbert County, 34.11679, -82.8401","hits":2}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"counties_facet","items":[{"value":"Elbert","hits":2}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"2022","hits":1},{"value":"2023","hits":1},{"value":"2024","hits":1},{"value":"2025","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"2022","max":"2025","count":4,"missing":0},{"name":"medium_facet","items":[{"value":"state government records","hits":3},{"value":"annual reports","hits":1},{"value":"audits","hits":1},{"value":"financial records","hits":1},{"value":"financial statements","hits":1},{"value":"official reports","hits":1}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":3},{"value":"false","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Annual financial report ... Elbert County Board of Education, Elberton, Georgia, including independent auditor's report.","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 E26 E3","hits":4},{"value":"A800 .R1 E26 E3 2021","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":4}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-82.8401, 34.11679]},\"properties\":{\"placename\":\"United States, Georgia, Elbert County\"}}","hits":2},{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-83.50018, 32.75042]},\"properties\":{\"placename\":\"United States, Georgia\"}}","hits":2}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia","hits":2},{"value":"United States, Georgia, Elbert County","hits":2}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}